Management and Governance Practices

Over 50% of family businesses report that family members get together regularly to have fun and pursue non-business activities; 43.9% emphasise integrity and commitment to the business as primary successor attributes; 37.4% are committed to the long-term viability and continuity of their business; and 36.8% report that they engage in philanthropic and charitable activities. Not surprisingly, hardly any family businesses have set a definite date for the transfer of leadership responsibility and control to the next generation, or designated a mandatory retirement age for senior executives. Very few have established conflict management processes, or processes for welcoming, educating and inducting in-laws into the family. Contrary to what is often advocated by the family business literature, 65% of family business owner-managers believe that family business success and wealth are NOT achieved by means of formal rules and procedures