Resilience: what lessons can we learn from family firms? Premium
In today’s volatile markets, resilience is an increasingly significant organizational success factor. Because family businesses historically demonstrate greater resilience than their nonfamily counterparts, in this feature we identify the family business strategies you may want to consider adopting to increase the resilience of your own organization.
• Family businesses are frugal in good times and bad. They tend to operate with leaner cost structures and less debt and demonstrate a preference for organic growth. Their financial prudence translates into more stable financial results over the long term.
• Prudence can be dangerous, as it restricts the ability to seize opportunities. To offset this risk, family businesses favor strategies of diversification and internationalization.
• Family businesses focus on building strong, trusting relationships with key stakeholders to create lasting value.
Business Leader Testimony
In 30 years, C.S. Lin has grown his family business into a $300 million multinational company. His success comes from careful management of the company finances, ongoing diversification and international expansion, and long-term investments in customer and employee relationships. His current focus? Creating sustainable opportunities for the company’s talent.
Read our dossier :
Resilience: what lessons can we learn from family firms?
Based on, among others, “What you can learn from family business: focus on resilience, not short-term performance” by Nicolas Kachaner, George Stalk and Alain Bloch (HBR, November 2012), L’ADN des meilleurs groupes familiaux : parcours de l’entrepreneur et pérennisation de l’organisation by Gérard Biolley (de Boeck, July 2013) and “Playmobil, star de Noël inamovible” by Stefano Lupieri (Les Echos, April 2012) and the interview with C.S. Lin, CEO, Groupe Kemflo
Business Digest N° 244, March 2014
Watch the video :
What are family business owners and managers thinking about?
Norbert Winkeljohann, a senior partner at PwC, presents an overview of the main findings of a study on family businesses. to enter Africa.