Growing up, I loved watching the Olympics and looked forward to it for months. The Dream Team, Carl Lewis and Mary Lou Retton captivated me and became my heroes. I enjoyed watching this year's Olympics just as much and continue to marvel at the athletes' accomplishments.
Events that occur every few years, like the Olympics, the FIFA World Cup and presidential elections, help me mark time, as do annual ones, like the start of my daughters' school year and religious holidays. As the Paris Olympic Games came to an end, I took the opportunity to reflect upon the world since the last Olympics, which, because of the COVID-19 pandemic, took place only three years ago, not four. A lot has occurred in this span, including the rise of generative artificial intelligence, increased geopolitical instability and the global pandemic. Our world is being disrupted and the pace of change is quickening, which is greatly altering the competitive landscape for all companies.
Like the Olympics, business is competitive, and there are winners and losers. In the 100-meter race in Paris, American Noah Lyles won by a mere 0.005 second. True to the Olympic Games motto, “Faster, Higher, Stronger,” the bar for these races continues to be raised. Similarly, standards once acceptable for successful businesses are no longer adequate. The strategy that led you to victory years ago and the team currently on the field may not be the ones you need to win now. And, just as the Olympics have added new events (breakdancing, anyone?), new product categories and markets will emerge.
All businesses, including family businesses, need to recognize the changing world and competitive landscape, take well-considered risks and adapt to market, competitive and technological changes. Given the disruption in our world, I think this is one of the most difficult times to lead an organization. And that can be especially true for family businesses, where there is often tension between tradition and innovation.
Yet, in a time of great disruption, family businesses have some advantages. As we've noted in our magazine and discussed at our conferences, family businesses' focus on creating long-term value enables them to better balance purpose with profit, support multiple stakeholders and develop values-driven cultures.
These values position family businesses to succeed in times of disruption and can provide a competitive advantage. The trust built over decades with employees, customers, suppliers and communities empowers them to develop and execute longer-term plans. Given the long-term outlook of their owners and the trust they have with their stakeholders, family businesses can take well-calculated risks that play out over many years. In a time of disruption, this is a great advantage over many public and private equity-backed companies, which can have shorter time horizons.
Many family businesses have thrived for over a century while maintaining their family's values in the face of significant change. A number of them have shared their lessons in this magazine. For these companies, this isn't their first disruptive technology, inflationary period or even pandemic. What many of them have in common is that innovation is a core value, which has allowed them to recognize the changing landscape and continuously strive to be better.
The world has greatly changed since the Tokyo Olympics in 2021 and, between now and the Los Angeles Olympics in 2028, there likely will be further significant changes. To continue to stand on the winners' podium, family businesses need to adhere to their core values, which can guide them as they adapt and innovate.