Is the right person leading your family?




Of the family business owners who responded to brief survey on family leadership, 50% said the leader of their business is also considered to be the leader of the family.


Nearly a quarter of the respondents (22.22%) said their family has no leader.


In 16.67% of the responding families, a family member other than the business leader has a formal title designating him or her as the family leader; another 5.56% said a family member other than the business leader is considered to be the family leader, although that person does not hold a formal title.


As generations progress and the number of shareholders increases, it's a good idea to assess whether your business leader has the right skills to build consensus among family members. Bridging gaps that separate branches, generations and active/inactive shareholder groups involves considerable effort. Would it be better to develop someone else to fill this role so the CEO can devote full attention to leading the business?

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If your family company is still in the founder or second generation, you may not have experienced much difficulty achieving shareholder consensus. When multiple family branches become involved, this will become more of an issue. You would be wise to consider who should lead your family in the future.

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