“Managing the mature family enterprise for success,” by Stuart Lucas, Family Business Magazine, July/August 2012
Flourishing family enterprises require a clear and shared family purpose, a strong economic engine and effective management of leakages (cash flow management and estate planning).
Are your family’s long-term objectives defined, communicated to and absorbed by family members? Are your governance and operating structures stable? Does your family take a fully integrated approach to risk management? If your family is executing well in all three areas, you can make business decisions for the success of the business, invest more financial assets prudently for long-term appreciation, support family members to realize their individual potential and strengthen family ties. In well-managed families, success and stability in any one sphere influences and strengthens the other spheres and the whole system, creating a virtuous circle.
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