Definition

FAMILY STRATEGY

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A family strategy is a key part of family business governance (and family governance). As with corporate strategies, a family strategy includes developing medium- and long-term pictures of the future. It reflects the way a business family sees itself and defines how the family can and intends to remain a resource to the company in the long term.

A fundamental part of this is being constantly aware that a family business is a complex structure consisting of three different social systems with distinctive sets of communicative logic. Situations look different from a family, business and ownership law viewpoint, and the paradoxes this produces have to be constantly balanced.

One of the cornerstones of a family strategy, especially when everything seems to be running well, is to recognise the potential risks of future events. This requires not only an overview of the family as a whole but also a view of the individuals with their particular needs. Leaders of business families have to be able to think and act in two dimensions, which means leading and strategically guiding the business as well as the family.