What is „Ownership Competence“?

The publication WIFU_compact_06: What is „Ownership Competence“? (2023) by the WIFU Foundation provides a concise yet well-founded overview of the requirements for shareholders in family businesses. The starting point is the interplay between family, business, and ownership, in which shareholders must balance different interests, roles, and responsibilities. Against this background, the necessity of clearly defined family business governance is highlighted.

In the publication, shareholder competence is described as a bundle of abilities and skills that enable current and potential shareholders to fulfil their ownership functions responsibly. This includes both an understanding of business contexts and strategic issues, as well as the ability to deal with conflicts, control tasks, and new, previously unknown situations. It is made clear that specific competence requirements vary depending on the structure of the family business and across generations.

Furthermore, it explains how shareholder competence can be systematically developed. Shareholder competence development programmes are presented, which are often anchored within a family strategy or a so-called family academy. Using a clear step-by-step model, it demonstrates how different levels of competence correspond to different roles in company and family bodies. The publication is substantively based on the Practical Guide „Shareholder Competence in Family Businesses“ by Tom Rüsen and translates its key findings into a compact, practical format.