Ownership Competence in Four Dimensions

The WIFU Foundation’s publication WIFU_compact_28: Ownership Competence in Four Dimensions (2023) examines the question of what skills shareholders need in order to play an active role in shaping the long-term sustainability of family businesses. The starting point is the observation that the ability to engage in constructive decision-making and conflict resolution amongst shareholders is a key prerequisite for transgenerational stability.

This issue focuses on a four-dimensional competence model that systematically categorises shareholder competence. The dimensions described are business competence, ownership competence, family competence and individual competence. For each of these dimensions, the issue highlights the knowledge, skills and attitudes required to make decisions on an equal footing with management, to fulfil ownership responsibilities and to shape family dynamics in a considered manner. It is emphasised that shareholder competence is not limited to business management knowledge, but also encompasses legal, financial, communicative and personal-reflective aspects.

The publication makes it clear that programmes designed to develop shareholder competence should be tailored to specific roles and situations, and should not aim to treat all family members in the same way. It is based on the Study entitled „Shareholder Competence in Entrepreneurial Families“ by Rüsen, Orenstrat and Binz Astrachan (2022) and provides a concise guide to assessing and specifically developing shareholder competence within entrepreneurial families.