From the Editor's Desk

6 Traits of Strong Family Businesses

Family businesses are the cornerstone of most national economies, according to a recent report by Credit Suisse Research. They can create jobs, spur innovation, and drive superior returns.

However, such success can only be achieved by following four rules: maintain good governance, identify and develop both family and non-family talent, pursue disciplined succession, and preserve family gravity. We had originally associated the latter with having at least one but up to three family members keeping a strong presence in the firm. But clients kept asking us for more detail. And so, with the Family Business Network International (FBNI), we embarked on a three-year global study to discover what makes up "family gravity."

Our research included interviews with more than 50 executives at 28 leading family businesses across the Americas, Europe, and Asia, a survey of 4,000 FBNI members, which yielded 308 case studies and detailed analysis of 15 family businesses from a wide variety of sectors around the world.

We concluded that "family gravity" is comprised of six elements.

Continued here

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