Family Business: Which are the next steps?

A study by PricewaterhouseCoopers (PwC), based on 2802 interviews with CEOs of family businesses, identified two major weaknesses in this type of organization: the risk of collapse for not planning for succession and some indifference to the challenges of the technological revolution. And it points out solutions to soften these fragilities: 1. Create a bridge between the short term and the long term: There are two sides of the scale that family business management will have to take into account: the long-term vision of the generations and the day-to-day management of the company. To find the balance between day-to-day and the next generation of management is necessary to devise a strategic plan that connects the point where the business is currently and the vision in the long term. 2. Professionalization 2.0 To move to the next level of professionalism and grow in a sustainable way, it is necessary to develop stricter processes, establish well-defined governance and recruit competencies from the outside. 3. Succession Planning In order to avoid a sudden change of management team, succession planning is very relevant, as it will tell the current generation what to do and how to help the next generation to continue and develop the work of the current management team. In fact, this process controls the likelihood of family and professional friction. All these steps help ensure long-term growth and that generations mirror in their management the family and institutional values ??built by the first generation of management.