The Importance Of Business Management In A Family Business

525 Words2 Pages

Once a family business defines its mission statement, certain programs are necessary for its implementation. According to John Ward (2011), these programs include “How to govern and lead the family and make decisions, how to resolve family conflicts, how to achieve satisfactory relations among family members, how to educate the family, and how to preserve family unity and harmony” (p. 164). Thus, even though only 30 percent of family businesses survive beyond the founders’ generation and 12 percent beyond the third (Gardella, 2012), it is possible to run a successful family business with the proper programs needed to maintain a supportive family.
Family governance, leadership, and decision-making are extremely important in family business management, and the need to make rules and utilize a governance structure typically reaches a pinnacle when the founder of a business relinquishes their control and the organization transitions into future generations. Decision-making is an especially difficult aspect of a business, and even more so in a family business when a leader becomes obso...

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