Family businesses, unlike their non-family counterparts, often reflect a spectrum of ownership goals. One owner may prioritize legacy, another growth. For directors, recognizing these differences is vital to maintaining trust and direction. Only by understanding each owner’s goal can a director keep owners aligned and the business stable.
According to a Harvard Business Review article, there are five family business owner archetypes. These archetypes are based on what an owner is willing to commit to the business: heart, time, capital, intellect, and career.
An owner’s goal may change over time. As such, a family business director should meet regularly with each owner to identify their goals and communicate the expectations of that owner’s role in the business.
For questions to consider as you analyze owner involvement in the business—and for a deeper explanation about ownership archetypes—check out “Understanding Family Ownership Roles.”
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