Many family businesses are born of the practice of merely “doing something,” like tackling a problem or seizing an opportunity. It’s often a matter of an entrepreneur spotting a gap and taking it. From there, the business often seems to grow from one level to the next, not necessarily without issues or teething problems, and before you know it, it’s passed from one generation to the next. The problem with this kind of organic growth is the fact that although the business appears to grow and attain success, it might be lacking some of the fundamentals of business design.
Corporate businesses benefit from the expertise and know-how of its external ownership, leadership and guidance, resulting in smoother processes and more streamlined business design. With family businesses, however, it’s the family members who tend to have the final say, even when external management is brought on board. The result is often a lack of organizational transformation, which can affect the business on various levels.
