Family-owned businesses (FOBs) have a unique set of dynamics. As well as dealing with all the issues that relate to growing a successful business, there are also important factors relating to the family that need careful attention such as the transition from one generation to the next

1. Family-owned
businesses
A special heritage
Family-owned businesses (FOBs) have a unique set of dynamics. As well
as dealing with all the issues that relate to growing a successful business,
there are also important factors relating to the family that need careful
attention such as the transition from one generation to the next >>
It is the very human and emotional aspect of A special heritage
the family-owned business, which creates the The values of a family-owned business are handed down
‘family values’ that influence how the company to each generation and maintaining this heritage and family
will ultimately take decisions. Also, compared to goodwill 1 is key to continuing success. Decisions about
risk taking and long-term investment – the structure of the
non-family-owned businesses which tend to be organization – who works where and for whom for example
more impersonal and driven by short-term returns, and the markets the company chooses to operate in, are
FOBs are more focused on long-term value creation. often defined by the family-owned business values.
1 F
amily goodwill is the relational, human and social capital that typically
contributes to the economic value of the business.
©2009 Hay Group. All rights reserved

2. Family owned businesses
A different set of challenges Why Hay Group?
Yet ‘working for the family’ presents particular challenges. We understand the practice and philosophy of running
During their evolution, our clients have questions that are a family-owned business is different from running an
particular to them as family-owned businesses such as: ‘ordinary’ company. We see getting to know the family
as part of our work in supporting a family-owned business
h
ow should we manage succession from one generation in providing a more personal ‘human’ service.
to the next?
how do we professionalize our business for growth
Our consulting services therefore do more than just look
without losing the family spirit and values? at the business to deliver real benefit by:
s
hould we create a family office to manage the family
p
roviding an holistic approach: combining an
interests?
understanding of business, management and the
w
hat is the best way to share rewards for family and family dynamics
non-family members?
h
elping transform what can be highly emotional
c
an we attract a CEO who is a non-family member? perspectives on strategy and objectives to a more
h
ow do we draw the line between ownership and rational one to achieve the right balance between
management? ‘family first’ and ‘business first’.
Hay Group works in partnership with family business
Helping to find the balance between owners to address their specific needs and focus on practical
‘family’ and ‘business’ implementation. We don’t just leave behind a manual of
recommendations but work with clients throughout the
lifetime of a project and after, if required.
Hay Group helps family-owned businesses address these
challenges, guiding them through the opportunities and By transferring knowledge and capability to family-owned
risks posed by the business, the family, the ownership of businesses we help them lead and manage change more
the company. We help: effectively. In contrast to other consultancies, we do not bring
an army of newly trained consultants to overrun our client’s
confirm the company vision so that everyone agrees
organization. Instead, we bring a small team of experienced
on what the business will look like and achieve in the professionals who provide advice to senior leaders to help
future companies achieve their business goals.
m
ake sure the business strategy is aligned to family
aspirations
d
evelop a family plan and protocols that provide
governance structures as well as balance family
and business control
d
evelop a leadership team that focuses on delivering
business goals but is also sensitive to the values of
the family
c
reate short and long-term succession plans that meet
the aspirations of both family and organization
set
up the right reward strategy and structure that will
allow retention and development of both family and
non-family managers
About Hay Group
t
ransfer the goodwill from the founder/family to
the business organization through a professionalized Hay Group is a global consulting firm that works
operating model and management with leaders to transform strategy into reality. It
organizes people and work to be more effective,
ensure family-owned businesses actively manage
develops talent and motivates them to perform
attracting and retaining talent both from within
at their best. With 85 offices in 47 countries, it works
the family itself and outside.
with over 7,000 clients across the world, from the
private, public and not-for-profit sectors – across
every major industry. Our focus is on making
change happen and helping people and
organizations realize their potential.
©2009 Hay Group. All rights reserved