Family businesses are the cornerstone of most national economies, according to a recent report by Credit Suisse Research. They can create jobs, spur innovation, and drive superior returns.
However, as we highlighted in this 2015 HBR article, such success can only be achieved by following four rules: maintain good governance, identify and develop both family and non-family talent, pursue disciplined succession, and preserve family gravity. We had originally associated the latter with having at least one but up to three family members keeping a strong presence in the firm. But clients kept asking us for more detail. And so, with the Family Business Network International (FBNI), we embarked on a three-year global study to discover what makes up “family gravity.”
