Kicking the habit - Broadening our horizons by studying family businesses

Our collective bias has been to study large, publicly traded companies. Not only do these behemoths represent a tiny fraction of organizations, but they have also served as uninspiring role models driven by the short-run objectives of managers and owners alike. By contrast, outstanding family-owned or family-controlled businesses, to which we have devoted relatively little attention, often outperform by marching to the beat of a different drum. They are managed for the long run. Among the most durable and best performing family businesses, this long-run approach shows up as four priorities: continuity and persistence in pursuing a substantive rather than a financial mission, exceptional attention to the internal community of employees, unusually close connection to key external stake-holders, and courageous commanding leadership that resists pressures from shortsighted owners. We would do well to learn more about these types of organizations.