It is difficult to ignore the role that family businesses play in our daily lives. Family businesses are most often defined as organizations where ownership and management control reside in one or a few families. This is big business. Family businesses represent over 70 percent of all U.S. business organizations, contribute over 50 percent of our gross domestic product and serve as a source for virtually all net new job creation. Family businesses provide leadership for our communities, particularly in rural areas.
Family businesses are quite complex.
Individuals within these organizations simultaneously pursue personal, organizational and family goals. In addition, these individuals play a number of conflicting roles as family members, owners and managers. Pursuing multiple goals and playing multiple roles can often lead to conflict and organizational failure. While estate and succession plans existed, they were often inadequate or flawed. The chosen successor was insufficiently prepared to assume leadership.