GUEST POST by Alfredo De Massis from The Conversation
The British royal family, like many family businesses, has had its share of difficulties lately. Prince Harry, previously viewed as one of the great modernising influences, has become more distant from the traditional business after marrying Meghan Markle.
Meanwhile, his father Prince Charles has been waiting many years to take over; his uncle, Prince Andrew, has been caught up in an international scandal; and to cap it all, the Queen recently lost her husband, Prince Philip, after 74 years of marriage.
The royal family may not be among the family businesses most obviously affected by the pandemic, but there are similarities when it comes to navigating difficult times. All family businesses, including the royal family, have to contend with the advantages and disadvantages of close family ties within the firm. Families can close ranks when times are hard, but it can be a struggle to oust executives with blood ties who are causing problems – or virtually impossible in the case of the Windsors.
On the other hand, family businesses are in theory better equipped to survive than most. They tend to be able to prioritise long-term goals because the owners usually intend to transfer the business to the next generation. This can be a problem if the heir is not as strong as whoever is on the “throne”, but at least short-termist investors are either non-existent or can usually be overruled.
In my co-authored research, we reflect on the the challenges to family firms triggered by the pandemic and its social and economic reverberations, drawing on our own knowledge of this field and inspired by informal conversations with some family businesses of a range of sizes during the pandemic. They trade in everything from olive oil to microwave-imaging devices to financial services to fine wines, and most are headquartered in Italy.
This has enabled us to argue for five challenges unique to family businesses across the world. These have been made worse by the pandemic, but can all be turned into opportunities. It is worth emphasising that the survival of these businesses is vital to us all – they contribute between half and 90% of the GDP of most countries, and employ the majority of people.
This article excerpt is republished from The Conversation under a Creative Commons license. Read the full original article.
ABOUT THE AUTHOR
Alfredo De Massis
Alfredo De Massis collaborates with and/or serves on the boards of public and private organisations internationally, including in Italy, Switzerland, UK and Asia. He also serves as advisor to family enterprises, business families and policymakers.