In September, 2012, Dennis T. Jaffe, Ph.D., of Saybrook University and Jane Flanagan, of Family Office Exchange published Best Practices of Successful, Global, Multi-Generational Family Enterprises. Responding to the lack of solid research into strategies that support long-established family enterprises, they undertook an academic-level study with the goal of benchmarking best practices for multi-generational longevity.
Their research confirmed what has long been known among family-business advisors about best practices of family-enterprise governance, family relationships and development of next generation members:
Nurture the Family
Steward the Family Enterprises
Cultivate Human Capital for the Next Generation
Jaffe and Flanagan found that successful family enterprises strive for a balance among the three. If problems arise in any of these areas, the family does not see itself as successful.
In upcoming blog articles I will expand on each of these best practices areas, and finally discuss the importance of balance among them.