Many decades have passed since Isaac Newton set forth his law of universal gravitation that states, in part, that every mass attracts every other mass in the universe, and since Albert Einstein published his theory of general relativity revealing a view of gravity where mass influences the dynamic shape of space-time.
But gravity isn’t only about physics anymore–it’s a key element in the long-term success of family enterprises.
Perhaps first used by Claudio Fernández-Aráoz, Senior Adviser for the global executive search firm, Egon Zehnder, the term “family gravity” describes what makes successful family businesses different from non-family businesses. According to Fernández-Aráoz, while family firms need the same operational governance structures as non-family enterprises, they also must nurture what makes them special as family enterprises.
Different than leadership, to have “family gravity” means there is at least one and as many as three family members who are—like the sun at the center of our solar system—at the center of the family organization. “These people personify the corporate identity and align differing interests around clearly defined values and a common vision… And they have strong personalities that draw talented people into their orbits and keep them there.”1 This central group focuses on a long view of the future “on the next generation, not the next quarter.”2
Like the gravity of physics, this center of “family gravity” has properties that attract—in this case the ingredients for success—and the weight to influence shape and form—in this case the dynamics and legacy of the family and the business as they travel into their future.
For a conversation about the gravity in your family enterprise contact me by email at firstname.lastname@example.org. To talk please call: 212-777-0083.
1 Fernández-Aráoz, C.F., Iqbal, S., Jörg Ritter, J. Leadership Lessons from Great Family Businesses. Harvard Business review. Available at https://hbr.org/2015/04/leadership-lessons-from-great-family-businesses