The process of passing the leadership of a family firm from one generation to another is complicated by, and interwoven with, changes in the family business pattern. To appreciate this point, think about the patemalistic/patriarchal cultural configuration, which is quite common in the early days of a family business. Changing conditions may render that cultural configuration ineffective. As a family business grows, it re-
quires a greater measure of professional expertise. Thus, the firm may be pressured to break from the paternalistic mold, which gives first priority to family authority and less attention to professional abilities. Likewise, the aging of the founder and the maturation of the founder's children tend to weaken the patriarchal family culture 1. with its one dominant source of authority—a parent who "always knows best."
Succession may occur, therefore, against the backdrop of a changing organizational culture. Or the change in leadership itself may play a role in introducing or bringing about a break with traditional methods of operation. To some extent, the successor may act as a change agent. For example, a son or daughter with a business degree may replace dated managerial practices with a more up-to-date professional approach.
As you can see, growth of the business and changes in leadership over time will make some cultural change necessary. However, certain values are timeless and should never be changed-the commitment to honesty, for example. While some traditions may embody inefficient business practices and require change, others are basic to the competitive strength and integrity of the firm.
The process of passing the leadership of a family firm from one generation to another is complicated by, and interwoven with, changes in the family business pattern. To appreciate this point, think about the patemalistic/patriarchal cultural configuration, which is quite common in the early days of a family business. Changing conditions may render that cultural configuration ineffective. As a family business grows, it re-
quires a greater measure of professional expertise. Thus, the firm may be pressured to break from the paternalistic mold, which gives first priority to family authority and less attention to professional abilities. Likewise, the aging of the founder and the maturation of the founder's children tend to weaken the patriarchal family culture 1. with its one dominant source of authority—a parent who "always knows best."
Succession may occur, therefore, against the backdrop of a changing organizational culture. Or the change in leadership itself may play a role in introducing or bringing about a break with traditional methods of operation. To some extent, the successor may act as a change agent. For example, a son or daughter with a business degree may replace dated managerial practices with a more up-to-date professional approach.
As you can see, growth of the business and changes in leadership over time will make some cultural change necessary. However, certain values are timeless and should never be changed-the commitment to honesty, for example. While some traditions may embody inefficient business practices and require change, others are basic to the competitive strength and integrity of the firm.
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