Family Business Characteristics

Adapted from slides by John Ward Professor of Family Business, IMD.

	For the Family Firm	For the Non-Family Firm
Purpose	continuity	maximizing near-term share price
Goal	to preserve the assets and reputation of the owning family	to meet institutional investors expectations
Fundamental belief	the first priority is to protect downside risk	more risk promises more return
Strategic Orientation	adaptation	constant growth
Management focus	continuous innovation	incremental improvement
Most important stakeholders	customers and employees	shareholders and management
Business is seen as	a social institution	a disposable asset
Leadership is	stewardship	personal charisma