The Institute for Family Business (IFB) has just published the first-ever study on Emotional Ownership (EO). Written by Åsa Björnberg and Nigel Nicholson of the London Business School, the report reveals that “Emotional Ownership” of the family business begins at the family dinner table. The study, which involved 600 next generation members of family firms from 67 countries, found that fostering EO from an early age provides family members with a stronger sense of identification and attachment to the family business, which ultimately helps ensure the success, sustainability and longevity of family firms.
The research found that those families that are able to adapt and be flexible are most likely to inspire EO in their younger members. In fostering a proactive exchange with the next generation, these families are building open communication and fair processes. They are flexible enough to embrace change, yet stable enough to provide a secure base. The report concludes that it is these business families that stand the best chance of successfully negotiating the succession planning process.
Click here to download the full report
Picture from Creative Commons: Flickr: Howard Gees
