If your family business is to survive and thrive in the coming years, there should be a belief in being change adaptive and not get stuck in the past principles but a deep positive approach into a willingness to move forward with change. Family Businesses should consider 5 effective strategies as follows ;

74% think digitalization will have a moderate to transformative impact on their business. The soonest the family business can get on the digital train , the soonest they can adapt to survive and thrive. Family Businesses should outline practical ways to develop a digital roadmap.

The core values of the Family Businesses is what enables such businesses to achieve multigenerational success. Sticking to their values is what unites the family. Forward proactive thinking would seek ways to engage and inspire the next generation. Family businesses think social impact will have a moderate to transformative impact on their business.

From the digital revolution to globalization to the drive for greater sustainability ,family businesses need to adapt and pivot in order to survive and thrive in the coming years and beyond. The ability to pivot to address threats and seize opportunities is the most defining characteristic of successful families.

No one can predict the future, but you can – and must – be change-ready. How ?

1.Gain altitude, monitor signals of change and construct a view of the future.

Family businesses need to formalize a process for scanning, tracking and filtering potential disruptors. They should also learn how to interpret that information to imagine and understand possible future scenarios, devising strategies that minimize probable risks and threats and maximize opportunities and benefits.

2.Experiment with new ideas, business models and value-creation methods.

Experimentation is an approach that offers a fast, low-risk way to explore and test new opportunities. It can feel risky to do something with a high risk for failure but successful family businesses learn a lot from intelligent failures

3. Build agility into your family enterprise portfolio and organization.

Enterprising families’ financial stability supports portfolio agility by allowing owners to move into new activities without risking dividends or incurring significant debt or other financial risks. Building organizational agility, however, may prove more difficult. Agile family businesses are flat, team-based and digitally connected. They have porous boundaries that invite in outside ideas and talents. Organizations may need to shift from an autocratic to a transformational style of leadership to create a more agile enterprise.

 

(All factual and statistical information presented in this blog has been obtained from an extract of a blog from familybusinessmagazinepartners.com ) Follow us on our Facebook page and Family Business Office website at www.familybusiness.org.mt

At the Family Business Office we can offer you assistance in dealing with family business succession planning issues through incentives supporting advisory and mediation services. Contact us today on familybusinessact@gov.mt.