Borrowed from Your Grandchildren

CHAPTER 5Business Resiliency: Common Transformations Along the Path

While previous generations of dynastic multigenerational families might have faced an environment of stability and continuity, the journeys described by our contemporary generative families were far more complex and eventful. By the third generation, no contemporary family enterprise remains as it was a generation before. The business expands into new markets and products. It may go public or add other shareholders. Or perhaps the legacy business is sold and the family diversifies. New family members are born, grow up, or marry into the family, and they bring different values, skills, and interests. One constant hallmark of the generative family is its resilience, the ability to adapt and change, in response to either success or adversity.

Over nearly one hundred years, each family in this study has been through major transformations. Some have become diversified, migrating into other areas by modifying or expanding their portfolio of products and services. A business that old has faced multiple setbacks and crises; some even faced bankruptcy. In an enduring family enterprise, crises lead to adaptation, rethinking of how they work and exploration of new paths ahead.

The social, business, and cultural environment is changing, as a new global, digital world unfolds. The extent of change posed by new communication technology, globalization, environmental destruction, and instability of global commerce threatens ...