Often people consider businesses that are family owned and operated to be small productions- “Mom and Pop” stores, if you will. They’re seen as minuscule in both size and importance, rarely making a splash on the national scene. But what many may be surprised to find is that some of the countries’ largest companies are in fact “family-owned”- taking them well beyond the national setting and competing on a global level. For these companies, such as Walmart, Berkshire Hathaway and Comcast, it was the family unit that persevered all the way to unprecedented success.
Generational Success
For many of these companies success has come by looking farther ahead than perhaps by next quarter or year. In fact, with an eye for how to make the business last well into the future decades- for their children and grandchildren to one day take over- this larger than life outlook on the “big picture” helps to propel and motivate the company heads day in and day out.
One, Big Family
Another possibility for the massive levels of success that the largest family-owned companies in the world see- how about treating everyone from the top down as family themselves? While it’s clear that not everyone working in the company itself will be legitimate family members, it still stands that everyone from the managers to the assistants to the cleaning crew feel welcomed into the unit as a whole.
This pours over into how the representatives of the company deal with their customers as well. For Senszio, a family-owned bespoke tailoring company out of Hong Kong, their business has practiced this concept for over 2 decades, “being a family-owned company for over 25 years means that we treat our clients as an extension of our family, and this allows us to accommodate our customers’ individual needs much more easily.” Senszio, which was founded by Mark V Motwani in 1989, continues to be a shining example of a company that puts their customers first throughout the years; their dedication to the “personalized tailoring service”- combined with their inclusive approach- remains one of the top behaviors that allows them to perpetually draw customers from around the world.
The Learning Curve
While a model for success, many companies still in their “infancy” stages- compared to companies with 3+ generations under their belt- see the transition of authority to be a stumbling block. For there to be a successful change of power, a few things must be present: consistency, respect and a solid foundation of culture.
With these aforementioned things in tact, the successor of the company will likely thrive. Thomas Zellweger, professor and author of Managing the Family Business: Theory and Practice has said that it’s the “mom and pop” shops- traditionally those that are perceived not to survive- that seem to be able to provide “significant value” for those that they serve.
To anyone acquainted with typical family dynamics, it should come as no surprise that these family-owned ventures come with their own unique obstacles. However, with most companies on the Family 500 Index within the median range of 86-89 years of business, their staying power speaks for itself. It’s getting beyond those pitfalls that allows for the family legacy and vision to shine through for years to come.