by John L. Ward
52% say that the next generation will be owners and managers
24% say next generation family will own but not manage
7% are currently owned by family but not managed by family
A recent survey by PwC discovered these succession plans. They also learned that 25% will transfer ownership in the next five (5) years.
There are some interesting questions:
- How well does non-managing family ownership work?
- What is the role of the non-managing family owners?
We don’t’ know if non-managing family ownership works better or worse. But we have learned much about what family owners do:
- Set the Vision and Values;
- Establish the Owners’ Goals;
- Design the Board;
- Communicate Other Family Expectations – the Family Constitution;
- Add Value by Supporting the Management and the Culture Whenever Possible.
We also offer this advice to family owners: “nose in, fingers out.”
 The survey was of more than 1,000 family businesses with a median size of $200m and a median firm age of 55 years.