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[1] 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.”