Family business performance is measured mainly through financial indicators like profit, sales growth, or return on investment. While these are important, they don’t always capture what makes family businesses unique.
Unlike non-family firms, family businesses often care about more than just money. Non-financial goals—such as keeping the business in the family, having a good reputation, building strong relationships, or ensuring a successful succession—are often just as important. That’s why using only financial measures can give an incomplete picture of how well a family business is really doing.
It’s important to look at performance in a more balanced way that includes both financial and non-financial goals. Measures like family satisfaction, harmony, long-term vision, and alignment with family values can help provide a fuller understanding of success in a family business.
Reference:
Williams, R.I. (2018) ‘Measuring family business performance: research trends and suggestions’, Journal of Family Business Management, 8(2), pp. 146–168.