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.
This idea is supported in an article I recently read, which reviews how performance is measured in family business research and highlights some key gaps. The author encourages researchers to use more goal-based and holistic approaches that reflect the true nature of family firms.
Reference:Williams, R.I. (2018) ‘Measuring family business performance: research trends and suggestions’, Journal of Family Business Management, 8(2), pp. 146–168.
@Benoit- you’ve highlighted the emotional and legacy-driven side of family business success—it’s such an important angle! That said, it feels a bit too descriptive at times, and I’d love to see more depth. Maybe pull in a real family firm example or unpack that article a bit more to strengthen your argument.