The changing values and emotions of family business members have an enormous effect on the health and culture of the company. As these businesses pass from one generation to the next, there is a distinct change in how values are maintained, and emotions are controlled. Founding parents often establish a strong set of core values—diligence, ethics, and community involvement—that serve as the foundation for the business's image and daily operations culture. However, when siblings, cousins, and in-laws become engaged, these principles may be reinforced or doubted based on their personal beliefs and professional backgrounds, which cause new challenges and changes to the family company culture.
The emotion and value alignments might change over time due to the external business demands, personal growth, and changing generational perspectives. Such progress can either forge a stronger and more adaptable culture or affect the overall health of the family firm. As members handle these changes, the company's culture either becomes a source of strength or a potential cause of conflict that requires careful planning and leadership.
Family businesses's culture and values are experiencing uncertain and chaotic moments in generations. They have to make sure that one of its key competitive advantages, its culture, does not become a problem. During a period of change, a company's culture must remain consistent with its strategy. If it fails to do, it will result in underperformance.
With the support of this framework, any family business can now define its current culture, identify changes that it might want to make, and track progress of the process.
