The goal of corporate strategy is to articulate a vision of a great company that is also a great stock—and to define the specific moves needed to bring that vision to life. Rooted in a clear understanding of competitive advantage, corporate strategy lays out a multiyear roadmap for how best to leverage advantage to develop business strategies for growth and drive strong, sustained value creation. A winning corporate strategy will identify the optimal business portfolio, prioritize the right growth platforms, and set a financial strategy to transform vision into value.
Family Business
Our Approach to Family Business Consulting
In addition to our full range of consulting services on corporate finance and strategy, organization, marketing and sales, operations, digital transformation, and more, we also help families in business navigate their unique challenges, among them:
We develop deep relationships with family business owners. We understand their distinct risk profiles, longer-term growth perspectives, and approach to stewardship. And we develop bespoke solutions for family-owned companies by answering critical questions.
What is the purpose of the business for the family?
How should governance of the family business be structured?
What is the desirable relationship between ownership and management, particularly in the case of large conglomerates?
How should the company manage family business transitions—for example, succession planning and generational shifts?
How do family members diffuse emotional tension and maintain harmony?
How can growth be funded without diluting family control?
How do family businesses attract the best nonfamily talent and set clear expectations for their partners and investors?
Our Focus on Family Business Governance
Although corporations are required by law to embrace formal governance rules, the families that own them are not. But good governance of family businesses is essential. The lack of a clear and mutually agreed governance structure can cause unnecessary conflict and destroy business value. Families need to take four steps to define an effective model for governance of family businesses.
Agree on the family’s overarching goal.
As the owner, the family has the right to run the business as it chooses—but the family must choose.
Anticipate potential family hot spots.
Any governance framework needs to be designed with an understanding of the issues most likely to jeopardize family harmony.
Understand the family and business context.
As owners, it is important for family members to understand the business and the challenges it faces.
Create structure for the family.
Good governance of the family business requires a structure that reflects and address the decisions and learnings from the prior three steps.
