Family businesses – A combination of three tools makes the difference.
Study by Joshua Consulting and Bankhaus Spängler: Family governance code, timely succession planning and strategic planning benefit the owner family and their company.
Family businesses are regarded as economic drivers, as just over half of all companies in Austria are family-owned. Joshua Consulting, in cooperation with Bankhaus Spängler, analysed why some are ultimately more successful than others in the study ‘Successful family businesses do things differently’. According to the study, there are three tools in particular that have a significant influence on economic success when they are used together: Family governance code, succession planning and strategic planning. This provides the owner family with economic security, security in emergency situations and clarity about the family’s influence. The company gains transparency and a strategic framework for further development. It also becomes more attractive on the labour market.
Background study design
Survey period: May-July 2018
Companies:
59 Austrian companies with a total turnover of more than EUR 5.4 billion in 2017 and approx. 32,000 employees
Participants:
47% managing partners, 24% management/executive board, 17% shareholders and 12% management
Family tradition:
29% first generation, 27% second generation, 25% third generation, 12% fourth generation and 7% fifth generation or longer
Management model:
51% exclusively owner-managed, 41% mixed management and 8% third-party management
Management Summary (in German)