The importance of family businesses is undeniable, since they have become the most significant business model of the global economy.
This business model, whose main feature is being a shared project and having shared values that last during generations has, precisely thanks to it, a singularity that defines its long-term objective: the desire for inter-generational survival. Moreover, the family business is a type of organization in which several interests converge and various challenges have to be faced.
Therefore, it is essential to have an efficient corporate governance which balances the management of business affairs, generally marked by financial parameters and family affairs, where socio-emotional issues prevail.
This regional report drafted by Manuel Bermejo, managing director of Executive Education and professor at the IE Business School, emphasizes for a Board of Directors and a Family Council which coordinate the business management and planning in order to successfully meet both wishes that the company founder had: see the company grow, evolve and become strong (business growth, expansion and internationalization) and hand over the reins of the corporation to his or her descendants so that the company may last over time.
Alejandro Romero, partner and CEO of LLORENTE & CUENCA in Latin America
