· Difficulty in the managing a family business occurs when there is clash between family values (harmony, emotional, inward, continuity) and business values (profits, rational, outward, adapt, change)
· Managing transformation is not easy as the transformation is never on a single dimension. Both the family and the business undergo a series of transformation.
· It is the dynamics of family, business and ownership which influences the success of a business. Dynamics of family includes elements such as grand parenting, launching children and coupling. Dynamics of business includes elements such as start up, growth, professionalization, regeneration, etc. Dynamics of ownership includes elements such as cousin collaboration, sibling partnership, etc. In the intersection of these dynamics the family has to formulate its goals, objectives and long term plan.
· The portfolio planning in a family business is intersection of the family and firm resources that are available, risk aptitude of the family and the attractiveness of the new business on market size and feasibility.
· A family business enjoys not only tangible resources but there are numerous intangible resources that the family has built over a long period of time such as Emotional ownership, Trust among members, Social network across generations , Vision and values, Family reputation, Collective thinking, etc.
· Family businesses have transformed with changing society. Individuality has taken the core position because of several societal changes such as more number of nuclear families, increase in materialistic values, youth's need for freedom, the popularity of concept of living today, attractive opportunities for entrepreneurship / jobs etc.
· There are three dimensions of togetherness: Familial togetherness, economic and operational togetherness and trans- generational togetherness that define the bonding of the family.
· Trust, Integrity, Confidentiality, and capabilities shape the triangle of business stakeholders (family, management and board)
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