For a family business, more than any other, values are the connective tissue—the source of your success, your commitment, and your longevity. They bring power to a business, helping to assure cohesion, resolve conflicts and strengthen operations—through the natural act of passing down a legacy.
But values often go deeper than simply benefiting the family. Many of today’s most successful family-owned businesses are extending the power of their values to benefiting others—not only their businesses and people, but also the communities in which they operate, as well as the projects and philanthropies that fit their personal mission.
In order to have a real and tangible impact, however, value-inspired changes must be planned and executed with precision. This is where PwC’s Family Business Services is well placed to help.
If you’d like to gain real insight into how values give your family business a competitive advantage—and optimise and expand their positive impact—we’re here to help. Our advisors have the capabilities, experience and resources to help you analyse the values of your family business, and identify opportunities to amplify them throughout your organisation and beyond.
We can help you with all kinds of values-centred missions, including:
The shared legacy of a family-owned enterprise can be a powerful motivator—not only for a personal and business commitment, but for a record of positive, values-based impact that can span generations. We invite you to contact us to explore how we can help you understand your values and make them work for you in every arena that is important to you.
Certain members of a family in business – from both the senior and the next generation – had an interest, at the individual level, in philanthropy. While their involvement in philanthropic endeavours mirrored, to a certain extent, the family business’ values, there were no common giving principles.
The family council recognised the importance of “giving back” — and was conscious as well of philanthropy’s potential for strengthening the bonds between family members and building a stronger family culture. So it decided to create a more structured approach to the family’s philanthropic efforts.
We worked with the family council to find common ground around their philanthropic goals and helped them identify which types of investments would be viable, and which would not, in the context of the family’s values. We then analysed the members’ existing philanthropic projects and embedded them into a larger overall framework.
We also advised on the most appropriate structures to enable their philanthropic investments to be controlled effectively – and helped implement a simple mechanism to evaluate the investment impact on a regular basis.
The family advisory board feared that the post-merger integration with another family firm could be impaired by conflicts arising from the two diverging cultures — divergences which were predominantly related to each firm’s family business values — and by difficulties on the part of managers to compromise on their respective cultural heritages.
The advisory board felt it needed to create clarity around shared values, embed them into the day-to-day business, and thus develop a culture that preserved the best of both family firms’ heritages.
We reviewed the two incumbent cultures and assessed how close they were to the desired shared culture. We then determined the steps necessary to advance the family, ownership and business values. Finally, we implemented a mechanism to monitor these values’ on-going alignment with the desired culture.
This more strategic approach enabled the advisory board to address the problematic areas clinically rather than surgically — and avoid the invasive, abstract (and therefore unmanageable) process that the family advisory board feared. Instead, these mechanisms became increasingly embedded in the merged company’s operations, which, slowly but surely, has generated a stronger shared culture.
"It is important to teach each new generation, early on, the difference between ownership and stewardship. Ownership is a right of possession. Stewardship is a fiduciary role. It is holding the institution in 'trust for' the next generation. We feel, as a family, that this institution has been passed on to us for our care and not for us to dissipate or do what we will with it for our personal gain."
"Being both the CEO and the owner makes you constantly questioned but at the same time never questioned at all."
"I think my staff appreciate the continuity in the business. They prefer working for a family business like ours. The openness of management to future plans and the 'all in it together' mentality binds staff to the company."
"One of our main competitive advantages at Componenta, a listed family business, is the speed of decision-making as we have managed to align the interests of the owners and the managers in the decision-making process."
"As a fifth generation member of a family in the yachtbuilding business, I believe that continuity is of invaluable importance. Our advanced custom yachts are luxury products but you really don't need glamour to compete successfully. I learned from my father how genuinely clients appreciate a down-to-earth approach and a long tradition of technical excellence."