Good - But good enough?

However, in this crisis these strengths alone are not enough, says Vogel. At the same time, almost all companies are in the midst of the fourth industrial revolution, and thus in a period of digital disruption. The challenges in a crisis are especially demanding; companies that underwent digital transformation years ago will emerge from the crisis in a stronger position. Rudolf Minsch, Chief Economist of Economiesuisse, recalls the old saying “waste not, want not”, and applies it to companies as well as to the state. Family businesses, in particular, tend to be more robust and financed on a long-term basis. IMD professor Peter Vogel advises owners not to be afraid to seek help from outside: having independent members on their board of directors, for instance. It is crucial for positions on family businesses’ boards of directors and in management to be filled by future- oriented and high-calibre individuals: the “rubber-stamping” boards once typical in SMEs are no longer sufficient

today. Also, in times of crisis, he says, it is important for non-owner-managed companies to intensify communication between the board of directors, management, and the owner family, including successor generations. Such crises often lead to an acceleration in successions. As in all other companies, the intensive involvement of employees is recommended in family businesses as well, in order to make even better use of grassroots knowledge, follow a bottom-up approach, and empower employees, especially in family businesses. According to the survey, the SEF.Interactive participants clearly agree: family businesses are better equipped to master the challenges of a crisis, including lockdown and its long- term consequences.

TAKEAWAYS:

Family businesses usually have a sounder financial foundation.

The longer-term view helps family businesses cope better with a crisis.

Extraordinary events accelerate fundamental issues such as succession, even in family businesses.

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Is family a help in a crisis?