Heritage is an intangible, invisible force that influences the decisions of future generations in a family business. Psychologists call it motivation to build heritage Creativity, and it stems from concern for the safety, security and well-being of future generations. Cultivating and maintaining a legacy is a way for family members to continue the family’s identity and purpose. But are artifacts always positive? Paradoxically, inheritance has been shown to have both positive and negative consequences for organizations and individuals. Heritage is an asset when it serves as a source of identity, inspiration and direction for a family business. The downside is that inheritance can be a liability – this is the inherent paradox of inheritance. Companies are so entrenched in tradition and “the way things have always been” that they limit innovation, change and organizational agility. The challenge for family business leaders is to manage this age-old paradox.
John M. Huntsman, founder of the Huntsman Corporation, He passed away in 2018. When I asked his son David Huntsman about his father’s lasting influence in his role as president of the Huntsman Foundation, he said, “He grew up in A family business, my father’s influence continues to be ever present in my life – whether I know it or not. I know exactly what he says or does in every business situation, because I have seen him personally for years. His influence, even though he is no longer here, still affects even the smallest decisions I make throughout the day – the things I do or choose. A part of him will always stay with me not only in business but in all aspects of life.
Heritage is an intangible, invisible force that affects the decisions of the next generation in business and in life in general. Inheritance has also been called the “connective tissue” that connects generations in a family business. John Huntsman’s values, beliefs and qualities will live on in his descendants long after he is gone. Inheritance begins when the values, norms, knowledge and beliefs of previous generations take root in the current generation. Once incorporated, the next generation of leaders become the “custodians” of the family/business legacy. Until a legacy is enacted, the things that make up a person’s legacy are simply the attributes of a past generation. But once it takes root, a legacy becomes a belief that guides continued behavior for the next generation.
Research shows that business founders, senior generations, and parents are motivated to build and maintain legacies based on moral and religious beliefs, knowledge, norms, and values instilled in them, and perhaps inherited from their own past generations. Psychologists call it motivation to build heritage Creativity, and it stems from concern for the safety, security and well-being of future generations. This need was found more in family firms than in non-family firms, with an increased sense of moral obligation to past and future generations. Cultivating and maintaining a legacy is a way for family members to continue the family’s identity and purpose.
There are several prescriptions in the literature on how to build a legacy in a family business. For example, in the near future Forbes Stephanie Burns argues that building a legacy requires being the best at what you do, adding new factors to an existing legacy, honoring an existing legacy and carrying on cultural heritage. Stories, diaries, photos, and family possessions such as land, factories, and houses, as well as family symbols such as emblems and rituals, are important vehicles for transmitting heritage. These methods can represent and inform the deeply held beliefs, norms and values that comprise the legacy of the family business. They can also play an important role in developing a lasting legacy for the next generation.
But are artifacts always positive? Paradoxically, inheritance has been shown to have both positive and negative consequences for organizations and individuals. Heritage is an asset when it serves as a source of identity, inspiration and direction for a family business. According to J. Barney’s research, it may be the only real source of sustainable competitive advantage for family businesses. Legacy is rare, imperfectly imitable, valuable, and persistent within the firm – competitors can copy products and processes, but cannot copy the firm’s heritage.
For David Huntsman, his experience with his father is irreplaceable and, to him, rare and precious. He learned from the experience that only he and his organization had, and as a result, his father’s values and wisdom lived on in and through him. His father’s legacy has always been good for the company and his family, and it makes sense to maintain that deeply held legacy. To do anything against that legacy is to violate the values and norms that define their family and their business. Moving away from legacy risks losing the competitive advantage that a family business has always enjoyed.
The downside is that inheritance can be a liability – this is the inherent paradox of inheritance. Companies are so entrenched in tradition and “the way things have always been” that they limit innovation, change and organizational agility. Family members may feel trapped by the past and thus face moral dilemmas as they push to maintain a legacy and set aside the need to build their own vision and strategy, which is necessary to sustain and grow the company. Therein lies the paradox: I feel the need to live up to the values, beliefs, practices and knowledge of the past, which conflicts with the need to innovate and always break out of the legacies that define them. A strong adherence to legacy creates organizational friction that makes it difficult for leaders to modify the organization’s strategy, brand, and day-to-day operations when necessary.
The challenge for family business leaders is managing the age-old paradox. It is a conflict between the head and the heart. The officer may decide that a change is needed based on logical reasoning and analysis of the situation. The heart can have an emotional attachment to the past. The result is a conflict between objective situational analysis and personal gut beliefs. The leader must be loyal to the family legacy and heritage. all the time It has already worked or the leader must redefine legacy, family identity and the organization. May Is it important for the future? It is one of the most difficult, gut-wrenching decisions that all family business leaders will eventually have to make. No family business leader wants the distinction of destroying the family business and all that the family stands for. It is the main reason why we see family business leaders attest to higher financial performance in family businesses, such as “social-emotional” performance, such as family unity and harmony.
Ultimately, it’s about creating and shaping a legacy that can evolve and become part of a family business culture. An important part of the legacy of a successful family business is to be the best at what the business does and to have leaders who consistently contribute the skills and strategies needed to keep it that way. Since successful legacies cannot be rooted in the past, changes in the organization cannot be effectively addressed. Heritage custodians have to manage the difficult task of managing stability And turn into. The leader must decide which values, norms and beliefs are timeless and valid regardless of circumstances – because they are the core elements of the legacy that defines the identity of the family and the business going forward. They are beliefs, behaviors and knowledge. not at all It must resist necessary change and prevent the business and family from surviving and thriving. In this way, the business can retain its original identity and maintain its competitive advantage.
