Family Business Audiocast Episode 13: Balancing Tradition and Innovation in Family Financial Planning with Alfredo De Massis
Dec 27, 2023
In this engaging discussion, Alfredo De Massis, a leading academic in family business studies and a top influencer, dives into the challenges of family wealth offices. He reveals the paradox of family businesses being capable yet hesitant to innovate. De Massis discusses the vital role of tradition in strategic planning and highlights the emotional foundations necessary for successful succession. He also introduces the concept of the 'entrepreneurial family galaxy,' showcasing how diverse family organizations contribute to sustainable legacies.
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Four Key Family Business Challenges
- Family businesses face four key challenges: patrimony management, succession beyond traditional roles, balancing family and societal goals, and using tradition strategically.
- Tradition becomes a competitive resource amid uncertainty and backward-looking tendencies.
Family Business Innovation Paradox
- Family firms have a paradox: high ability but low willingness to innovate.
- Unlocking innovation requires focusing on increasing their motivation to innovate, not just ability.
Manage Generations to Innovate
- Manage generational tensions as seniors value preservation and juniors seek change.
- Adapt innovation management to family firms; don’t blindly apply non-family best practices.