Pruning the Family Tree: When Is it Necessary?




Family business, Family-business balance, Family tree, Family will, Governance, Leadership
Agencies: no


The longevity that characterizes many family businesses is explained, to a large extent, by the continuous effort that is made within them to ensure their own governance over the years. To this end, it is important that the structures and regulations developed in the various decision-making areas (such as the General Meeting, the Board of Directors, the Family Council or the Management Committee) are the appropriate ones, as well as the fact that the people who lead them (owners, directors or managers) are active and competent to initiate processes sufficiently in advance. Based on the experience of the authors, this document proposes possible decisions to be taken in favour of governance, developed based on the existence of unity within the family and the degree of balance between the levels of potestas and auctoritas of the people involved in the decision-making process, as well as in relation to the size of both the business and of the family. In addition, and due to the crucial importance of the process itself, different factors are proposed to make this possible and favour it. The analysis of the various elements included in the article aim to provide suggestions for reflection, to professionals and academics in the field of family business, in order to advance upon our mutual understanding of the implications that caring for the family tree has on its own governance.



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How to Cite

Pereira-Otero, B., & Gallo, M. A. (2023). Pruning the Family Tree: When Is it Necessary?. European Journal of Family Business, 13(2), 255–260.



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