You need ‘Strategic Strabismus and Holistic Vision’ to successfully govern a family business

Despite the transformations of economies and societies, family businesses continue to be a dominant business model in Italy and worldwide; in our country they account for 85% of all businesses and contribute 70% of GDP. The beating heart of Italy’s productive fabric, they face numerous challenges linked to the enormous acceleration of markets, technologies and transformations in the socio-economic sphere, which require highly innovative management and governance strategies. ‘Business continuity has always been a central issue for family businesses in the challenge for longevity,’ says Prof. Salvatore Tomaselli, Associate Professor of Business Economics at the University of Palermo, and business consultant specialising in family business. ‘In contrast to the past, recent empirical data show that today family businesses, which are well prepared for transitions, continue to grow even after the second generation (disproving the famous saying: the first generation builds, the second enjoys and the third destroys); and that they have greater resilience and a better impact on the labour market (also in terms of employment) in times of crisis than non-family businesses.’ One of the most compelling challenges is therefore precisely that of being able to build the right conditions so that the company brought to success by its founder can continue to prosper with the next generation. ‘Strategic squinting and holistic vision are needed to successfully govern a family business’. Strategic squinting is the ability to look at both the short and the long term. ‘In a world that often forces one to focus on the short term, but which presents challenges in the long term, it is of paramount importance to have a clear and strategic vision both in terms of planning and in terms of preventing possible crises or sudden changes of course. Visionary entrepreneurs are able to successfully face daily challenges; to gain competitive advantages by proactively anticipating the needs of an ever-changing market; and to adapt business strategies to the threats or opportunities arising from rapid changes in the social and operational environment. However, they also have the ability to see beyond the present, to extend their gaze beyond the horizon and to imagine all future scenarios. In order to make strategic decisions for the future, the entrepreneur must develop a Holistic Vision, i.e. the ability to consider the company as an integrated system, in which all parts are interconnected and contribute to the overall success. The entrepreneur, for example, cannot fail to consider all the internal relational and social dynamics, since the family structure influences the company’s way of being even in those realities where the family is far removed from day-to-day management; just as company dynamics influence family relations and the family’s ability to interact correctly with the company. Successful strategic management thus implies the interdependence between the life of the company and that of the balances within the family that manages it. It is not by chance that I wanted to coin a term, Family Citizenship, precisely because the harmony of the family management nucleus is the fundamental prerequisite for the correct functioning of the company, which must be managed with Systemic Thinking, promoting a climate of trust and collaboration between all the members of the family. In conclusion, a more modern corporate culture is undoubtedly needed today: only through strategic squinting, systemic thinking and holistic vision will a company succeed not only in being truly competitive in an ever-changing market, but also in preserving its value for future generations.