Family unity is the cornerstone of a lasting family enterprise because it allows for smart decision-making around the longevity of the business. It facilitates the family to move in the same direction in support of the same goals, which leads to smart decision-making around the longevity of the business. It can also lead to an understanding of the family’s shared mission and core values as it pertains to the business and the family itself.

Defining a shared mission takes work and can involve multiple discussions with family members, but the efforts often pay off by giving families a stronger sense of identity and holding them together through change. Some families document their mission and values through a “family constitution,” which is a written document of the family’s core values, mission, vision, agreements, and policies about how they will treat one another and what they own together. Some family constitutions also insert corporate documents such as the business strategy and structure.

Family governance provides a structured approach to guiding decision-making and direction within a family, grounded in shared values, mission, and goals. This framework typically operates independently of the family’s business ventures. Many families establish regular gatherings, such as Family Assemblies or periodic meetings, where members can connect, share insights, and plan for the future together.

To support this, a family council or working group may be formed to develop policies addressing issues like family employment, fostering unity, ensuring effective communication, and nurturing talent. Additionally, some families set up a separate ownership council made up of family business owners to align on key priorities for the family enterprise. This council typically focuses on strategic matters such as setting guiding principles, managing risks, determining capital allocation, and shaping dividend policies.

Each family member has unique skills and interests. It’s important to align their strengths and passions with the business’s goals by defining appropriate roles.

Establish a clear process to assess the next generation’s leadership and ownership potential using evaluations of skills, qualifications, and interests. These insights can inform tailored development plans. Some may work directly in the family business, while others may find roles elsewhere in the family enterprise.

Opportunities include roles as shareholders, board members, philanthropic leaders, wealth managers, or family council members. Ensure all interested family members have the chance to prepare and find their place.

For a business to thrive across generations, it’s essential to engage the next generation and foster a sense of ownership and accountability. Share information about the family business, investments, and decision-making processes, and teach the family history, core values, and foundational leadership and ownership skills.

"As Hier suggests, 'To build a business that lasts across generations, you must inspire the next generation to become excited about the work and ensure they’re equipped to contribute.’" Some families establish education committees to guide learning and maintain motivation.

Hier emphasizes that successful multigenerational families focus on developing a shared family identity and culture rooted in continuous learning. They ensure that each generation gains the skills and understanding needed to act as responsible stewards of the family enterprise. “These families prioritize learning as a lifelong journey.”

Families should explore how the strengths of their current family enterprise could translate into other growing industries or sectors that align with their values, skills, and interests.

For instance, consider a well-known family business rooted in news publishing with strong connections to markets with numerous automotive advertisers. This foundation could allow the business to expand into related areas such as content curation and product research for the auto industry, potentially establishing leadership in these new sectors. Thoughtful diversification into complementary industries can be vital for the long-term success and sustainability of a family enterprise.

Families planning to transfer substantial assets to future generations should carefully consider what a successful transition of ownership, governance, and management will look like. For family members currently owning or managing businesses, this process often involves critical financial and ownership decisions, including:

• Gifting equity to children—either outright or through a trust—in a tax-efficient manner.

• Bequeathing equity at death while proactively addressing potential family conflicts related to shared ownership.

• Ensuring liquidity to cover estate taxes after passing.

In addition to financial considerations, succession planning for a family enterprise involves key non-financial decisions, such as:

• Defining the role of the family within the organization.

• Establishing a leadership model and governance structures that align with the next generation’s skills and the evolving needs of the business.

• Developing a transition process to gradually transfer responsibilities and authority as specific milestones are achieved.