Partner Article

Family values are key to business

Keeping it in the family seems to be the way forward in business, according to a new survey.

Coutts & Co have found that specific aspects of family run businesses give them a competitive edge in the marketplace, and more businesses should think like family-run ones.

Strengths cited were agility and flexibility in decision-making, a persona approach to business and honesty and integrity.

Many family businesses see their status as a source of competitive advantage and a positive contributor to brand image. It also reinforces a sense of passion and commitment not only within the business, but also to customers and clients.

Juliette Johnson, Head of Family Business at Coutts said: “These findings reinforce our experience of what makes family businesses so special and what gives some the ability to survive over many generations, qualities which many non-family businesses could emulate.

“Family businesses do not tend to celebrate and promote their successes often enough. We hope that by making these findings available for the benefit of other family businesses, it will encourage others to consider what gives them a competitive edge.

However, others regard some of these values as weaknesses. Personal relationships which are integral to family businesses mean that it is often more difficult for them to introduce and assimilate new talent. Others are also overly reliant on a few key clients, which puts constraints on their relationship.

Nonetheless, these factors can equip family firms for the long term. Director General of Coutts added: “We believe that the principles of family stewardship will enable businesses to respond more effectively to events such as the recent financial crisis, promote better workplaces and regain society’s trust in business.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .