Monday 6 October 2008

Private bank Lombard Odier and the Institute of Family Business find the golden thread to integrate children into a family business

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Generating emotional ownership is the golden thread identified by Lombard Odier, a seven generation family business, and The Institute of Family Business, to help children successfully join established businesses and promote more longevity. The report throws to the rocks perhaps, the idea that family businesses rarely survive past two or three generations of ownership.

In a forty eight page report, emotional ownership, which includes introducing children at six years old into various areas of the business, with activities around the dinner table, is cited as key.

The report goes on to explain that emotional ownership is defined as a sense of closeness and belonging to the family business: something that penetrates below the surface of the mind into the identity of the person.

And the more the business actively involves a family member to raise his or her EO, the more inclined they will be to give service and to be involved.
The survey included six hundred families in sixty seven countries and offers hands on advice for implementation of their findings. Steps include: Absence of suffocation from older family members and an understanding that joining the family business means it doesn’t have to be for life.

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