Family firms
Nigel Nicholson discusses the lessons all companies and leaders can learn from family firms
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In a new podcast Nigel Nicholson, Professor of Organisational Behaviour at London Business School, explains why other organisations need to pay attention to the unique culture of family firms.
Nigel's extensive research into family firms in the UK and overseas has found that successful family firms have "family capital"; a quality of interaction that gives them a unique capacity to motivate sustained high performance.
"Family firms have a very strong sense of family identity that pervades the firm," Nigel explains, "with a network of very solid relationships and a culture of loyalty and belonging, even among non-family employees"
It is this culture, Nigel suggests, that other firms should try to encourage. Professor Nicholson adds, "Leadership means ‘carrying' and creating a culture, which is the most sustainable form of competitive advantage. Culture attracts the best people to work for you."
However, family firms also face their own unique challenges, such as leadership and ownership succession and sometimes challenging relationships between family and non-family employees. In the podcast Nigel identifies the reasons that some family firms thrive and others go from ‘shirtsleeves to shirtsleeves' in three generations.
Nigel has carried out research into family business with the Institute for Family Business and is the co-author of Family Wars.
Visit the School's online bookstore for more information on Family Wars.
For more of Nigel's insights into family businesses, listen to the podcast.