Do you believe what the Harvard Business Review wrote: In global family business management theory, this phenomenon is known as “The Three-Generation Curse“: “The first generation builds, the second generation enjoys, the third generation destroys.”
I DON’T BELIEVE (the term “believe” is more appropriate for religious or non-quantitative terminology).
I KNOW AND AGREE (because business doesn’t require belief, but rather facts, evidence, NUMBERS, and MATH).
Based on global business data research and statistics from family business research institutes, only about 3% of all family businesses worldwide survive to the fourth generation and beyond.
In my opinion, simply knowing all the numbers, data, statistics, and research results is irrelevant, as they don’t change anything.
THE CRUCIAL QUESTIONS WE MUST ANSWER ARE:
Why did this bad thing happen?
What was the primary cause?
What is the concrete solution to prevent it from happening?
What’s the strategy to ensure (potentially and mathematically) that a Family Business can not only survive across generations, but can also continue to grow exponentially, unprecedentedly, progressively, and protected; so that even if your children and grandchildren stop working, their wealth will not be consumed by 7 generations!?
Johanes Lim, PhD, CPC, CHt (林泰義)
Financial Doctor and Turnaround Specialist for Family Businesses and The BOD Forum Across ASEAN
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