This work offers a summary of the book "MANAGING FOR THE LONG RUN: Lessons in Competitive Advantage from Great Family Businesses" by DANNY MILLER and ISABELLE LE-BRETON-MILLER.
In every systematic study, Family Controlled Businesses (FCBs) have been shown to outperform public companies in terms of revenue growth, market valuation increases, return on assets, return on equity, and other factors. However, this is not the result of some kind of magic formula: every company can emulate the FCB strategies and characteristics.
Therefore, the authors of Managing for the Long Run have analysed just what FCBs do successfully to produce such results and how. Their research has found that their success is built on a foundation of "the four C´s": 1. Take command - FCB leaders are decisive, speedy and innovative. 2. Continuity - they plan for the long term. 3. Create a community - the firm has a close-knit extended family culture. 4. Connections - FCBs strive to build long-term relationships rather than opportunistic transactions. They also found that FCBs are better at using one of the five business strategies: they make more effort in branding, quality, efficiency, innovation and deal making.
In short, FCBs are a model for endurance, passion, and long-term strategy. Managing for the Long Run uncovers the hallmarks of their strategy in a clear, applicable way.
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