Far beyond a mere recounting of events, storytelling in the context of family businesses becomes a powerful tool for shaping narratives, fostering cohesion, and gaining a competitive edge.
We asked our Global Family Business Think Tank Panel if they thought that family firms embrace their narrative/history sufficiently as a point of competitive advantage.
The results:
Do Family Firms Embrace Their Narrative For Competitive Advantage?
Yes - 26%
N0 - 67%
Don't Know - 7%
Our panel are in agreement as to the profound impact of storytelling within family firms and the ways in which the art of narrative contributes to resilience, innovation, and ultimately, a distinctive advantage in the competitive business landscape.
Storytelling can be a real differentiator for family firms but again it is clear that whilst some fully embrace their history and heritage into a compelling and authentic narrative, others need to recognise the potential and do more to harness the potential that comes with being a family owned business and a relatable story to tell. This is an area where more clearly needs to be done.
THE THOUGHTS OF OUR ‘THINK TANK’ REPRESENTATIVES:
“I believe that the narrative/history starts with the definition of the values that drive the purpose of the family and it’s business. Those values, their communication, and their evolution are key building blocks in creating a sustainable legacy.”
Charlie Leichtweis
Founder & Managing Director, Experts in How LLC
“Mastering marketing is a delicate blend of art and science, something that evolves until you find the perfect mix, and even that can shift tomorrow. Many businesses initially forge their reputation through hands-on effort, but as they ascend, their stories can grow stale. It’s not merely about the family narrative; it must be a tale that strikes a chord, illustrating why prospects and customers should care about whether it’s a family business or a corporate giant offering the same product.”
Jeremy Stevenson
Managing Partner, iBridge Global Partners
“On average, much more can be done to leverage such a unique source of competitive advantage.”
Salvatore Sciascia Professor, Cattaneo University
“Some family firms keenly understand the value that lies in their traditions and history and they are quite successful in leveraging this asset. However, not all family firms recognise this advantage and how it can be used.” Josh Daspit Associate Professor & Dean Paul R. Gowens Excellence Professor in Business, Texas State University
“I think that this is an area that needs to be enhanced. The stories of success as well as challenges need to be discussed, but the upcoming leadership needs to see that there is a pathway to fulfilment and joy if they stay on and help the family business. Sometimes the stories are more about the rough times and not enough of the good times and aspirational ideas that keep the current leadership motivated.”
Mike Schmitt President & Founder, The Rubra Group LLC
“Familiness as a differentiator is probably under-leveraged by those who could benefit from it (SME’s) and over-leveraged by large, multi-national firms that are more detached from their family ownership. Research shows that people like to buy from family firms and that that they like to work for family enterprises. Failing to harness that would be a mistake, but it must be authentic and appropriately communicated.”
Torri Hawley
Director of Client Experience, Tamarind Learning
“Family businesses tend to be a reflection of the personality of the current leaders and whilst some families have had professional support in telling their story, the vast majority have limited expertise and do not recognise the family business goodwill as a competitive advantage.”
Richard Boyce
Executive Director, Boyce Family Office
“The family businesses that tell their stories well are usually those that are most successful. They tend to get the balance right between legacy/history and each generation creating their own story."
This doesn’t just happen by chance, and usually there is a culture and governance which has been fostered and developed over years to ensure the entrepreneurial spirit of all generations and avoid ‘the shadow of ancestors’. The relevant governance and mindset helps ensure the balance and the narrative continue to be fit for purpose.”
Kirsty Ross Family Business Director, Turcan Connell
Find out more:
These results were part of the 2024 Global Family Business Think Tank Report that was published in Spring 2024. Check out the full findings in the report here
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