{"id":12045,"date":"2019-06-27T17:40:55","date_gmt":"2019-06-27T15:40:55","guid":{"rendered":"https:\/\/www.munich-business-school.de\/insights\/?p=12045"},"modified":"2020-06-18T14:45:46","modified_gmt":"2020-06-18T12:45:46","slug":"courage-center-thought-no-1-legacies-values-what-do-these-words-actually-mean-to-business-families-and-why-are-they-relevant","status":"publish","type":"post","link":"https:\/\/www.munich-business-school.de\/insights\/en\/2019\/courage-center-thought-no-1-legacies-values-what-do-these-words-actually-mean-to-business-families-and-why-are-they-relevant\/","title":{"rendered":"Courage Contribution: Legacies & Values \u2013 What Do These Words Actually Mean to Business Families, and Why Are They Relevant?"},"content":{"rendered":"

Over the course of the last 11 years, Courage has discussed with business families from around the globe. Many of these discussions went well beyond the mere operationalization of single topics, into directions that touched the essence of \u201cwho are we as family, why are we in business, how do we want to work, and what does long-term, multigenerational entrepreneurship actually mean\u201d.<\/p>\n

Through the \u201cCourage Center Thoughts\u201d series, the Center shares small summaries of these multi-year discussions to help families trigger debates that go to the essence of deeper topics. While it is obvious that these thoughts cannot share names, locations, and business details of all the families we met, we want to explicitly thank everybody that we spoke to, worked with, and got support from \u2013 you all know who you are.<\/p>\n

\"MBS<\/a><\/p>\n

Courage Center Thought No. 1: Legacies & Values \u2013 What Do These Words Actually Mean to Business Families, and Why Are They Relevant?<\/h3>\n

Values are the foundation of success. An enduring legacy begins with a business family reflecting, and then defining and knowing what it wants to stand for, and which difference a business family wants to make in the world. Long lasting business families are very conscious not to fall into the trap of feeling \u201csuccessful and therefore important\u201d, knowing that success might be temporary, markets go up and down, luck appears and fades, and family union, hard work and dedication, not arrogance and individuality, lead to repeat success. Further, keeping an open mind, and never stopping to listen, observing and exploring the changes in one\u2019s environment are essential skills to protect family prosperity and wealth against sudden negative surprises.<\/p>\n

The cultivation of humility keeps a business family grounded. Wealth creation alone never fully satisfies long-lasting business families, and is not be the primary purpose in their lives. One understands that the life cycle as a business family might begin with a rather transactional perspective (\u201cwe needed to cut some good deals first\u201d), but over time, develops into a desire for transformation and self-actualization as a family (\u201cwe want to make an impact beyond business alone\u201d). Strong values can sustain business performance and create long-term impact, which can then be cultivated across generations. It is critical to understand the values that were inherited from previous generations of a family, and how each generation can instill them into the next generation of employees and family members. By modelling consistent values, such as hard work, thrift, humility, and gratitude. Hence, over time, success can be bred. In turn, by nurturing a sense of entitlement in the next generation, and potentially \u201cgiving too much\u201d, such values can be destroyed quickly, as the next generation will not learn and appreciate the value of hard earned success and financial prosperity, thus not appreciating what they are given to steward forward over time.<\/p>\n

Building a legacy therefore includes more than building wealth for the next generation. It spans beyond wealth into the domain of creating a legacy of values.<\/p>\n

\"MBS<\/a><\/p>\n

The following five thoughts could provide a good starting point to reflect on, and start building a strong business family legacy:<\/p>\n