Roughly thirty percent of all family run businesses “successfully” transition to the second generation. Yes, that translates to 7 out of 10 that do NOT. Around twelve percent make it to the third gen and less than three make it to the fourth. Yup. Less than three percent of all family run businesses survive to the fourth generation.
These are often very successful systems under the watchful eye of the founder. Why such a low transition rate?
Public companies don’t appear to fare any better. If family run companies are America’s bread and butter, clearly the Fortune 500 represents the American dream. Many of our most successful public ones started as the “Mom and Pop” variety. True.
Here’s a scary question. How old, on average, are the Fortune 500? These are the 500 most successful businesses and the “household” names we’ve come to know and “love.” How long have they been around?
The answer surprised me. Turns out the average life span, today, is 40 years and falling. And, one could argue, is GM really cruising? Is McDonalds lovin’ it? Is Delta flying high? Is Citigroup or any bank for that matter, the place you trust to invest your hard earned coin? Soon, many of these systems will share a similar fate to Burger Chef, Bonanza, and Ritzys. They’ll be…
Forgotten.
Why are there so few examples of sustained, individual excellence?
Why are there so few examples of excellent family businesses that have stood the test of time?
Why are the most successful public companies dying within 40 years of their founding?
Why?
Why?
Why?
Why do you believe that the system you are working in is the exception?
Why, pray tell, are you continuing to work in it, if you do NOT?
What are you doing with your work and life that will be memorable?
What is it that your company is doing that will be worth remembering?
What are you doing to build mastery in your craft?
Tell me more, my friend.
Tell me more…
BUILT TO LEAD 