Loyalty or Competence? The Enduring Dilemma in Family Businesses HR Management
In family businesses, human resource decisions are rarely black and white. Decisions about who gets promoted, who takes control of new projects, or who has to leave are often not just administrative issues. They often carry deep emotional implications. One persistent and uncomfortable question inevitably arises: is it better to retain people who have been […]
When Personal Matters Shape the Direction of a Family Businesses in the Boardroom
In many family businesses, the boardroom is more than a venue for strategic decisions. It frequently becomes a stage where long-standing personal relationships quietly resurface. Unlike public companies, where board members typically debate numbers, risks, or market opportunities, the boards of family businesses often carry a heavier emotional burden: unresolved sibling rivalries, lofty parental expectations, […]
When Family Bonds Blur Professional Boundaries in a Family Businesses
Family businesses are fundamentally built on mutual trust, hard work, and shared dreams. In the early stages, the extensive involvement of family members is not unusual—it is often essential to the business’s survival. Founders usually rely on spouses, siblings, or children to survive amid limited capital and high risks. However, over time, this very strength […]
Family Business: Should Leadership Always Stay in the Family?
For a long time, many family businesses have viewed succession not as a strategic decision, but as a predetermined fate. The logic seems simple: the business belongs to the family, so it feels only natural that the top position should be passed down from generation to generation. However, experience across generations shows that reality is […]
Organizational Structure in Family Businesses: Formal on Paper, Personal in Practice
Family businesses have unique characteristics. These entities combine two worlds with different principles: the corporate world, which is governed by rationality and procedures, and family relationships, which are influenced by emotions and personal bonds. This contrast is clearly reflected in their organizational governance. On paper, many family businesses appear to be managed formally—complete with organizational […]
The Dynamics of Family Business: The Unexpected Role of the In-Law
Family businesses are more than just money-making machines. More than that, family businesses are the heart of an identity, a complex web of emotions and legacies passed down across generations. Challenges such as leadership succession, sibling rivalry, or generational differences in vision are common. However, major changes do not always come with fanfare. They often […]
Why Are SOPs Often Challenging to Implement in Family Businesses?
Standard Operating Procedures (SOPs) are designed to establish orderly, consistent, and predictable governance within an organization. Ideally, SOPs help reduce dependence on specific individuals, minimize operational errors, and support sustainable business growth. However, in practice, within many family businesses, SOPs often exist merely as a formality—rarely fully implemented, frequently ignored, and sometimes subtly resisted. This […]
Inspiring Stories of Local Entrepreneurs: Tip Top Supermarket
Tip Top is one of the supermarkets that has been around for quite some time. Unlike other supermarkets, Tip Top adheres strictly to Islamic principles in running its business. The Man Who Built Tip Top The founder behind the success of the Tip Top supermarket business is Rusman Maamoer. He was born in Padang on […]
THE JAKARTA CONSULTING GROUP PRESENTS
FAMILY BUSINESS Beyond Bloodlines: Aligning Family, Ownership & Management When family and business overlap, conflict is not a risk, it’s a certainty. The question is: are you managing it, or letting it manage you? Join Patricia Susanto , CEO and 15+ year family business expert, to explore how family governance protects relationships and long-term value. […]