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, […]
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 […]
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 […]
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. […]