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 […]
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 […]
Inspirational Story of Local Entrepreneurs: From a Whim to a Legend – The Success Strategy of Bika Ambon Zulaikha
When Hajjah Mariani, a retired pharmaceutical company employee, tried making bika ambon cakes in 2003, she never imagined that this “whim” would change her family’s life. From selling only eight boxes a day, Bika Ambon Zulaikha has now become an iconic souvenir of Medan and one of the largest bika ambon shops in North Sumatra. […]
The Dilemma of Transparency in Family Businesses
In modern business, transparency is often considered one of the key requirements for building trust and ensuring sustainability. Investors, employees, and customers alike encourage companies to be more open, whether in terms of financial reports, governance, or strategic direction. However, for family businesses, implementing transparency is not that easy. They face a unique dilemma: how […]