In family businesses, the past is not just a collection of memories but a rich resource that, when strategically utilised, can provide a competitive edge and a strong foundation for future growth. Exceptional families understand the importance of mining their history to inform their present strategies and future aspirations. The Past section of the Timeline of Family Council Canvas is designed to help families reflect on their history, identify the strengths and challenges they have encountered, and leverage these insights to build a resilient and enduring business.
Strategic Use of Family History
Research by Ge, De Massis, and Kotlar (2021) highlights the critical role that history plays in family businesses. Their study reveals that a family’s past can be strategically narrated to create competitive advantages through three key history scripting strategies: embedding, elaborating, and building family history. These strategies allow families to embed their business within broader social and historical contexts, elaborate on their multi-generational legacy, and build a narrative that highlights their achievements and innovations.
Embedding Family History
This strategy involves integrating the family’s history into the broader social and historical context that is widely recognized as true or real. It allows the family business to connect its narrative with the community’s collective memory, making the family’s story relatable and credible.
Example: A family business might emphasize its role in significant historical events or its contribution to local traditions, thereby embedding its history in a way that resonates with the wider community. This can help the business gain social recognition and acceptance.
Elaborating Family History
This strategy focuses on expanding the narrative of the family’s history by linking past events with present-day behaviors and decisions. It involves telling stories that highlight the continuity of the family’s legacy, which helps to build trust and establish the business as a long-standing, reliable entity.
Example: A business might share stories of how previous generations overcame challenges, linking those experiences to current business practices. This helps to create a sense of longevity and reliability, which can enhance customer trust and loyalty.
Building Family History
This strategy is about creating new chapters in the family’s history by highlighting the achievements and innovations of the current generation. It focuses on how the present leaders are building on the legacy of the past while also making their mark, thus ensuring the business remains relevant and competitive.
Example: A family business may emphasize the entrepreneurial successes of its current leaders, demonstrating how they are carrying forward the family tradition while also introducing new ideas and innovations. This can help the business maintain a balance between tradition and modernity, appealing to both long-time and new customers.
When families reflect on questions such as, “Where are you very proud of your family’s past?” and “Have you ever taken an idea and turned it into reality? How?” they are engaging in a process that goes beyond simple reminiscence. These reflections are about embedding their family history into the fabric of their business identity, creating a narrative that resonates with both internal and external stakeholders. This process is crucial for building a strong family brand that is trusted, respected, and remembered by the community.
Harnessing Historical Continuity for Strategic Advantage
The Past section of the Timeline also invites families to consider how their values have been tested over time and how these experiences have shaped their current business practices. Ge et al. (2021) emphasize that elaborating on family history helps to establish a sense of continuity that is vital for gaining customer trust and loyalty. By linking past achievements with present-day business practices, families can position themselves as not only reliable and consistent but also as innovators who draw on a rich legacy of experience.
Example: when a family business narrates how it overcame significant challenges or adapted to changing market conditions in the past, it builds a narrative of resilience and adaptability. This narrative is not just for external audiences; it reinforces the family’s internal cohesion, reminding each member of the shared journey and collective achievements that define their identity. This sense of historical continuity can be a powerful motivator, driving the family to maintain and build upon their legacy.
Best Practices for Reflecting on the Past
When engaging with the Past section of the Timeline, it is essential to involve all generations of the family. This inclusion ensures that the family’s history is viewed from multiple perspectives, enriching the narrative and making it more relatable to the younger members. By revisiting past successes and challenges, families can extract valuable lessons that inform current decision-making and future planning.
The Family Council Canvas encourages families to keep a detailed record of these reflections, providing a living document that can be referred to in future discussions. Regularly revisiting this history allows families to celebrate their achievements, learn from their mistakes, and ensure that their strategies remain aligned with the values and lessons that have defined their journey.
In conclusion, by strategically reflecting on and utilizing their past, exceptional families can create a narrative that strengthens their business, enhances their reputation, and provides a solid foundation for future success. The Past section of the Family Council Canvas offers a structured approach to this reflection, helping families to unlock the full potential of their history.
Reference:
Ge, B., De Massis, A., & Kotlar, J. (2021). Mining the Past: History Scripting Strategies and Competitive Advantage in a Family Business. Journal of Business Venturing, 46(1). https://doi.org/10.1177/10422587211046547.
