I have seen this again and again. On paper it’s all well and done. Sons or daughters have taken over and are leading the business. But are they really?
Most of the time, the founder or former patriarch/matriarch is still holding the reins, either quietly in the background or not so quietly. Or they have passed, are no longer around, but the family business or conglomerate is not prepared for what is coming.
Why most businesses are falling apart
This has many negative effects for the business. And what a founder or former generation leader built up over many decades is, step-by-step, turning to ashes. This is why many countries around the world in which my team and I operate have the same saying—English: “Shirtsleeves to shirtsleeves in three generations.” Chinese proverb: “Wealth never survives three generations.” Italian: “From the stable to the stars and back to the stable.” And so on.
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