Consequences of value-based management for developing the organisational agility potential of a family business

Abstract

Changing environment makes enterpreneurs think differently, work closer with all stakeholders and respond quickly to customer needs, including those which are family-run. These are often focused on building their value in the long term and forget about increasing flexibility. Question how to combine the traditional style of management which is faithful to tradition and family values with a very clear challenge of maintaining business agility becomes one of the most important questions of every manager and business owner. Adding existing specific0 interrelationship between the business and the founding family, makes the management process in a family business very emotional and even more difficult. This process is most clearly evident where the values of the owner, founder and family merge. The founder’s values, which interweave with the values of the family system he / she belongs to, determine the choice of corporate mission and strategy, as well as the way in which company employees communicate with all external stakeholders (customers, contractors, suppliers and other business partners). It is the owners who create the organisational culture of their businesses based on their own, more or less conscious, value systems.