Publications
Publications
- September 8, 2015
- Harvard Business Review (website)
Making Better Decisions in Your Family Business
By: Josh Baron, Rob Lachenauer and Sebastian Ehrensberger
Abstract
Family businesses face complex decisions, from CEO succession to business strategies. A "four-room" model helps structure decision-making in these businesses: Owner Room (ownership goals and board election), Board Room (performance monitoring and CEO appointment), Management Room (daily operations), and Family Room (unity and talent development). Each room has distinct roles and decision-making power sources. Challenges often involve an informal approach, missing owner rooms, or messy board rooms. Creating a structured family business system with balanced rooms can enhance decision-making efficiency and family unity.
Keywords
Family Business; Decisions; Business Strategy; Goals and Objectives; Management Succession; Talent and Talent Management
Citation
Baron, Josh, Rob Lachenauer, and Sebastian Ehrensberger. "Making Better Decisions in Your Family Business." Harvard Business Review (website) (September 8, 2015).