July 24, 2013
Article
Harvard Business Review (website)

Family Business: How to Spot a Patriarch Problem

By: Josh Baron and Rob Lachenauer

Abstract

In this article, the authors discuss the concept of a "problem patriarch" in family businesses, using the example of Carl, a successful leader who undermined the talent he hired. Carl started a struggling $10 million automotive parts distributor and turned it into a $2 billion company. However, he became controlling and undermined capable family members and employees. The article highlights strategies problem patriarchs use to maintain control, such as dividing family members, offering benefits for obedience, limiting access to information, and creating a cult of personality. Such behavior can hinder the transition of power to the next generation and impede business growth. The authors suggest recognizing these patterns and cultivating new leadership approaches to ensure successful transitions in family businesses.