Helping Family Businesses Succeed Across Generations
Family businesses face unique challenges. Parkland helps families navigate these complexities while building stronger businesses and leadership for the future.
A Story Many Family Businesses Recognize
A founder spends decades building a successful company.
The business becomes a source of pride, identity, and financial security for the family.
Eventually the next generation becomes involved. New ideas emerge. Roles evolve. Questions arise:
Who should lead the company in the future?
How should ownership be structured?
How can the business continue to grow while maintaining family harmony?
What roles should family members play in the organization?
Without thoughtful planning, these questions can create tension, uncertainty, and risk for both the family and the business.
With the right structure and leadership, they become opportunities to strengthen the company and the family legacy.
Parkland helps families navigate these moments with clarity, structure, and strategic discipline.
The Stakes Are High for Family Businesses
Family businesses play an extraordinary role in the economy—but sustaining them across generations can be challenging.
Research shows:
• Only 30% of family businesses survive to the second generation
• Only 12% reach the third generation
• Family businesses represent 70–90% of global GDP
• Yet only about one-third have a formal succession plan
These realities highlight why thoughtful planning around governance, leadership development, and succession is essential.
The Unique Challenges of a Family Business
Family businesses face challenges that most companies never encounter.
These include:
• Leadership transitions between generations
• Defining roles for family members in the business
• Preparing the next generation for leadership
• Aligning family expectations with business strategy
• Creating governance structures that support healthy decision-making
• Integrating non-family executives effectively
• Managing conflict while preserving family relationships
Successfully navigating these challenges requires balancing family dynamics with strong business discipline.
Building a Family Business That Thrives Across Generations
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I've worked with over 500 companies,
and I've yet to find companies
that cannot improve
if they do the right things.If they identify the right strategy
and they implement the right execution,
almost every business can improve
and improve significantly.My name is Larry Goddard.
I'm the CEO of the Parkland Group,
a consulting firm based in Cleveland,
Ohio, that works with companies
to improve their performance,
profitability and value.A high percentage of the clients
that we work with, family businesses
and family businesses
are really a unique breed
because they have all the issues
that non-family businesses have,
which is figuring out strategy
and operational execution.But then you have to throw into the mix
family dynamics, which in many cases works
very well,
but also in lots of cases creates
huge drama and problems.And so when we work
with family businesses, we help them with
both their business strategy
but also their interpersonal dynamics.One of the biggest issues in family
businesses is the concept of succession.
When does the older generation back out
and when do they hand it over
to the younger generation?Generally,
most people in the older generation
feel that the younger generation
is not ready for it,
and the younger generation can't
wait to take over.Another issue is who has voting control?
A lot of times in family businesses,
you start out with a
a founder generation one.
That founder is focused on
building a business
and providing for his immediate family.40 years later,
that family has grown to 15 to 20 families
that are living off that business
and two issues arise.Number one, is the business
producing enough profit and cash flow
to now fund the lifestyles
which sometimes can become extravagant.
Of 20 families
and who ends up in control
because founder usually controls
all voting stock.But when that founder either
retires or dies,
the founder has to decide
who to pass that voting stock onto.
That in of itself creates
huge complications.Let's say the founder has four children
and decides to give 25% of the
company to all four children.
You potentially create
a stalemate and factions
and those factions can change over time
based on people's needs and situations.So there are huge complications
in family businesses that require,
in many cases, the help of an outsider.We work with many family businesses.
We help the family resolve
not only their business issues,
but also their interpersonal conflicts,
and help them try to prioritize
what's best for the business
and the family.
Running a family business comes with unique challenges that go beyond standard corporate strategy. In this video, Larry Goddard explores the complexities of managing a family-owned company, from operational execution to dealing with internal family dynamics. While family businesses must tackle the same strategic and performance issues as any other organization, they also face additional hurdles such as succession planning, generational leadership transitions, and voting control.
These factors can either create a legacy of success or lead to significant internal conflicts that threaten the future of the business. One of the biggest struggles in family businesses is knowing when and how to transition leadership. Older generations often feel the younger generation isn’t ready, while the younger generation is eager to take the reins. Additionally, ownership and decision-making power can become fractured among multiple family members, leading to disputes that impact business performance.
Larry shares insights on how family businesses can create structured succession plans, resolve internal conflicts, and ensure long-term stability. If your business is family-run, understanding these dynamics is crucial to sustaining growth across generations. Learn how to navigate these challenges effectively and build a legacy that lasts!
For over 35 Years, Trusted by Hundreds of Family Businesses
Parkland has worked with hundreds of family businesses to help them navigate growth, succession, governance, and leadership transitions.
Our experience allows us to understand both the business realities and the family dynamics that shape these decisions.
How Parkland Helps Family Businesses
Parkland works with family-owned companies to address both the business and governance issues that influence long-term success. Our work often includes:
Strategic Planning -Helping the business define clear priorities and growth strategies.
Succession Planning - Preparing leadership transitions and developing the next generation.
Governance Structures - Designing boards, advisory groups, and family councils.
Leadership Development - Helping family and non-family executives grow into effective leaders.
Organizational Alignment - Clarifying roles, responsibilities, and decision authority.
Conflict Resolution - Facilitating productive discussions and alignment among stakeholders.
Successful Transitions Require Preparation
A leadership transition in a family business is one of the most important decisions a family will make.
Parkland helps families:
• prepare the next generation for leadership
• clarify roles and responsibilities
• create effective governance structures
• align family and business expectations
• ensure the business remains strong through the transition
Family harmony alone does not guarantee success.
A family business must also remain competitive, profitable, and strategically focused.
Parkland helps family businesses strengthen:
• Strategy
• Profitability
• Leadership
• Organizational structure
This ensures the business continues to thrive for future generations.
Planning for the future of a family business is one of the most important conversations a family can have.
Every family business eventually faces questions about leadership, governance, and long-term direction.
Addressing these issues proactively can help preserve both family relationships and business success.
If you would like to explore how Parkland can help your family business navigate these challenges, we would welcome the opportunity to speak with you.
