Family businesses have long been the backbone of global economies, spanning multiple generations and industries. However, maintaining a successful family business across generations requires more than just business savvy or financial strength – it demands strong internal family dynamics.
The relationship between family members, their ability to align, collaborate, and emotionally support each other are key factors that contribute to the sustainability and resilience of these enterprises.
In the context of family businesses, three essential pillars often discussed are family unity, family harmony, and family cohesion. While these concepts are interrelated, they serve distinct purposes in shaping the family’s capacity to run a thriving business. Understanding each pillar individually – and how they work together – is crucial for business families aiming for multi-generational success.
Family unity is often viewed as the cornerstone of a family business’s longevity. At its core, unity reflects the alignment of goals, values, and vision among family members. Unlike traditional businesses, where stakeholders may have differing objectives, family businesses thrive on the shared purpose that comes from familial bonds. This unity ensures that all members are moving in the same direction, focused on long-term sustainability rather than short-term gains.
A family that exhibits strong unity is one that has a clear, collective understanding of what it stands for and where it is headed. This shared vision helps family members stay committed, especially in times of adversity. When external market conditions become volatile or the business faces financial challenges, it is family unity that allows members to come together, make quick decisions, and adapt effectively.
Successful family businesses are often characterized by a deep sense of stewardship, where the current generation views itself as the custodian of the family legacy. Family members are committed to upholding the values and traditions passed down from previous generations, while also innovating and evolving to meet the challenges of a dynamic business environment. This sense of stewardship not only strengthens unity but also ensures the business remains relevant across generations.
The following illustrates two examples of family business unity:
Wallenberg: The Wallenberg family is one of Sweden’s most prominent and influential business dynasties. The family’s business legacy began in 1856 with the founding of Stockholms Enskilda Bank (SEB) by André Oscar Wallenberg. He was a naval officer who turned banker.
Wallenberg has maintained a discreet yet impactful presence in global business as represented in their motto “Esse non videri” (“To be, not to be seen”). The Wallenberg family’s influence is managed primarily through their network of foundations and holding companies. The family have ownership stakes in some of the largest Swedish multinational companies including Ericsson, ABB, SEB, Astra Zeneca and Electrolux through their investment companies, Investor AB and FAM.
The Wallenberg family’s success is built on a commitment to long-term stewardship, innovation, and societal contribution. They are heavily involved in in philanthropy through the Knut and Alice Wallenberg Foundation (founded in 1917).
The Wallenberg business family is known for its commitment to family unity through structured governance and responsible stewardship. The family council meets regularly to align on strategy, family values, and intergenerational communication to ensure the longevity of the business family across generations.
Ayala: Another example is the Zobel de Ayala Family from the Philippines with a business legacy dating back to 1834. They own Ayala Corporation with interests in real estate, banking, telecommunications, and infrastructure. The Zobel de Ayala family is one of the most influential business conglomerates in Asia.
The Zobel de Ayala family nurtures family business unity by their emphasis on shared purpose, strong values, and sustainability. Their efforts in education and environmental initiatives across generations highlight their collective commitment to long-term impact while fostering strong bonds within the family.
The Ayala family actively engages in comprehensive levels of governance and philanthropic projects ensuring both family unity and a shared sense of responsibility for the business and the community.
While unity is about shared purpose, family harmony is about maintaining positive and peaceful relationships among family members. Harmony within the family is critical to the success of the business, as unresolved conflicts can quickly escalate and negatively impact both family relationships and business operations. In many cases, personal disagreements between family members have led to the downfall of otherwise successful businesses.
Family harmony does not imply the absence of conflict, but rather the ability to manage disagreements in a way that preserves relationships. Every family, regardless of the business, will face moments of tension. The key is how these disputes are handled. Successful family businesses recognize the importance of fostering an environment of open communication, where differences can be aired and resolved constructively. Regular family meetings, family councils, and structured forums provide a platform for addressing issues before they affect the business.
In prominent family businesses, this structured communication is often supported by conflict resolution mechanisms, such as bringing in mediators or advisors when necessary. Families that invest time in these processes are more likely to maintain harmony, ensuring that disagreements do not become long-term rifts that disrupt both personal relationships and business objectives.
Additionally, promoting a culture of mutual respect is crucial for maintaining harmony. Ensuring that each family member, regardless of their role in the business, feels valued and heard helps to avoid resentment and keeps relationships intact. A harmonious family environment not only makes it easier to make decisions together but also creates a positive working atmosphere that benefits non-family employees and stakeholders.
The following illustrates two examples of family business harmony:
LVMH: LVMH (Moët Hennessy Louis Vuitton) is the world’s leading luxury goods conglomerate with a market capitalization exceeding Euros 400 billion. It was founded in 1987 and has since 1989 been led by Chairman and CEO Bernard Arnault.
The Arnault family holds a pivotal role in its success, controlling 48.6% of the share capital and 64.3% of the voting rights. This majority control is structured through holding companies, Agache (formerly Groupe Arnault) and its 100%-owned subsidiary, Financière Agache which also manages Aglaé Ventures, a family-backed venture capital firm investing in innovative companies globally.
LVMH exemplifies a successful integration of heritage and innovation by being the custodian of over 75 prestigious Maisons across 6 different sectors spanning fashion & leather goods, perfumes & cosmetics, watches & jewellery, wines & spirits, and other categories.
Bernard Arnault’s family harmony is evident in his succession planning. By involving all five of his children in key roles within LVMH, he ensures not only the continuity of the business but also fosters collaboration, trust, and mutual respect among them.
Mars: The Mars business family is another example of harmony in family business.
Mars is one of the world’s largest privately held companies which is renowned for its iconic confectionery brands like M&M’s, Snickers, and Mars bars. It also has a significant presence in pet care with brands such as Pedigree and Royal Canin.
Mars was founded in 1911 by Frank C. Mars in Tacoma, Washington. The company has grown into a global powerhouse with operations in over 80 countries driven by a strong commitment to quality, innovation, and sustainability.
The Mars family is led by its fourth generation making it one of the most prominent family-controlled enterprises globally. The family’s values of long-term thinking and maintaining a private, low-profile approach (typically for global business families) have shaped the company’s culture and strategic direction.
This stewardship approach has allowed Mars to remain independent, reinvest in its growth, and adhere to its guiding principles across generations.
The Mars family prioritizes harmony by adhering to a “One Mars” philosophy, encouraging collaborative leadership across family branches and consistently reinforcing shared values and mutual trust.
The third pillar, family cohesion, speaks to the emotional closeness and bonding between family members. This cohesion is often reflected in the way family members support one another, both personally and professionally. High family cohesion ensures that members feel a strong sense of belonging and emotional investment in the family’s success. It is this bond that holds the family together during times of personal and professional hardship.
Cohesion is particularly important in family businesses, where the line between personal and professional life can blur. Families that are emotionally close tend to be more resilient when facing business challenges. The strength of the emotional bonds within the family provides the foundation for members to trust each other and offer support when needed.
In many successful family businesses, cohesion is reinforced by early involvement of the next generation in the family enterprise. By introducing younger members to the business early on, families foster a sense of responsibility and ownership. This early exposure helps younger members feel more connected to the family legacy, while also preparing them to take on leadership roles in the future.
Beyond business exposure, many prominent family businesses encourage the next generation to pursue external education and experiences. This approach allows younger members to develop their own identities and skills, while also building the resilience and problem-solving abilities that come from overcoming challenges outside of the family sphere. Such experiences contribute to greater emotional maturity, making younger members more equipped to handle the complexities of the family business when they eventually assume leadership positions.
The following illustrates two examples of cohesion in business families:
Mulliez: The Mulliez business family has its origins in the Lille region of France. It is one of the country’s wealthiest and most important business families. The Mulliez business family is known for their entrepreneurial spirit and discretion. The business family controls over 150 companies and brands organised in their family office. The Association Familiale Mulliez (AFM), employing 615,000 people globally and generating EUR 100 billion in combined annual turnover.
Their vast business portfolio includes major brands like sports retailer Decathlon, hypermarket retailer Auchan, and home improvement retailer Leroy Merlin.
The Mulliez family cohesion is rooted in their strict shareholder agreement, which limits external ownership, provides strong governance structures and emphasizes collective decision-making. This framework ensures that family members work together to preserve their shared legacy.
Chaudhary: Another example is the Chaudhary family from Nepal. They are the owners of CG Corp Global which is the country’s first multinational conglomerate and a key player in South Asia. CG Corp Global is chaired by Nepalese billionaire Binod Chaudhary.
The business group spans over 32 countries and 160 companies across diverse sectors, including fast-moving consumer goods (FMCG), hospitality, real estate, and energy. CG Corp employs over 20,000 people and generates significant economic impact.
The Chaudhary family exemplifies family cohesion by working closely across generations and involving all members in philanthropic initiatives, strengthening familial bonds and shared values. The family emphasizes innovation, sustainability, and philanthropy, which makes CG Corp a model of entrepreneurial family business success in emerging markets.
While each pillar – family unity, family harmony, and family cohesion – serves a distinct role, the success of a family business hinges on how well these elements are balanced. Family unity ensures that all members are working towards common goals and maintaining a collective vision. Family harmony ensures that interpersonal conflicts are managed in a way that preserves relationships and business integrity. Family cohesion fosters the emotional support necessary to navigate both personal and professional challenges.
When these three pillars are in alignment, they create a stable and supportive environment where the family can thrive both personally and professionally. A family business that lacks unity may struggle with divergent goals and inconsistent decision-making. A family that lacks harmony may be torn apart by unresolved conflicts, while a lack of cohesion can lead to disengagement and emotional distance among family members, weakening the foundation of the business.
By prioritizing all three aspects, family businesses can create a framework that not only preserves the family legacy but also promotes growth and innovation across generations. Families that invest in building these internal dynamics are better positioned to overcome challenges, adapt to changing market conditions, and seize new opportunities.
Family unity, harmony, and cohesion are the invisible pillars that hold family businesses together. In a world where businesses face increasing external pressures and disruptions, these internal family dynamics offer stability, continuity, and resilience. Families that can balance shared purpose, peaceful relationships, and emotional bonding will not only sustain their businesses but also pass on a legacy that future generations can build upon.
The long-term success of a family business, therefore, relies as much on nurturing strong family bonds as it does on making smart business decisions. By fostering family unity, harmony, and cohesion, family businesses can thrive for generations, leaving behind a legacy and heritage of both business achievement and family solidarity.
About the author: Martin Roll – Global Family Business & Family Office Expert
New book (2025): Family Business Strategy – Leading Future Paths With Impact
New book (2025): Family Office Strategy – Creating a Multi-Generation Legacy
Read more: The Stewardship Imperative: How to Build Multi-Generational Success in Family Business
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