I had the pleasure of attending the annual conference of Family Business UK held in Manchester recently, an important partnership for Boyden in keeping with our global commitment to the leaders of privately held organisations. Family businesses are the backbone of the UK economy, accounting for over 85% of all private sector firms and employing millions nationwide.
Values, Stewardship and Longevity
What sets these enterprises apart is not just their economic contribution, but the unique set of values that underpin their longevity and resilience. Having heard from business leaders with organisational heritage going back over 300 years, the conference served as an important reminder of what is required for a business to stand the test of time.
My other vital task over the last week was to finish binge watching Yellowstone before my Paramount+ membership lapsed. I reflected on the common traits and values rooted in tradition, stewardship and a deep sense of legacy that shapes the way family members (or non-family leaders appointed to help run family firms) make decisions and navigate challenges.
Family businesses are shaped by long-term thinking, working hard and putting the business first. Each generation see themselves as custodians of the business, responsible for passing it on in better shape than they found it. This stewardship mindset fosters prudent decision-making and a commitment to sustainable business.
Loyalty, Adaptability and Managing Conflict
Family businesses thrive on strong bonds of loyalty and trust. These relationships extend beyond the immediate family to employees and the wider community, creating a sense of belonging and shared purpose. While tradition is important, successful family businesses are also adaptable. They embrace change, innovate and diversify to remain competitive in a rapidly evolving marketplace.
With family and business intertwined, conflicts are sometimes inevitable. Effective family businesses develop mechanisms for resolving disputes constructively, often through formal governance structures or family councils, independent NEDs or extending the running of the business beyond family members.
Yellowstone centres on the Dutton family and their deep investment in safeguarding their enterprise for future generations. The loyalty to one another, despite frequent internal conflict, reflects the complex but enduring bonds found in many UK family firms. Trust, once broken, is hard to rebuild, and both the show and real-life businesses highlight the importance of maintaining these relationships.
Yellowstone’s characters are constantly adapting to new threats, whether from rival landowners or changing economic conditions. Similarly, UK family businesses must innovate and pivot to survive, balancing tradition with an openness to change and nimble decision making that helps when a change of direction is required.
The Dutton approach to conflict is often dramatic and destructive. UK family businesses, while not immune to drama, often invest in governance structures to manage disputes more constructively and, obviously, without the murder and mayhem of the drama in Montana!
Both the Dutton’s and UK family business members feel a profound sense of responsibility, not just to the business, but to the people and communities who depend on them.
Key Takeaways for All Businesses
Yellowstone offers a dramatic, exaggerated portrayal of the challenges faced by family enterprises. Yet, at its core, the series resonates with the real-world experiences of UK family businesses: the weight of legacy, the complexity of relationships and the relentless drive to protect what has been built for future generations.
By embracing strong values, fostering open communication and balancing tradition with innovation, UK family businesses will continue to thrive. My key leadership takeaways from the conference, that all business ownership types can utilise to thrive, were to value people, put the business first and make decisions with long term sustainable success in mind.
We look forward to continuing to support this critical facet of the UK economy.
