If you're looking for a compelling read on business management and strategy, look no further than "Managing for the Long Run: Lessons in Competitive Advantage from Great Family Businesses" by Danny Miller and Isabelle Le Breton-Miller. This book about family-controlled businesses (FCB) offers a wealth of knowledge and insight into what makes family-controlled businesses so successful, using real-world examples from companies like Estee Lauder. These lessons can be applied to Founder led companies.

The superb TV show, Succession, gives a window into the behind-the-scenes personal dramas of being part of a family-controlled business. The show acts out the difficulty of combining family and business where impetuous comments linger far beyond the board room and decisions made by the patriarch still knife the grown-up children’s self-esteem and damage family relationships. The Roy family did have a session with an advisor to get out their feelings. The advisor ended up diving into a shallow pool and smashing his mouth. Symbolic. For family business aficionados, Succession is a veritable treasure trove of bad business practices in the areas of control and governance.

Family-controlled businesses are beset by inherent weaknesses from "clan" cultures to stable ownership that hobble success and erode competitive advantage. This book argues that those very traits are part of what has ensured the sustained success of some of the world's leading and long-lived family-controlled businesses.

This is not a book for "mom and pop" family businesses. Rather, it is for firms of all kinds and sizes who want to emulate the strategies of the best family-controlled businesses for long-term success.

One of the most interesting case studies in the book is Estee Lauder, the cosmetics company that owns a wide swath of make-up brands, including Bobbi Brown and Clinique. What sets Estee Lauder apart from other beauty brands is the onus on family members to ensure that the business remains successful for generations to come. They dig deep to build each brand and are dedicated to beauty care.

The Lauder family has a long history of involvement in the company, with members serving as CEOs, board members, and even brand ambassadors. This level of familial involvement creates a strong sense of ownership and responsibility for the company's success. When family members are directly involved in the business, they are more likely to make decisions with the long-term future of the company in mind.

One of the key takeaways from "Managing for the Long Run" is the importance of creating a culture of sustainability and resilience within a family business. Family-controlled businesses have a unique advantage in this regard, as they are often more focused on the long-term success of the company rather than short-term profits.

The book also highlights the importance of strategic planning and innovation in family businesses. Family members must be willing to adapt to changing market conditions and embrace new technologies and trends to stay competitive. This requires a willingness to take risks and experiment with new ideas, something that can be challenging for businesses that have been operating successfully for many years.

Overall, "Managing for the Long Run" is a must-read for anyone interested in business management and strategy, especially those involved in family-controlled businesses. The book offers valuable insights into what makes these types of companies so successful, and how they can continue to thrive in an ever-changing business landscape. If you're looking for inspiration and practical advice on how to build a sustainable and competitive business, this book is definitely worth a read.

There is plenty of folk wisdom about how family businesses perform versus non-family counterparts. This book, however, combines extensive data with insights that not only compare performance but explain the root causes. It is extremely helpful for executives, directors and owners of family companies. Not only that, but public companies could learn much from it.

Danny Miller is a Professor of Strategy at HEC Montreal and Chair in Family Enterprise & Strategy at the University of Alberta. Isabelle Le Breton-Miller is a human resources consultant and Senior Research Associate at the Center for Entrepreneurship and Family Enterprise at the University of Alberta.