By Allan R. Cohen & Dr. Pramodita (Dita) Sharma
This book is a practical guide for families and entrepreneurs to sustain and grow their businesses across generations. It offers research-backed strategies, real-world case studies, and actionable plans to foster entrepreneurial leadership. By integrating entrepreneurship into both business and family systems, it ensures adaptability and continuity.
Family business owners and entrepreneurs can learn how to balance tradition with innovation while developing ambidextrous leadership—managing current operations and exploring new opportunities. The book emphasizes preparing and empowering the next generation for leadership roles, building strong governance structures for long-term success, and fostering family unity without compromising individual aspirations.
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Allan R. Cohen is a distinguished management scholar and author known for influential works such as Managing for Excellence and Influence Without Authority. Holding an MBA and DBA from Harvard University, he has contributed extensively to leadership, organizational behavior, and corporate entrepreneurship. Cohen has consulted for global corporations like GE and IBM, helped establish IIM Ahmedabad, and worked internationally, shaping both academic thought and practical management strategies.
Dr. Pramodita (Dita) Sharma is the Daniel Clark Sanders Chair and Professor of Family Business at the University of Vermont’s Grossman School of Business. One of the most cited scholars in family business research, she has authored over fifty articles and nine books. Sharma has led the Global STEP Project, serves as editor of Family Business Review, and holds honorary doctorates from leading European universities. Her work focuses on transgenerational entrepreneurship and governance in family enterprises.
Proactive Opportunity Identification
Entrepreneurial families thrive by spotting unmet needs early and acting decisively. This mindset ensures relevance in changing markets.
Fred DeLuca (Subway) started his business with a $1,000 loan to fund medical school. His ability to identify a simple need—affordable sandwiches—led to a global franchise, with over 37,000 stores in more than 100 countries by its 50th anniversary. Fred’s journey exemplifies entrepreneurial resilience, strategic pivots, and family involvement in building a global brand
Reflection Question:
What emerging trends could disrupt or enhance our business in the next 5 years?
Actionable Insight:
Form a working committee as an “Opportunity Radar” team to scan markets quarterly and present findings to the family council.
Ambidextrous Leadership
Menasha Corporation evolved from wooden tubs to advanced packaging while maintaining core values. Over generations, Menasha balanced family leadership with professional management, even appointing a non-family CEO to modernize operations before returning to family leadership. Initiatives like the Retail Integration Institute fostered a culture of innovation, empowering employees to experiment and learn from failure. Today, Menasha’s longevity and growth are attributed to its ability to preserve core family values while embracing change and entrepreneurial thinking across generations.
Are we allocating resources to both innovation and efficiency?
Dedicate a fixed percentage of annual budget to innovation projects and track ROI separately.
Flexibility with Discipline
Adaptability is crucial, but decisions must be backed by structured analysis to avoid impulsive risks.
Dot Foods shifted from a small milk delivery service to the largest food redistributor in the U.S. through disciplined expansion. Key to its success was a strong focus on customer engagement, continuous improvement, and family values—illustrated by practices like inviting customer feedback and fostering open family discussions on business challenges.
Do we have processes that allow quick pivots without losing control?
Implement scenario planning and decision matrices for major investments.
Generational Vision Alignment
Aligning the founder’s vision with next-gen aspirations prevents conflict and fosters continuity.
The Henriquez family of El Salvador built a legacy by nurturing entrepreneurial interests across generations rather than focusing on a single core business. Founder Mario Henriquez encouraged his children to pursue their passions by aligning family investments with individual aspirations—buying shares in a bank for one son interested in finance and acquiring a coffee farm for another passionate about agriculture. This flexible approach allowed the family to maintain a diverse portfolio and foster innovation while preserving unity. Their story illustrates how aligning personal goals with family enterprise objectives can sustain engagement and growth across generations.
How often do we revisit and update our shared family vision?
Conduct annual visioning workshops with all generations and document outcomes.
Cultivating Successors
Preparing future leaders early ensures smooth transitions and sustained growth.
Rumpke Waste & Recycling involved younger family members in hands-on roles from sweeping floors to managing routes. Rumpke Waste & Recycling began as a family business and grew into one of the largest privately-owned waste and recycling companies in the United States. The company’s success is rooted in its hands-on approach to developing future leaders. Bill Rumpke Jr., a second-generation family member and current COO, emphasized early involvement of younger family members—starting with basic tasks like sweeping floors and riding trucks, then progressing to managing routes and customer relations. This practical exposure instilled a strong work ethic and leadership skills, ensuring continuity and growth.
Are next-gen members gaining diverse experiences inside and outside the business?
Design rotational programs and mandate external internships before leadership roles.
Learning Through Absorbing
Observation and storytelling transmit values and entrepreneurial spirit across generations.
SC Johnson uses family stories and branding (“A family company since 1886”) to reinforce identity. Founded in 1886 by Samuel Curtis Johnson Sr., it started as a parquet flooring business. Samuel quickly identified a need for floor care products and introduced Johnson’s Prepared Wax, which became a breakthrough innovation. This pivot from flooring to cleaning products laid the foundation for the company’s growth. Over the decades, SC Johnson expanded globally, introduced iconic brands like Windex, Glade, OFF!, Raid, Ziploc, and Pledge, and became a household name. Their film “Carnauba: A Son’s Memoir” shares family experiences and lessons learned, reinforcing the company’s heritage and commitment to sustainability. These stories are used internally to inspire future generations and externally to strengthen their brand identity.
Do we share our entrepreneurial journey openly with younger members?
Document family history and discuss lessons during regular gatherings.
Learning Through Interacting
Open dialogue fosters curiosity and mutual respect, strengthening family cohesion and leadership skills.
Dublin Cleaners modernized operations through Brian Butler’s tech-driven ideas after collaborative discussions. The family-owned dry-cleaning business in Ohio, exemplifies how embracing technology can modernize traditional operations. Brian Butler, a third-generation family member, initially ran an independent software company before being invited by his father to improve Dublin Cleaners’ systems. Through collaborative discussions, Brian introduced barcode-based garment identification to enhance accuracy without increasing labor costs. He later implemented a robotic order assembly system, enabling customers to track their orders online or via a mobile app. These innovations streamlined operations, improved customer experience, and positioned Dublin Cleaners ahead of competitors. Brian eventually joined the business full-time and expanded it from one location to five, demonstrating how tech-driven ideas can transform a legacy business.
Are junior members encouraged to ask questions and challenge ideas respectfully?
Host monthly “Ask Me Anything” sessions with senior leaders.
Learning Through Creating
Experimentation builds confidence and entrepreneurial capability.
Brown Brothers, a renowned Australian family-owned winery, has sustained its legacy through innovation and adaptability across generations. A notable example of this entrepreneurial spirit is the initiative by six fourth-generation cousins who secretly collaborated to create a new wine brand called “Kid You Not.” This brand was designed to appeal to their own demographic, showcasing creativity and a willingness to experiment within the family business. The project not only strengthened relationships among the next generation but also earned respect from senior family members and non-family executives. By blending tradition with modern consumer trends, Brown Brothers demonstrated how empowering younger family members to innovate can keep a heritage brand relevant and competitive.
Do we provide safe spaces for innovation within the family enterprise?
Launch a family incubator for small-scale projects with seed funding.
Building Governance Structures
Formal governance ensures accountability and reduces emotional decision-making.
Rita Marquez, a young next-generation leader in her family business, faced complex challenges such as poor communication, unclear roles, and health-related concerns affecting leadership continuity. After graduating from Babson College, she took charge of a division and introduced structured governance practices to resolve conflicts and improve performance. Her initiative included implementing board meetings for divisions, creating quantitative evaluation systems for family members, and launching an in-company growth program. She also set clear rules for family meetings—such as no interruptions and requiring questions before opinions—to foster constructive dialogue. These changes led to immediate improvements in decision-making, accountability, and harmony, marking a turning point for the family enterprise.
Do we have clear governance forums and policies?
Establish family councils, junior boards, and documented succession plans.
Balancing Core Strength & Flexibility
Successful families preserve identity while adapting to societal and market changes.
Bombardier, a global leader in transportation and aerospace, began as a small family business in Canada founded by Joseph-Armand Bombardier in 1942. Initially focused on snowmobiles, the company expanded into rail and aviation, becoming a major player in the global market. A defining feature of Bombardier’s governance was its inclusive approach to leadership, exemplified when Laurent Beaudoin, the founder’s son-in-law, succeeded Joseph-Armand Bombardier. This decision reflected flexibility in leadership succession without compromising core family values. Under Beaudoin’s leadership, Bombardier diversified into aerospace and rail transportation, driving significant growth and innovation. Today, Bombardier is recognized worldwide for its advanced aircraft and rail systems, demonstrating how adaptability and inclusive family governance can sustain success across generations.
How do we define family roles and leadership eligibility?
Broaden inclusion criteria and embrace diverse leadership models.
Entrepreneurs in Every Generation is a strategic playbook for family enterprises. It teaches how to blend tradition with innovation, prepare successors, and build governance systems that ensure longevity. By applying these lessons, families can transform challenges into opportunities and thrive across generations.
The views, interpretations, and insights presented in this series are intended solely for informational and educational purposes. They reflect general observations on family business dynamics, supported by references to Indian mythology and historical events, and should not be construed as professional, legal, financial, or business advice.
Readers are encouraged to exercise their own judgment and seek independent professional guidance before making any decisions based on the content.