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Stewardship for Successful and Enduring Family Enterprises

The Business of Family
Stewardship for Successful and Enduring Family Enterprises
By Mike Boyd • Issue #29 • View online
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Stewardship is a defining hallmark of businesses that achieve success, significance and sustainability.
The word is often used in family business circles, and increasingly in business literature, but what does it exactly mean? The 2012 UK stewardship code states that: 
Stewardship aims to promote the long-term success of companies in such a way that the ultimate providers of capital also prosper. Effective stewardship benefits companies, investors and the economy as a whole.
Family business stewardship is often defined as
the perspective of seeing the ownership as a responsibility to the next generation, to employees, and to the community
– rather than simply as a financial investment.
It encapsulates the essence of responsible and meaningful value creation in a sustainable way to benefit stakeholders, as well as the larger community that they are a part of. It underscores the importance of an ownership mindset, a long-term perspective and an inclusive approach.
These elements underpin and reflect the stewards’ motivation and commitment to nurture and grow what they are entrusted with, such that it can be handed over in a better shape to successors.
I was asked on twitter recently about my take on Stewardship vs Ownership which I’ll include for you below. Click through for the full thread.
Mike Boyd
Stewardship is the act of taking care of something for a moment in time and then passing it on in the same or hopefully better condition.

You don’t see it as yours but “ours”, and something you’re safely stewarding to the next gen.

Keep it safe, make it better, pass it on.
This Week's Podcast Episode
I enjoyed George's insights on managing the financial wealth of family businesses.
I enjoyed George's insights on managing the financial wealth of family businesses.
George Isaac's excellent new book.
George Isaac's excellent new book.
Interesting Links
Fiat Chrysler’s John Elkann Nears Crowning Achievement With PSA Merger - WSJ
Family-Held Companies Produce Superior Returns—and Have This Year, Credit Suisse Says | Barron's
The Challenges Of The Newly Rich: Facing Judgment And Finding Their Way
Stay in touch
Mike Boyd is the co-owner and CEO of the Vroom Group, Founder of Prosura insurance, Investor at Mudbrick Capital, Host of The Business of Family Podcast and an active member of YPO.
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Mike Boyd

I'm inspired by multi-generational businesses and the families who steward them. Join me as I learn how some of the world's most interesting families share values, knowledge, resources, and wealth with the next generation.

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