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When a company appears to the public as a "family business", it means that a family is in charge. Their power influences the company. Whether intentionally or not, every business family shapes the brand identity and raises very specific expectations among staff, customers and business partners.

It follows from this: The family must be involved in brand management and storytelling. It is crucial that the company uses and cultivates the "family" narrative. It should make it unmistakably clear what makes this company substantially different from a "normal" one - and from other family businesses.

Family businesses are different from other companies

What exactly is a "family"? We humans have always had experience of it and have developed collective images of what a family stands for and what its characteristics are - with all their advantages and disadvantages. We all know what it means to be part of it.

What images do you have in your head? For me personally, "family" means an intense and robust kind of social bond between people. It stands for belonging, cohesion and trust. Families look after their members. For example, if someone is in need, whether through illness or a natural disaster, the family is there for them (in most cases). Blood is thicker than water, they say.

And a family does even more. It also stands for the continuous resolution and toleration of conflicts between individual members in favor of the common good. Such disputes can be fierce. In most cases, they eventually come to terms again. A family tolerates the idiosyncrasies of individuals, it forgives mistakes. Perhaps at some point in the case of Harry and Meghan, who knows?

Unlike membership of a club or company, it's not so easy to cancel your membership of a family. We are constantly thrown back on our family - whether we like it or not.

Every family has its own story - it is a living narrative

Families are built to last. Value-oriented, thinking in terms of generations. And yet they are also capable of change when a crisis needs to be overcome. We can see this in the example of the English royal family.

Family businesses use such images to position themselves as such. They use them for their brand management, sometimes consciously, sometimes unconsciously as a communication amplifier: to tell a story that attracts people in a special way.

Every family business needs a specific story. It must not be just any old story that other family businesses could also tell. Your story must be anchored in your own history: with your own protagonists, values and attitudes, your own ideas and goals. It must be full of challenges that have shaped the family, key experiences, successes and myths.

Family businesses focus on selected individuals

It is therefore not surprising that the company founders often take center stage, such as Robert Bosch and James Dyson. However, the focus can also be on people from subsequent generations who are mature leaders. Examples include Queen Elizabeth II of England or Wolfgang Grupp of Trigema: through their personality, attitude and deeds, they rose to prominence and are respected.

In addition to the family heroes, other family members can potentially influence the perception, reputation and success of the company - even if they no longer play an active role. Harry and Meghan send their regards from California.

All the actions and conflicts of the whole family influence how employees, customers and business partners think about the company - and how sustainable it is seen in the future.

Brand management must "manage" the business family

"Noblesse oblige - nobility obliges" goes the saying. Something important can be derived from this for the behavior of family members: If you are interested in the lasting success of the family business, you better behave accordingly!

So should they be managed on the basis of brand management (as far as possible)? I think you have to. And I think Queen Elizabeth saw it that way too.

The family symbolizes the original power of business

Why is that the case? The family behind a company is often of paramount importance in business. Because it is an important point of reference for internal and external interest groups - whether it likes it or not.

The family is the representative instance of the normative entrepreneurial will. It stands for the meaningful, original force from which the business originated.

For this reason, it is under observation from all sides. This is especially true when its members are active in management positions. But it also applies if they limit themselves to the role of shareholder.

The family and its values are needed above all in the company itself

Internally in particular, the family - and what you learn from it and about it - has a major influence on how employees think, act and feel. It influences the commitment and inner conviction with which they make decisions. Ideally in the interests of the company "their" family. It therefore has a major influence on employer branding.

Like a catalyst, the family can communicate the idea, ambition and values of their company: first internally to employees, then externally to customers, other stakeholders and the public, in the form of messages, actions, products and services. In this way, it gains essential importance for the company's ability to create value.

However, it can also cause confusion, uncertainty, stagnation and frustration and, in extreme cases, even endanger the long-term existence of the company: for example, through unprofessional behavior, contradictory messages or conflicts between individual family members or tribes.

The family serves as a USP

Externally, the family can lend a great deal of credibility to the company's top performance, for example when it comes to reliability in cooperation or a commitment to the highest product quality.

The personalities of a family bring the decisive human factor to the business. They make the entire company more tangible for external people and promote appreciation. In many cases, the family can be the deciding factor when a contract is signed as to why someone chooses this company over another after a marathon negotiation.

The family is an essential part of the brand

Queen Elizabeth II passed away on September 8, 2022. Just a few days later, individual countries of the United Kingdom and the British Commonwealth emphasized their independence aspirations.

It was immediately apparent: "The Firm", as the royal family calls itself, is now under the new management of King Charles III - and there are some demanding years ahead, full of transformative challenges with an uncertain outcome.

This is a development principle that we can observe in many family businesses. The generational change also needs to be well managed on the brand side. In the case of the British royal family, it will need all the resources at its disposal to tame the centrifugal forces. It must revitalize its appeal so that it can continue to prosper.

As with "The Firm", there is still plenty of potential lying dormant in many family businesses. They should discover and utilize it. They should recognize that their families are an essential part of their brands - and give them their rightful place in brand strategy and brand management with the appreciation they deserve.

The article first appeared on markenzukunft.com and has been updated.