Family business leaders use institutional processes to maintain harmony

Carlos A. Dumois, President and Co-founder of CEDEM, argues that harmony in family-owned businesses requires intentional institutional leadership rather than luck.

He suggests that the role of a family integration leader is to transform relatives with diverse interests into a unified team of responsible owners who share a common purpose. Dumois describes how these leaders manage harmony by focusing on five pillars.

These include improving the quality of dialogue through communication workshops and creating a "school for owners" to educate heirs on financial concepts and governance. He emphasizes that owning shares provides economic rights but does not grant an automatic right to a management position, a distinction he believes prevents many family fractures. The author also stresses the importance of a shared legacy and proactive succession planning.

He advocates for defining a common purpose beyond daily business operations, such as social projects or philanthropy, to unite the family. By establishing clear rules in a "Protocolo Familiar" and acting as an arbitrator to resolve tensions before they escalate, leaders can ensure the family remains an engine for the company rather than a threat to its survival.