Supporting Agility: Decision-Making in Family-Owned Businesses
In a business environment defined by rapid change and mounting complexity, the ability to make timely, high-quality decisions is a critical differentiator.
Family-owned businesses demonstrate distinctive decision-making dynamics that can offer strategic advantages and learning for other organizations. “Family-owned businesses often exhibit unique characteristics in their decision-making processes,” notes Eelco van Eijck, Managing Partner at Amrop The Netherlands and member of Amrop’s Global Consumer & Retail Practice. Drawing on extensive experience advising and recruiting for family enterprises, van Eijck highlights the speed, intuition, and adaptability that set these organizations apart.
Relying on “gut feeling"
“Speed of decision-making is one of the most striking differences,” van Eijck explains. With direct access to owners and fewer bureaucratic layers, family businesses can move with an agility that other corporations struggle to match.
He recalls a search for a Head of Strategy within a family-owned ingredients company: despite a candidate advancing to the final stage with strong credentials, the owner had last-minute reservations and ultimately declined to proceed – stemming from an intangible gut feeling. “Despite the setback for us, I respect that decision,” van Eijck reflects. “It illustrates how leaders in family firms give significant weight to instinct, even when formal assessments are positive. And the fact remains: this company has built a high-performing leadership team and is thriving in its sector.”
Such instinctive interventions rarely occur in other corporates, where risk mitigation, alignment processes, and complex hierarchies tend to prevail. “In corporate organizations, this kind of last-moment decision is something we would most likely not see,” he adds. “Family business owners, however, are deeply attuned to the business and personally committed to the people they bring onboard.”
Pivoting With Purpose
Beyond instinct, agility is a defining trait. Van Eijck recounts a recent search for a position reporting to a family-owned company’s Chief Commercial Officer. After interviewing a finalist, the Amrop team had reservations. They shared their concerns transparently when invited to comment. “The owner appreciated the honest feedback and acted immediately,” he says. “This responsiveness reflects how family enterprises can pivot rapidly when presented with critical insights - an advantage that is far harder to realize in more complex organizational structures.”
This agility extends inward as well. Van Eijck describes another assignment where an internal candidate was introduced alongside a slate of external applicants. Despite their young age, the internal candidate demonstrated strong potential. “We advised the client to pause the external search and promote the internal candidate with appropriate development support,” he recounts. The company embraced the recommendation, resulting in a successful internal appointment. For van Eijck, this decision underscores the blend of pragmatism and people-centric leadership that characterizes many family businesses.
Decision-Making DNA
According to van Eijck, decision-making in family-owned businesses reflects a powerful combination of speed, intuition, and genuine care for employees—qualities that often translate into strong organizational performance. “The power of a family-owned company is driven by the fact that the people the owner chooses are often the right people,” he concludes. “This personalized, committed approach to leadership and hiring is not just a differentiator; it is fundamental to the agility and long-term success of family-owned businesses today.”