Strategic and Business Planning Practices of Fast Growth Family Firms

Abstract

Fast‐growth family firms were surveyed about their business and strategic planning practices. Of the 65 fast‐growth family firms surveyed, the majority prepare written formal plans. The business plans are in sufficient detail to enable the business to tie planning to actual performance and to adjust management compensation accordingly. The majority of the firms regularly share information with employees regarding comparisons between actual company performance results and goals or planned performance. Further, the majority of the firms describe their business strategy as a high quality producer strategy rather than as a low‐cost or time‐based strategy. Further, when bringing new products to market, these fast‐growth family firms adopt a first mover or early follower strategy. Implications of these findings for growth‐oriented family firms are presented.