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Governing the Family-Owned Enterprise: An Interview with Finland's Krister Ahlstrom
The CEO of one of Europe's pre-eminent family-owned companies discusses how he lead the Ahlstrom Corp. as well as his own family through a major transformation. In order to reposition the company for global competition, Krister Ahlstrom discovered that he had to lead the owning family (of 200 people) to a new understanding of its relationship to the company. In this interview with HBR editor-at-large Joan Magretta, Krister Ahlstrom describes the changes that now allow the family to interact effectively with the company as enlightened--not passive--owners. And the family developed several governance and communication mechanisms to support that role: a Family Council, a Family Assembly, formal training for the family's next generation, and a written document of values and policies that functions like a constitution.