Principles for Leading with Purpose

By Mike Schmitt, The Rubra Group, LLC

Stewardship is About Trust, Not Control
In family enterprises, leadership is not just about authority—it’s about stewardship. True stewardship goes beyond managing assets; it is about preserving and growing the family’s wealth, values, and business for future generations. Unlike control, which often relies on fear and rigidity, stewardship thrives on trust, accountability, and long-term vision.

Great family business leaders understand that their role is to nurture and guide, not dictate. They empower others, make decisions with integrity, and ensure that the enterprise remains resilient across generations. Stewardship requires wisdom—the ability to balance family interests, business strategy, and legacy-building without sacrificing any one of them.

The Five Pillars of Stewardship

Successful family business leaders embrace five core principles that guide their decision-making and leadership style:

1. 1. Vision – A clear, compelling vision ensures that every generation understands the purpose and long-term goals of the enterprise. This vision should be bigger than just financial success—it should reflect the family’s values, contributions to society, and future aspirations.

1. 1. Responsibility – True stewards take responsibility not just for business performance, but also for developing the next generation of leaders. They cultivate a culture of accountability where each family member understands their role in sustaining the legacy.

1. 1. Governance – Without clear governance structures, family businesses risk falling into chaos and internal conflicts. Stewardship requires well-defined policies, transparent decision-making, and fair processes for resolving disputes. A family charter and a strong board (with both family and non-family members) can serve as invaluable governance tools.

1. 1. Growth – Stewardship is not about maintaining the status quo; it’s about strategic growth. This includes reinvesting in the business, exploring new markets, and embracing innovation—all while managing risk responsibly. Family enterprises that stagnate rarely survive past the third generation.

1. 1. Legacy – A steward’s ultimate role is to pass on something greater than they inherited. Legacy is about more than money—it’s about preserving the family’s values, impact, and contribution to future generations. Stewardship-minded leaders build businesses that outlast them, ensuring continuity and sustainability.

Real-World Applications: How Great Leaders Embed Stewardship

Many of the most successful multigenerational businesses have embraced the Stewardship Code. Here’s how:

✔ Empowering the Next Generation: Rather than clinging to power, strong family leaders actively mentor the next generation, providing them with education, experience, and decision-making opportunities.

✔ Balancing Profit and Purpose: Stewardship means focusing on long-term sustainability rather than short-term gains. Leaders invest in responsible business practices, innovation, and community impact.

✔ Creating a Culture of Accountability: Great stewards establish clear guidelines for family involvement in the business. This includes defining roles, compensation structures, and leadership succession plans to prevent entitlement and conflict.

✔ Ensuring Wealth Preservation: Stewardship extends to financial literacy and prudent wealth management. Families that sustain their wealth across generations emphasize transparency, smart investment strategies, and the importance of shared financial responsibility.

Final Thoughts

Stewardship is not a title—it’s a commitment! Whether you are leading a billion-dollar enterprise or a family-owned startup, embracing these principles will ensure that your business, your values, and your family’s legacy thrive for generations.

What steps is your family taking to be good stewards of its business and wealth? Let’s start the conversation

If you would like to read our recent book “Family Fortune”, you can access it here: https://a.co/d/3ElVkOn

If you would like to have a conversation with Mike Schmitt, please feel free to schedule a meeting with him here: https://meetings.hubspot.com/mike2616

www.rubragroup.com