Why is it that things don't always turn out the way they should?

How can we explain the longevity of Japan's Hoshi Ryokan, a business founded in 718, that still thrives nearly 1,300 years later, while others struggle to transition into the second or third generation?

?Why has LEGO, established in 1932, not only persisted as a successful company but also continued to be recognized as highly innovative? After all, competitors have access to the same advertising agencies, consultants, raw materials, and technology. What sets LEGO apart?

?Why did the Wright brothers, from their humble bicycle shop, conceptualize the first human-piloted flying machine? Other teams, technically more adept and better funded, failed. What did the brothers possess that others didn't?

?Evidently, there's a deeper narrative at play. Leading organizations share a common pattern, mental models that Axialent illustrates through the "Iceberg" analogy. The premise is simple yet profound: "Be to Do to Have".

?This model sheds light on why certain family enterprises achieve sustainable, long-term outcomes. Why some successfully navigate generational shifts, while others falter, succumbing to ego clashes, family disputes, and emotional conflicts.

?To briefly explain the terms:

?All family enterprises are aware of their results — not just financial, but also production outcomes and other tangible assets.

?Some family enterprises understand their actions, the behaviors leading to those results, such as production, purchasing, and quality processes.

Yet, few family enterprises grasp the "why" behind their actions. Few recognize their true purpose or driving beliefs. Founders often initiate businesses rooted in their beliefs, not merely for financial gain. But this clarity tends to blur with subsequent generations.

Typically, family enterprises, like other businesses, operate top-down, emphasizing results. In contrast, conscious leaders and family businesses operate bottom-up, irrespective of their size or sector.

One might argue LEGO's competitive edge lies in market factors, mold design, or marketing strategy. But can such advantages sustain for over 80 years? If LEGO's success hinged on these tangible aspects, wouldn't competitors have replicated it by now?

The real key to LEGO's enduring success lies in its core beliefs. Generation after generation, LEGO has prioritized more than mere profit. They believed their toys could foster intellectual growth in children. They weren't merely producing toys; they were fueling creativity and intelligence.

Thus, the success of a family enterprises isn't about actions but understanding the purpose behind them. This understanding becomes a formidable competitive edge. While design or technology-based advantages can be replicated swiftly, advantages rooted in values, beliefs, and behaviors are uniquely enduring.