Last summer, we wrote a post comparing the challenges presented in golf’s Open Championship to those of operating a family business in times of economic uncertainty.  We highlight those challenges again in this week’s post for two reasons.  With global financial markets in turmoil stemming from proposed retaliatory tariffs by the United States on effectively the rest of the world, it is more important than ever for family businesses to circle the wagons and turn their focus inward in an effort to respond to potential challenges from outside forces.

Second, golf’s first major of 2025, the Masters, kicks off this week at Augusta National.  While the Masters presents a radically different set of challenges from those presented in the Open Championship, the underlying themes and skillsets required to prevail remain the same and are just as applicable to family businesses facing challenges in times of uncertainty.

Turmoil in financial markets will contrast the tranquil scenes emanating from Augusta National this week and will surely be a main topic of conversation among the patrons on the grounds.  With that in mind, we turn to some key thoughts for family business owners and directors to consider during these tumultuous days.

Embrace and Amplify Core Values

During economic uncertainty, family businesses would be well served to lean into their core values.  Whether these come by way of a mission statement or a set of non-negotiable guiding principles, core values are crafted not only to act as a north star in high times but also as an anchor and ballast in uneven times.  Boards and management teams define an enterprise’s core values for a reason.  During times of operating volatility and economic uncertainty, where results often seem arbitrary regardless of internal processes, these values should not only be embraced but amplified to ensure that all stakeholders are pulling in the same direction without losing sight of the mission.

Exhibit Patience

As seen again and again throughout history, bad times do not last forever.  Golfers who prevail at Augusta and don the green jacket are acutely in tune with this maxim.  The patience to brush off a double bogey resulting from a random swirl of wind is one of the most important attributes required to win the Masters.  Similarly, family business owners should not depart from their core values and management practices in the face of seemingly random results that can manifest themselves in a downturn.  The ability to patiently grind and stack up “pars” without radically diverging from the plan, more often than not, pays dividends in the end, whether those dividends be in the form of the most prestigious prize in golf or a robust return to shareholders.

Communication and Alignment

In the face of volatility and uncertainty, the importance of constant communication within a family business is magnified.  This communication should flow in all different directions — between managers, employees, suppliers, shareholders, and even competitors.  Keeping these lines of communication open will ensure that family businesses have all the information required to make informed decisions in a changing and dynamic environment.

This is not dissimilar to the golfer-caddy relationship.  Communication between parties not only facilitates the transfer of information but also creates alignment.  Alignment regarding values, course of action, or internal process naturally morphs into commitment over time.  Commitment to a plan is perhaps the most important lynchpin in hitting a proper golf shot, and this type of commitment often only arises from strong communication and alignment.  This chain works its way through family businesses as well, and keeping the lines of communication open in times of economic uncertainty and volatility is crucial to ensuring that all stakeholders in a family business remain aligned and committed.

In conclusion, current economic uncertainties and market turmoil may make family businesses feel more like they’re playing golf in a hurricane rather than a pristine, 70-degree day.  While there are many ways to steer your family business through uneven times, we believe the lessons we’ve prescribed are a good starting point.  Feel free to reach out to one of our professionals to discuss further.