Researchers at Corvinus developed a Professionalization Index that breaks down and summarizes how mature a business is from a business perspective. The index evaluates companies across four categories—personal, material, family, and cultural dimensions—and also provides a combined score. This metric was first used in a practical evaluation of an online self-assessment survey conducted in the spring of 2024. The results were shared with the public during a press conference on May 14. 

The survey, which involved 145 predominantly family-owned Hungarian companies, found that family businesses lag behind non-family companies in terms of preparedness by 5 percentage points, with an average score of 58%. According to the findings, more than half of the sample companies require intensive development for successful professionalization, with only 7% considered to be leaders in the field. 

Lack of Succession Plans and Strategies 

Among the subcategories, the family dimension proved to be the Achilles’ heel of professionalization, with an average score of just 34% among family businesses. Over three-quarters of the sample fell into the lowest, critical level in this category. The most significant gaps are in the lack of a family constitution, the failure to establish family councils, and the absence or delay in creating succession plans. 

The highest score was given to the relatively subjective cultural dimension, with an average of 79%. This category includes aspects such as business culture, work culture, and organizational culture. Developing a company’s cultural dimension is especially important when the company aims for a market leadership position, needs to engage young, talented professionals, or is expanding or building its presence in foreign markets. 

The material dimension, which focuses on corporate governance, strategy, controlling, and IT systems, was achieved at an average of 56%, with the most notable gap being in formal strategic planning. The personal dimension, relating to leadership and employee training and advancement, scored 62%, with the least common practice being the appointment of external professionals to key positions. These two categories should be developed in parallel, as they are closely linked to achieving business maturity. 

Unclear Relationships Increase Company Risk 

“Professionalization should extend not only to the business itself but also to the relationship between the owner and the company. Therefore, one of the most important tasks for family-owned businesses is to clearly regulate this relationship. For example, it is essential to separate business assets from family assets, establish distinct corporate and family bodies, and create separate visions, also addressing succession opportunities,” said Soma Kárpáti, Associate Professor at Corvinus University and leader of the research. He emphasized, “If a family business does not clarify the relationship and future between the family and the business, the company faces increasing risks: key employees may lose their motivation, and external partners may turn away from the business.” 

The index shows, both for individual companies and the entire sample, in which professionalization dimension there is an absolute or relative gap compared to other dimensions, highlighting where it is advisable to launch an improvement program. Government projects and grants could also be considered for this purpose. Temporal comparisons, as well as comparisons within specific industries or company sizes, could also be useful in the future. The research was jointly organised by the Corvinus University Family Business Centre, the Gremium for Succession Association, and OPTEN, with the involvement of additional professional partners. 

The research summary presentation (in Hungarian) presented at the press conference can be downloaded here.