The family agreement is becoming a prime objective to a successful family business. Designed for families planning to draft such an agreement, families deciding whether or not to begin the process, and those that have already established a family agreement, this book illustrates the fundamental components and their importance to the success of the family business. A family agreement or constitution is the expression of purpose for the continuity of the business and the process of creating one is just as important.
Many of the challenges faced by family-owned businesses develop after the firm has reached a stage of maturity, when the first generation is faced with issues concerning the role of their children in the business and the long-term future of the enterprise. This collection of case studies from around the world demonstrates how governance of both the business and the family (or lack thereof) impacts succession of leadership in the firm and the inheritance of ownership and wealth. It is the role of governance and how it impacts both family and firm that link these family business cases together with succession and inheritance. These topics have been clustered together because the social systems of the family and the management system of the firm have significant impacts on the success, or failure, of succession plans. All the planning in the world for succession and inheritance will not succeed if the firm does not have a well established and functional governance system. Likewise, if the family does not understand its role in the governance of the firm and the mechanisms for making sound decisions, succession choices may not be accepted by family members. Most family firms fail because of succession issues, not economic ones. This volume features nine in-depth cases of family-owned business from a variety of industries to illuminate the dynamics of governance, succession, and inheritance. Each case illustrates the complexity of issues and, through interactive exercises and questions, offers readers approaches to solutions, which may include less-than-optimal compromises or even selling the business as the only viable option. The examples and insights will prove valuable for students and members of entrepreneurial and family-owned firms, as well as consultants, investors, and other professional advisors.
The ebook edition of this title is Open Access and freely available to read online. Family Firms and Family Constitution delves deeply into topics as diverse as ownership, succession, governance, justice and more, all from a managerial and legal perspective from around the world.
This book presents research-based information to provide the reader a deeper understanding of the complex nature of family owned businesses, their problems and challenges, and the unique governance structures and mechanisms that have been developed to properly guide a family business to greater effectiveness. Family business is the most prevalent form of business organization in the world. Much of the existing literature on family and corporate governance focuses on the larger and often publicly owned corporations instead of the unique and special issues of the much more prevalent privately held (usually smaller) family businesses. This book presents research-based information to provide the reader a deeper understanding of the complex nature of family owned businesses, their problems and challenges, and the unique governance structures and mechanisms that have been developed to properly guide a family business to greater effectiveness. For the family, such structures include having family meetings, a family council, and a family constitution. For the business, the board of directors provides experienced and knowledgeable advice and recommendations, as well as oversight and monitoring activities. For the owners, a shareholder’s council and an annual shareholder meeting allows increased communication and voting on decisions. These family governance mechanisms have been shown to increase communication, reduce conflict, and improve decision making and professionalism. Each governance tool will be explored in depth. The audience for this book is family business owners, consultants, practitioners, and family business scholars. Cases will provide readers an opportunity to apply their learning to real business problems.
Presents a comprehensive overview of governance in family enterprises including practical management knowledge in easy-to-use frameworks and interviews with renowned family enterprise owners and managers. Readers will benefit from the book's systematic approach and the opportunity to learn from the experience of other family enterprises.
Just as a Board of Directors is a governance structure for shareholders, a Family Council oversees a family on everything from educating the family for their future responsibilities as owners to settling disputes within the family. Using the common term family council to refer to family governance, the book will be a practical manual for all business families seeking structure to manage how their family governs itself and relates to their business. The book will answer several basic questions: 1. What are the forms of structured family governance? 2. What purpose is served, and disasters avoided, by using structure like a family council? 3. How does one select the form of family council that is appropriate for the size, age and complexity of the business family? 4. How are family councils established and maintained, and how do they evolve?
The authors explore how effective planning and communication helps business families around the world address growth challenges as they strive to become high performing multi-generation family enterprises. This book shows family businesses working together at their best.
Designed for families planning to draft a Family Agreement, families deciding whether or not to begin the process, and those that have already established a Family Agreement, this book illustrates the fundamental components and their importance to the success of the family business.
This book provides an extensive overview of family business-related topics such as context and uniqueness, lifecycle and ownership configurations, conflict management, corporate governance, succession challenges, internationalization, innovation, and socioemotional wealth. Each chapter features clear learning objectives, key concepts and terminology, and dedicated case studies to demonstrate the main messages. The book not only considers the day-to-day dynamics in family businesses, but also places substantial emphasis on the entrepreneurial skills needed for these businesses to survive and thrive, today and tomorrow. In addition, it elaborates and discusses a number of best practice examples, which offer valuable guidance not only for scholars, but also for students who wish to study these challenges.
Family firms are to be found in every sector of commercial activity. Commitment, family values and pride in the business are typically their special strengths, yet they also face major challenges in reconciling the needs of the business with those of the family. Drawing on the author's extensive experience of working with and advising some of the world's most successful business families, this new and updated edition of Family Enterprises: The Essentials explains the pitfalls, tensions and competing demands that destroy too many family businesses. These problems can be avoided, and Peter Leach reveals the techniques and strategies needed to do so. Running a successful family business is always a huge challenge, but this book offers real insight and guidance on how to keep both business and family united and buoyant.
