Family Business: Key Issues PDF
Preview Family Business: Key Issues
FAMILY BUSINESS Key Issues Denise Kenyon-Rouvinez and John L. Ward FAMILY BUSINESS This page intentionally left blank FAMILY BUSINESS Key Issues Denise Kenyon-Rouvinez John L. Ward © Denise Kenyon-Rouvinez and John L.Ward 2005 All rights reserved.No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2005 by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N.Y.10010 Companies and representatives throughout the world. PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St.Martin’s Press, LLC and of Palgrave Macmillan Ltd. Macmillan®is a registered trademark in the United States, United Kingdom and other countries.Palgrave is a registered trademark in the European Union and other countries. ISBN 978-1-4039-4775-8 ISBN 978-0-230-28773-0 (eBook) DOI 10.1057/9780230287730 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress 10 9 8 7 6 5 4 3 2 1 14 13 12 11 10 09 08 07 06 05 To Amy and Eliot To Jeffrey and Julie To the many business families who have the courage to be different and who enrich the world of business. To the many of them who have over the years shared their hopes, concerns, fears and dreams with us, opening their hearts and trusting us. The learning we seek to share in this book comes from them. v This page intentionally left blank Contents List of illustrations ix Authors’ note xi Acknowledgments xii Forewords Wanda Ferragamo, Salvatore Ferragamo SpA xiii Thierry Lombard, Lombard Odier Darier Hentsch & Cie xv André Hoffmann, Roche Holding AG xvii 1.Introduction and models 1 Denise Kenyon-Rouvinez and John L. Ward The fundamental dilemma 4 Three circles 6 Stages of ownership 10 Family genogram 13 Family business vision 13 Conclusion 16 2.Assuring a healthy business 17 Randel S. Carlock and John L. Ward Business strategy 19 Employment 23 Compensation 25 Shareholder liquidity 28 Conclusion 30 3.Family 31 Joseph H. Astrachan and Annelie K. Stider Family strategy 31 Communication and conflict management strategies 40 Integrated planning: family protocols/constitutions 42 vii viii Contents 4.The importance of family and business governance 45 Miguel Angel Gallo and Denise Kenyon-Rouvinez Business governance 49 Family governance 53 The relationship between business governance and family governance 56 Conclusion 57 5.Succession 59 John A. Davis and Dr Sabine Klein Succession is a process 60 Preparing for succession 61 The “hot phase” of succession 64 Post succession 65 Ownership succession alternatives 68 Leadership choice 70 Summary 71 6.Conclusion 73 Denise Kenyon-Rouvinez and John L. Ward Postface 77 Karl-Friedrich Scheufele Appendix 1: Practical tools 79 Appendix 2: A few useful contacts 81 Recommended books, articles, and publications 83 Index 85 Illustrations Figures 1.1 The family business dilemma 5 1.2 The Three Circles Model 6 1.3 Example of a genogram for the Maier family 14 1.4 The family business vision 15 4.1 A family business governance system 47 4.2 The separate roles and responsibilities in a business governance system 48 4.3 Family governance system 54 5.1 The six steps in the “hot phase” of succession 61 5.2 The succession catalyst 64 5.3 The Family Business House 67 Table 1.1 Stages of ownership 10 The cartoons on pages 2, 18, 32, 46, and 60 are by GABS. ix
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