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The Evolution of our Roles in the Family Business

The Evolution of our Roles in the Family Business. Entrepreneurship June 1st, 2006 Memorial University by Denise Paré-Julien. QUESTIONS. What are the advantages of being part of a business family? What are the challenges?. Advantages. Successors: Access to first hand experience

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The Evolution of our Roles in the Family Business

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  1. The Evolution of our Roles in the Family Business Entrepreneurship June 1st, 2006 Memorial University by Denise Paré-Julien

  2. QUESTIONS • What are the advantages of being part of a business family? • What are the challenges?

  3. Advantages • Successors: • Access to first hand experience • Financing • Access to a network • Family expertise • Feeling of being part of something • Proud

  4. Advantages • Spouses in the business • Trust • The will to build • Feeling of belonging • Spouses not in the business • Witness spouse’s accomplishments • Proud of offering work to other people • Strength and independence of the family through job creation

  5. Advantages • Predecessors • A sense of freedom • Chance to accomplish your objectives • Easier to build ownership • Career opportunity for our children

  6. Advantages of business families • Long term vision for the business • Vehicle for educating and promoting family values • Higher Potential for Success: • Sense of belonging, loyalty, devotion, implication • Higher capability of creating excellent business relations: • Supplier, clients, partners

  7. Challenges • Successors • Higher expectations on the part of family members • Separate boss-father-mother: Business – Family • Difference of opinion on strategic orientation of the business • Emotions • Difficulty to negotiate raises in salary • Always having to prove yourself

  8. Challenges • Spouses in the business • Confrontation • Lack of new blood • Having to prove yourself • Spouses not in the business • Lack of balance between family and work • Impact of the business on the family and vice-versa • Rivalry amongst family members

  9. Challenges • Predecessors • Reconcile needs and emotions • Difficulty to meet needs of children and those of the business • Relations with spouse and family members not working in the business

  10. Challenges of the Business family • Family or business first ? • Formal or informal organization ? • Family or non-family managers ? • In laws or outlaws ? • Inclusive or exclusive in membership ? • Succession : an event or a process?

  11. Challenges continued… • Fair vs. Equal ? • Mandatory retirement or voluntary renewal ? • Secret or Transparency ? • Personal Aspirations or Family Vision ? • One leader or a Team ? • Entitlement or Meritocracy ?

  12. Projective genogramming

  13. Draw your Family Genogram Man Woman

  14. Examples of symbols death divorce Man Women

  15. Genograms & families • A Genogram is an information rich format for drawing a family tree • A Genogram is not a predictor of family behaviour it suggest tendencies, not ironclad behavioural rules. • The Genogram helps us identify: • Household structure • life cycle patterns • pattern repetition across generations • life events that affect family functioning • relation patterns and triangles • family balance and imbalance Source: How families work together, Whiteside, Ward, Aronoff, Family Business Leadership series no 4

  16. The Three Circle Model

  17. Family Business Ownership The three circle model Taguiri & Davis

  18. 2 Family Business 4 6 1 3 5 Ownership 7 7 territories Taguiri & Davis

  19. Overemphasis on the family Family Business Erodes in the business: communications, relations, performance appraisals, decision making and strategic options Source: T. Hubler and G. Ayres

  20. Overemphasis on the business Business Family Erodes in the family: communications, identification, loyalty, emotions and time allocated to the family Source: T. Hubler and G. Ayres

  21. Balance between family and business Family Business Creates: trust, commitment, efficiency in the business and family harmony Source: T. Hubler and G. Ayres

  22. Family Business Ownership When the business can not supply revenue for all the family members

  23. Family Business Ownership When the family can not supply all the needs of the business

  24. A dynamic model Family Business Ownership

  25. Emotion Born into Relationships Unity & Support Security Equality Inward Status quo Rationality Hired into Results Competition Risk Equitability Outward Change Family Business

  26. Strong cohesive families • Commitment to each other • Mutual appreciation • Open communication • Spending time together • Spiritual wellness ability to cope with life's challenges Source: Stinett & De Frain

  27. Exercises The three circle model Our family

  28. Break

  29. Find meaning of life 60-80 Delegate authority 60-65 Grow old while remaining young 55-60 Create a legacy 50-55 Articulate new goals 45-50 Accept own limitations 40-45 Become oneself 33-40 Engaging in a relationship 28-33 Explore opportunities 22-28 In vision ones dream Personal life axis 17-22 age Family Business phases Adapted from Levinson

  30. Family Business Couple without children Young couple Couple with children Family with young adults Family with no more children Grand-parents Family Axis

  31. Founder/ Owner Sibling Partnership Cousin Consortium

  32. 10 Questions Grant Thornton Research 1999

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