1 / 10

Chapter 13 The family firm

Chapter 13 The family firm. Entrepreneurship and Small Business Paul Burns. Back to Contents. Marriage and children come first Partners have respect for each other Close communication between partners Partners’ talents and attitudes are complimentary

justus
Download Presentation

Chapter 13 The family firm

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 13 The family firm Entrepreneurship and Small Business Paul Burns Back to Contents

  2. Marriage and children come first Partners have respect for each other Close communication between partners Partners’ talents and attitudes are complimentary Partners define their individual responsibilities clearly Partners compete with other companies, not each other Partners keep their egos in check Successful family teams

  3. Commitment and loyalty Special knowledge Flexible in time, work and money Long-term planning Stable culture Speedy decision-making Reliable and proud Advantages of family firms

  4. Family v business culture Family Emotional Loyal Caring Sharing Inward-looking Lifetime membership Business Unemotional Self-interest Task based Reward performance Perform or leave Outward-looking Potential for Conflict

  5. The owner-manager has split responsibility between the family and the firm Issues in one affect the other – how are they separated and which comes first? The firm can become an extension of the family reflecting its cultures, tensions and values The firm is the family’s main store of wealth: – creating a risk averse attitude – exaggerating importance of smooth income flows – creating mistrust of non-family managers Family firms

  6. Clogs to clogs in three generations Introvert firm, unresponsive to messages from the market place Disagreement between family members With increased prosperity the family loses the incentive to take commercial risks Damage done by traumatic succession from one MD to the next Family firms

  7. Managing succession Stage 1 Owner-managed firm Stage 2 Training new generation Stage 3 Partnership Stage 4 Power transfer

  8. Family values, beliefs and philosophy Family objectives in relation to the business Family involvement in the business – share ownership, disposal, voting and control Family involvement in the business – board membership, voting Family involvement in the business – selection of chairman and managing director Family involvement in the business – jobs and remuneration Family council meetings Procedures for changing the constitution Family constitution checklist

  9. Trade sale Management buy-out Management buy-in Appoint professional manager Appoint caretaker manager Liquidate Disposal options

  10. Start planning early Encourage inter-generational teamwork Develop a written succession plan Involve family in thinking Get outside help Establish training process Plan for retirement Make retirement timely and unequivocal – monarchs, generals, ambassadors and governors Succession checklist

More Related