Family Business Management

"Contents Preface Part I _ Introduction to family business Chapter 1 _ Approaching the concept of family business Introduction Family business definition Type of family businesses Family-first family firms Business-first firms Family business–first family firms Immature family firms The importance of studying family business governance and management Additional activities and reading material Classroom discussion questions Additional readings Classroom activity Case for analysis I: Birla—An entrepreneurial family Case for analysis II: Chick-fil-A—A family serving quality and tradition Case study: Wal-Mart Chapter 2 _ Family business dynamics: Individual needs, goals, expectations, and emotions Introduction The three-circle model Roles Goals Psychological needs Expectations The evolutionary perspective of the three-circle model Emotions in the family business Emotions in family business across contexts Additional activities and reading material Classroom discussion questions Additional readings Classroom activity Case for analysis I: Pritzker family across generations Case for analysis II: The Henriquez Group Case Study: Estee Lauder Companies Chapter 3 _ Interpersonal relationships and communication in family businesses Introduction Interpersonal relationships in the family entity Couple relationships and family business Sibling relationships and family business Parent–child relationships and family business In-law relationships and family business Family communication Family genogram Additional activities and reading material Classroom discussion questions Additional readings Classroom activity Case for analysis I: Case for analysis I: Dassler brothers Case for analysis II: The co-preneurs Mr. & Mrs. Hartz Case Study: British royal family Part II _ Management in family business Chapter 4 _ Conflict, conflict management, and communication Introduction Definition of conflicts in family businesses The conflict process in family businesses Sources of conflicts in family business Conflict and context Types of family business conflicts Conflict management Conflict-resolution techniques Conflict-stimulation techniques Additional activities and reading material Classroom discussion questions Additional readings Classroom activity Case for analysis I: The team is broken! Case for analysis II: Steinberg family business Case Study: The fate of Gucci Chapter 5 _ Human resource management in family businesses Introduction Nepotism Human resource approach Origins of asymmetric treatment Justice/fairness Levels of justice Dysfunctional behavior Additional activities and reading material Classroom discussion questions Additional readings Classroom activity Case for analysis I: What a mistake! Case for analysis II: Embracing nepotism Case Study: It is just a scandal or the scandal Chapter 6_Strategic and financial management in family businesses Introduction Family business goals Family business goals as reference points Socioemotional wealth as an endowment effect Strategic and financial behavior Strategic management in family business Market domain Internal competitive advantages External competitive advantages Nonmarket domain Combination of market and nonmarket domains as a determinant of performance and survival Additional activities and reading material Classroom discussion questions Additional readings Classroom activity Case for analysis I: ALDI and the power of family ties Case for analysis II: Feetures case study Case study: An upside down strategy for LEGO Part III _ Governance in family business Chapter 7 _ Ownership governance in family business Introduction Corporate governance in family businesses Ownership structure and governance Type of owners Ownership assembly or shareholder meeting Shareholder agreement Benefits of shareholder agreements Evolutionary approach to ownership governance Additional activities and reading material Classroom discussion questions Additional readings Classroom activity Case for analysis I: The united family behind LEGO Case for analysis II: H51—The mission to preserve the Hermès family identity Case Study: ""The Factory"" of the human misery Chapter 8 _ Business governance in family business Introduction Board of directors Board of directors’ tasks Types of boards of directors Board of directors composition The evolution of the board across the lifecycle of the family business Board of director practicalities Number of board members Recruiting board members Regulation of the board of directors Additional activities and reading material Classroom discussion Additional readings Classroom activity Case for analysis I: Al-Wadi Group—Corporate governance Case for analysis II: Volkswagen scandal and boardroom politics Case study: In between the board of directors and family shareholders Chapter 9 _ Family governance in family business Introduction Types of family cohesion Family leader—Chief family officer Family governance viewed across an evolutionary perspective Family meetings Family assembly Family council Family policies Family wealth governance Family chapter or constitution Additional activities and reading material Classroom discussion questions Additional readings Classroom activity Case for analysis I: The family organization behind Al Handal International Group (HIG) Case for analysis II: Merck—A family transcending generations Case study: Al Saud Company and the first serious crisis Part IV _ Succession in family business Chapter 10 _ Ownership, governance, and management succession Introduction Succession of what? Types of succession in family business Exit strategy (from a family business to a nonfamily business) Complexity in family business succession Barriers to intra-family management succession Succession process perspective Additional activities and reading material Classroom discussion questions Additional readings Classroom activity Case for analysis I: The global pasta—Barilla Case for analysis II: Succession to succeed in the Middle East Case study: How far can U-Haul go from here? Chapter 11 _ The incumbent generation in family business succession Introduction Senior generations across time Founder generation Second generation Third and further generations Succession strategies Keep relying on informal mechanisms to address succession Formalize corporate governance to address succession Pruning the family ownership tree Plan the succession process Type of incumbent based on their retirement styles Passive family members Transgenerational value creation Additional activities and reading material Classroom discussion questions Additional readings Classroom activity Case for analysis I: Holly in her father’s shoes Case for analysis II: What’s next? Retirement Case study: Can I stay a bit more with all of you? Group Olive Mendoza Chapter 12 _ The next generation in family business succession Introduction The Disney effect in family business succession Managerial succession Successor intentions Parent–child relationships Successor career-path intentions Successor commitment Successor entry and career paths Model of change in family business succession Next-generation ownership succession Next-generation governance succession Additional activities and reading material Classroom discussion questions Additional readings Classroom activity Case for analysis I: Succession in the luxury house of Zegna Case for analysis II: The succession race at LVMH Case study: Al Saud Company managing changes from the second generation to the third"