Overview
The 'life cycle' of a family business is a fascinating process. Beginning with the initial entrepreneur starting the business, it encompasses the development of the business to success, involvement of family members in the business, estate planning, preparation for integration of the next generation, creating a family constitution to regulate relationships among family members, and creating a family trust when appropriate. The completion of the cycle then gives the option of continuing - to potentially become one of the one-hundred-year businesses. This Special Report is a one-stop collection bringing together a distinguished team of international contributors, each an expert in their respective field with a global reputation, to cover the entire life cycle of a family business. It provides guidance on many of the key issues encountered including governance issues, protecting the family business assets, fostering entrepreneurship and succession planning. Life Cycle of Family Business is a unique source of knowledge for family businesses and professionals working in this specialist field. In this very readable single volume - edited by Barbara R Hauser and Alon Kaplan - those involved in family businesses can benefit from its expert guidance, at any stage of the life cycle.
Full Product Details
Author: Barbara R Hauser ,
Alon Kaplan
Publisher: Globe Law and Business Ltd
Imprint: Globe Law and Business Ltd
ISBN: 9781787424067
ISBN 10: 1787424065
Pages: 151
Publication Date: 15 December 2020
Audience:
Professional and scholarly
,
Professional & Vocational
Format: Paperback
Publisher's Status: Active
Availability: In Print
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Reviews
Life Cycle of a Family Business is like a wonderful Gem; nine Contributors look at Family Businesses from eight different angles and stages. Each one from the Prism of their own expertise. Together this becomes a Diamond, condensed, shining and precious. In the 1st Stage (The three circle paradigm prism) we learn about the uniqueness of a family business which is owned (and run) by a heterogenic group of people which are related by blood, but otherwise might be very different. This needs a Stewardship mind as well as a firm framework and a lot of planning; actually a few plans which are interdependent. In the 2nd Stage (The family relationship prism) we learn about the emotional side of the family business and how good communication, gratitude, expressed love, common family vision and to make room for togetherness as well as individualism is important. Multidisciplinary approach for all people involved with the family is key. The chapter ends with this important statement: This multidisciplinary approach can produce successful outcomes when everyone - family members, business stakeholders and advisers - is working in harmony for the good of all. In fact, that is what much of this book is about. Stage 3 is all about Challenges and Boards (The structural prism). We all know that a good governance and board makes all the difference. A good board does not happen automatically. This chapter introduces the process of how to build and advance an effective board. It does not happen overnight, but happens in stages. Through examples we get introduced to various designs of boards. What about Risk? In this chapter (Stage 4; The risk prism) the author talks about four main Risk categories, in particular Risk appetite, Risk attitude, Risk strategy and Risk management in the environment of a family business. In these days of black swans it is crucial for family businesses to have forward-looking, multifaceted systems of risk management in place. Stage 5 looks at another risk; the risk of family feuds and divorces (The family feud prism). The damage such an event could do to the family business should not be underestimated. Lots of challenges to prepare for this unexpected and unfortunate risk. Family Courts very frequently drag the business into the divorce negotiations. A situation one should avoid. What happens in the divorce has also long-term effects on the family business and its next generation of leaders. Every stakeholder in the family business is exposed. This chapter shows actual court cases to describe the traps and pitfalls one should be aware of when the 'black swan' happens in the family and not in the business. The 6th Stage touches on the uniqueness of a family business - (The longevity prism). If you are the steward of your family business you can and should plan for longevity, 50 to 100 years at least. You are not in it for the fast buck, but manage your business in an entrepreneurial spirit, also as successor generation. Relying on the past is not good enough. One needs entrepreneurialism and intrapreneurialism. Also an established business needs to reignite and rediscover the entrepreneurship the founding generation had in the first place, when all the business success was only a dream. In the 7th Stage (The advisor prism) we learn that not every family member is suited to be the successor to the business leadership or to have any role beyond being a shareholder. The selection process needs thorough preparation by an advisor and the decision process inside the family business needs to be well designed. Often there are no structures in place when the advisor is hired and the process includes also ignoring the obvious and rather than finding the correct structure from out of the box thinking. First the advisor needs to get to know the family and its values, before the process of successor finding can even start. The 8th Stage is about the 100-year families (The 100-year prism), the ones that make it beyond the third generation; the exception. Of course the success beyond the 3rd Generation depends on the result of the choices the first and second took. Cooperation and collaboration has to be trained and governance, which becomes relevant in the 3rd Generation, has to be initiated. The business will look different from the initial business. Change is inevitable; in the business and in the family. Generative families see themselves as being on a journey, continually reinventing themselves [...] . Transformations come in various ways: Harvesting, Pruning, Diversifying and Grounding. The author explains these transformations. Without cultivating and strengthening the family relationships the family will not succeed to transition beyond the third generation. The family enterprise rests on twin pillars, separate and independent: the family and the enterprise. This book manages to touch all the important facets and tools that make a family business the long-lasting and special place where the family can flourish and be a role model for generations to come. Every Next Gen of a business family needs to read this book BEFORE joining the family business. -- Philippe J. Weil Practitioners as well as families owning a family business will benefit from this book as it fills a prevalent vacuum in addressing and advising on vital family and business related questions, questions that are crucial to sustaining any family business... The holistic discussion and the detail with which the reader is familiarized will certainly stimulate further thought and develop a greater understanding of the workings of family businesses worldwide. As such the book is also an ideal starting point with a view to any corporate structuring for international families, both in the pre- as well as the later structuring phases. -- Dr. Johanna Niegel, LL.M., LL.M., TEP This Special Report on the Life Cycle of a Family Business offers vital insights for a business owner to help keep the business in the family while keeping the family in the business and the business alive, adaptive and competitive. With chapters on key phases in the business and family lifecycles, it delivers a cogent framework for designing (and continuously redesigning), managing, building and transmitting a business across multiple generations. It guides founders, their families, non-family executives and professional advisors. -- William B Bierce The book sets out a framework and best practices for identifying, separating, harmonizing and optimizing the potentially conflicting roles of the business operator, business owner and family members across predictable scenarios. It is a one-stop collection bringing together international contributors. -- Tom Burroughes
Life Cycle of a Family Business is like a wonderful Gem; nine Contributors look at Family Businesses from eight different angles and stages. Each one from the Prism of their own expertise. Together this becomes a Diamond, condensed, shining and precious. In the 1st Stage (The three circle paradigm prism) we learn about the uniqueness of a family business which is owned (and run) by a heterogenic group of people which are related by blood, but otherwise might be very different. This needs a Stewardship mind as well as a firm framework and a lot of planning; actually a few plans which are interdependent. In the 2nd Stage (The family relationship prism) we learn about the emotional side of the family business and how good communication, gratitude, expressed love, common family vision and to make room for togetherness as well as individualism is important. Multidisciplinary approach for all people involved with the family is key. The chapter ends with this important statement: This multidisciplinary approach can produce successful outcomes when everyone - family members, business stakeholders and advisers - is working in harmony for the good of all. In fact, that is what much of this book is about. Stage 3 is all about Challenges and Boards (The structural prism). We all know that a good governance and board makes all the difference. A good board does not happen automatically. This chapter introduces the process of how to build and advance an effective board. It does not happen overnight, but happens in stages. Through examples we get introduced to various designs of boards. What about Risk? In this chapter (Stage 4; The risk prism) the author talks about four main Risk categories, in particular Risk appetite, Risk attitude, Risk strategy and Risk management in the environment of a family business. In these days of black swans it is crucial for family businesses to have forward-looking, multifaceted systems of risk management in place. Stage 5 looks at another risk; the risk of family feuds and divorces (The family feud prism). The damage such an event could do to the family business should not be underestimated. Lots of challenges to prepare for this unexpected and unfortunate risk. Family Courts very frequently drag the business into the divorce negotiations. A situation one should avoid. What happens in the divorce has also long-term effects on the family business and its next generation of leaders. Every stakeholder in the family business is exposed. This chapter shows actual court cases to describe the traps and pitfalls one should be aware of when the 'black swan' happens in the family and not in the business. The 6th Stage touches on the uniqueness of a family business - (The longevity prism). If you are the steward of your family business you can and should plan for longevity, 50 to 100 years at least. You are not in it for the fast buck, but manage your business in an entrepreneurial spirit, also as successor generation. Relying on the past is not good enough. One needs entrepreneurialism and intrapreneurialism. Also an established business needs to reignite and rediscover the entrepreneurship the founding generation had in the first place, when all the business success was only a dream. In the 7th Stage (The advisor prism) we learn that not every family member is suited to be the successor to the business leadership or to have any role beyond being a shareholder. The selection process needs thorough preparation by an advisor and the decision process inside the family business needs to be well designed. Often there are no structures in place when the advisor is hired and the process includes also ignoring the obvious and rather than finding the correct structure from out of the box thinking. First the advisor needs to get to know the family and its values, before the process of successor finding can even start. The 8th Stage is about the 100-year families (The 100-year prism), the ones that make it beyond the third generation; the exception. Of course the success beyond the 3rd Generation depends on the result of the choices the first and second took. Cooperation and collaboration has to be trained and governance, which becomes relevant in the 3rd Generation, has to be initiated. The business will look different from the initial business. Change is inevitable; in the business and in the family. Generative families see themselves as being on a journey, continually reinventing themselves [...] . Transformations come in various ways: Harvesting, Pruning, Diversifying and Grounding. The author explains these transformations. Without cultivating and strengthening the family relationships the family will not succeed to transition beyond the third generation. The family enterprise rests on twin pillars, separate and independent: the family and the enterprise. This book manages to touch all the important facets and tools that make a family business the long-lasting and special place where the family can flourish and be a role model for generations to come. Every Next Gen of a business family needs to read this book BEFORE joining the family business. -- Philippe J. Weil
Life Cycle of a Family Business is like a wonderful Gem; nine Contributors look at Family Businesses from eight different angles and stages. Each one from the Prism of their own expertise. Together this becomes a Diamond, condensed, shining and precious. In the 1st Stage (The three circle paradigm prism) we learn about the uniqueness of a family business which is owned (and run) by a heterogenic group of people which are related by blood, but otherwise might be very different. This needs a Stewardship mind as well as a firm framework and a lot of planning; actually a few plans which are interdependent. In the 2nd Stage (The family relationship prism) we learn about the emotional side of the family business and how good communication, gratitude, expressed love, common family vision and to make room for togetherness as well as individualism is important. Multidisciplinary approach for all people involved with the family is key. The chapter ends with this important statement: This multidisciplinary approach can produce successful outcomes when everyone - family members, business stakeholders and advisers - is working in harmony for the good of all. In fact, that is what much of this book is about. Stage 3 is all about Challenges and Boards (The structural prism). We all know that a good governance and board makes all the difference. A good board does not happen automatically. This chapter introduces the process of how to build and advance an effective board. It does not happen overnight, but happens in stages. Through examples we get introduced to various designs of boards. What about Risk? In this chapter (Stage 4; The risk prism) the author talks about four main Risk categories, in particular Risk appetite, Risk attitude, Risk strategy and Risk management in the environment of a family business. In these days of black swans it is crucial for family businesses to have forward-looking, multifaceted systems of risk management in place. Stage 5 looks at another risk; the risk of family feuds and divorces (The family feud prism). The damage such an event could do to the family business should not be underestimated. Lots of challenges to prepare for this unexpected and unfortunate risk. Family Courts very frequently drag the business into the divorce negotiations. A situation one should avoid. What happens in the divorce has also long-term effects on the family business and its next generation of leaders. Every stakeholder in the family business is exposed. This chapter shows actual court cases to describe the traps and pitfalls one should be aware of when the 'black swan' happens in the family and not in the business. The 6th Stage touches on the uniqueness of a family business - (The longevity prism). If you are the steward of your family business you can and should plan for longevity, 50 to 100 years at least. You are not in it for the fast buck, but manage your business in an entrepreneurial spirit, also as successor generation. Relying on the past is not good enough. One needs entrepreneurialism and intrapreneurialism. Also an established business needs to reignite and rediscover the entrepreneurship the founding generation had in the first place, when all the business success was only a dream. In the 7th Stage (The advisor prism) we learn that not every family member is suited to be the successor to the business leadership or to have any role beyond being a shareholder. The selection process needs thorough preparation by an advisor and the decision process inside the family business needs to be well designed. Often there are no structures in place when the advisor is hired and the process includes also ignoring the obvious and rather than finding the correct structure from out of the box thinking. First the advisor needs to get to know the family and its values, before the process of successor finding can even start. The 8th Stage is about the 100-year families (The 100-year prism), the ones that make it beyond the third generation; the exception. Of course the success beyond the 3rd Generation depends on the result of the choices the first and second took. Cooperation and collaboration has to be trained and governance, which becomes relevant in the 3rd Generation, has to be initiated. The business will look different from the initial business. Change is inevitable; in the business and in the family. Generative families see themselves as being on a journey, continually reinventing themselves [...] . Transformations come in various ways: Harvesting, Pruning, Diversifying and Grounding. The author explains these transformations. Without cultivating and strengthening the family relationships the family will not succeed to transition beyond the third generation. The family enterprise rests on twin pillars, separate and independent: the family and the enterprise. This book manages to touch all the important facets and tools that make a family business the long-lasting and special place where the family can flourish and be a role model for generations to come. Every Next Gen of a business family needs to read this book BEFORE joining the family business. -- Philippe J. Weil Practitioners as well as families owning a family business will benefit from this book as it fills a prevalent vacuum in addressing and advising on vital family and business related questions, questions that are crucial to sustaining any family business... The holistic discussion and the detail with which the reader is familiarized will certainly stimulate further thought and develop a greater understanding of the workings of family businesses worldwide. As such the book is also an ideal starting point with a view to any corporate structuring for international families, both in the pre- as well as the later structuring phases. -- Dr. Johanna Niegel, LL.M., LL.M., TEP This Special Report on the Life Cycle of a Family Business offers vital insights for a business owner to help keep the business in the family while keeping the family in the business and the business alive, adaptive and competitive. With chapters on key phases in the business and family lifecycles, it delivers a cogent framework for designing (and continuously redesigning), managing, building and transmitting a business across multiple generations. It guides founders, their families, non-family executives and professional advisors. -- William B Bierce
