Family Business: Key Issues

105 Pages·2005·0.656 MB·English

by  Denise Kenyon-Rouvinez, John L. Ward (auth.)

FAMILY BUSINESS
Key Issues
Denise Kenyon-Rouvinez and John L. Ward
FAMILY BUSINESS
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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.
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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
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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.
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