Submitted by: Submitted by morcat
Views: 168
Words: 273
Pages: 2
Category: Business and Industry
Date Submitted: 06/02/2013 09:02 PM
A. Pathway I. Nurture the Family
i. Family purpose and direction
ii. Legacy
iii. Shared vision and values
B. Pathway II. Steward the Family Enterprise -- Speculate growth largely functions here with a focus on strategic planning and focus on longevity.
i. Strategic planning for wealth & firm development
ii.Empowered and aligned board, owners, managers, and employees
iii. Professionalizing the firm with transparency and guidelines
C. Pathway III. Cultivate Human Capital
i. Education of next generation
D. For family firms Pathway I, nurturing the family is most important.
i. *purpose is bigger than strategy* (as seen on website) is a guiding principal for many family firms
ii. Speculate Growth's use of determining a clients purpose statement for the business closely aligns with this goal. However the goal may now expand beyond the business to encompass family values.
III. Concerns for Family Enterprises
1. Succession - passing the business off between generations and preparing the next generation to be stewards of the business.
A. Often the hardest soft issue to deal with in both the family and business context.
B. Potential to destroy business - only 1/3 of firms will pass successfully between generations, with that chance diminishing with each transition.
i. Likelihood of positive succession increases as values, employment policies, are instated
2. Longevity/Legacy - long term sustainable business goals that allow the family to make profit while also aligning with family values
3. Transparency - generational leaders, especially in early generations have a tendency to hoard information
A. Transparency within the three circle model - especially important within the overlap to create healthy business & family.
i. Increasingly important to create structure as firms exceed one generation