Family Enterprise E-Book

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Wiley Finance Editions
• Sprache: Englisch

Seitenzahl: 239

Veröffentlichungsjahr: 2013

Beschreibung

A thorough explanation of how family enterprises work The family enterprise, whether an operating business, a family office, or both, is the backbone of the US and international economies. These enterprises cut across industries and geographies and can be first-generation entrepreneurial companies or multi-generational businesses with family offices. This book offers a foundation in and understanding of how family enterprises work, including working definitions and the key characteristics of family enterprises, as well as useful concepts for working with and in family enterprises, either as a professional or as a family member. * Written by the experts at the Family Firm Institute, a global network of professionals, educators, researchers, and owners of family enterprises * An ideal resource for professionals in law, finance, management, and behavioral science, family office and fund managers, and others interested in an multidisciplinary approach to this field

Leseprobe

Contents

Cover

Series

Title Page

Copyright

Acknowledgments

Family Enterprise: Understanding Families in Business and Families of Wealth

Chapter 1: Defining Family Enterprise

DEFINITION 1

DEFINITION 2

DEFINITION 3

DEFINITION 4

DEFINITION 5

ASSESSMENT TEST 1

Chapter 2: Classic Systems of a Family Enterprise

THE FAMILY SYSTEM

THE OWNERSHIP SYSTEM

THE ENTERPRISE SYSTEM

ASSESSMENT TEST 2

Chapter 3: Representative Governance Systems in Family Enterprises

ENTERPRISE GOVERNANCE

FAMILY GOVERNANCE: FAMILY COUNCIL

OWNER GOVERNANCE: OWNERSHIP FORUM

ASSESSMENT TEST 3

Chapter 4: Key Characteristics of Family Enterprises

CHARACTERISTICS

CHALLENGES

COMPARISON OF FAMILY SYSTEMS AND ENTERPRISE SYSTEMS

ASSESSMENT TEST 4

Chapter 5: Concepts in Family Enterprise Study

SYSTEMS THINKING: A VERY BRIEF HISTORY

SYSTEMS THINKING: THE INDIVIDUAL IN THE SYSTEM

RELEVANT SYSTEMS CONCEPTS: TRIANGLES, SCAPEGOAT(ING), HOMEOSTASIS, BOUNDARIES

CONTENT AND PROCESS

ASSESSMENT TEST 5

Chapter 6: Theoretical Frameworks in Family Enterprises

THE THREE-CIRCLE MODEL

THE DEVELOPMENTAL MODEL

THE BALANCE POINT MODEL

ASSESSMENT TEST 6

Chapter 7: Core Professions Working With Family Enterprises

DIFFERING PERCEPTUAL FILTERS

UNDERSTAND THE DIFFERENCES AMONG THE CORE PROFESSIONS

ASSESSMENT TEST 7

Chapter 8: Multidisciplinary Professional Teams

TYPES OF TEAMS

CHALLENGES TEAMS FACE

ASSESSMENT TEST 8

Chapter 9: Applying What You Have Learned

CASE 1

CASE 2

CASE 3

Glossary

Suggested Readings from Family Business Review: Journal of the Family Firm Institute

CLASSICS

RECENT OVERVIEW ARTICLES

About the Website

About FFI

About the Authors

Index

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Cover image: texture © iStockphoto.com/gaffera; leaves © iStockphoto.com/hugbee Cover design: Wiley

Copyright © 2014 by The Family Firm Institute, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

Family enterprise : understanding families in business and families of wealth / The Family Firm Institute, Inc. pages cm. — (Wiley finance series) Includes index. ISBN 978-1-118-73092-8 (cloth); ISBN 978-1-118-73098-0 (ePDF); ISBN 978-1-1187-3091-1 (ePub) 1. Family-owned business enterprises. I. Family Firm Institute. HD62.25.F3765 2014 338.6–dc23 2013027432

Acknowledgments

This book, which is the result of years of research and education undertaken by The Family Firm Institute, Inc. (FFI), would not have been possible without the intellectual collaboration and steadfast support of numerous individuals. A special debt is owed to the many members of FFI who, since 2001, have contributed to the rich body of knowledge contained herein—most especially the chairs of the Body of Knowledge Committee—Fredda Herz Brown, Karen Vinton, Mark Voeller, and Frank Hoy.

With regard to this book, we particularly want to thank co-authors Judy Green and Jane Hilburt-Davis whose leadership in the field of family enterprise advising and consulting is legendary—Judy as the president of FFI and Jane as FFI chair emeritus and curriculum developer for the FFI Global Education Network (GEN).

Thanks are also due to Paul Karofsky, who supplied the work on the cases that appear here and has provided advice and input at key stages in the development of this project.

We also want to thank John Davis, Dennis Jaffe, Cary Tutelman, and Larry Hause for permission to use their intellectual models included as part of the course.

Thanks are also due to Karen Shea of Karen Shea Design for her work on the graphics.

Family Firm Institute Boston, Massachusetts October 2013

Family Enterprise: Understanding Families in Business and Families of Wealth

It would not be an exaggeration to say that family enterprises are as ubiquitous as they are complex. Indeed, family enterprise is as old as humanity itself, at least in an anthropological sense. Members of families have been working together—and coming into conflict with one another—for millennia.

Of course things have changed considerably since the days when collaboration within families was simply oriented toward securing basic necessities. Today, under the imperatives of global supply chains, markets without borders, and economic interdependence, family enterprises have become powerful, and complex engines of a world economy. Many of the world's largest businesses, such as Wal-Mart, Samsung, and Tata, as well as hundreds of thousands of small to medium-sized enterprises, are family-owned and major drivers of economic output across the globe.

The purpose of this book is to clarify the complex nature and functioning of contemporary family enterprises for a wide variety of professionals—both inside and outside the family enterprise, providing an informative and cutting-edge multidisciplinary approach to the understanding of and advising to family enterprises worldwide. Although focused on the professionals in the family enterprise field, it is our hope that this information will also be useful for owners and members of family enterprises.

The book is divided into nine chapters, each of which presents essential knowledge and methods central to understanding classic approaches and current trends in the field.

The discussion begins with the challenges and opportunities peculiar to defining what, precisely, constitutes a family enterprise. While various definitions are explored and assessed, this book defines family enterprises as those with two or more members of a family involved in the ownership and business of the enterprise.

The second chapter focuses more explicitly on the classic systems of a family enterprise. Three systems, in particular, are emphasized, namely, the systems unique to the family, the ownership, and the enterprise.

The third chapter explores representative governance systems in family enterprise. Not surprisingly, family enterprises deploy a variety of governance systems that encompass family, ownership, and enterprise.

The fourth chapter highlights the key characteristics of family enterprise, including optimism, loyalty, competitiveness, innovativeness, legacy, and commitment, among others.

Chapter 5 explores relevant concepts in family enterprise study. Systems thinking and process and content, in particular, are elaborated in some detail and applied in the context of family enterprise.

Chapter 6 offers useful theoretical frameworks for analyzing and understanding family enterprises. Specifically, the three-circle model, the developmental model, and the balance point model are considered at some length.

Chapter 7 outlines the core professions most likely to engage in work with family enterprises, while Chapter 8 closes with a discussion of the importance of deploying a multidisciplinary team approach to address the challenges and opportunities facing family enterprises in today's globalized world.

Chapter 9 concludes the book with three actual cases in family enterprise. In this way the book affords readers the occasion to apply what has been learned by engaging the real world challenges and opportunities characteristically faced by those working with and within family enterprises.

Each chapter is designed to engage with relevant graphics, illustrations, and examples, as well as suggestions for further reading. Additionally, each chapter concludes with a brief self-assessment.

Taken in its entirety, this book provides a toolkit of multidisciplinary concepts, methods, examples, and assessments directly applicable to, and of use for, those engaged in the work of family enterprise. With family enterprises constituting between 65 to 80 percent of all businesses engaged in today's global economy, it is clear that providing such a toolkit is essential not only to the success of family enterprises and the professionals who work with them, but also to the future prosperity and well-being of the world's economy and the many individuals who are employed within it.

CHAPTER 1

Defining Family Enterprise

Found virtually in every sector of the world’s economies, family enterprises are the most common form of business entity in the world. Yet, their ownership, management, and family composition create a complexity that requires special knowledge and skills in order to understand them and to advise them effectively.

Indeed, perhaps one of the most discussed issues in the field today is how to define a family enterprise. There is no one definition for family enterprise, but there are a few working definitions that have evolved over the years.

DEFINITION 1

Family firms are those in which multiple members of the same family are involved as major owners or managers, either contemporaneously or over time (Miller, Le-Breton Miller, Lester, Canella, “Are Family Firms Really Superior Performers,” , Vol. 13, Issue 5, 2007).