Generation to Generation Introduction

1
Generation to GenerationIntroduction

• Some facts
• Some of best known firms are family businesses
  (FBs)
• About 65-80 worldwide are FBs
• 40 of Fortune 500 are FBs
• FBs generate about 50 of GDP and employ about
  half the workforce

2
More FB Issues

• FB combines the roles of family and business
• Roles in family and in business may become
  confused complicated
• Conflict between what is best for business versus
  family interests
• Problem Management courses generally do not
  differentiate between family and non-family
  businesses

3
Three Dimension FB Model

• Ownership Dimension
• Family Dimension
• Business Dimension
• See page 17 for 3 axis model illustration

4
3 Dimension Model, Cont.

• Each person in the business is diagramed as being
  in a particular sector (see pg. 6 Venn diagram)
• Diagram helps everyone see how organizational
  role can color ones point of view
• Provides a snapshot of family business at a
  point in time

5
Ownership Developmental Dimension

• Controlling Owner (first generation)
• Sibling Partnership (second generation)
• Cousin Consortium (third generation)

6
Family Developmental Dimension

• Young Business Family
• Entering the Business
• Working Together
• Passing the Baton

7
Business Developmental Dimension

• Start-up
• Expansion/Formalization
• Maturity