If you ask almost any family business advisor to identify the right time to form a board of directors, the answer will be forthcoming almost instantaneously. “Right now.” This is because the conventional wisdom is that all family firms need a board of directors.
In fact, however, there is no hard evidence to suggest that a board is helpful. In may circumstances a board is a distraction and may even be harmful. That’s because while many family businesses may benefit from…Continue
Added by James Olan Hutcheson on January 31, 2013 at 1:23pm — No Comments
It’s no secret that a family business advisor needs considerable skill at untangling complicated personal relationships in addition to expertise in business areas such as financial management, strategy, and succession planning. What’s less widely appreciated is the fact that family business consulting also very often calls for the ability to identify and assist with issues related to addiction(s).
Simply put, alcohol addiction is virtually a plague affecting family…Continue
Added by James Olan Hutcheson on January 31, 2013 at 1:22pm — No Comments
The Witten Institute for Family Business has studied the factors leading to success or downfall of a family-run enterprise in the course of generations. The result is stunningly clear: The major destroyer of values in family businesses is not owed to economic challenges. It is the quarrels and struggles in the family.
The prime motor of conflicts are problems with regard to succession: 90% of all firm owners in Germany wish to have a family-internal solution for succession, but 49% of…Continue
In my family, whenever one of my 29 nieces and nephews acted up, my eldest sibling would advise the child’s parents that “it is only a phase, give it time.” The implication was that as children mature, behavior changes over time so there is no need to take too much action. The insinuation is that the interference could exacerbate the issue and some things are best left for a later time, or even no time. This is an approach which some…Continue
Added by Annette Rahael on January 29, 2013 at 5:47am — No Comments
Family business´ legacies are continuously challenged by an immense number of variables. Some may be handled from within the family and its business governance structure, like hiring and firing family workers; others simply are out of the family´s action scope such as crazy last-minute…Continue
Added by Dante De Lucia on January 17, 2013 at 10:25am — No Comments