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Sharing Family Business Knowledge Around the World  
 
June 2010
 
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When Dementia Becomes the Silent Partner in a Family Business
Jim Grubman
An 81-year-old business patriarch is sabotaging a carefully-crafted succession plan. While there may be many individual and system perspectives which explain this situation, Jim Grubman reminds us that dementia becomes increasingly prevalent with advanced age -- and thus It is important to consider psychological and physical factors when impasses arise in succession planning.
Passing the Torch
David Karofsky
Bringing the next generation of family members into the family business can be both an exciting and scary time -- and one which requires careful consideration and constant communication.
Protecting the Family Business or the Family's Capital? 
Peter Brown
 
Considerable time and talent is spent working to protect and develop family businesses.  But is
 the goal to protect the family business -- or the family's capital?
Peter Brown contends that family wealth is a function of conserving and growing capital. The goal should be to keep the family in business, not necessarily in the business. Liquidity planning helps the family members to pursue their own opportunities, reduces the family's reliance on the business for income and supports strategic, estate and other planning that the family should be undertaking.
Greetings!
 
In our video interview with Greg McCann, Greg says "If you don't understand family business, you don't understand business." 
 
We at Family Business Wiki are in full agreement!!  That's why we're "Sharing family business knowledge around the world" --because we believe in the importance of business -- and the often overlooked role of families-in-business. 
 
In next month's newsletter the "around the world" part of our mission will be on full display as all of our blogs will be written by Spanish-speaking contributors -- with Ivan Lansberg writing our "Thought Leader Blog".  We are pleased to showcase the wisdom and insights of our Spanish-speaking colleagues, and we know that this will be a "muy buena edici�n especial".  (Note:  next month you will receive two versions of the newsletter -- one in Spanish and one in English). 
Thought Leader Blog:  Carmen Bianchi
Succession
 John L. Ward
Lately many of the closely held and family businesses at the EMC Business Forum at San Diego State University have come to us saying that they, that is , the CEO/Founder would like to work more "on" the business as opposed to "in" the business. They would like to extract themselves from the day-to-day operations and rather concentrate on growing their business and perhaps looking to diversify and perhaps even merge and/or acquire some other enterprise.
 
However, one of the biggest dilemmas facing these CEO's/Presidents/Founders is letting go. How do you let go? It is all very well to name your successor, and hire your successor, but then once your successor has been identified it is your duty to have the employees, clients, customers and service providers buy-in and become comfortable with this person.   (Read more from Carmen Bianchi and add comments.)
FBWiki TV:  Greg McCann 
Linking Wealth and Character in the Next Generation 
  
Lloyd ShefskyIn this interview Greg McCann asks "How do we take this opportunity (of wealth) and not corrupt the next generation?"  In response to this question he talks about the importance of empowering the family business or family office next generation to effectively manage their relationships with:  family wealth, the family enterprise, and the extended family itself. 
 
Greg also goes on to discuss the potential for schools of business to more fully incorporate family business issues, and contends that "If you don't understand family business in America, you don't understand business."  (Click here to see the video.  Run time 4:03).
FBWiki TV:  Walid Chiniara
Adding Value for Family Businesses in the Middle East
 
Judy Hogel
Walid Chiniara talks about a major financial, cultural and intellectual transition occuring in the Middle East.  He notes that the Middle East economy is based on family businesses, and thus these family businesses have a social responsiblity for assuring an infrastructure which provides jobs and opportunities in the future.
 
Walid also discusses some characteristics of family businesses in the Middle East which differentiate them from other family businesses around the world.  (Click here to see the video.  Run time 4:10).
Family Business Center Director: 
Paul Mudde 
Is "Innovative" Family Business an Oxymoron? 
 
Paul MuddeMany family owned businesses are focusing their attention on new growth opportunities. One reason for this is the recent downturn in the global economy that has caused a decline in revenues for most family businesses.
Another important reason, unique to family businesses, is that as the business transitions from the founding generation to the second generation and beyond the family owned company needs to grow in order to support the growth of the branches on the family tree.

While many motives exist for pursuing innovation and entrepreneurial activity in family business, there are many challenges too. This article will discuss three main challenges faced by family owned business as they seek growth through innovation: family dynamic or cultural constraints, business model constraints, and resource constraints.
  (Read more from Paul Mudde and add comments.)
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