| Navigation by Three Oceans with the Family Business
Begoña Pereira-Otero |  |
When a family business and an external consultant start to work together, it is important that all the parts understand that each of the decisions made will influence the company, the ownership, and the family-in-business -- these entities which will continue to change over time.
Thus it is essential that the family business reflect upon where it is and where it wants to go. An accurate understanding of one's starting point is a sine qua non for the consultation to develop successfully. Navigation by three oceans is a tool which can help with this self-analysis. (Read more from Begoña Pereira-Otero and add comments.)
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| Family Businesses Generate More Added Value and More Jobs than Non-Family Businesses
Horacio A. Irigoyen |  |
Many family businesses are growing rapidly, especially those which were founded in Argentina after the deep crisis of 2002. These family businesses generally create more added value and generate more employment than non-family businesses of similar size and structure. This phenomenon is not limited to Argentina, but rather appears in other economies recovering from financial crises such as those affected by the global financial crisis of 2008.
A report analyzing family businesses in six European countries concluded that the family business model puts these businesses in a good position to emerge stronger from the crisis in the European economy.
(Read more from Horacio A. Irigoyen and add comments). |
| Leadership Transitions and "The Private Plane Analogy"
Dave Specht |  |
My experience flying in a small aircraft for the first time has many parallels with that of a next-generation leader transitioning into a significant leadership role in the family company. Beginning at the "airport" next-generation leaders many times don't face the same "waiting lines". Many times these individuals literally walk straight into the company. While this may seem like the easy way, next generation leaders will forever be held to a higher standard by their peers at work because they bypassed typical "lines and the security checkpoints."
When the next-generation leader figuratively "boards the plane" he or she is usually sitting next to an experienced and competent parent/leader. There can be more noise and chaos than expected and hopefully the senior generation has the foresight to provide "headsets" to drown out noise and to allow for communication during the journey. (Read more from Dave Specht and add comments). |
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Greetings!
¡Saludos!
Welcome to this edition of the Family Business Wiki Newsletter written entirely by Spanish-speaking contributors (and available in both Spanish and English). We are honored to present the experience and knowledge of our Hispanic colleagues, and to have the opportunity to publish this Special Edition for the second consecutive year.
In addition to Joan Amat's "Thought Leader Blog", we are also fortunate to have contributions from family business advisors and academics representing Argentina, Spain and the United States.
Would like to extend a special invitation to join "The Family Business in Spanish" - a discussion group on Family Business Wiki's Town Square. The idea of this group is to discuss family business issues of interest, including your blog posts and discussions.
¡Un abrazo y hasta la próxima!
Guillermo Salazar Family Business Wiki Advisory Board Member
Exaudi Family Business Competitive Legacy Knowledge |
 | Thought Leader Blog: Joan Amat | | Enhancing the Soundness of Family Companies Through the Use of Family Councils and Educating the Next Generation
60% of family businesses disappear not due to business problems but due to family problems. Thus, a family business needs a strong and united family behind the business. This requires work and commitment as a family's strength is measured not only by love - but also in the way they handle their disagreements.
Paradoxically, the human family is a group in which the ties between its members are most intense and it is the most important source of support, protection and happiness - but it is also a major source of anxiety, hostility, resentment and rivalry. The family is thus simultaneously a refuge in which we are protected as well as the largest generator of stress in our lives. This affects every family, but it has a particularly strong effect on the members of a family that has a family business.
One of the most important family problems for families-in-business is paradoxically the family business which is often the main focus of the family. And this company's omnipotent presence in the family can create serious distortions. (Read more from Joan Amat and add comments). |
| FBWiki TV: Salo Grabinsky | | Incapacity Planning: Preparing for the Possibility of Owner Dementia
In this video interview, Salo Grabinsky describes significant issues which can arise if a family business has not prepared for the potential incapacity of the owner due to Alzheimer's Disease or other forms of senile dementia. These issues - such as loss of direction in the business, disrupted estate planning, and family member resentment -- can have a significant negative impact on both the business and the family.
Salo also describes action steps in the areas of family and business governance, estate planning, and medical support which can help a family business system to prepare for this possibility. (Click here to see the video.) |
| Jesús Negreira del Río
| | Put an Independent Family Director in Your Family Business. At Least One.
It is clear that ownership of the business entitles the family-in-business to take charge, take control and direct the activities of the highest governing bodies of the company: the Board of Directors and the Annual General Meeting. Unambiguously. They do not have to answer to anyone except themselves. The owners must make decisions which they consider in the best interests of the company - they have the power and they must be willing to exercise this power.
However, sometimes certain shareholders with voting shares may act in pursuing their own interests. Or it might occur that family members are called upon to sit on a governing body but they do not have the skills, experience, or knowledge necessary for the challenge to be undertaken. How, then, should ownership address these issues? The solution is simple: invite an independent director to join the Board. While the solution is simple - it is not necessarily easy. Some will say "We do not need an independent director." There will be questions regarding how to find this person; how to select the right person; and how much to pay them for their services.
The family business must resolve these challenges, and should do so because only independent directors can fill the gaps and deficits that arise when governance includes only family members. (Read more from Jesús Negreira del Río and add comments).
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| Marilena Beuses
| | A Coaching Perspective Into Family Businesses
When I attended my first Family Firm Institute (FFI) conference three years ago, I was overwhelmed by the trust that some families deposit on their "trusted advisors".
Little that I knew that family businesses are seeking all sorts of advisors. With some of them they built deep and confidant relationships with the business owners and their families.
What I also found was the absence of specialists in family dynamics other than therapists as well as an absence of business coaches.
Some efforts to raise the standards of such advisors have been done through certification processes given by universities or other institutes. Family practitioners are becoming rounded to understand the different families needs. In parallel, seminars are given to family members' owners and non-owners to make them more knowledgeable about skills and tools. There are even MBA's tailored toward family businesses. (Read more from Marilena Beuses and add comments).
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