Continuity Model Generation. Justin B. Craig. Читать онлайн. Newlib. NEWLIB.NET

Автор: Justin B. Craig
Издательство: John Wiley & Sons Limited
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Жанр произведения: О бизнесе популярно
Год издания: 0
isbn: 9781119759355
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it is important to emphasize that a cursory examination of the three systems that make up the traditional family enterprise Venn diagram would not have elicited such richness.

      And that is the key message for all of these frameworks: they are a simple way to tell complex stories.

      So, in front of you now should be three circles with edited labels and continuums, circles, and bullet points. The next step is to form the circles into dyads, to look at the framework in yet another way. But there is no need to draw a revised set of circles. Rather, just focus on one pairing of circles at a time. First, consider the overlap between the owners and managers. The argument here, and a key component of the approach we will use to build the Continuity Canvas in Part II, is that there is tension, or the potential for tension, between the managers–stewards and the owners–stewards. Recall that the managers–stewards manage on behalf of the owners–stewards. What is required to reduce the potential for conflict or tension is a strategic plan to ensure alignment between these two groups. As will be shown in Part II, this is one of four essential plans that make up the Continuity Canvas. We use the same approach, not surprisingly, at the intersection of the owners–stewards and family–stewards systems. In this dyad, we address the potential for tension through development of an asset, wealth, and estate plan. Moving to the overlap between the family–stewards and the managers–stewards system, to address the potential for tension between these two systems requires a successors’ talent development plan. Finally, at the center of the three systems, where the three circles overlap, there is again potential for tension. To reduce this tension, or its potential, and increase the likelihood of continuity, the Continuity Model Generation commits to the development and implementation of a governance plan.

Schematic illustration of the fully developed three circles framework.

      Upon adding the three circles framework to the four foundational theories (agency, stewardship, resource-based view, and principal cost) as well as to the complementary logics (economic and social) approach, it is apparent why this meta-framework is the keystone in the arch of continuity modeling. Feel free to reread this section and add your voice.

      While there is a familial component to everything for the Continuity Model Generation, the four frameworks within the familial meta-framework make difficult conversations much easier.

      As businesses and families evolve, promoting meaningful involvement and engagement among enterprise members presents a challenge. As one sage family business leader suggests, “entitlement and wealth become the enemy.”

      But the approach requires careful, strategic orchestration.

      In lectures and presentations, when I share my observations of families who pursue the big tent approach, the metaphorical concept usually makes intuitive sense to listeners, no matter the country or audience type. But it's only when I describe what it feels like to be left out of the tent that the message really hits home.

      The main example I share is when members of a founding generation explained to me that they wanted their legacy to be a family enterprise that survived across many generations. Immediately after, they stipulated that the wives of their two sons were to be excluded from all business conversations. In response, they were delicately reminded that the spouses were the mothers of their grandchildren, and therefore significant influences on how the third generation would see the business, and thus it may have made sense to “bring them into the tent”; they reconsidered and committed to establish meaningful non-operational roles for their daughters-in-law. Other, similar examples, such as those of affines who are excluded from “family” meetings, also tend to hit home.

      Still, inclusion of family members for the sake of inclusion can be interpreted as a token gesture. The key, then, from my observations of insightful multigenerational family businesses, is to ensure that individuals are ready, willing, and capable to contribute in a meaningful way. I must emphasize the tripartite nature of this set of attributes, as implied by the use of the word “and” rather than “or.” That is, the omission of any one of the three qualities—such as being ready and willing but not capable—means potential disaster, or at the very least a far from ideal situation for the family and enterprise. Readiness, willingness, and capability are mandatory qualities for contribution.

       Executive

       Manager/supervisor

       Enterprise/entrepreneurship

       Family office

       Family governance

       Business governance

       Family philanthropy

      Each of the pathway-related roles comes with a distinct set of requirements, responsibilities, and remuneration, all of which must be clearly articulated. See again my earlier caveat that all elements of the big tent approach require