Family Business Challenges
Practical guidance for family business owners and managers.
1. Understanding Family Business (Case Study: M.I. Dickson)
An introduction to the main family business concepts, defining where and how family firms are distinctive. How to plot your family firm’s stage of development, plus the varying and often overlapping roles, motivations and expectations of family members.
2. Maintaining Family Values (Case Study: Bibby Line Group)
Defining a shared family business vision and articulating your family values. How values can guide the firm through transitions as well as help to shape decision making, both by the owners and in the business.
3. Developing stewardship (Case Study: Bettys & Taylors Group)
Building and passing down an enhanced legacy to future generations. Leveraging family, people, financial and social capital to drive performance. Addressing reinvestment in the business while considering shareholder liquidity needs.
4. Engaging the Next Generation (Case Study: Days Lewis)
Developing the next generation’s interest in the business in preparation for assuming ownership and/or management roles. Providing space for the next generation to learn, develop and engage while making their own choices.
5. Planning Succession (Case Study: Wates Group)
Examining the process of generational transitions. Anticipating ownership and management issues related to succession planning. Asking if the next generation are ready, willing and able as well as should the business be family owned?
6. Building Family Governance (Case Study: Clarks Shoes)
The twin facets of family business governance; corporate and family governance. Delineating decision making for the owners and the business respectively. Protocols, structures and procedures to help the family speak with one voice.
7. Managing Differences (Case Study: Linn Products)
Recognising the natural risk of conflict and highlighting its common causes. Identifying foreseeable challenges and creating a family business conflict prevention environment, including strategies for managing the associated risks.
8. Fostering Responsible Ownership (Case Study: A.F. Blakemore & Son)
Owners don’t necessarily manage the business but they carry many other responsibilities. Recognising the different perspectives of “insider” and “outsider” shareholders. Developing a responsible ownership culture while enabling exits.
9. Strengthening Family Communication (Case Study: M. Wright & Sons)
Communication is critical, particularly as time passes, putting a premium on developing shared purpose. Drawing up a family strategic plan including family meetings, setting agendas and using external facilitation where appropriate.
10. Professionalising the Board (Case Study: Samworth Brothers)
Building a balanced family business board including owner representatives, with criteria for their appointment, non-family talent and independent directors. Organising the board to establish a collaborative working culture.
11. Enhancing Communication with the Board (Case Study: Strutt & Parker Farms)
Structuring dialogue between owners and the board. Establishing role clarity over areas where the owners have final control. Promoting a culture where messaging is consistent and supported by defined channels of communication.
12. Employing Advisors (Case Study: William Grant & Sons)
Considering when to appoint a family business adviser. Defining a project brief to address the family’s needs. Recruiting advisers, ensuring family buy-in, and maximising the outcomes in terms of learnings and practical recommendations
13. Fostering Entrepreneurship (Case Study: Timpson)
Risk taking balanced with stewardship can underpin competitiveness. Promoting a culture that fosters entrepreneurship and innovation. Developing adaptability, balancing the past and future, to support growth and renewal.
14. Embedding Long-Term Orientation (Case Study: OCS Group)
Ensuring a balanced approach to long-term orientation (LTO) while keeping sight of short-term performance. Leveraging the benefits of patient capital. Promoting the drivers of LTO and considering the balance in terms of asset portfolio.
15. Promoting Sustainability (Case Study: Macphie)
Developing a purpose-led business where–through the careful management of human, natural and socialcapital–sustainable value is created. Building trust with stakeholders through a sustainable business approach.
16. Maximizing People Capital (Case Study: William Jackson Food Group)
Recognising the distinctive feature of family firms around human resources. Creating a strong employee brand to enhance recruitment and retention of non-family talent, and defining appropriate reward strategies.
17. Branding the Family Business (Case Study: Berry Bros. & Rudd)
Considering when to put the family brand at the centre. Building a tailored strategy with critical success factors to maximise the family branding benefit. Bringing the family brand to life, including roles family members can play.
18. Selling the Family Business (Case Study: Aspall)
Evaluating reasons for selling, including consideration of options for a full or partial exit. Managing expectationsamong owners and building a consensus. Looking beyond the watershed for a future without the family business
19. Business Family Justice in Ownership and Wealth Transfers (Case Study: OM Group)
This Family Business Challenges guide provides evidence-based guidance for family-business owners and their advisors on inter-generational business ownership and wealth transfer. It focuses on the justice dilemmas that can arise in inter-generational ownership and wealth transfer decisions. It was compiled by Dr Susan Lanz (Aston University) working in collaboration with Dr Martin Kemp (Family Business Research Foundation), and draws on Dr Lanz’s research in this area of family business practice.
20. Navigating Non-Family CEO Succession (Case Study: Bettys & Taylors Group)
This Challenges guide assists business-owning families and those who own, manage, or advise family businesses to navigate potential pitfalls and challenges during leadership transitions. It was compiled by Manish Singh (Cranfield University) working in collaboration with Dr Martin Kemp (Family Business Research Foundation), Dr. Stephanie Hussels (Cranfield University), and Prof. Patrick Reinmoeller (IMD).