Week 1

Question 1

How it starts

Answer 1

In the next generation of a family business 70% wont make it, and the 3rd generation 90% wont make it.

To fix this the family focus must be properly managed

Question 2

Family component

Answer 2

Family
Business
Ownership

Question 3

Family component issues

Answer 3

There needs to be accommodation between all family members.

Skills can not be absorbed, only learned.

In-laws look for a position in companies. (rules make it easy to make sure in-laws aren’t hired.)

Older managers expect new employees to follow the old ways which causes problems.

Question 4

The Walsh Succession Model

Answer 4

Processes: Management Succession, Ownership Succession

Activities: Family Communication and Governance, Grooming Successors, Management Processes, Ownership Governance, Shareholder Agreement

Outcomes: Integrated Family Members, Assessed Options, Informed Decision Making, Comfort Levels