Case Summary

Scott Family Enterprises (A): Defining Fair Process for Cousin Owners

Case Number: 5-204-267(A), Year Published: 2004

HBS Number: KEL124

Authors: John Ward; Canh Tran

Key Concepts

Family Business, Leadership, Board of Directors, Fair Process, Governance

Abstract

A large family business in banking and ranching is shifting leadership to the next generation and has developed a protocol to select board members agreed upon by all. When the selection occurs, it is not made in accordance with the protocol and a third generation family member questions why the selection rules were changed by second generation members without input or vote. The case highlights the growing pains of developing fair processes and guidelines for nominating and selecting board members, meeting family expectations, communicating with constituents, and encouraging active roles in governance at the cousin-stage of a family business.

Number of Pages: 26

Extended Case Information

Teaching Areas: Family Business, Organizational Behavior

Geographic: US

Industry: Banking, Ranching

Organization Name: Scott Family Enterprises

Organization Department: Board of Directors

Organization Size: Medium

Decision Maker Position: Board Members

Year of Case: 2003

Ordering Information