This article brings together research on philanthropy, family business, and governance to examine patterns of giving by U.S. family versus nonfamily independent foundations. The authors use a sample comprising the 200 largest U.S. independent foundations in 2007 to show that family foundations are more focused in their grantmaking than nonfamily foundations. Board size moderates this relationship. They also offer a new typology of family foundations to show that the generation stage of the family and the foundation board's composition are associated with different levels of grantmaking diversity in family foundations but in dissimilar ways. Scholarly and practical implications are discussed.

Since the beginning of time, families have been working together. Goals could be achieved as a trusting group that eluded the grasp of the individual. Banding together with the people one knew best helped ensure survival and was highly successful for many years. One day, however, management gurus noticed that fathers hired mainly sons and wealth was preserved and controlled by small, related groups. They were aghast. -- Can this be right? Just think of all the quality talent going to waste in favor of a son-in law? Capital markets theorists pointed out that enterprising families were missing out on broader capital access and perish the thought leverage.

Over the years, the authors have had the opportunity to meet and study many of the world's oldest and largest family firms. They are impressed with how often they find them practicing similar methods of achieving success. They believe that these highly successful models offer lessons valuable to even the smallest and youngest family firms.

Family owned companies have a unique set of corporate governance challenges. A relationship built on trust between owners and managers is the key to achieving success.

A family agreement can be a powerful tool for any business owning family. It can secure and perpetuate an enterprise but it should be a distinct reflection of a family's culture and experience, argue Daniela Montemerlo and John Ward.

A family council is common in a large, sophisticated family-run firm. But they can be tricky to implement and. like families, each is unique and evolves in its own way.

Some business-owning families believe that family success in philanthropy is much easier than family success in business. Not so. A family foundation still has to pass through the generational stages of involvement and control - with all the associated issues.

Family businesses tend to perform better than their non-family counterparts, which may be why more and more wildly successful firms like Google are getting in a family way.

The authors' belief in the innate value and uniqueness of family business culture created a project whose goal was to critically examine family business culture and performance relative to nonfamily firms, which was done using the Denison Organizational Culture Survey, a cultural assessment tool that has linked corporate culture to financial performance. The results showed that the corporate cultures of family enterprises were more positive than the culture of firms without a family affiliation.

More and more studies are showing extra longevity for family controlled firms, despite a conspicuous lack of resources and vulnerabilities. Yet many find the goal to endure and preserve wealth a long haul requiring commitment and adaptability.

In these letters to the editor of 'Harvard Business Review', the authors discuss Cynthia A. Montgomery and Rhonda Kaufman's March 2003 article, 'The Board's Missing Link.' Professor John L. Ward of Northwestern University observes that the family-controlled business is an interesting place to examine and extend the insights and recommendations of Montgomery and Kaufman. He observes that in family-run companies, there are often very strong connections and accountability between shareholders and the board. Liz Guthridge of The Adobe Group thinks that the missing link in companies' governance triangles is not just between boards and shareholders; it is also between boards and employees, many of whom are shareholders. Professor John P. McAllister of Kennesaw State University observes that the authors may have also identified a serious inconsistency in the flow of information at most companies. Montgomery and Kaufman respond by observing that perhaps the larger theme to take away from reader reaction to the article is that shielding information from board directors and shareholders ultimately comes at a cost.

One of the challenges a successor to leadership faces is how to preserve the strengths of tradition while adapting traditions so they have more relevance for today. Sometimes, continuing a tradition is contrary to the requirements for business success. The task is to hold onto the spirit of a tradition yet reinterpret its meaning for contemporary use. Examples are discussed.

The values and cultures of successful family businesses have long been acclaimed but rarely examined. This book attempts to rectify that. Featuring cross-Atlantic contributions from Bocconi, Harvard, London Business School, Kellogg, and others, this important compilation assembles leading research by those who pioneered the field before it became popular. It addresses real issues that family business owners face on a daily basis, from strategy and governance, to culture and performance, fostering professional interactions that will no doubt stimulate further research on this special subject. Introduction; John L. Ward TRANSFERING VALUES SESSION Learning from Practice: How to Avoid Mistakes in Succession Processes; G.Corbetta The Shape of Things to Come- Emotional Ownership and the Next Generation in the Family Firm; N.Nicholson Abernberg. EFFECTIVE GOVERNANCE SESSION Power as service in Family Business; M.A.Gallo A Classification Scheme for Family Firms: From Family Values To Effective Governance To Firm Performance; P.Sharma M.Nordqvist How Values Dilemmas Underscore the Difficult Issues of Governing the Large, Enterprising Family; John.L. Ward FAMILY BUSINESS PATTERNS SESSION Towards a Typology of Family Business Systems; J.A Davis Embeddedness of Owner-Managers The Moderating role of values; S.Klein Single Family Office: The Art of Effective Wealth Management; H.Liechtenstein, R.Amit, M. J.Prats and T.Millay FAMILY BUSINESS VALUES SESSIONS The Impact of Family Business on Society; F.Casado Fair Process & Emotional Intelligence; L.Van der Heyden and Q.Huy Family Firms and the Contingent Value of Board Interlocks: the Spanish Case; E.Salvaj, F.Ferraro and J.T pies Conclusion JOSEP TPIES is Professor in the department of Strategic Management and Chair of Family-Owned Business at IESE. As well as teaching in Europe and Latin America, he is a board advisor for the Spanish Association of Consultants and Academics of Family Business. He has published numerous articles and books on family business and other topics. JOHN WARD is Clinical Professor of Family Enterprises at Kellogg School of Management, Illinois, United States. He is a regular visiting lecturer at Hong Kong University of Science and Technology, Indian School of Business, and IESE Business School. He is also a principal with The Family Business Consulting Group International, and author of several leading texts and articles. He has 30 years experience of strengthening successful families in business.

This book delivers new IMD insights on an emerging challenge - how to deal with overwhelming complexity. Global organizations face a complex decision-making environment. On one side, diversity of cultures, customers, competitors and regulations creates complexity; on the other, competitive pressures cause expanding countries to extract more synergies across products and regions. In such a climate, a new way of thinking, acting and organizing is needed beyond the familiar control mindset. Drawing together insights from across the expert faculty, Managing Complexity in the Global Organization presents IMD's framework on how to understand complexity and its four key drivers (diversity; interdependence; ambiguity and flux), along with solutions on specific issues in a variety of functions, industries and markets. The focus is on providing practical solutions based on real-life examples.

Dilemmas: problems to solve or a source of long-term success?

Boards of directors can help businesses succeed—yet many family businesses do not have functioning boards of directors that play a valuable role in providing oversight to their businesses.  In Building a Successful Family Business Board , the authors show why private firms need the in-depth expertise and objective feedback that a well-chosen board, including qualified independent directors, can provide, and demonstrates how owners and directors can work together to ensure a long and profitable life for the firm. The book provides best practices for owners and directors with step-by-step guidelines for developing and managing a board—from writing the initial prospectus, through conducting lively meetings, to maintaining open, honest communication between owners, directors, family members, and other stakeholders in the firm.  ISBN: 978-0-230-11154-7

This book brings together a vast amount of experience to show the "best practices" of the most successful and long-lasting families in business. It provides a framework of five insights and four principles in which to position 50 lessons for family businesses. This is the most comprehensive book on sustaining the family business and contains international examples and cases and essential tools and checklists of best practice. Languages: Serbian

From small start-ups to giant multinationals, from the Mom-and-Pop-owned barbershop to Ford Motor Company, family owned businesses continue to dominate the world economy. Regardless of size, running a successful family firm presents unique challenges, and many fail to survive the transition from one generation to the next. Here is a practical, comprehensive guide to ensuring success through effective strategic planning. The authors provide a wealth of tested, easy-to-follow tools and techniques for mastering strategic planning for family-owned firms. Filled with real world examples, case studies, checklists and planning worksheets, the book shows how to deal with a host of emerging challenges –from new technologies to global markets– by integrating family values and dynamics into sound planning and management.

Families are about caring and businesses are about money: making family business an unlikely formula for a successful partnership. Yet those are the facts and family businesses around the world have found that the Parallel Planning Process linking family and business values, vision, strategy, investment and governance is critical to business performance and family harmony. 272 pages.

Rather than having to choose between the family and the business, the authors argue that if family-owned businesses can consciously manage and over time, perhaps, synthesize these contradictions, the Family Enterprise will have a long-term strategic and competitive advantage and the family will remain committed to continuity. 150 pages.

The family business has been the most prevalent and pervasive form of business in many countries, raising questions concerning succession and governance and in particular the relationships among management, board members and family members. This book is a fantastic collection of articles by leading thinkers and practioners on the family business which covers such issues as ensuring a healthy family business, family strategy, governance and succession.

Less than one-third of family-owned businesses survives until the second generation because owners or managers avoid making decisions about the company's future. As a result, they fail to adapt to changing business and family conditions. In this best-selling reprint of his classic Keeping the Family Business Healthy, John Ward offers numerous practical resources to help family businesses develop strategies for long-term prosperity. You'll learn: how to overcome difficulties caused by changes in the nature of the business, its organization's character, or the family's expectations; how to ensure family interest in leading the business; how to assess the firm's financial and market situation; how to develop a strategic plan; how to plan the family's role in the company's future; how to shape a business strategy that incorporates the family; how to promote a revitalized business vision and strategy after a leadership transition and more... In its pages you'll find a number of practical worksheets and models like: a values questionnaire; a sample financial analysis of business; strategic planning worksheets; sample business strategic plan; sample family strategic plan; chart detailing "blood" equity versus "sweat equity" Keeping the Family Business Healthy is a useful guide for owners, managers, family shareholders, and the professionals who serve family firms.

The purpose of this book is to explore with the reader whether Darwin's theory of evolution is a valuable metaphor for family business continuity. Is there, possibly, a 'family business biology'? Do Darwin's concepts of struggle for life, adaptation, variation, mutation, natural selection, procreation and inheritance provide helpful insights for family business owners?

Family businesses prosper by pursuing unconventional strategies. Because they are values-driven and think very long-term, they take approaches not popular with current management fashion or most companies. That is the key to their competitive advantage. However, family businesses must find ways to simultaneously serve business needs and family goals, which require very different priorities and principles. As a result, they must think paradoxically, and find insights that single-purpose enterprises need not contemplate. They must dare to be different. Family business requires a different governance system, but it must nevertheless be one that can be controlled. Building on insights from the world’s premier family business executive education course, this book offers the Unconventional Wisdom needed to leverage the strategic and cultural uniqueness of a family business for enduring success.

'Is it possible to speak openly about wealth? That is the challenge that this book modestly attempts to meet, using all the accourtrements--knowledge, wisdom and even humor--that such a topic requires. It is our greatest wish and highest ambition that today's wealth--whether long-held or recently acquired--be wealth for the future , not just an end for today. Wealth is a means of building tomorrow's world.' Thierry Lombard Lombard Odier Darier Hentsch & Cie This book is by eminent family enterprise consultants Dr. Denise Kenyon-Rouvinez and Dr. John L. Ward who bring their vast knowledge to this subject. With the wisdom of Buddhist monk, Matthieu Ricard and the humor of French cartoonist Gabs, this book is a must for all family members dealing with the issue of wealth.

Why Others?  summarizes the many questions which individuals and families need to ask themselves when turning to philanthropy.  Why should I give?  To whom? What for? How much?  Alone or with my family?  Each case is different of course, but there are principles which are valid for any giving.  The art of giving, consists both in meeting the needs of the beneficiaries and in fulfilling the expectations of the donors who are giving their time or money.  Why Others?  is written to help you to discover philanthropy for what it is: a means to shape a better future by acting in the present.

Presentation at the Entrepreneurship Interest Group: Family Business Focus, 1986 National Academy of Management Meeting.

This two-part case series starts with the accidental discovery of an important condiment in Chinese cuisine in 1888. The company, Lee Kum Kee Ltd., was born as a result and over the intervening years grew into a large global enterprise. Case A describes the development of the firm and family from the 1st through 4th generations. Development of a values-based corporate culture, facilitation of entrepreneurship and the ramifications of family/business crises are highlighted.

For teaching purposes, this is the commentary-only version of the HBR case study. The case-only version is reprint R00314. The complete case study and commentary is reprint R00308. Mac Monroe had grand plans for Georgia Building Supplies, the company he had started with a friend almost 50 years ago, selling construction materials wholesale to contractors. In the mid-1980s, Mac bought out his disgruntled partner's share of the company and put his oldest son, Mac Monroe IV, at the helm. It was all falling into place. But Mac Four, as his parents called him, died tragically in a car accident. The family and the company never recovered. Mac sold GBS two years later. Now Mac is trying it again, bankrolling Carolina Construction Supply with his youngest boy, John "Little Bit" Monroe, at the helm. The tech-savvy Little Bit would like Mac and CCS to embrace the Internet for on-line transactions and service. But Mac keeps emphasizing sales, and he's lured two heavy-hitter salesmen from the competition--including his middle son, Mike Monroe. In its first two years, CCS has lost $1 million, and the ghost of Mac Four lingers at the company--Mac is constantly invoking his name, alluding to what Mac Four would have done if he were still alive. Complicating matters is the Monroe family's overprotective matriarch, Bea, who doesn't want to hear anything bad about her boys, and who'd like more time to spend with her 70-something husband. Mac's got plenty of doubts about CCS's future--that's why he's called on P. Dee Chambers, a consultant to small businesses, for advice. What should she tell him? Can Carolina Construction Supply be saved? In R00308 and R00315, five commentators, Gerry Boschwitz, Rudy Boschwitz, Mary F. Whiteside, Joe Mattos, and John L. Ward, review this fictional account and offer their advice.

From the humble ambitions of two brothers, Hilti AG came a long way to win the 2003 Bertelsmann Prize. Hilti was a world leader in professional construction tools and equipment with sales approximating $2.8 billion, operations in 120 countries and a global workforce of around 15,120 who together shared in an award-winning corporate culture. Culture at Hilti, was inseparable from strategy. So when challenged at several points in their history, the company relied on the strength and underpinnings of its corporate culture to see it through. Now, with new governance changes afoot, Hilti would need to leverage this valuable resource once again.

This three part case series explores the strategic and cultural implications of recognizing a major reconsideration of a multitude of long-held beliefs may be needed to ensure a firm’s survival. The business lines and corporate culture that had served this landed estate so well and for so long had been challenged by radical changes in the operating environment, industry and ownership assumptions. The company needs to look deep inside itself and clarify its purpose and core values. The A case presents the background and colorful history of this unique business, from 1299 to the year 2000, and lays out the challenges and options under consideration by the trustees, family owners and management. Much was at stake for Clinton Devon. To sell the estate lock, stock and barrel, spending the future counting newly-liquid wealth, was not an option congruent with the family’s heritage and philosophy. However, to do nothing meant the estate’s near-certain demise. Case B reveals the innovative and unexpected steps actually undertaken by this organization and the results that followed. The C case brings the story up-to-date with an assessment of the Estate’s strategic initiatives and results. New plans for the enterprise are reviewed. Learning objectives: 1) Making decisions between two desirable alternatives may not be necessary. There may be a third way to accomplish both. 2) Reinforcing the notion that frequent, authentic communication with constituents, focused on long-term relationship building, is essential. 3) Engaging the workforce can uncover existing potential. 4) Hiring an outsider with fresh views and who shares the family’s values may bring the talents of a change agent to bear on the situation. 5) Understanding that a firm’s traditional industry and its culture and purpose can be de-linked without harm to the enterprise.

From its beginning in 1947, the Torvald Klaveness Group succeeded in the shipping business through innovation and the vision of one man, Torvald "TK" Klaveness. The company grew and prospered until 1989, when TK handed the reins over to the second generation. His eldest son remained true to his father's principals and business philosophy. As yet another management transition drew closer, the next generation considered changes to the founder's succession plan and the company's strategic approach.

There are not many families in the world that can claim continuity of existence for over 76 generations in either business or otherwise. Families that manage such a feat tend to have strong roots of values and culture that are in line with the basic principles of trusteeship - to preserve and grow wealth (both material and spiritual) for the benefit of future generations. This case is based on the history of and current challenges faced by such a family, the Mewar dynasty from India.

This two-part case study examines the implications of organizational structure and control issues on company management and strategy. Effective corporate governance and its role in efficient operations management is the focus of these cases.

KWS SAAT AG (KWS) was a leader in sugar beet, corn and cereal seed breeding, operating in 70 countries, employing over 2,700 people and reporting revenues of $724 million in FY 2006/07. It had traveled far from its founding in eastern Germany by two friends in 1856. Through the years, the two families operated the business together and moved through successive generations of hands-on management. The company prided itself on its scientific and innovative prowess. Staying on the cutting edge of the seed breeding business required a consistent and dedicated approach to research. Any short-term curtailment of investment in developing seed varieties that responded to customers’ specific needs regarding climate, pests or other concerns meant falling behind competitors, perhaps irretrievably. The families’ philosophy formed the cornerstone of the firm’s core values. Individual freedom, personal development, independence, confidence and growth were cherished ideas at KWS. Its ability to balance contradiction and reject limits was key to success. Several things came along recently to challenge the company’s approach. Consolidation in the increasingly biotechnology-oriented industry brought major global chemical companies to the industry. Their deep pockets meant that many smaller players were selling out and the field of competitors contracted. The possibility to assure the families’ financial future for generations to come was tempting. At this same time, KWS faced a management issue. The family leader saw retirement on the horizon. Yet, a family successor seemed uncertain. How could the family ensure that their values would continue to guide the firm’s operations, even perhaps in the absence of day-to-day family leadership? This two-part case series explores corporate culture within the context of change, fomenting entrepreneurship and innovation that invigorates, and developing effective strategy for a competitive environment undergoing significant adjustment. Learning objectives: To facilitate discussion of how companies may respond to not only normal, yet relentless stresses but also major events which threaten to derail generations of work; balancing incongruity and dissonance; encouraging entrepreneurial tendencies in staff; examining the role of values in an enterprise; planning for significant transitions in leadership.

his three part case series explores the strategic and cultural implications of recognizing a major reconsideration of a multitude of long-held beliefs may be needed to ensure a firm’s survival. The business lines and corporate culture that had served this landed estate so well and for so long had been challenged by radical changes in the operating environment, industry and ownership assumptions. The company needs to look deep inside itself and clarify its purpose and core values. The A case presents the background and colorful history of this unique business, from 1299 to the year 2000, and lays out the challenges and options under consideration by the trustees, family owners and management. Much was at stake for Clinton Devon. To sell the estate lock, stock and barrel, spending the future counting newly-liquid wealth, was not an option congruent with the family’s heritage and philosophy. However, to do nothing meant the estate’s near-certain demise. Case B reveals the innovative and unexpected steps actually undertaken by this organization and the results that followed. The C case brings the story up-to-date with an assessment of the Estate’s strategic initiatives and results. New plans for the enterprise are reviewed. Learning objectives: 1) Making decisions between two desirable alternatives may not be necessary. There may be a third way to accomplish both. 2) Reinforcing the notion that frequent, authentic communication with constituents, focused on long-term relationship building, is essential. 3) Engaging the workforce can uncover existing potential. 4) Hiring an outsider with fresh views and who shares the family’s values may bring the talents of a change agent to bear on the situation. 5) Understanding that a firm’s traditional industry and its culture and purpose can be de-linked without harm to the enterprise.

Iscar Metalworking was an Israeli producer of metal working and metal cutting tools for industries requiring precise tolerances. Iscar had grown into a global enterprise with employees and offices throughout the world, though it was founded in 1952 in modest circumstances. The business thrived on innovation, passion and dedication to a client-centred approach. Something appeared on the horizon, however, which could potentially disrupt the hard-developed strategies and prosperity of its winning approach. Iscar was a second generation family firm whose CEO was not a family member. Retirement loomed in the medium-term for the family member chairman and the family was unsure of next generation interest in hands-on management of the company. How best to preserve for the future what two generations had worked so diligently to build and nourish? Management evaluated a broad range of options. But Iscar's special brand of success was unique and to be protected at all costs. It became evident that the best solution for the company was to evolve into a situation where it could remain operationally independent yet have its future - corporate culture, strategic approach - assured. It felt like looking for a needle in a haystack but the answer finally appeared. Berkshire Hathaway (BH), run by the famed investor Warren Buffett, appeared to operate in fashion very recognisable to Iscar. Independence, maturity, values-driven management were evident in the way BH did business. This case explores Iscar's steps toward growth and success, its recognition that both a familiar and a different future must be assured for the long-term and the process and reality of becoming part of the BH dynasty. Learning objectives: to allow participants to consider the role of corporate culture and company 'DNA' in the context of a need for significant change. Mergers and acquisitions must be approached carefully and in full understanding of the implicit risks and benefits to a company's culture and history of a transaction. How important are similar or complementary values and purpose in a strategic combination? The approach of the acquiring firm can build or destroy value in the target. What makes the difference between the two outcomes will be explored.

Raymundo Leal, a self-made Mexican businessman, turned 50 in 1994. The first 25 years of his life were spent educating himself and getting married. The next 25 were devoted to building a business and raising a family. Would he spend the last part of his life as he had the previous 25 years? Should he continue accumulating money that, according to his lifestyle, he would never use? He asked himself - Is this all there is to life? Would inheriting money be the best legacy he could pass along to his children? Perhaps leaving the leadership of his company and devoting himself to Mexico’s poor with smart, effective charitable giving would be the best use of his time. There were serious ramifications to such radical change. Who would lead the business if he were to devote himself to philanthropy? How would his family react to this shift in priorities and the resulting financial implications? Learning objectives: Identifying an individual path to philanthropy; Family business succession transitions; Exploring philanthropy (or family office or family governance) as a way to maintain family cohesion and direction.

 After over four centuries in business, the Beretta family's gun making enterprise stands at an important threshold. The family and its hometown have provided the cultural and philosophical underpinnings that have seen the company through good times and bad. Now, the firm must address a more insidious challenge. How to continue to grow and adapt to new market and competitive situations while retaining the core that brought the company to where it is today. The role of corporate culture is juxtaposed with stability in the face of change, dedication to craftsmanship and the latest technology, close-knit family bonds and an ardor for individualism. The exercise of seemingly contradictory business concepts and approaches is examined.

This two-part case study examines the implications of organizational structure and control issues on company management and strategy. Effective corporate governance and its role in efficient operations management is the focus of these cases.

This case series follows the Richard Owens family through nearly one hundred years of evolution and change. The A-case describes how the family business started with one grocery store in 1906 and, by 1974, had grown into a large private enterprise that included supermarkets, liquor stores and real estate. While competitors could not seem to stop the Owens family business, fractured family relationships and rivalries caused significant problems. In 1974, the conflict came to a head and the firm was split into three, one business line for each sibling.    This four part case series follows the Richard Owens family through nearly one hundred years of evolution and change. The family business started with one grocery store in 1906 and, by 1974, had grown into a large private enterprise that included supermarkets, liquor stores and real estate. While competitors could not seem to stop the Owens family business, fractured family relationships and rivalries caused significant problems. In 1974, the conflict came to a head and the firm was split into three, one business line for each sibling. How the businesses fared and how each brother managed his company for the future are the subjects of the B case. Efforts by one branch of the family to avoid the kinds of problems that brought about the division of the original family business are outlined. Governance and ownership issues now faced by the next generation are highlighted. The C case brings participants up-to-date with the evolution of the Richard Owens family's first constitution and governance policies implemented to help protect the family firm for the future. The D case presents the next step in family and company governance, highlighting the most recent family constitution dated November 2002.

This four part case series follows the Richard Owens family through nearly one hundred years of evolution and change. The family business started with one grocery store in 1906 and, by 1974, had grown into a large private enterprise that included supermarkets, liquor stores and real estate. While competitors could not seem to stop the Owens family business, fractured family relationships and rivalries caused significant problems. In 1974, the conflict came to a head and the firm was split into three, one business line for each sibling. How the businesses fared and how each brother managed his company for the future are the subjects of the B case. Efforts by one branch of the family to avoid the kinds of problems that brought about the division of the original family business are outlined. Governance and ownership issues now faced by the next generation are highlighted. The C case brings participants up-to-date with the evolution of the Richard Owens family's first constitution and governance policies implemented to help protect the family firm for the future. The D case presents the next step in family and company governance, highlighting the most recent family constitution dated November 2002.

How the businesses fared after the firm was split up in 1974 and how each brother managed his company for the future are the subjects of the B case. Efforts by one branch of the family to avoid the kinds of problems that brought about the division of the original family business are outlined. Governance and ownership issues now faced by the next generation are highlighted.    This four part case series follows the Richard Owens family through nearly one hundred years of evolution and change. The family business started with one grocery store in 1906 and, by 1974, had grown into a large private enterprise that included supermarkets, liquor stores and real estate. While competitors could not seem to stop the Owens family business, fractured family relationships and rivalries caused significant problems. In 1974, the conflict came to a head and the firm was split into three, one business line for each sibling. How the businesses fared and how each brother managed his company for the future are the subjects of the B case. Efforts by one branch of the family to avoid the kinds of problems that brought about the division of the original family business are outlined. Governance and ownership issues now faced by the next generation are highlighted. The C case brings participants up-to-date with the evolution of the Richard Owens family's first constitution and governance policies implemented to help protect the family firm for the future. The D case presents the next step in family and company governance, highlighting the most recent family constitution dated November 2002.

This three part case series explores the strategic and cultural implications of recognizing a major reconsideration of a multitude of long-held beliefs may be needed to ensure a firm’s survival. The business lines and corporate culture that had served this landed estate so well and for so long had been challenged by radical changes in the operating environment, industry and ownership assumptions. The company needs to look deep inside itself and clarify its purpose and core values. The A case presents the background and colorful history of this unique business, from 1299 to the year 2000, and lays out the challenges and options under consideration by the trustees, family owners and management. Much was at stake for Clinton Devon. To sell the estate lock, stock and barrel, spending the future counting newly-liquid wealth, was not an option congruent with the family’s heritage and philosophy. However, to do nothing meant the estate’s near-certain demise. Case B reveals the innovative and unexpected steps actually undertaken by this organization and the results that followed. The C case brings the story up-to-date with an assessment of the Estate’s strategic initiatives and results. New plans for the enterprise are reviewed. Learning objectives: 1) Making decisions between two desirable alternatives may not be necessary. There may be a third way to accomplish both. 2) Reinforcing the notion that frequent, authentic communication with constituents, focused on long-term relationship building, is essential. 3) Engaging the workforce can uncover existing potential. 4) Hiring an outsider with fresh views and who shares the family’s values may bring the talents of a change agent to bear on the situation. 5) Understanding that a firm’s traditional industry and its culture and purpose can be de-linked without harm to the enterprise.

Most family businesses do not survive beyond two or three generations. One of the main reasons for the short life span of family businesses is due to the lack of governance mechanisms in the family. With better family governance, business development becomes a more enjoyable journey and ensures continuity of the business across generations. This case is about an Indian family business, GMR Group, which was established a quarter century ago, and by 2010 became one of the major diversified infrastructure organizations in the country with large-scale interests in infrastructure (energy, roads and airports) and manufacturing (agri-business, mainly sugar). Since its founding, the Group has come a long way, from an independent proprietary enterprise to a family-owned holding corporation with several companies under its control, along with external stakeholders. The growth of the group has been led by the entrepreneurial zeal and organizational capabilities of its founder G.M Rao. Having seen many family businesses breaking up for want of adequate governance mechanisms, Rao led the way for the writing of his family’s constitution with the help of several experts. The entire family spent many hours, and after several rounds of iteration created and signed a constitution in 2007. The writing process of the constitution, and the policies and processes developed were optimal for maximizing GMR’s performance and the family’s well-being in current and future generations. The case captures the essential processes and output of writing a family constitution.

KWS SAAT AG (KWS) was a leader in sugar beet, corn and cereal seed breeding, operating in 70 countries, employing over 2,700 people and reporting revenues of $724 million in FY 2006/07. It had traveled far from its founding in eastern Germany by two friends in 1856. Through the years, the two families operated the business together and moved through successive generations of hands-on management. The company prided itself on its scientific and innovative prowess. Staying on the cutting edge of the seed breeding business required a consistent and dedicated approach to research. Any short-term curtailment of investment in developing seed varieties that responded to customers’ specific needs regarding climate, pests or other concerns meant falling behind competitors, perhaps irretrievably. The families’ philosophy formed the cornerstone of the firm’s core values. Individual freedom, personal development, independence, confidence and growth were cherished ideas at KWS. Its ability to balance contradiction and reject limits was key to success. Several things came along recently to challenge the company’s approach. Consolidation in the increasingly biotechnology-oriented industry brought major global chemical companies to the industry. Their deep pockets meant that many smaller players were selling out and the field of competitors contracted. The possibility to assure the families’ financial future for generations to come was tempting. At this same time, KWS faced a management issue. The family leader saw retirement on the horizon. Yet, a family successor seemed uncertain. How could the family ensure that their values would continue to guide the firm’s operations, even perhaps in the absence of day-to-day family leadership? This two-part case series explores corporate culture within the context of change, fomenting entrepreneurship and innovation that invigorates, and developing effective strategy for a competitive environment undergoing significant adjustment. Learning objectives: To facilitate discussion of how companies may respond to not only normal, yet relentless stresses but also major events which threaten to derail generations of work; balancing incongruity and dissonance; encouraging entrepreneurial tendencies in staff; examining the role of values in an enterprise; planning for significant transitions in leadership.

This four part case series follows the Richard Owens family through nearly one hundred years of evolution and change. The family business started with one grocery store in 1906 and, by 1974, had grown into a large private enterprise that included supermarkets, liquor stores and real estate. While competitors could not seem to stop the Owens family business, fractured family relationships and rivalries caused significant problems. In 1974, the conflict came to a head and the firm was split into three, one business line for each sibling. How the businesses fared and how each brother managed his company for the future are the subjects of the B case. Efforts by one branch of the family to avoid the kinds of problems that brought about the division of the original family business are outlined. Governance and ownership issues now faced by the next generation are highlighted. The C case brings participants up-to-date with the evolution of the Richard Owens family's first constitution and governance policies implemented to help protect the family firm for the future. The D case presents the next step in family and company governance, highlighting the most recent family constitution dated November 2002.

The B-case of this two-part series examines the 5th generation’s interest in and engagement with the company and prospects for the future of family leadership. Establishment of critical governance structures, preparation for periods of non-family management and mechanisms for formal and informal next generation education are key issues.

Case A shows the options that exist for a successful transition of leadership from one generation to the next, based on a family's and company's unique history, structures and players. Case B shows successful leadership as a fluid, interactive process matching individual desires and potential with strategic business goals and opportunities.

A successful, multi-generation manufacturing family business, with progressive human resource policies, weighs the pros and cons to family owners and company employees of selling the business in order to meet the challenge of global competition.

Plymouth Tube, a family business, was a manufacturer of precision tubing and extruded shapes for aerospace, desalination, medical, mining, energy, and water industries globally. Founded in 1924, as of 2012 it employed 770 people at thirteen plants in seven U.S. states and had sales of about $240 million. The family had twenty members across three generations, including spouses. The board was composed of eight members, three from the family and five who were independent. Stacy, age 30, was the only fifth-generation family member working for the company. Her father, Van, age 64 and a fourth-generation member, had been in the business for forty years and had succeeded his father as president, CEO, and chairman.

In early 2013, management presented a very large expansion project that was riskier than previous recent investments to the board, and requested the board's approval. Independent board members asked Van to obtain feedback from the family about the proposal. Van asked Stacy to direct the process for informing the family, asking for their input, and communicating it back to the board.

How should Stacy conduct the process? What should be done with the information once it has been gathered? Should family members be involved in this type of business decision? Based on the information given in the case, is this a good investment?

Case A shows how a regional family company, threatened by national competition, needs to make changes to its structure and way of doing business or face extinction or sale. Case B shows the steps the business takes to make it succeed, including restructuring that involves eliminating long-time family managers and planning for succession. Case C shows post-transition successes and areas that still need work.

When a consultant recommends an overhaul of the HR compensation practices that the family business is known for and prizes, what should be the next steps?

Six siblings with equal ownership conflict with each other depending on their roles as owners and/or owner managers. In this case, students will learn to clarify roles of ownership in terms of active/inactive in the business.

In mid-2013, the Lee family, which owned the Hong Kong–based food and health product giant Lee Kum Kee (LKK), struggled with how best to increase involvement of the fifth generation (G5), the children of the company's current fourth-generation (G4) senior executives and governance leaders. Only two of the fourteen G5 members had joined the company, and few had expressed interest in further involvement, including in the multiple learning and development programs the business offered, such as a mentoring program. Many of the G5 cousins had expressed little interest in business careers in general, and none of them currently was serving as an LKK intern. G4 members observed that their children were busy with family obligations, hobbies, and emerging careers outside the business. G5's lack of interest in business and governance roles was part of a growing pattern of low family engagement in general, exhibited by the cancellation of recent family retreats (once an annual tradition) because of apathy and some underlying conflict. A history of splits among past generations of the Lee family regarding business leadership made the engagement issue even more meaningful and critical.

Students will consider the challenge from the point of view of G4 family members David Lee, chairman of the family's Family Office, and his sister, Elizabeth Mok, who ran the Family Learning and Development Center. They and their three siblings saw engaging the next generation as a top priority, one related to key concepts including family-business continuity, generational engagement and empowerment, succession, emotional ownership, and intrinsic/extrinsic motivation.

Based on this multi-generation family business' history, strategy, governance, and market, what does the future hold for the business and the family's involvement in it? Can succession work with co-CEOs?

A married couple who have a successful industrial B2B business evaluate whether or not to sell the business to two of their offspring, who are both entrepreneurial MBA graduates. Complicating factors include the fact that the sale price and structure need to finance the couple’s retirement and give fair inheritance treatment to the remaining siblings. In addition, the father has had some health issues and the business is doing well, so there is a lot of forward momentum to sell to the next generation.

A successful five-generation family business group in India separates its ownership role from its operational management role to meet the needs of a more global economy. This includes hiring professional non-family managers of business units and including non-family directors on the corporate board.

This technical note is a descriptive list of factors that are present in large, successful, long-term and/or multi-generation family businesses.

A second-generation, multi-billion dollar Asian family business, run for decades by six brothers, faces issues of ownership, family employment, management, leadership, governance, and succession as it transitions to the third-generation of siblings and cousins.

Case A shows the options that exist for a successful transition of leadership from one generation to the next, based on a family's and company's unique history, structures and players. Case B shows successful leadership as a fluid, interactive process matching individual desires and potential with strategic business goals and opportunities.

Brothers in a multi-generation family business engage in a power struggle and the board must decide on a new leadership strategy.

The ATF case is a succinct opportunity to explore the many special features of leadership succession for a family business. In 2009 the company was passing the baton to the oldest of three sons in the second-generation family business.

ATF produced metal and plastic fasteners for, primarily, the automotive industry. ATF had grown into a company with more than $50 million in annual revenues. The company had grown in large part through alliances with other family businesses around the world. First-generation patriarch Don Surber had led the company since he acquired it in 1982. Don was known for his charismatic leadership style and his focus on driving value through a network approach.

The case traces the career paths of all three sons and looks at the succession through the eyes of the oldest son, Jason Surber. The elements, constituents, and challenges of succession are evident. The fundamental insight is that business leadership succession is far more than just passing the business leadership baton. It also requires attention to the family, the board, the whole system of external stakeholders, and the future of ownership.

The epilogue in this note covers the period from 2009 to 2012 by describing what Jason did to earn credibility, to incorporate his brothers, and to define his personal leadership philosophy and style. The epilogue thus provides students with an opportunity to consider and define their own personal philosophy of management leadership and their own style. They will see the art of melding styles from the past with their own for the future.

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.

This technical note contains examples from other fields on the benefits of bonds of families, extended families, and communities for members of multi-generation family businesses.

After the sale of their multi-generation family business, a family and business transitions. The family uses the sales contract to maintain its progressive human resource policies. The family organizes a family investment office, establishes foundations, and launches new ventures.

Case A shows how a regional family company, threatened by national competition, needs to make changes to its structure and way of doing business or face extinction or sale. Case B shows the steps the business takes to make it succeed, including restructuring that involves eliminating long-time family managers and planning for succession. Case C shows post-transition successes and areas that still need work.

A non-family board member of a multi-generation family business is tapped as CEO during a leadership crisis.

A successful third-generation family business explores whether or not to continue in business as a family into the fourth generation. If they do decide to move forward as a family business, how can they cultivate knowledge and interest among the forty-plus fourth-generation family members.

This note introduces the importance to family businesses of drafting a family constitution to maintain success and continuity of governance of the family’s enterprises. The process of family members/owners being involved in making the draft provides the most value for the enterprise, more so than the content of the finished product.

A married couple who have a successful industrial B2B business evaluate whether or not to sell the business to two of their offspring, who are both entrepreneurial MBA graduates. Complicating factors include the fact that the sale price and structure need to finance the couple’s retirement and give fair inheritance treatment to the remaining siblings. In addition, the father has had some health issues and the business is doing well, so there is a lot of forward momentum to sell to the next generation.

How should this successful, entrepreneurial family business plan for leadership, ownership, and governance succession to the next generation?

Case A shows how a regional family company, threatened by national competition, needs to make changes to its structure and way of doing business or face extinction or sale. Case B shows the steps the business takes to make it succeed, including restructuring that involves eliminating long-time family managers and planning for succession. Case C shows post-transition successes and areas that still need work.

A family media enterprise with very strong family culture and values is in the third and fourth generation of ownership and governance. They face a crisis when a large number of family shareholders want to cash out their shares. What led to this situation? How could it have been avoided? How should it be resolved? LEARNING OBJECTIVE: Lack of succession and liquidity planning can harm the business through generations when it becomes a crisis.

Steven Rogers had always thought that someday he would like to own a business with one or both of his daughters. As his eldest daughter, Akilah, finished her final semester at Harvard Business School, she told Rogers that she would like to create with him a Chicago-based real estate venture that included buying, rehabbing and renting homes in the Englewood and South Shore neighborhoods of Chicago.
Rogers quickly realized that his biggest challenge was how to equitably structure the ownership of the business. He gathered advice from family business experts and slowly began to build a plan that would benefit each member of his family. Meanwhile, Akilah assumed responsibilities associated with the business as she finished her final semester at HBS. The case ends with Rogers Family Enterprises owning its first three houses.

After decades of continuity, Luse Holdings faced a new challenge in 2015. The company needed to pivot in a changing industry context—specifically, Luse had lost a bid to a non-union competitor for the first time—and CEO and fourth-generation member Steve Luse was considering three primary options: (1) continue as is, while also adding non-union services; (2) sell part of the business to reduce family risk; or (3) sell the entire business to fund other family interests. A fourth possible option was a maximization-of-growth alternative.

This decision involved more than business considerations alone. The family's legacy as an industry champion and community philanthropist also required considering all relevant stakeholders, including immediate and extended family, employees, and community. Complicating the situation was the lack of an immediately identifiable successor in the next generation of the Luse family, though several fifth-generation members had completed internships with the business—including Steve's daughter Ashley, a recent MBA graduate. Students will step into Steve's shoes as he considers what recommendations to make to the advisory board six months from now. Students can also take the perspective of Ashley, a rising next-generation member: should she join the family business?

The case looks at Thomas Mann’s fiction novel Buddenbrooks and traces the family business trajectory of the family at the center of the novel. Many family business issues are raised, including succession, intermingling of family and business money, supporting adult offspring, and competition.

Is the saying “from shirtsleeves to shirtsleeves” inevitable in a multi-generation family business?

In late 2011, Jerry Bertram, vice president and general manager of the fire retardant additives business of Huber Engineered Materials (HEM), a division of family-owned J. M. Huber Corporation, was preparing to present the potential acquisition of the precipitated alumina trihydrate (PATH) business to the environment, health, and safety committee of Huber's corporate board. He had convinced HEM's leadership of PATH's strategic value to their business and the urgency of the acquisition based on PATH's parent company's movement into Chapter 11 bankruptcy and its plans to close the PATH plant.

Winning board approval posed a major challenge. It was unclear whether the plant would remain operational, because HEM would have to enter a shared-services arrangement with PATH's parent company, which continued to use the site. In addition, acquiring PATH would mean integrating its specialized, unionized labor force into Huber, which had very few union workers. Finally, early due diligence had revealed tens of millions of dollars of potential environmental risk on the site. The last issue was particularly critical, given Huber's generations-long history of respect for the environment, and its executives' and directors' reluctance to take on any business with excessive environmental risk.

This case illustrates in depth the family business values that can promote consideration of an ostensibly unconventional and risky strategic move, and enable executives to push for approval of the same, as backed by comprehensive risk assessment and mitigation plans.

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.

A married couple who have a successful industrial B2B business evaluate whether or not to sell the business to two of their offspring, who are both entrepreneurial MBA graduates. Complicating factors include the fact that the sale price and structure need to finance the couple’s retirement and give fair inheritance treatment to the remaining siblings. In addition, the father has had some health issues and the business is doing well, so there is a lot of forward momentum to sell to the next generation.