Hello!
Here is a short article from The Harvard Business Review about a Brazilian family business which faces some issues in planning the succession for the third generation.
I know that in class it has always been said we cannot and do not have to solve problems (in particular for our case study), however the article provides some tips on how to avoid these common "traps" forfamily businesses and it is interesting to see that basically all the solutions offered here have been discussed and suggested by us during the debates post-MICA and Skits.
https://hbr.org/2012/01/avoid-the-traps-that-can-destroy-family-businesses
Hi Elena. Thanks for this article. It highlights some of the key issues and possible solutions that apply to a family business: Trap 1: “There’s always a place for you here”- To escape the trap: Insist on proper training and screening, Trap 2: the business can’t grow fast enough to support everyone - To escape the trap: Manage family entry and scale for growth, and Trap 3: family members remain in silos according to bloodline - To escape the trap: Appoint non¬family mentors. However, I believe that the solutions offered are too simplistic, as it does not take different cultures or gender issues into consideration. For example, for the solution of trap 2, the article argues that the solution is to employ only qualified relatives that have gone through adequate screening. I wish this was the case and it seems like the most logical way of minimising issues such as nepotism. However, some family business require their children to join the business regardless of the qualifications as they believe the child can learn/grown with the business. Thus, coming into the businesses blindly is a common way used to train a child that has been forced into a business. I know this from first-hand experience with my brother. My father wants him to join his business, irrespective of the fact that my brother does not have any interest nor study the subjects required to give him the relevant knowledge. I just don't believe that a general family business solution to issues should exist. What do you think?
ReplyDeleteI completely agree with your point, Nkem. The reason behind posting the article was meant to be in a way provocative, as the article focuses on a specific case and shows just some "common traps", solving them through the lenses of that case study.
ReplyDeleteI believe as well that there are too many and different variables involved in the different family firms, therefore the issues and their analysis cannot be generalised.
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