Phase 3 - (Becker Onlineshop: Theoretic Framework)

4. Theoretic framework

The issues above-mentioned can be framed within various theoretical models. First, these issues are general side effects of succession planning processes. Within the succession matrix (Family Business Advisers, 2014) (please see the figure below), the issues can be described with the descriptions:

• !  "successor preparation" and "owner motivation and perspective" (will Laura and Luise feel ready for the serious and time-consuming task of taking over the business - in a male-dominated industry?) as well as
  
• !  "leadership & management continuity" (can Laura and Luise become good leaders and managers, who are respected by the elder employees?).
  The problems are all interdependent factors and thus challenges for all participants.

Figure 1: Succession matrix

The succession planning process is even more challenging if there are disagreements between the participants. This can be well explained with the help of the three circle model, which shows the three main topics 'family', 'ownership' and 'management' and different kinds of characters, who all have different interests (Leach, 2011). For instance, since his retirement, Robert is a 'non-family and non-manager owner', who is of the opinion that women cannot become efficient successors of the company. The elder employees who find it difficult to recognize Oliver's daughters as their future managers and employers are 'non- family employees'. Oliver is a 'family-owner-employee', and thus in the centre of all other participants' interests - one could even say that this makes him getting into a catch-22 situation. Laura is now a 'family employee', who is not yet sure to become a 'family-owner employee', and Luise is till now just a 'family member', intending to become a 'family employee' and then a 'family-owner employee'.
Consequently, out of seven possible kinds of characters, the case of Becker's Onlineshop includes five different roles that all have their own intentions and opinions regarding the succession of the company - which means a large extent of challenges.

                                          Figure 2: Three-circle model

However, in order to ensure a successful succession planning process, the participants do not only have to cope with the varied challenges within the succession matrix, but also all the five different roles' should be satisfied as far as possible. Thus, the so-called family business dilemma that occurs out of the different roles’ intentions must be solved (Collins et al., 2011).
The first issue is linked to the probable successors' gender - from Robert's point of view. According to a Journal of Innovation and Entrepreneurship, the often-observed differences between feminine and masculine entrepreneurs taking over the business are as follows (Lingas, 2013):

Thus, this shows that if Laura and Luise took over the business after the previous entrepreneur, Oliver, had been a male person, management might change significantly. However, it is still not clear if it will change in a negative way.
Regarding the issue of Laura and Luise's concern, that the compatibility of ownership/management and family might be impossible, a previous study shows that almost half of female (future) successors do have children and are either in a relationship or married (Smythe et al., 2013).

Figure 3: Characteristics of daughter participants

On the other hand, according to KPMG, for a successful family business' management, it is much more important to learn how to effectively manage the family component. This controverts the conventional three-circle model, as the family perspective has a much greater impact on the management and ownership (Walsh, 2011).

Figure 4: Family circle tends to be much more prominent

This approach is also supported by the Institute of Family Business, which says that between the basic three circle model of 'family, business and ownership' (in the context of succession), there are many emotionally sensitive issues occurring, which should not be underestimated (Institute for Family Business (a), 2008). One of these issues is again 'quality of life', and this could also have a negative impact on Laura and Luise's behaviours in regards to management and ownership.

                                   
Figure 5: Examples of system-transition issues

Consequently, Laura and Luise should not neglect coping with the family aspect in terms of raising a family in the future.
The next issue is the elder employees' respect and acknowledgement towards Laura and Luise. According to BDO Centre for Family Business, this issue often becomes a serious problem if business successors enter the business and get higher positions straight after graduating from university, and this can have the consequence of resentments by employees (BDO Centre for Family Business, 2009). Thus, Oliver and the other participants should find an adequate solution for this, as Oliver does not want his daughters to waste time by working in other companies after studying.
Also Oliver's strong opinion that the business should not be sold, but that it should only be further run by family members, is a relevant issue. His decision process can be viewed from a theoretical perspective as well. Since succession planning is a deliberate process, also Oliver's decision-making process goes through different stages (Institute for Family Business (b), 2008).

Figure 6: Transitions evolve in predictable phases

First, Oliver decided to bring up for discussion the issue of planning to hand over his business to a second generation. He now needs and is ready for a change, as developmental pressures build up (fighting for the company in various court proceedings and against some manufacturers and wholesalers, as the sanitary industry is on the move from offline to online/multi-channel). Oliver has been working very hard for the majority of his entire life, and his age and waning power are the triggers for planning the disengagement from the current situation. He is now in the phase seen in the centre of the illustration, which shows his dream that only his daughters Laura and Luise should become the successors of his company. Probably, he has not yet explored alternatives, and thus, theoretically he could still change his mind, if his dream is not feasible - for instance because Laura and Luise might refuse to become successors.