Family Business From one generation to the next : a fine balance between continuity and transformation Dott.ssa Roberta Marinelli
Families and Businesses are COMPLEX ORGANIZATIONS An organization is an entity comprising multiple people and that has a
particular purpose
and it is driven by a specific set of values and rules
Family members are the executives in their business love
Trust care
Brother hood
Meritocracy Change
Productivity
Competitions trust equality
Effectiveness
Business
30% second generation 12% third generation
4% fourth generation and more
Everything starts with the FOUNDER Including the difficulties that may cause the business to fail 3 important invisible dynamics: The business is essentially an extension of himself , a medium of his personal gratification The company is both the baby and the mistress ( thus those who work for him are instruments in the process of shaping the organization) Rivalry is a profound psychological conflict compounded by feelings of guilt when more than 1 family member is involved Father-Son Rivalry Brother-Brother Rivalry
Most recurrent traps TRAP 1: There is ALWAYS a Place for you here: making children feel obligated to join the company To escape the trap: insist on proper training and screening. A job with the company shouldn’t be an entitlement. Family members deserve no special accommodation. Focus on COMPETENCIES & TALENTS
TRAP 2: The business can’t grow enough to support everyone: Families often grow more quickly than their businesses do. To escape the trap: Manage family entry and scale for growth. Families that have avoided trap 1 by ensuring that only committed qualified relatives are allowed to join the company have already reduced trap 2 Focus on building a GOOD GOVERNANCE that separate the FAMILY interest and the business needs
TRAP 3: Family members remain in silos according to Bloodline. Huge tendency of fathers and sons to specialize in the same aspect of the business. So next generation managers fail to gain the cross functional expertise needed for executive leadership. Second when close family members supervise one another, the personal dynamic may prevent candid feedback and coaching. To escape this trap: Along with including non family managers also Appoint non family mentors Focus on building a Diverse & Inclusive Leadership
Competencies and Behaviors Experiences we generate for our customers and our employees
GOOD GOVERNANCE PRACTICES THAT SEPARATE THE FAMILY AND THE BUSINESS
How we create VALUE
Diversity & Inclusion Foster Innovation and lead to Business Results
Six behavior indicators of inclusive leaders ensuring that team members speak up and are heard; making it safe to propose novel ideas; empowering team members to make decisions; taking advice and implementing feedback; giving actionable feedback; and sharing credit for team success
Family Gravity CULTURE & PURPOSE
Continuity & Transformation
Operative systemic tools
Take what you find here and make it better and better Colonel Eli Lilly