In the fourth installment of our Media Watch series, this week The Practitioner brings you a whole new set of reports from the core disciplines or “buckets” of behavioral science, management science, finance and law.
The latest rethinking of the classic “marshmallow test” where children are asked to delay eating a marshmallow to receive a greater reward, has interesting potential applications for family businesses who are just beginning to groom Next-Gen leaders. The new study found that the more reliable the conditions the more likely children are to suppress their instinctive impulsivity and delay gratification. In the study, two environments were created (reliable and unreliable). Children in the reliable environment, where behavior and outcome/reward remained predictable over time, displayed greater impulse control and better rational decision making abilities. For our purposes, providing stable, predictable environments for decision making over time may help to develop Next-Gen leaders.
When it comes to family business succession, insufficient estate planning can lead to bitter family rancor and lengthy litigation. While this is a universal issue facing family businesses, Bloomberg reporters Debra Mao and Douglas Wong explore this issue in Asia using multiple case examples. The lessons learned from these cautionary tales can be applied to family enterprises everywhere.
The US Securities and Exchange Commission’s Dodd-Frank rules, which require family offices to register as investment advisors, have weighed heavily on the minds of family enterprises and their advisors. In her new blog entry on this topic, Lauren Foster breaks down these regulations with granular precision. Her useful roster of “do’s” and “don’ts” serves as a thorough primer for advisors and offers essential checkpoints that need to be satisfied to meet these regulatory guidelines.
Effective team-building is a challenging prospect for any business leader, but for many family businesses, this becomes an exponentially more complicated task. Psychological issues, power struggles, and complicated family histories, among other issues, can all become roadblocks to building and managing effective executive teams in the family business. Fortunately, Forbes contributor Glenn Llopis offers hopeful insight into ways that leaders from a variety of disciplines and industries have met and conquered the team building challenge.
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