Examples of typical family governance structures, e.g., family constitutions, as well as emerging models.
For family businesses, there is no one-size-fits-all approach to governance and advisers need to understand each family’s unique values and ownership philosophies before attempting to implement specific governance structures. Thanks to Marta Widz and Benoît Leleux from IMD for illustrating this point by sharing two cases where the family businesses have divergent ownership philosophies but have both excelled in their governance practices.
What better way to start a new year than to look at some classic models in the family enterprise field and offer forward facing ideas. Thanks to FFI Fellow Paul Karofsky of Transition Consulting Group for refining some of his early work on a multi-roles model and providing examples from his client base for consideration by the readers of FFI Practitioner.
The core question of the article is clear: Is agency or stewardship governance more effective for aligning the interests of (family or nonfamily) managers with those of family owners?
Corporate scandals and financial meltdowns have led to corporate governance reforms all around the world. In addition to the rules and laws that firms have to legally comply with, several self-regulatory codes or ‘soft-laws’ have been enacted in many countries.
It’s a paradox: Some family owner groups in the third, fourth, fifth generation, and beyond, have sophisticated governance structures and a history of embracing world-class family business advisory help.
Thanks to this week’s contributors Josh Baron and Nick Di Loreto of BanyonGlobal for their article “Is Your Client’s Generational Transition Stuck?
Hong Kong has had many well-publicized family business disputes in recent years. One such dispute involves a famous roast goose restaurant in the heart of the Central District called Yung Kee.
Japan is known as a country of long-lived firms. We have almost 3,937 companies that have been in business for more than 200 years.
Two theories of organizational behavior, namely agency theory and stewardship theory, have frequently been used to explain the unique aspects of family firms.
Josep Tàpies is professor in the department of strategic management and holder of the Family-Owned Business Chair at IESE.
There are a number of ways in which family businesses differ from their non-family counterparts. One differentiating way lies in the overlapping roles family members often play in the family business.
I am a fifth generation owner of a 165 year-old manufacturing business based in the Midwest.
In complex situations there are no simple solutions, but there can be different contexts that range from simple to complicated, chaotic or complex (Snowden & Boone, 2007).
This issue of The Practitioner features a blog, based on an article, based on an upcoming book – all on the topic of Family Owner Governance.
Family Business Governance: A never ending challenge and a new area for research? Prof. Wolf Nietzer, MBA, LL.M.