Family Business Models: Practical Solutions For The Family Business

Family business models This page intentionally left blank Family business models Practical solutions for the family business Alberto Gimeno Associate Professor in Business Policy and Director of the Advanced Management Program (AMP), ESADE Business School, Spain Gemma Baulenas Family Business Knowledge S.L. Joan Coma-Cros Family Business Knowledge S.L. © Alberto Gimeno, Gemma Baulenas & Joan Coma-Cros 2010 Softcover reprint of the hardcover 1st edition 2010 978-0-230-24652-2 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2010 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries ISBN 978-1-349-31963-3 DOI 10.1057/9780230282148 ISBN 978-0-230-28214-8 (eBook) This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalogue record for this book is available from the Library of Congress. 10 19 9 18 8 17 7 16 6 15 5 14 4 13 3 12 2 11 1 10 CONTENTS List of Figures Foreword from Ivan Lansberg Acknowledgments vii x xiv Introduction What does this book offer those interested in the family business? 1 Chapter 1 History of family business management 4 First perspective: issues facing family business Second perspective: succession planning Third perspective: drafting a family constitution Fourth perspective: governance Fifth perspective: family communication 6 9 12 14 15 Chapter 2 Family business management formula 18 Structural management of the family business Family complexity Business complexity Effects of complexity on the family business Structure 18 23 37 40 43 Chapter 3 Family business models Captain Model Emperor Model Family Team Model Professional Family Model Corporation Model Family Investment Group (FIG) Model Comparative analysis of the models Mindset and structure: how thoughts influence deeds 57 61 62 63 65 66 67 69 71 v Contents vi Chapter 4 Family business management Management in the Captain Model Management in the Emperor Model Management in the Family Team Model Management in the Professional Family Model (PFM) Management in the Corporation Model Management in the Family Investment Group Model Mixed models Family business management triangl