Family Enterprise: Understanding Families in Business and Families of Wealth, + Online Assessment Tool

Praise for Family Enterprise "As an academic and an advisor who has been in the field since its infancy, I am delighted to recommend Family Enterprise . This book provides a very useful high-level summary of what has been learned about family enterprise, highlighting key frameworks and definitions and referencing important research articles from the Family Business Review . This book is a must-have for your professional library." —John Davis, Harvard Business School and Cambridge Advisors to Family Enterprise "As a member of a multigenerational international family enterprise founded in 1801, I strongly encourage all our professional advisors to read this book. The complex world of family enterprises has now yielded a multidisciplinary body of core knowledge. This book contains a wealth of cutting-edge information and insights and is an essential toolkit for any professional who works—or aspires to work—with family enterprises." —Lansing Crane, Crane & Co. "Based on over 25 years of research and applied work in the field, this book is an essential tool for any professional working on the financial and liquidity aspects of family enterprises. In a lively and user-friendly format, the book provides a broad base of material designed to introduce all professionals to the complexities of family enterprises and the family dynamics that inform those enterprises. An absolutely indispensable resource for those seeking a current and more holistic approach to the field." —François M. de Visscher, President, de Visscher & Co., LLC "A highly useful and succinct introduction to current analysis of family business, crammed full of signposts to further learning and research." —David Harvey, Chief Executive, Society of Trust and Estate Practitioners (STEP) Worldwide "I highly recommend this book to scholars and professionals alike. Uniquely blending the practical and the theoretical work that has been done in the family enterprise field, the book offers readers both a comprehensive overview and dynamic multidisciplinary content. Timely, practical, and educational—precisely what the field of family enterprise needs!" —Pramodita Sharma, PhD, editor, Family Business Review

Acknowledgments ix Family Enterprise: Understanding Families in Business and Families of Wealth xi Chapter 1 Defining Family Enterprise 1 Definition 1 2 Definition 2 2 Definition 3 2 Definition 4 2 Definition 5 2 Family Business Review article: “From Longevity of Firms to Transgenerational Entrepreneurship of Families: Introducing Family Entrepreneurial Orientation” 4 Assessment Test 1 37 Chapter 2 Classic Systems of a Family Enterprise 39 The Family System 40 The Ownership System 41 The Enterprise System 42 Assessment Test 2 43 Chapter 3 Representative Governance Systems in Family Enterprises 45 Enterprise Governance 46 Family Governance: Family Council 48 Owner Governance: Ownership Forum 49 Assessment Test 3 50 Chapter 4 Key Characteristics of Family Enterprises 53 Characteristics 53 Challenges 54 Comparison of Family Systems and Enterprise Systems 55 Assessment Test 4 57 Chapter 5 Concepts in Family Enterprise Study 59 Systems Thinking: A Very Brief History 59 Systems Thinking: The Individual in the System 60 Relevant Systems Concepts: Triangles, Scapegoat(ing), Homeostasis, Boundaries 61 Content and Process 63 Family Business Review article: “Using the Process/Content Framework: Guidelines for the Content Expert” 65 Assessment Test 5 77 Chapter 6 Theoretical Frameworks in Family Enterprises 81 The Three–Circle Model 83 The Developmental Model 87 The Balance Point Model 88 Assessment Test 6 89 Chapter 7 Core Professions Working With Family Enterprises 93 Differing Perceptual Filters 95 Understand the Differences Among the Core Professions 96 Assessment Test 7 99 Chapter 8 Multidisciplinary Professional Teams 101 Types of Teams 101 Challenges Teams Face 102 Family Business Review article: “The Effects of Goal Orientation and Client Feedback on the Adaptive Behaviors of Family Enterprise Advisors” 103 Assessment Test 8 138 Chapter 9 Applying What You Have Learned 141 Case 1 141 Case 2 142 Case 3 142 Glossary 145 Suggested Readings From Family Business Review: Journal of the Family Firm Institute 153 About the Website 155 About The Family Firm Institute, Inc. 157 About the Authors 159 Index 161