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Cannexus 2009
National Career Development Conference
April 6-8
Marriott Eaton Centre Hotel
Toronto, Ontario
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“Keeping the Family and the Business” Multi-generational career counseling
1. Evolutive stages, personal, familiar and entrepreneurial
2. Directive skills required for each stage
3. Total planning for success and continuity
4. Lab-workshop
Lic. Alicia Stivelberg
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Family Business
•F.B. are alike•F.B. are unique
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Continuity
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Continuity
70%disappears in the second generation
87%disappears in the third generation
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Two logicsConflict Zone
FS
Agreement Zone
Society of Feelings Society of Interests
Permanent Membership Temporary Membership
Subconscious Behavior Conscious Behavior
Introvert System Extrovert System
Minimize Changes Promote Changes
BS
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Case studiesCase A Family
2 school-age children
Case B Family 2 children at universityParents work together
Case C FamilyParents work with their son and son-in-law
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Three Dimensional Model
property
family
2
1- Family Owner Manager2- Family Owner3- Owner Manager4- Family Manager
business
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4
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Individual goals Financial security
Family goals Better lifestyle
Company goals Capital
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Building a successful business demands a lot of
energy, trust, talent, hard work and ... luck.
Each successful Family Business is, in a way,
... a little miracle.
Family Business
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Family and Family Business Life Cycles
Founder
Brothers/Sisters Association
Cousins Confederation
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Example 3 rs
R
R
R
•Rivalry•Resentment•Revenge
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•Respect for self •Respect for others •Responsibility for all our actions
Example 3 rs
R
R
R
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Family and Family Business Life Cycles
Founder
Brothers/Sisters Association
Cousins Confederation
Young Families
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Some day, my son, all of
these will be yours!!!”
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Family and Family Business Life Cycles
Founder
Brothers/Sisters Association
Cousins Confederation
Young Families
Incorporation FB
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Family and Family Business Life Cycles
Founder
Brothers/Sisters Association
Cousins Confederation
Young Families
IncorporationFB
Working together
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Family and Family Business Life Cycles
Founder
Brothers/Sisters Association
Cousins Confederation
Young Families
IncorporationFB
Working together
Handing over the
baton
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Parents age
Children age
Work Quality between Parents and Children
55
50
45
40
35
30
25
20
15
35 40 45 50 55 60 65 70 75 80 85
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Family and Family Business Life Cycles
Founder
Brothers/Sisters Association
Cousins Confederation
Young Families
IncorporationFB
Working together
Handing over the baton
Initial stage
Intermediate stage
Maturity stage
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- Initial stage
Evolutive stages
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- Intermediate stage
Evolutive stages
- Initial stage
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- Initial stage
- Intermediate stage
- Maturity Stage
Evolutive stages
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3 Questions
1. In which stage would you say your company is?2. How difficult would it be to promote the growth?3. Do you want your company to continue in the family and pass
to the next generation?
PPP
Evolutive stages of FB
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Management
Creativity
Decentralization
Change to grow
Coordination
Collaboration Crisis?
BureaucracyCrisis
Autonomy Crisis
Leadership Crisis
Control Crisis
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Change to grow Evolutive stages of a Company
MATURITYYOUNG
SMALL
BIG
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
Leadership Crisis
Autonomy Crisis
Control Crisis
BureaucracyCrisis
Crisis?
Creativity
Management
Delegation
Coordination
Collaboration
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MATURITYYOUNG
SMALL
BIG
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
Leadership Crisis
Autonomy Crisis
Control Crisis
BureaucracyCrisis
Crisis?
Creativity
Management
Delegation
Coordination
Collaboration
Change to grow Evolutive stages of a Company
At each stage of evolution,Follows a revolution stage
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Family Business Evolution
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It is a family concern in several aspects
Mother
Outlines Owner´s Role
Father´ssister
HarmonyIn theFamily
Father
Fairness and Equity
DaughterSon-in-
low RelationshipFamily
members
Partner and Minoritary Owner
Familycouncil
Eldestson
FamilyCompensation
Family Real State
Board of Directors
Owner´srol
NewSubsidiary
SUCCESSION
SUCCESSION
Planning for success
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Components of F.B. planning
1. The owner´s plan
2. The family´s plan
3. The company´s plan
4. The succession´s plan
Planning for success
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Planning Process
OWNER PLAN
“Hard”
FAMILYPLAN
COMPANYPLAN
“Soft”
SUCCESSIONPLAN
• Board of Directors.• Family Council.• Compensations.• Contract of shareholders.• Job position Profiles.• Roles.• Governability.• Equity.• Mission of the Family.• Rules of Employment.• Transfer of leadership.• Communication.• Conflict Management.• Personal Goals.
• Economic and Tax Planning.• Preserve of wealth.• Transfer of wealth.• Donations.• Life Insurance.• Valuation of the business.• Structure of the business.• Portfolio of investments
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THE PROCESS
FamilyPlan
CompanyPlan
What does the owner want?
Feasibility of the intention
The Succession Plan
Financial Security
Contracts of Shareholders
Future Leadership
Legal Aspects
Equity
Net worth
Execution
Planning for success
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PLANNING TEAM
Banco
Deño yEsposa
AsesorLegal
Planning for success
Bank
Owner and
Spouse
Board of Directors
Family Business
Consultant
LegalConsultant
Investment Consultant
PsychologistFamily
InsuranceConsultant
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Planning for successThe process of planning for succession
1st.Step1st.Step
2nd.Step2nd.Step
3rd.Step3rd.Step
4th. Step4th. Step
5th. Step5th. Step
Planning objectives to confirm
and achieve feasibility
and compatibilit
y
Developing a Preliminary
plan
Comunicating and sharing the
preliminary plan, creating consensus and
reviewing
Defining what the owner,
family and company
want
ImplementingThe plan for the
Owner, the familyAnd the company
Modelling the Financial results of the succession
Providing the Owner´s financialneeds
Defining the redistribution of the present and future net worth
Identifying and planning the future leadership
Developing a shareholder´s agreement, fairness, capital transparency and control of votes.
Talking to the owner (Peter)
Talking to his wife (Joan)
Talking to the family
Reviewing, assessing, modifying and bringing together personal goals
Analizing the company circunstancies, finacial stability, valuation and business plan
Defining theOwner´s finantialNeed
Clarifyingleadership needs and capabilities
Developing alternativesTo achieve the concept of Fairness by the ownerAnd the family
Protecting and Preserving the company for theNext generation
Retirement fundsWealth preservationManagement teamOportunitiesRules for the practice of Power and shareholdersAgreement
Involves theOwner and The spouse
Family meetingsEstablish a FamilyCouncil
Involving the consultantTeam, directors, lowyer,Accountant, insuranceConsultant, investment, Bank, and so on
Modeling a financial plan with the owner, family, and company perspective
Reviewing until finding the best plan
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Governance
PropertyBoard of Directors
FamilyFamily Council
2
BusinessManagement
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4
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Genogram Dublin Family, Owners of Arlington Machinery, Inc.
Succession Plan
Housewife. Her
husband is
Headmaster of a
College.
She is starting her
Business career in
NYC after her MBA
To be employed
soon by
Arlington
Arlington employee
during 18 years
Peter Joan
Phill Ariane
Jack Susan RandyArlington employee
during 10 years
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Score of the team members
Thinking Styles
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TEAM MAPThinking stylesLocation of the team members in the structure of four styles of Value Drivers
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Values structure
Choosen Values: First to Third
Scores Value TotalTheoretical
Materialistic
Humanitarian
Theoretical
Power
Materialistic
Ritualistic
Spiritual
Humanitarian
Individualistic
Aesthetic
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Planning for success
