Post on 26-Dec-2015
transcript
Differentiation and Developing Critical
Boundaries in the Family Enterprise Presented by
David Bork
Leslie Dashew
Sam LaneTHE ASPEN FAMILY BUSINESS GROUP
Family Firm Institute 20th Annual Conference
Boundaries and Family Business
• Intrapersonal Boundaries
• Interpersonal Boundaries
• Subsystem Boundaries
• Boundaries Between Systems
ASPEN FAMILYBUSINESS GROUP
Intrapersonal Boundaries
• Separation and Individuation
• Differentiation: – Non-reactivity– Behaving with integrity– Clarity of self
“It’s hard to find your place in the sun in the shade of the family tree!”
ASPEN FAMILYBUSINESS GROUP
Interpersonal Boundaries
• Agreed upon boundaries between people– What I agree to do; what I expect of you…
• Defined, at times, as roles– CEO/Employee– Parent/Child– Owner/Operator
• Often contextual – In the business, I am…– At home, I am….
ASPEN FAMILYBUSINESS GROUP
Family Triangles
Communication should happen directly between individuals, not through others.
Me
SisterBrother
ASPEN FAMILYBUSINESS GROUP
Overlapping System
Family (sub) System1. Emotion-focused2. Inward oriented3. Minimizes change4. Unconditional acceptance
Tasks:NurtureDevelop self-esteemGrow adults
Business (Sub) System1. Rational-focused2. Outward oriented3. Requires change4. Conditional acceptance
TasksGenerate profitsDevelop skills
ASPEN FAMILYBUSINESS GROUP
TOOLS
Procedures, Structures and Agreements
that develop and promote healthy
boundaries and pre-negotiate areas of
potential conflict. They promote positive
emotional interactions based upon
principle-centered governance and counter
the negative impact of conflictual
interactions in a personality-centered
system. Taken together these agreements
form the “Family Constitution”.ASPEN FAMILYBUSINESS GROUP
MANAGEMENT / OWNERSHIP TOOLS
• Succession Plan
• Governance Structure
• Family Mission Statement
• Family Meetings
• Family Employment Policy
• Dividend / Distribution Plan
• Developmental Goals
• Shareholder / Buy - Sell Agreement
• Estate Plan
• Shareholder Position Paper
ASPEN FAMILYBUSINESS GROUP
PRESIDENTF1
F2 M2M1
BOARD OF DIRECTORSF1 F2
SHAREHOLDERSF1 - B2 - F2 - B2 -
F3
NON-FAMILYMEMBERS
FAMILYCOUNCIL
B1
B5
B3
B7
B4
B6
B6
B7
BOUNDARIESB1 - Shareholders Position Paper - Distribution PolicyB2 - Buy-Sell AgreementB3 - Board Membership Criteria - Family Mission StatementB4 - Business Plan - Succession Plan - Family Employment PolicyB5 - Family Council CriteriaB6 - Employment AgreementB7 - Employment Policy - Business Plan
GOVERNANCE STRUCTURE
ASPEN FAMILYBUSINESS GROUP
FAMILY EMPLOYMENT POLICY
FAMILY ENTERPRISE
POTENTIALFAMILY EMPLOYEE
BOUNDARY
ASPEN FAMILYBUSINESS GROUP
FAMILY EMPLOYMENT POLICY
• Who can work For the business?
• Preparation required - Monitoring
• Entry decision process
• Compensation
ASPEN FAMILYBUSINESS GROUP
FAMILY DISTRIBUTION AND COMPENSATION POLICY
FAMILY ENTERPRISE
FAMILY OWNER
EMPLOYEE
FAMILY OWNERBOARD
MEMBER
FAMILY OWNER
BOUNDARY
FAMILY NON-OWNEREMPLOYEE
BBB
ASPEN FAMILYBUSINESS GROUP
DISTRIBUTION POLICY
•Who Decides?
•Based on “Free Cash Flow”
– ”Cascading Pools of Cash”
A BUSINESS PLAN:
•Financial Projections - 5 Year
•Migrate or Aggregate Value
ASPEN FAMILYBUSINESS GROUP
FAMILY COMPENSATION POLICY
• Concept: “Fair Market Value”
• Who Makes the Decision?
• Performance Based?
• How Administered?
ASPEN FAMILYBUSINESS GROUP
BUY-SELL AGREEMENT
FAMILY ENTERPRISE
ADULT FAMILY
MEMBERS
NON-FAMILY BOARD
MEMBERSSPOUSES
BOUNDARY
YOUNGERFAMILY
MEMBERS B B B
ASPEN FAMILYBUSINESS GROUP