Overlapping roles in family businesses – like father and CEO – are always tricky to manage. But when dads (or moms) allow the family want rather than the business need to guide compensation levels, they create a non-sustainable process that often hamstrings the next generation’s independence and objectivity.
Most family businesses start with an informal board that may be comprised of all family owners and perhaps a few key non-family executives. While this form provides a way to update owners on key matters impacting the company, it is rarely the right group of stakeholders to bring the depth of insight, oversight and objectivity that is most valuable from a more formalized board of directors.
This week the Family Business Office, for its tenth edition of ‘Focus On World Business Leaders’ brings you Giovanni Ferrero, second generation CEO of the well know brand Ferrero.
This week the Family Business Office looks at a different take on governing the family business. Typically, the low hanging fruit in terms of creating the most harmonious decision-making group is simply to seek out like-minded individuals. And why not?
This week the Family Business Office, for its eight edition of Focus On World Business Leaders, brings you Rocco Forte, the brains and chairman of the luxury brand hotels Rocco Forte Collection.
Managing a family business is no easy feat. All family members want to be seen as vitally important to the business but how does one maintain the all important ingredient of harmony in order to ensure the plain sailing operation of a family business?
This week Family Business Office, for its seventh edition of Focus On ‘World Business Leaders’ brings you Amancio Ortega, founding chairman of the Spanish clothing merchandiser Inditex, mainly responsible for the very popular brand ‘Zara’.
One of the most important tools family business owners need, to ensure their business is well run, is not what you might think.
Even families with well-established professional boards that include capable independent directors, good board processes and value-added meetings will run into challenges around the role of the family with the board of directors.
Clearly, the process of succession is not a one time event, whereby the decision of the next leader and/or successor is chosen as a reactive measure. A degree of proactive processes and thinking need to take place for the transition to be a seamless one.
