Financial Management of Family Businesses: Transparency – Compliance - Performance – Strategy - Governance (Contributions to Finance and Accounting)

Contents
Editors and Contributors
PartPart10005662314
	Chapter 1: From Impact to Insight: Family Business and Financial Leadership in Practice and Theory
		Family Business and Financial Management
		The CFO in the Family Business
		The Center for Family Business at the University of St. Gallen and Its Financial Forum for Family Businesses
		From Impact to Insight
	Chapter 2: Five Development Stages of Financial Management of Family Businesses
		References
PartPart20005662315
	Chapter 3: Optimal Financing Structure: Avoid Bottlenecks and Maintain Headroom with Foresight: Everything Done Right Almost!
		Financing Strategy Does Not Necessarily Mean the Lowest Possible Interest Rates!
		Building Blocks of an Integrated Financing Strategy
		Linkage with the Corporate Strategy and Key Performance Indicators
		Strategic Financing Needs
		Financing Instruments and Partners
		Equity, Mezzanine and Debt Capital
		Banks, Capital Providers, Investors
		Stakeholder Management
		Financing Processes
		Transparency and a Structured Approach as Building Blocks for Success
		References
	Chapter 4: Meaningful Data for Right Decisions: How to Achieve Impact with Data Management
		The Problem of the Top-Down Approach
		No Real Solutions to Problems
		Silos and the Overvaluation of Technology
		Future Outlook: Distributed Ledger Technology (DLT) or What Does the Blockchain Bring? (Nikolai Graf Lambsdorff)
		Reference
	Chapter 5: The Chief Financial Officer and the Family Office
		The Chief Financial Officer as Family Officer
		Challenges of the Family Officer
		Reference
	Chapter 6: Generational Wealth Preservation: Perspectives and Fields of Action
		Challenges and Areas of Tension
		Orientation Points and Efficiency Factors
		Requirements for Administrative Structures
	Chapter 7: The Family Office as a Modern Form of Majordomus
		Reference
	Chapter 8: `Structure Follows Strategy´: From Bean Counter Mode to Aligning Financial Processes with Strategy
		Knorr-Bremse: Repositioning Before IPO
		Fritz Meyer Holding AG: Transformation Through Restructuring
		The Road to Financial Transformation
		Step 1: Structure Follows Strategy (Alignment with Mission and Goals)
		Step 2: KPI of the Process Organisation (Processes and Structural Elements such as Number of Accounts, Number of Profit Centre...
		Step 3: Gap Analysis
		Step 4: Design a Strategic Financial Model
		Step 5: A Functioning Team and Organisational Model
		Practical Example: Family-Owned Global Automotive Supplier (Dr. Michael Noth, Former CFO Hellmann Worldwide Logistics and Nord...
		References
	Chapter 9: Optimising Planning Systems in a VUCA Environment
		Does Long-Term Planning Still Make Sense in the VUCA Environment?
		Decoupling of Goal Setting and Action Planning
		Control Loop 1: Dovetail North Star Goals with Strategy and Make Them Relevant
		Control Loop 2: Rolling Planning and Adjustment
		Summary of Experiences from the Application
		References
	Chapter 10: A Plea for More Transparency: The FBXperts View
		References
PartPart30005662316
	Chapter 11: Internal Control System Also for Family Companies: the Basis for Proper Management?!
		Compliance and ICS: Goals and Tasks
		Principles of the ICS
		Obligation to Establish an ICS
		Organisational Model: The IIA´s Three-Line Model
		Setting Up an Internal Control System (IDW, 2012)
		Trends in ICS
		Summary
		References
	Chapter 12: What People Do Not like to Talk About: Dealing with and Defending Against Fraud
		Case 1: Foreign Distribution Company
		Case 2: Headquarters
		Summary and Recommendations
		Almost Every Second Company Is Affected
		References
	Chapter 13: Cyberattacks: Company Risk No.1-Underestimated by Many
		The No. 1 Business Risk
		The Different Types of Cyberattack
		The Dangers Are Manifold
		How to Protect Your Business from Cyberattacks
		Sensitise Employees
		Keeping the Systems Up to Date
		Seek External Help
		Separate the Company Networks (Information Technology [IT] vs. Operational Technology [OT])
		Carry Out Risk Analysis
		Create Backups Regularly
		Stay Informed
		Use Passwords and Multi-Factor Authentications
		References
	Chapter 14: Compliance Is a Must: The FBXperts View
PartPart40005662317
	Chapter 15: Agility Through Digital Transformation: It Is High Time
		Agility in the Finance Department: Starting Points from a CFO´s Perspective
		Flexibility Beats Rigid Multi-Year Planning
		Automation Beats Service Centre
		Process Mining with Big Data
		On the Methodology of Digital Business Transformation or Why Digitalisation in SMEs Is Worthwhile Now
		Technology and Empowerment: That Is What Matters
		Target Picture: What Holistic Digital Business Transformation Achieves
		Holistic Roadmap: Digital Business Transformation in Concrete Terms
		Overarching Framework Conditions
		The Transformation Process: Five Steps and Continuous Development
			Step 1: Check-Up and Target Image Development
			Step 2: IT-as-a-Service and IT Operations
			Step 3: Systems and Portfolio
			Step 4: Data Integration
			Step 5: Continuous Development
		Organisational Development and Digital Business Models
		Programme Management
		References
	Chapter 16: Control Systems and Incentives as Value Drivers: Separating Financial Objectives from Action Planning and Control ...
		Conflict of Cultural and Governance Principles
		The Finance Business Partner Vision at Hilti
		The Breakthrough: Changing the Target Setting to Relative North Star Targets and Target Rules
		References
	Chapter 17: Fostering and Steering Innovation
		Does Idea Management Lead to the Goal?
		Corporate Venture Capital (CVC) as an Innovation Driver
		Invest in Start-Ups with CVC
		CVC in Practice
		TRUMPF Venture GmbH: Enabler for Relevant Solutions (from the Perspective of the Financial Officer)
		Dormakaba: How an Old Technology Becomes a Trend (from the Perspective of a Group Development Manager)
		The Next Step: Networks and More Financial Independence for Innovation and Start-Ups in D/A/CH and Europe (Interview with Dr. ...
		Summary
		The Creation of a Swiss Silicon Valley (Constanze Coelsch-Foisner, ETH)
		References
	Chapter 18: Net Working Capital Management in Family Businesses
		BENTELER as an Example of Optimising Net Working Capital in a Family Business (Frank Jehle, CFO, BENTELER)
		Summary and Evaluation
	Chapter 19: Performance Must Be Managed: The FBXperts View
		Reference
PartPart50005662318
	Chapter 20: Strategy Development in Family Businesses
		What Is Strategy Development, What Processes Are There and What Is Special About Strategy Development for Family Businesses?
		Conclusion
		Reference
	Chapter 21: Strategic Planning in the Family Business: Dealing with the Principal-Agent Dilemma
		Specifics of the Strategic Orientation of Family Businesses
			Strategic Long-Termism and Sustainability
			Strategy in the Family Business
		The Process of Strategic Planning in Family Businesses
			Principles of Strategic Planning
			Committee Involvement: Against the Principal-Agent Conflict
			Influencing Variables and Process Parameters for Corporate Governance Ownership Structure as an Influencing Variable
			Committee Cycle of Strategic Planning
		Conclusion
		References
	Chapter 22: The M&A Phenomenon in the Context of Family Businesses: Growth Through Acquisitions
		Characteristic Guiding Action in Family Businesses for Mergers and Acquisitions
			Long-Term Orientation
			Conservative Risk and Return Profile
			Employees as an Integral Part of Achieving Corporate Goals
		M&A in Family Businesses Is Different
			M&A Motivation
			M&A Process
			M&A Success Measurement
		At the End: M&A Experience as CFO in Family Businesses and Listed Companies (A. Lindner, CFO)
		References
	Chapter 23: The M&A Function in (Family) Businesses Considering a Frame of Reference: Observations of a Practitioner
	Chapter 24: Internationalisation and Digitalisation as a Growth Path
		Internationalisation Motives and Opportunities
		Three Benchmarks of Internationalisation
		Change in Organisational Structures
		Digital Distribution Channels
		References
	Chapter 25: Identifying `Shifting´ Customer Demand and Megatrends: Sustainable Growth Through a Focus on the Customer
		What Is Customer Centricity and Why Is It Useful?
		What Are the Challenges?
		From Product Centricity to Customer Centricity
		From Customer Centricity to Strategic Implementation
		References
	Chapter 26: Sustainability as a Competitive Advantage and Sustainable Financial Instruments for Working Capital Financing (ESG...
		Corporate Financing with Sustainability Aspects
		Management Summary
		Reference
	Chapter 27: Strategy Requires a Balanced Leadership Team, Feasibility Check and Good Cooperation with the Supervisory Body: Th...
		References
PartPart60005662319
	Chapter 28: Optimal Board, Decision-Making Processes and Shareholder Involvement
		Monistic or Dualistic Board?
			Monistic System
			Dualistic System
			Monistic or Dualistic Board in Family Businesses?
		Tasks of the Board
			Representation of the Shareholders
			Monitoring and Counselling
			Network and Lobbying
			External Effect
			Staffing of the Board
			A. Number of Board Members
			B. Composition of the Board
		Organisation of Successful Board Work
			Fixed Session Planning
			Invitation to the Meeting
			Logging
			Course of the Meeting
			Duration of the Board Activity
		Suitability of Board Members
		Decision-Making Processes
			A. Establishment of a Board
			B. Composition of the Board
			C. Decisions Within the Board
		Remuneration
			A. Amount of the Remuneration
			B. Relationship Within the Board
			C. Empirical Validation and Sample Calculation
		Conclusion
		References
	Chapter 29: Generational Change and Conflicts Among Shareholders
		Introduction
		The Special Situation of Family Businesses
		Measures in the Run-Up
			Relative Majority
			Non-Voting Shares
			Separation of Control and Leadership
		Strategies in Case of Conflict
		Conclusion
		References
	Chapter 30: HR Strategy: From Hire to Fire
		The Pandemic as a Transformer
		The New World: The New Ways of Working
		On the Way to Hybridity
		The Role of Leaders
		Performance Management
		Dealing with Generation Z
		Diversity and Inclusion
		The University and HR: Empowerment Drivers (Dr. M. Würsten, University of St. Gallen)
		Empowerment Tools
		Reference
	Chapter 31: Change in Corporate Culture as a Driver of Success
		Kurzweil´s Law or: When Everything Comes Together
		What You Can (Not) Learn from Nokia and Kodak
		Culture Determines 80% of Innovation: Say CEOs
		The Problem of Lucien Favre
		Commitment and Security
		How Google Discovered the `Trust´ Factor
		With Workshops to Paradise
		Reference
	Chapter 32: Sustainable and Long-Term Development of Family Businesses
		Family Governance
			Articles of Association
			Family Constitution
			Promoting Young Talent
		Independence Through Financial Strength
			Equity Ratio, Liquidity Reserve and Low Dependencies
			Differentiation and Adaptation
			Corporate Finance Management
		Remain an Entrepreneur
			Preservation of the Founding Spirit
			Risk and Error Culture
			Synchronisation of Interests
			Partner Ability
		Reference
	Chapter 33: Good Governance: The FBXperts View
		References
Part VII: Conclusion: Being Able to Leverage Collective Experiences
Chapter 34: The FBXperts View: A Review of the Five-Step Model and the `Critical´ Challenges for Family Businesses: The Genesis
	Reference
Chapter 35: The Value of Experiential Knowledge for Complex Decisions