Strategic Planning for the Family Business: Parallel Planning to Unite the Family and Business

Cover......Page 0
Contents......Page 6
List of Figures......Page 10
List of Tables......Page 12
Preface......Page 13
Acknowledgments......Page 19
PART I Understanding Family Business Planning......Page 20
THE CHALLENGES FACING FAMILY BUSINESSES......Page 22
BALANCING FAMILY AND BUSINESS DEMANDS......Page 24
THE NEED FOR FAMILY BUSINESS PLANNING......Page 27
THE BENEFITS OF FAMILY BUSINESS PLANNING......Page 29
THE PARALLEL PLANNING PROCESS......Page 31
THE OBSTACLES TO FAMILY BUSINESS PLANNING......Page 36
THE CHALLENGE OF CREATING A FAMILY BUSINESS LEGACY......Page 38
SUMMARY......Page 41
THE INFLUENCE OF LIFE CYCLES ON FAMILY BUSINESSES......Page 43
STRATEGIC PLANNING AND THE FAMILY BUSINESS......Page 47
PARALLEL PLANNING FOR THE FAMILY AND BUSINESS SYSTEMS......Page 51
THE PARALLEL PLANNING PROCESS FOR THE FAMILY......Page 52
THE PARALLEL PLANNING PROCESS FOR THE BUSINESS......Page 58
THE SHARED FUTURE VISION OF THE FAMILY AND BUSINESS......Page 61
SUMMARY......Page 66
PART II Planning for the Family......Page 68
3 Securing Family Commitment......Page 70
UNDERSTANDING FAMILY COMMITMENT......Page 71
EXPLORING FAMILY COMMITMENT......Page 74
DISCUSSING CORE FAMILY VALUES......Page 76
IDENTIFYING A FAMILY BUSINESS PHILOSOPHY......Page 78
FAMILY VISION......Page 84
STATEMENT OF FAMILY COMMITMENT......Page 87
SUMMARY......Page 89
4 Encouraging Family Participation......Page 90
UNDERSTANDING FAMILY CONFLICT......Page 92
THE IMPORTANCE OF ADDRESSING CONFLICT IN FAMILY RELATIONSHIPS......Page 93
FAMILY FAIRNESS......Page 96
FAMILY MEETINGS AS A TOOL FOR ENABLING FAMILY PARTICIPATION......Page 99
SUMMARY......Page 110
5 Preparing the Next Generation of Family Managers and Leaders......Page 112
THE INFLUENCE OF LIFE CYCLE ON FAMILY BUSINESS CAREERS......Page 113
UNDERSTANDING THE BUSINESS\' FUTURE MANAGEMENT NEEDS......Page 115
FAMILY BUSINESS AS CAREER......Page 120
LAUNCHING A FAMILY BUSINESS CAREER......Page 124
PLANNING A MEANINGFUL CAREER......Page 128
IDENTIFYING THE NEXT GENERATION OF MANAGERS AND LEADERS......Page 131
PLANNING FOR NEXT-GENERATION RELATIONSHIPS......Page 133
SUMMARY......Page 135
6 Developing Effective Ownership......Page 137
FAMILY BUSINESS OWNERSHIP CONFIGURATIONS......Page 138
FACTORS SHAPING OWNERSHIP CONFIGURATIONS......Page 139
OWNERSHIP EDUCATION PROGRAMS......Page 147
FAMILY OWNERSHIP AGREEMENTS......Page 154
ESTATE PLANS......Page 157
FAMILY BUSINESS GOVERNANCE......Page 159
SUMMARY......Page 164
PART III Planning for the Business......Page 168
7 Assessing the Firm\'s Strategic Potential......Page 170
DEFINING THE FIRM\'S STRATEGIC POTENTIAL......Page 171
THE SWOT ANALYSIS......Page 172
THE INTERNAL ANALYSIS......Page 173
ASSESSING THE FIRM\'S FINANCIAL STRENGTH......Page 174
ASSESSING THE FIRM\'S MARKETING SUCCESS......Page 184
ASSESSING THE FIRM\'S ORGANIZATIONAL RESOURCES......Page 186
THE EXTERNAL ANALYSIS......Page 189
ANALYZING THE GENERAL ENVIRONMENT......Page 191
ANALYZING THE MARKET AND INDUSTRY......Page 193
SUMMARY......Page 196
8 Exploring Possible Business Strategies......Page 198
DISCUSSING THE FIRM\'S STRATEGIC PRIORITY......Page 199
SELECTING THE STRATEGIC DIRECTION......Page 202
SEVEN POSSIBLE STRATEGIC DIRECTIONS AND THE BASIC BUSINESS STRATEGIES......Page 203
EVALUATING THE BASIC BUSINESS STRATEGIES......Page 210
UNIQUE ADVANTAGES OF FAMILY BUSINESSES......Page 211
POTENTIAL DISADVANTAGES OF FAMILY FIRMS......Page 215
RECOMMENDING POSSIBLE STRATEGIES......Page 216
SUMMARY......Page 217
9 The Final Strategy and Reinvestment Decision......Page 219
IDENTIFYING THE BUSINESS\' STRATEGY......Page 221
ASSESSING THE FAMILY INVESTMENT DECISION......Page 222
ANALYZING THE BUSINESS\' MARKET VALUE......Page 228
FAMILY INVESTMENT CONSIDERATIONS......Page 229
OTHER FACTORS AFFECTING THE REINVESTMENT DECISION......Page 235
REINVESTMENT ISSUES......Page 237
SUMMARY......Page 242
PART IV Integrating Family and Business Plans......Page 244
10 The Role of the Board in Family Business Planning......Page 246
SUPPORTING THE FAMILY ENTERPRISE CONTINUITY PLAN......Page 247
CONTRIBUTING TO THE BUSINESS STRATEGY PLAN......Page 249
SUMMARY......Page 250
Appendices......Page 252
APPENDIX A: A FAMILY BUSINESS ASSESSMENT......Page 253
APPENDIX B: FAMILY BUSINESS COMMUNICATION QUESTIONNAIRE......Page 256
APPENDIX C: EXPLORING FAMILY BUSINESS PHILOSOPHY QUESTIONNAIRE......Page 260
APPENDIX D: SUCCESSOR\'S CAREER ASSESSMENT......Page 263
APPENDIX E: REARDON FAMILY ENTERPRISE CONTINUITY PLAN......Page 269
APPENDIX F: COMPETITOR ANALYSIS WORKSHEET......Page 271
APPENDIX G: REARDON TECHNOLOGY BUSINESS STRATEGY PLAN......Page 273
Notes......Page 278
Glossary of Terms......Page 283
C......Page 285
F......Page 286
M......Page 287
R......Page 288
Y......Page 289