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  • 1. Family Business Dynamics INSTRUCTOR: Stan Mandel, Ph.D., CPA, PE Director, Angell Center for Entrepreneurship Executive Professor, Babcock GSM OFFICE: 3115 Worrell Professional Center (O) 758-3689 COURSE DESCRIPTION: Family businesses impact all our lives. It is estimated that over 95% of all US businesses are family owned, that they contribute over 50% of GDP, and that they account for all US new job creation. Interestingly, less than 20% of them survive to the second generation. WHY? Most likely all of us will be involved in our own family’s business or another’s - as a professional manager, accountant, lawyer, psychologist, or employee. This course explores the business, personal, and interpersonal issues associated with a family-owned and managed company. We will examine such issues as: your role in a FB; strategic family and business planning; succession planning (training and letting go); FB communications and conflict resolution; ownership and estate planning; etc. LEARNING OBJECTIVES: Family Business as a field is both multi-disciplinary and multi-level in its scope. Students will achieve learning objectives at four different levels of analysis. Individual I Learn under what circumstances should you consider joining your family’s business. Understand the competencies and commitment required for a successful career in a FB. Improve self-awareness of your role in the FB, as successor, family manager, non-family manager, and advisor. Interpersonal I Learn how to increase family dialogue on FB issues and ideas. Become sensitized to the sources of conflict within FB. Develop analytical skills to deal with the issues and conflict that arise in FB relationships. Understand FB issues from the perspectives of owner, family, and manager. Organizational Practice diagnostic skills needed to interpret issues within a FB setting. Develop management skills that can positively impact the success of FB. Learn the significance of the different governance roles of family councils and boards of directors. Strategic S Develop the skills needed to begin planning within a FB (family, estate, business, and succession). Learn how to integrate the strategic plans of the business with those of the family. Discover and utilize the core competencies of a FB.
  • 2. POLICIES: 1. If you have a question, seek additional insight, or want to discuss subjects in greater detail, please see me after class or make an appointment. My job is to provide opportunities for you to be successful in the class and hopefully in your future career. Your job is to take advantage of these opportunities. I also appreciate questions addressed via email. You will get a prompt response, and if the question is a good one, credit for participation. 2. Since this course involves a number of participants, change will be inevitable. There may be additions/deletions to readings, change in dates, or similar modifications. I will attempt to keep such changes to a minimum. 3. Please feel free to invite members of your family business to attend one or more classes. This provides a richer learning experience for all. 4. There will be at least one opportunity (February 6) for you to attend a meeting and presentation of the Wake Forest University Family Business Initiative (WFU-FBI). We encourage you to participate, as this gives you additional networking and learning opportunities not often available in a pure academic environment. REQUIRED READINGS: R There is one required book and many re-prints of articles, chapters, monographs, and cases that are required for each class. I believe you will find the articles interesting and that they help you better understand the interdisciplinary nature of FB dynamics. The required text is: Strategic Planning for the Family Business (Carlock and Ward). This is available in the bookstore, or you may order it from Each student is expected to read all chapters, articles, and cases. The class is designed around a number of learning techniques. We will keep lecture time to a minimum. Your weekly contribution is to be prepared to discuss cases and your reaction to the speakers and readings.
  • 3. REVIEW OF CASES: Most students find cases a fun and interesting way to apply the principles learned in the readings. There will be case discussions throughout the semester. The entire class is responsible for reading and preparing each case. When preparing a case for class, we like to think of our self as a consultant brought in by the Board of Directors to help resolve an undefined problem(s). Some cases will be video in format and give you the opportunity to see the emotions that are evoked within FB situations. COURSE PROJECT: Primary Project Focus. The WFU Family Business Center is in the process of developing various instruments to help measure the progress that member organizations make on a broad range of family and business indices. Working in groups of 3, your course project will be to develop one or more of these measurements. As the course unfolds you will become more familiar to these issues and how they might best be measured over time. As an example, your group might want to develop a family business balanced scorecard…or all groups might want to develop such an instrument independently. Alternative Course Projects. Creativity in project development is encouraged. A project can take many forms. They can be either individual or team. Following are some suggestions. 1. Prepare an interactive consulting outline (similar to “Creating Happier Families and More Successful Businesses”) that deals with such global issues as: B Family Business Strategic Planning Professionalizing the FB Re-engineering the FB Corporate Renewal for the FB Another appropriate issue of interest to you and of a global nature to FBs. 2. Develop a business plan to exploit an opportunity or correct a deficiency within your family owned business. 3. Individuals from a foreign country might do a research paper on the impact of his/her country’s culture and governmental policies on the operations of family owned enterprises within that environment. 4. Develop a case study on your own family business. 5. Use data from Mass Mutual/Arthur Anderson to prepare an article for publication in a business journal. 6. Prepare a strategic family business plan for the family business in which you are involved. 7. Facilitate your’s or another FB in developing mission statement and statement of operating principles (see me for outline). 8. Analyze another family business with the purpose of assessing its functionality and the opportunities available for non-family members. 9. Other appropriate topics of interest to you.
  • 4. KEEPING SCORE: Businesses generally keep score by measuring performance against such standards as sales, profits, ROI, etc. Similarly we will keep your score by measuring how well you perform in such areas as: class discussion, case analysis, and major project. Specifically your grade will be determined by: Area Points 1. Class Participation 250 2. Course Project 500 3. Written Case Analysis 250 Total Points 1000
  • 5. ENT 5447 2003- FBD CLASS AGENDA; Mini 3; Tuesday-Thursday; 11:40 – 1:00 pm; Rm 1101 Date Objective Theme, Class Time Assignments 1. 1/7 Overview of FB Course intro; Case: MM CD Syllabus; discuss term project; Generation to Domain Generation…; 2. 1/9 Recognize conflict Direction, focus, and conflict Conflict Management; Justice you can afford; Case: Montelopre (Video Case) 3. 1/14 Deal with conflict Conflict in the FB SPFG Ch. # 3, 4 Speaker: Robert Caldwell 4 1/16 Interdisciplinary Mini Cases: Decision Points (A) SPFG CH # 1, 2; AFB Survey Research; nature of FB, DM 5. 1/21 Diagnosis & DM Mini Cases: Decision Points (B) SPFG Ch. # 7, 8 6. 1/23 Succession & back to Speaker: Jane Brightwell The succession conspiracy; Ford Family; SPFB Ch. your ENT roots #5 7. 1/28 Other Succession OPEN Issues 8. 1/30 Family Governance, Speakers: Andy & Bruce Brown Family meetings Innovation & Change 9. 2/4 Organizational Governance in the FB; Creating effective boards; Case: Feragammo; Governance Case: Feragammo SPFG Ch. # 10 10. 2/6 Nagging issues Legal and $$$ Issues Estate planning for FB; Understanding buy-sell; Speaker: Neal Tackabery SPFB Ch. # 6 11. 2/11 Preparing the next FB Issues Applied Written case…hand in at start of class generation Case: The Pollack PR Mkt Group 12. 2/13 Consulting with FB Speaker: Susan Leonard Creating stronger families and more… 13. 2/18 Professionalizing the Non-family members SPFG Ch. # 9 FB Speaker: Gerald Chrisco 14. 2/20 OPEN OPEN 15. 2/25 Term Projects Term project presentation Project due at start of class Note: Strategic Planning for the Family Business: SPFB: Ch# X
  • 6. Family Business Dynamics I would like to learn more about you and your interest in family businesses. Please take a moment to complete the following. If you would like to visit about any of these issues, please come on up or make an appointment…Stan 1. Name _________________________ 2. Do your parents or other relatives operate a family business? __________ If so, please describe the business, giving the industry, name, location, years in business, size (employees, sales, acres, or a measure you are comfortable divulging). 3. Do you plan on joining the family business described above or any other family business?___________ 4. If so, please describe the position you will have upon entering this business. 5. Describe your prior work or management experience. 6. If you are currently interviewing or plan to this semester, describe the companies and functional areas in which you are interested. 7. Describe your talents, strengths, skills or abilities you believe will make you successful in the job or business you would like to join. 8. Are you interested in starting your own business? __________ Describe this business. 9. Thoughts for the major project.