Discuss the Monarch, General & Ambassador CEO exit styles characteristics, roles, advantages & disadvantages of having such a leader. Monarch, General, Ambassador, Governor, Inventor and the Transition Czar.

1. Assignment Question:
Discuss the Monarch, General and Ambassador
CEO exit styles characteristics, roles,
advantages and disadvantages of having such a
leader.

2. WHAT IS AN EXIT STYLE?
 According to Wikipedia an exit style is a means of leaving
one’s current situation, either after a predetermined
objective has been achieved or as a strategy to mitigate
failure.
 An organization or individual without an exit style may be
in a dilemma. At worst an exit style will save face, at best,
an exit style will peg a withdrawal to the achievement of an
objective worth more than the cost of continued
involvement.
 Exit style is a plan that allows the owners of a business to
walk away with what they want to walk away with given
that they have put in place proper channels in which the
successor will continue to run the business efficiently.

3. THE SIX MAIN EXIT STYLES
 In a Family Business there are six common CEO exit
styles used which are: Monarch, General,
Ambassador, Governor, Inventor and the
Transition Czar. For the purpose of this assignment
we are going to focus mainly on the three CEO exit
styles which are: Monarch, General and
Ambassador concentrating mainly on the
characteristics, roles, advantages and disadvantages of
having such leaders.

4. THE MONARCH
 The Monarch is the head of a family business and
usually stays in the business until forced out. “The
monarch rightfully operates on the assumption that
they will die with their crown on”. (Ernesto J. Poza: 112)
 Even if they retire they will still be doing business
operations and being involved in making the company
decisions. They are usually resistant in handing over
the business which they started to someone else.
 They want to be the leader till they die.
 The monarch exercises the autocratic leadership style
whereby he/she has total power and control over
everyone.

5. Characteristics
 They rule for life.
 They have no succession plan.
 A succession plan is a process for identifying and developing
internal people with the potential to fill key business leadership
positions in the company .(Charan, Drotter, Noel, (2001 page 7)
How to build the Leadership Powered company)
 They have no retirement provision.
 They feel no one can be as good as they are.
 They do not consult when it comes to hiring and firing.
 Chaos is usually the order of the day when they die.
 Absolute control over every business entity that they own.
 Monarchs are discreet even to their closest advisers and family.
 They have no downward delegation.
 They are selfish.

6. ROLES
 Only they have the authority to hire and fire
personnel.
 But according to Susan M. Heathfield
(humanresources.about.com) one must not just fire
the person in whom they have put a lot of effort to
improve their work performance.
 They formulate rules and regulations that govern the
monarchy.
 Oversee the overall performance of the monarch.

7. ADVANTAGES
 They maintain a certain super standard for their
business.
 Power is confined to one central point which is the
royal family.
 Quality maintenance as they lead with passion.
 Brilliant vision for institution building.
 Long term support from shareholders.
 Complete personal dedication.
 Assumes personal responsibility for problems.

8. DISADVANTAGES
 There is no succession plan.
 Family business may face destruction due to poor
operations after his death.
 Chaos usually arises when the monarchy dies.
 They do not entertain subordinate ideas.
 Hatred among family members.

9. The Ambassador
 The Ambassadors are the coaching types of CEO’s.
 They take their time to retire from the company and
make room for the next generation and the top non
family members to step up and take control.
 They will proceed slowly with their retirement to make
sure that the business is in good hands and that the
successor is fully qualified and capable of coming into
the leadership position.
 The Ambassador has the business in mind and will not
let anyone who is not ready to take over the day to day
operations of the business.

10. CHARACTERISTICS
 They delegate most of the operating responsibility to
the next generation members or key non-family
managers but hold on to their diplomatic or
representational duties on behalf of the corporation
e.g K.F.C, Econet in the case of Strive whereby Douglas
Mboweni is the C.E.O.
 There is room for non members to rule the next
generation.
 Ambassadors have the company at heart i.e they do
not allow anyone who is not ready to run the business
to do it.


11. ROLES
 They coach and mentor the next generation or
successors.
 They do not discriminate i.e they can be succeeded by
non family members.

12. Advantages
 Continuity of command through long service.
 Available for elder statesman wisdom?
 Eager to accept assignments as external
representatives.
 Broad interests, community and outside boards.
 Well informed on outside approaches to
management.

13. DISADVANTAGES
 Maintains awkward continued presence.
 Tense restraint and impulse to intervene.
 Offer unsolicited advise or public comment.
 Encourages possible distraction of CEO
from the company.

14. GENERAL
 According to (Ernesto J. Poza: 113) this chief executive
leaves office reluctantly and plots a return.
 The General is the leader who retires from the
business with the hopes of returning to reassume his
leadership role again.
 Generals do not fully retire, they wait for the
successor to make a mistake so that they return and
work.

15. CHARACTERISTICS
 They are militant in their behavior and approach
to business.
 They enjoy semi retirement and plot a return
unannounced.
 They make no room for the successor to explain his
or her mistakes.

16. ROLES
Safeguarding the interests of
the company.

17. ADVANTAGES
 Bridges internal factions.
 Ready to return to office in crisis times.
 Capable of building strong top leaders.
 Cautious in leadership transactions.
 Ready to correct mistakes made by
successor.
 Exemplary commitment to their work.

18. DISADVANTAGES
 May fuel internal rivalries.
 Leader encourages resistance to successor.
 May undermine own successor.
 Leader attached to leadership identity.

19. CONCLUSION
 Having studied and discussed on these three CEO exit
styles we conclude that the Ambassador is the best
exit style.
 They consider the continuity of their business.
 They have the best interests at heart concerning their
business.
 The worst exist style according to our discussions is the
monarch.
 The business is almost always guaranteed to crumble
and fail after they are gone.

20. REFERENCES
1. http://www.family businesswiki.org/
2. Poza, Ernesto J (2010 p112) Family Business
3. Charan, Drotter, Noel (2001 page 7) How to build the Leadership Powered
company
4. Susan M. Heathfield (humanresources.about.com)
5. Tom Peter (November 11, 2013) Leaders don’t create followers, they create more
leaders.
6. Longenecker, J G Moore, CW & Petty, J W (2000), Small Business Management:
on Entreprenurial Emphasis. 11th Edition, Ohio, South Western Publishing
7. Kelin E. Gersick, John A Davis, Morion McCollom Hampton, Ivan
Lansberg, (1997) Generations to Generation: Life Cycles of the Family
Business: Harvard University Press
8. Mike Cohn, “Does your Company Put Family or Business First?” The
Business Journal of Phoenix. (2005)