Family Business as Paradox (A Family Business Publication)

Rather than having to choose between the family and the business, the authors argue that if family-owned businesses can consciously manage and over time, perhaps, synthesize these contradictions, the Family Enterprise will have a long-term strategic and competitive advantage and the family will remain committed to continuity. Cover......Page 1 Contents......Page 6 List of figures......Page 9 List of tables......Page 11 Preface......Page 12 Introduction – Appreciating Both......Page 16 PARADOX CAPACITY AND CAPABILITY......Page 17 PROBLEMS ARE NOT ALL THE SAME......Page 18 PROSPERING IN THE FACE OF AMBIGUITY......Page 22 CAPTURE THE INHERENT TENSION......Page 25 WHAT LIES AHEAD......Page 27 Part I: Acknowledging Both......Page 30 WHERE IS YOUR FAMILY BUSINESS' CURRENT FOCUS– FAMILY OR BUSINESS?......Page 32 1 Which to Choose: Family or Business?......Page 36 TO CHOOSE OR NOT TO CHOOSE......Page 37 CHOOSE BOTH......Page 38 FAMILY AND BUSINESS INTERSECTION......Page 41 PARADOX OF INDIVIDUAL AND COLLECTIVE......Page 45 INDIVIDUAL AND COLLECTIVE IN ACTION......Page 46 CELEBRATING PARADOX AT BERETTA......Page 47 ASSESSMENT SUMMARY......Page 49 2 Tradition and Change in Family Firms......Page 51 THE GODREJ GROUP: MODEL OF TRADITION AND CHANGE......Page 52 DISTINCTIVE TIME ORIENTATION......Page 53 COMPLEX SUCCESSOR DILEMMAS......Page 55 INTERNALLY DRIVEN STRATEGY......Page 57 ENDURING VALUES......Page 59 TRADITION AND CHANGE AT BERETTA......Page 61 Part II: Identifying Both......Page 64 3 Predictable Paradoxes Across the Generations......Page 68 GENERATIONAL OSCILLATION......Page 69 PREDICTABLE PARADOXES: FOUNDER STAGE......Page 71 PREDICTABLE PARADOXES: SIBLING PARTNERSHIP STAGE......Page 76 PREDICTABLE PARADOXES: COUSIN COLLABORATION STAGE......Page 82 THE ENTERPRISING FAMILY......Page 87 GENERATIONAL PARADOXES: FINAL ANALYSIS......Page 89 FROM TWO SYSTEMS TO THREE......Page 91 UNDERSTANDING THE INTERSECTIONS......Page 93 FAMILY– MANAGEMENT CONFLICTS......Page 95 MANAGEMENT– OWNERSHIP CONFLICTS......Page 98 OWNERSHIP–FAMILY CONFLICTS......Page 100 GOVERNANCE STRUCTURES......Page 103 INTERSECTIONS: FINAL ANALYSIS......Page 105 Part III: Managing Both......Page 108 5 A Continuum for Addressing Paradoxes......Page 112 THE PARADOX MANAGEMENT CONTINUUM......Page 113 FAMILY EMPLOYMENT ON THE CONTINUUM......Page 116 THE ART OF PARADOX MANAGEMENT......Page 122 CYCLE OF RENEWAL AND BENEFIT......Page 129 ANNA'S FAMILY BUSINESS AND POLARITY MAPPING......Page 130 THE CONTINUUM AND THE MAP......Page 143 ANOTHER POLARITY MAPTM: FAMILY COUNCILS......Page 145 STEP BY STEP THROUGH THE POLARITY MAPTM......Page 147 FINAL REFLECTIONS......Page 148 Part IV: Achieving Both......Page 150 SOURCES OF CONTINUITY......Page 154 CULTURE UNLOCKS THE POWER OF PARADOX......Page 156 FROM IMPLICIT TO EXPLICIT......Page 164 A LOOK TOWARD FUSION......Page 165 Appendices......Page 168 APPENDIX A: HISTORICAL PERSPECTIVE ON PARADOX......Page 170 APPENDIX B: PARADOXES IN BUSINESS LITERATURE......Page 182 APPENDIX C: FAMILY FIRST– BUSINESS FIRST ASSESSMENT......Page 200 APPENDIX D: MORE ON POLARITY MAPSTM......Page 208 Notes......Page 216 Index......Page 220 Cover 1 Contents 6 List of figures 9 List of tables 11 Preface 12 Introduction – Appreciating Both 16 PARADOX CAPACITY AND CAPABILITY 17 PROBLEMS ARE NOT ALL THE SAME 18 PROSPERING IN THE FACE OF AMBIGUITY 22 CAPTURE THE INHERENT TENSION 25 WHAT LIES AHEAD 27 Part I: Acknowledging Both 30 WHERE IS YOUR FAMILY BUSINESS' CURRENT FOCUS– FAMILY OR BUSINESS? 32 1 Which to Choose: Family or Business? 36 TO CHOOSE OR NOT TO CHOOSE 37 CHOOSE BOTH 38 FAMILY AND BUSINESS INTERSECTION 41 PARADOX OF INDIVIDUAL AND COLLECTIVE 45 INDIVIDUAL AND COLLECTIVE IN ACTION 46 CELEBRATING PARADOX AT BERETTA 47 ASSESSMENT SUMMARY 49 2 Tradition and Change in Family Firms 51 THE GODREJ GROUP: MODEL OF TRADITION AND CHANGE 52 DISTINCTIVE TIME ORIENTATION 53 COMPLEX SUCCESSOR DILEMMAS 55 INTERNALLY DRIVEN STRATEGY 57 ENDURING VALUES 59 TRADITION AND CHANGE AT BERETTA 61 Part II: Identifying Both 64 3 Predictable Paradoxes Across the Generations 68 GENERATIONAL OSCILLATION 69 PREDICTABLE PARADOXES: FOUNDER STAGE 71 PREDICTABLE PARADOXES: SIBLING PARTNERSHIP STAGE 76 PREDICTABLE PARADOXES: COUSIN COLLABORATION STAGE 82 THE ENTERPRISING FAMILY 87 GENERATIONAL PARADOXES: FINAL ANALYSIS 89 4 Predictable Conflicts in the Intersections 91 FROM TWO SYSTEMS TO THREE 91 PROBLEM–CONFLICT–CONTRADICTION– PARADOX 93 UNDERSTANDING THE INTERSECTIONS 93 FAMILY– MANAGEMENT CONFLICTS 95 MANAGEMENT– OWNERSHIP CONFLICTS 98 OWNERSHIP–FAMILY CONFLICTS 100 GOVERNANCE STRUCTURES 103 INTERSECTIONS: FINAL ANALYSIS 105 Part III: Managing Both 108 5 A Continuum for Addressing Paradoxes 112 EITHER/OR – BOTH/ AND 113 THE PARADOX MANAGEMENT CONTINUUM 113 FAMILY EMPLOYMENT ON THE CONTINUUM 116 THE ART OF PARADOX MANAGEMENT 122 CYCLE OF RENEWAL AND BENEFIT 129 6 One Key tool: the Polarity MapTM 130 ANNA'S FAMILY BUSINESS AND POLARITY MAPPING 130 THE CONTINUUM AND THE MAP 143 ANOTHER POLARITY MAPTM: FAMILY COUNCILS 145 STEP BY STEP THROUGH THE POLARITY MAPTM 147 FINAL REFLECTIONS 148 Part IV: Achieving Both 150 7 Experience the Power of Paradox 154 SOURCES OF CONTINUITY 154 CULTURE UNLOCKS THE POWER OF PARADOX 156 FROM IMPLICIT TO EXPLICIT 164 A LOOK TOWARD FUSION 165 Appendices 168 APPENDIX A: HISTORICAL PERSPECTIVE ON PARADOX 170 APPENDIX B: PARADOXES IN BUSINESS LITERATURE 182 APPENDIX C: FAMILY FIRST– BUSINESS FIRST ASSESSMENT 200 APPENDIX D: MORE ON POLARITY MAPSTM 208 Notes 216 Index 220 0230243606,9780230243606 Palgrave Macmillan, 2010 "Paradoxes are part of life and are especially evident in the family business. Family Business as Paradox is an excellent manual for how to manage paradox in the family business. The Polarity mapping model is well explained and can be a very helpful process in working through the many issues that family businesses encounter. This book will be helpful and empowering to any family business who wants to go from 'either/or' to 'both/and' in managing paradox."--Mary Andringa, President & CEO, Vermeer Corporation (USA) 'The 43 years that I spent in our family business made me realize that managing paradoxes is crucial to family business success. One of Murugappa family's core values is to maintain a style of operations befitting our size, yet reflecting moderation and humility. The authors consider precisely such paradoxes in this book. More importantly, they provide a practical problem-solving framework to manage such family business paradoxes and the conflicts that arise as a result.- Thanks to Amy Schuman, Stacy Stutz and John Ward for sharing all of this with us!' - Dini Pickering, Vice Chairman of the Board, The Biltmore Company (USA) 'The authors examine the reality of living and working with the ambiguities present in all family businesses and provide new tools for their analysis and objective understanding. This book will allow and encourage family business stakeholders to recognize problems as paradoxes and progress from instinctive to deliberate, explicit management. New skills thereby attained will be energizing and invigorating, providing leverage to capitalize upon effective family business dynamics.' - Alex Scott, Executive Chairman, Sand Aire Limited (UK) 'Paradox is normal in our family business. We allocate a lot of quality time in our family meetings to look for dual solutions. A common family mission mindset with real team spirit is essential to achieve long lasting commitment.' - David Lee, Chairman, Lee Kum Kee Co. Ltd. (Hong Kong) As an example, business transfer to the next generation always brings to the forefront many issues as the transfer is also an emotional process. I greatly appreciate the authors' long-term approach and focus on family businesses. I warmly recommend this book as essential reading for all family entrepreneurs.' - MaaritToivanen-Koivisto, President & CEO, Onninen Oy (Finland) 'The opportunity to honor tradition while remaining dynamic and relevant to current and future guests is both challenging to our management team and energizing. Until I read this book, I had not considered the many paradoxes that are inherent in family business and I certainly didn't realize that it was possible to have it all, to achieve both sides of the paradox, to have both tradition and change, to have growth and liquidity, to know that putting the family first may be in the best interest of the family business. I so appreciate the wealth of information presented in this book.- This book is a must-read for all multi-generational families in business.' - M.V. Subbiah, past CEO, The Murugappa Group (India) 'This book comes at just the right moment for us. As we go through the process of transition to a fourth generation business, I found a fresh perspective on the issues we all know about. There are some really creative ideas as to how to build on the positives which we will use as we move forward.' - Thomas G. Bata, Chairman. Bata Group (Canada) 'Schuman, Stutz and Ward shed light and bring clarity to some of the murkier and more complex aspects of family business through their astute analysis of the inherent tensions and strengths of the many paradoxes that are family business.' - Robert Pasin, President & CEO, Radio Flyer Inc.(USA) 'Family business paradoxes are real and mutual acceptance of these paradoxes requires profound analysis.- Acknowledging Both -- Which To Choose : Family Or Business? -- Tradition And Change In Family Firms -- Predictable Paradoxes Across The Generations -- Predictable Conflicts In The Intersections -- Managing Both -- A Continuum For Addressing Paradoxes -- One Key Tool: The Polarity Map(tm) -- Experience The Power Of Paradox -- Appendix A: Historical Perspective On Paradox -- Appendix B: Paradoxes In Business Literature -- Appendix C: Family First : Business First Assessment -- Appendix D: More On Polarity Maps(tm). Amy Schuman, Stacy Stutz And John L. Ward. Includes Bibliographical References (p. [201]-204) And Index. Acknowledging both Which to choose : family or business? Tradition and change in family firms Predictable paradoxes across the generations Predictable conflicts in the intersections Managing both A continuum for addressing paradoxes One key tool: the polarity map(tm) Experience the power of paradox Appendix A: historical perspective on paradox Appendix B: paradoxes in business literature Appendix C: family first : business first assessment Appendix D: polarity map(tm) applications.