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SCENARIO 1: FAMILY FRIENDLY Tuesday, January 15, 2002

Part 1. The Business of the Family and Individual Members

1. People in the family trust each other's motives. YES NO Y

2. In our family we are honest with one another. YES NO Y

3. We openly express affection for one another. YES NO N

4. In-laws are fully accepted as part of the family. YES NO N

5. The younger generation of our family seems to be

acquiring strong values from the older generations. YES NO N

6. I trust the honesty of my family members in matters of

the family's long- term interests. YES NO N

7. Family members clearly enjoy being with each other. YES NO Y

8. Family gatherings are fun and go well. YES NO Y

9. We communicate well with each other about what we want from

the family. YES NO N

10. We are able to resolve major conflicts and differences with

one another. YES NO N

11. Our family has clear and separate processes for making decisions

about ownership, asset management and family issues. YES NO N

12. We listen to each other. YES NO Y

13. We are tolerant of differences in beliefs and opinions

within the family. YES NO Y

14. We have regular family meetings to discuss issues

that are important to the family. YES NO N

15. The family provides members with adequate

support to prepare them for their future. YES NO N

16. Our family offers a healthy environment for

children to grow into mature adults. YES NO Y

17. I am being adequately prepared for my future. YES NO Y

18. I know what I want my life to be about. YES NO Y

19. My family encourages me to develop a sense

of purpose in life separate from the assets that we own. YES NO N

20. I feel secure about my future. YES NO Y

21. I am basically satisfied with the level of trust

and fairness between me and the other family members. YES NO N

22. My family generally likes me for who I am. YES NO Y

 

Part II. The Business of Business

23. We have a strong and clear vision for the future of the business. YES NO N

24. The family agrees on the purpose of our business. YES NO N

25. We run our business like a business, with detailed financial

reports, plans, clear roles and strategy . YES NO N

26. Income is fairly divided between investment in the future of

the business managers' compensation, and distribution to owners. YES NO N

27. We have plans for the future of the business that the

family understands and accepts. YES NO N

28. The business leader is good at delegating authority. YES NO N

29. Company leaders listen to new ideas from our

younger generation and non- family managers. YES NO N

30. Roles and responsibilities in family and non-family

managers are clear and people are accountable for results. YES NO N

31. The business leadership encourages new ideas

from all levels of the organization. YES NO N

32 .Family members in our business would be successful

in comparable jobs with other companies. YES NO N

33. Family members in the business are paid at

market value for their contributions to the company. YES NO N

34. We clearly and fairly evaluate the performance

of family members working in the business. YES NO N

35. Family members are given opportunities to

learn about the family's business interests. YES NO N

36. Advancement and promotion is based on merit. YES NO N

37. Family members are expected to work elsewhere

before they can become managers in the family business. YES NO Y

38. Family members who will inherit ownership are trained to

be responsible owners and partner with other family members. YES NO Y

39. Family policies concerning the business are fair to all. YES NO Y

40. Family perks are kept to a minimum, and distributed

equitable and legally. YES NO N

41. Women have equal opportunities to participate

in the business. YES NO N

42. There has been discussion and planning for the

potential roles of heirs before they enter the business. YES NO N

43. We have a written dividend policy. YES NO N

44. Management decisions (hiring, pay) are

influenced by family dynamics. YES NO Y

45. The company leaders are preparing the organization

for the future. YES NO N

46. We have a written succession plan for the next

generation in our business. YES NO N

47. Potential successors are given fair opportunities to

demonstrate their talents. YES NO N

48. The next generation of owners feels that plans for the future

of the business are fair. YES NO N

49. We have a buy-sell agreement that is well understood

by the family. YES NO N

50. The owner's estate plan is understood and supported by

the next generation. YES NO N

 

RESPONSE B:

FAMILY FRIENDLY

 

In this scenario responses are spilt approximately 30% positive to 70% negative. Family Business Members (FBM) have great relationship with the family and seem to have fun when they are together, although they donít feel that family members are open regarding business matters. They seem to be very confident regarding their self-development. However, they donít seem to care much about the business. Rather a negative attitude towards the administration seems to be obvious. One doesnít know if this attitude is due to ignorance of the business or the deliberate attempt of the administration to keep family members in the dark or simply thatís the actual reality of the family business.

 

The task ahead for the owner/leader of the family business is difficult. First an attempt must be made to find out the seeming contradiction that though family members seem to like each other, they donít seem to be able to communicate well and to solve conflicts. Second, he or she must evaluate the communication processes the organization uses to keep family members informed regarding the vision, goals and objectives and the strategies