BUILDING A FAMILY FIRM FOR THE FUTURE

Topic

Building a Family Firm for the Future

Instructions

This assignment requires you to examine sustainability and growth of your family business. You will aim to gain an in-depth understanding of your family business and make recommendations that will enable the family to sustain and grow the family business for future generations.
The task involves:

Preparing a report to examine your family business. In your report you should aim to cover the following 5 Key Areas:

(i) Introduce your family 
- (Prepare and present your family genogram)
(ii) Introduce your business including history of the firm
(iii) What do successful families contribute to the business they own?
In investigating this question you should think of following:
What is it that successful family brings to the firm? How does your family contribute positively to the business it owns? What is the unique contribution of your family to the firm? To what extent is this contribution transferable to future generations? Evaluate the family assets listed below and discuss to what extent is current (and future firm strategy) founded on these family assets.
Family Assets can be regarded as following:
-Family Values
-Family Heritage
-Family Reputation
-Family Identity
-Family Network
-Family Ownership Structure

Do you have the right ownership structure – among family members or between family and other
owners? Does the current ownership structure preserve the family assets? Does the current ownership
structure mitigate the cost of roadblocks? Who shall manage the business today and tomorrow?

-Family Governance: Examine the current family and firm governance in place? What is the scope for improvement?
-Examine the Succession and Next Generation planning:
Examine the process family has put in place to education next generation of business owners.
Which succession model should the family choose to support the future of the family firm beyond their lifetime

(iv) Examine the unique competencies your business has. Outline the opportunities and challenges from Business perspective: 
Possible list includes- Competition and Growth, Ability to cope with globalization or
industry changes
(v) Recommendations: Given the current and future set of family assets and obstacles, outline recommendation to sustain the long-term sustainability of family and family firm.

Answer preview

A successful family also brings reasonable control and effective management in the firm. One of the significant causes of failure in family-owned businesses is ownership and control crisis. Clarity on decision making roles, stewardship, and ownership is essential in governing such firms. Jin Heifeng’s firm has realized this challenge and takes time to discuss and clarify issues that arise. This also cultivates high levels of trust as strategic decisions are based on their values and vision. Jin Heifeng’s family has contributed uniquely to developing the organizational culture as well as the shared values.

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