This week’s reading starts with a Chapter 2 Transition and Change. After reviewing the chapter for a second time there were a few nuggets that stood out to the reader, nuggets that would be very beneficial to be mindful of when assisting family businesses with transitions and changes. As stated last week the Godrej Group provides four characteristics of a family firm that will help protect the sources of their past success and at the same time, seek needed innovation. (Schuman, A., Stutz, S., & Ward, J.L. 2012, p. 38). This concept includes the complex successor dilemmas. This component was best summarized by a quote from Prince Philip, Duke of Edinburgh which states “Change does not change tradition. It strengthens it. Change is a …show more content…
Because the family business it so new, family paradoxes like making time for family trips and vacations may arise. For the 2nd generation the family business is more family focused. The paradoxes that arise are often regarding whether the revenues should be used to give family members larger salaries or update equipment. The 3rd generation is often more business focus, but it’s focus is extremely different from G1. This third generation is often searching for way to include all the members of the founding family and their unique skill sets to expand the brand, oversee the philanthropy activities and handle other areas of the family business besides production. The reading shows that the family priorities for G1 is roots and wings, for G2 is work and home, and for G3 is loyalty and freedom. The key impact areas of strategic choice for G1 is action and planning, for G2 is opportunistic and core, and for G3 is invest and harvest. The key impact areas of management philosophy for G1 is expedience and patience, for G2 is task and process, for G3 is privacy and transparency. The key impact areas of decision making for G1 is control and trust, for G2 is individual and collective and for G3 is formal and informal. The key impact areas of ownership focus for G1 is proprietorship and stewardship, G2 is merit and equality and for G3 is one family and individual branch.
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Basically, Bob did well in establishing advisory board, including CEO, COO, and financial expertise and Marketing expertise, who have the family-owned background or service industry background. Also, there was one female member who would be able to help the company better understand the female customers or help the female family member to involve in the family business. With the development of company, Bob added new members to the board according to the business needs. This is another good point.
The authors’ posed a series of questions that they strongly believed the family was thinking. Did Don really wonder “will the family undertake changing the whole family without me?” The root underlining problem of the family was that they did not know how to communicate and could not establish their own structure to allow their family system to operate in harmony.
Family is a primary agent because parents are the only adults the children are in contact with the most throughout most of their lives. Also in some cases, the family’s wealth determines the child’s job opportunities and child’s career choice. (Barkan 2012, p. 121)
Contextually, the family provides socialisation for children, so they can eventually be prepared for the trials and tribulations of the ‘outside world’. And because children have a lack of power within the family unit, it prepares them to be obedient when consulting with bosses, or those of a higher position, as adults. The family also provide a secure emotional base, so that workers can refresh then rejoin co-workers to make profits for their
Bob’s rationale behind establishing an advisory board, and his approach for selecting its members, has thus far been successful and valuable for him and the company. He correctly recognized the importance of “the big picture,” as he chose people whose backgrounds covered a wide range of industries and skills and who could therefore fill in any gaps. Furthermore, Bob’s choices were all successful business professionals, so he could therefore be relatively sure that they would be effective in handling any future challenges and recognizing future opportunities. Bob was also cognizant that the business and the family needed unbiased consultants in order to offer advice regarding family employment, and establishing the advisory board presented an outlet in which family members could privately discuss any issues on their mind. Lastly, he established an objective for the board, in that the board would only focus on the “big picture,” which meant that they didn’t get caught in the daily details or argue over the day-to-day routine.
A family consists of a couple key parts. First, the family plays an enormous role in one’s life by influencing the children. Due to the children
The organisation is family owned, with three family members acting as a Management Board and responsible for approving all business decisions.
The chapter “Three Surprises About Change” excerpted from Cheap Heath and Dan Heath’s book Switch: How to Change Things When Change is Hard introduces the three components of change: situational, rational, and emotional. The authors use a Rider-and-Elephant metaphor to illustrate these components.
Alignment of family and business. By keeping family, management organization, and ownership balanced, we ensure healthy family ties, ongoing business performance, and next-generation continuity.
Individual assignment 2 The Transtheoretical Model (Stages of Change Model) focuses on the decision-making of an individual and is a model of intentional change. The TTM operates on the assumption that people do not change behaviors quickly and decisively. Rather, change in behavior, especially habitual behavior, occurs continuously through a cyclical process.
Imagine my surprise when I began reading Chapter two of Immunity to Change and saw these words, “So what would it mean to meet an adaptive change adaptively, rather than technically?” I quickly perked up because I had just finished a conversation with a classmate in which I questioned how my dissertation focus connects with an adaptive challenge. Kegan proposes in this chapter that to “meet an adaptive challenge requires, first, an adaptive formulation of the problem (i.e., we need to see exactly how the challenge comes up against the current limits of our mental complexity), and second, an adaptive solution (i.e., we ourselves need to adapt in some way)”. In other words we must ascertain how a challenge brings us to the current limits
The intent of the proposal is to address the case brought forward to our organization concerning “The Young Change Agents,” at Price Waterhouse (PW) who later merged with Coopers & Lybrand. It is my understanding that the platform to address the need for change in the organization plummeted with three young pioneers (Shaw, Middleburg and Sgaralgli) recognized a need for change. Prior to Shaw and Middleburg arrival to PWC, they had an opportunity to work in a well-known student organization AIESEC. In their tenure at AIESEC life was different, as Shaw recalled while operating as the president of the national organization in New Zealand division; he recognized that AIESEC focused on developing his leadership skills by focusing on such programs as skills, attitudes, values and cultural understanding. Furthermore, he noted that his transition to PwC led to a lower echelon, and it was difficult to transition from the president to a staff member. PwC also had a high spending budget for stationery compared to New Zealand AIESEC. Moreover, the technology was not up to par for such a large cooperation. (Jick & Peiperl, p. 463) Shaw and Middleburg later partnered with Sgaralgi to fight the deficiencies that they saw in PwC. They created a force that focused on overhauling the existing values at PwC. They approached each situation, manager and employee one step at a time. Expecting nothing in return, but only to share their message on the new
Richard Dana Associates (RDA) was brought in by the owners of a family-owned business with complex relationship issues at a time preceding an anticipated leadership transition. Following individual and group coaching sessions, RDA was able to help the leadership separate personal issues, and codify practices through formal policies to allow the leadership group to focus on business issues without personal complications. At the end of RDA's engagement, the client was well-positioned to begin developing a transition plan.
The case deals with two major transformational organisational changes that take place within a span of 5 years in Marconi PLC. The first change process was under the leadership of Lord Simpson who took over this large diversified conglomerate in 1996 when the company was in a mature phase, already in decline. The company was under performing, had a rigid structure, lacked a clear vision and the employees had become change averse and complacent. To recharge the company Lord Simpson lead a change process with a clear vision with a growth oriented strategy, acquisition and a cultural change process for the employees. To motivate the employers to embrace the cultural change he introduced an attractive stock option plan.