Northwest Security Services Case Report Essay

929 WordsApr 14, 20134 Pages
* Evaluate Bob’s process for establishing the NSS advisory board. What could be improved? 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. But it seems not a systematized situation. Perhaps several things could be improved. One is that Bob should add an attorney to the board to deal with…show more content…
Open communication is important in a family business. Specific policy should include following: From limited financial information in the case, current percentage and time paid dividend are supposed reasonable. However, one point should be pay attention to that is fourth or fifth generation are more likely to see themselves as investor than owners. Other Liquidity options should be considered because yield on investment is likely to make some inactive shareholders may eager to find a way to exit investment, capture their capital gains and move on. Another point should be considered is that it may not appropriate for generation enjoy then equal rate regardless of their income or need or contribution to the company. Non-employee family members shouldn’t be represented in this process, because it is a family business and only family members hold share.No sign shows this company wants to go public * Should there be a different set of benefits for non-family employees than those available to family employees? In my understanding, benefits is package including salary, bonus, perks.ect but exclude share and dividend. Based on this definition, I think there shouldn’t be different between non-family employees and family employees. All incentive policy should be performance-oriented. One suggestion is that fewer portion of share might be allocated to non-family top management to encourage them working more
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