Family Enterprise

A thorough explanation of how family enterprises work

The family enterprise, whether an operating business, a family office, or both, is the backbone of the US and international economies. These enterprises cut across industries and geographies and can be first-generation entrepreneurial companies or multi-generational businesses with family offices. This book offers a foundation in and understanding of how family enterprises work, including working definitions and the key characteristics of family enterprises, as well as useful concepts for working with and in family enterprises, either as a professional or as a family member.
* Written by the experts at the Family Firm Institute, a global network of professionals, educators, researchers, and owners of family enterprises
* An ideal resource for professionals in law, finance, management, and behavioral science, family office and fund managers, and others interested in an multidisciplinary approach to this field

Acknowledgments ix
Family Enterprise: Understanding Families in Business and Families of Wealth xi
Chapter 1 Defining Family Enterprise 1
Definition 1 2
Definition 2 2
Definition 3 2
Definition 4 2
Definition 5 2
Family Business Review article: "From Longevity of Firms to Transgenerational Entrepreneurship of Families: Introducing Family Entrepreneurial Orientation" 4
Assessment Test 1 37
Chapter 2 Classic Systems of a Family Enterprise 39
The Family System 40
The Ownership System 41
The Enterprise System 42
Assessment Test 2 43
Chapter 3 Representative Governance Systems in Family Enterprises 45
Enterprise Governance 46
Family Governance: Family Council 48
Owner Governance: Ownership Forum 49
Assessment Test 3 50
Chapter 4 Key Characteristics of Family Enterprises 53
Characteristics 53
Challenges 54
Comparison of Family Systems and Enterprise Systems 55
Assessment Test 4 57
Chapter 5 Concepts in Family Enterprise Study 59
Systems Thinking: A Very Brief History 59
Systems Thinking: The Individual in the System 60
Relevant Systems Concepts: Triangles, Scapegoat(ing), Homeostasis, Boundaries 61
Content and Process 63
Family Business Review article: "Using the Process/Content Framework: Guidelines for the Content Expert" 65
Assessment Test 5 77
Chapter 6 Theoretical Frameworks in Family Enterprises 81
The Three-Circle Model 83
The Developmental Model 87
The Balance Point Model 88
Assessment Test 6 89
Chapter 7 Core Professions Working With Family Enterprises 93
Differing Perceptual Filters 95
Understand the Differences Among the Core Professions 96
Assessment Test 7 99
Chapter 8 Multidisciplinary Professional Teams 101
Types of Teams 101
Challenges Teams Face 102
Family Business Review article: "The Effects of Goal Orientation and Client Feedback on the Adaptive Behaviors of Family Enterprise Advisors" 103
Assessment Test 8 138
Chapter 9 Applying What You Have Learned 141
Case 1 141
Case 2 142
Case 3 142
Glossary 145
Suggested Readings From Family Business Review: Journal of the Family Firm Institute 153
About the Website 155
About The Family Firm Institute, Inc. 157
About the Authors 159
Index 161