Family control is a dangerous corporate strategy
beloved relatives can arouse uncontrollable anger, which is succinctly summarized by Ozzy Osbourne, the king of heavy metal rock in Britain. He said to his noisy family, "I love you more than my life, but at this moment, you make me angry." The Osborne family once staged a reality TV show, and Osborne himself was jokingly called the cultural ambassador of Birmingham in the United States
think about it. If Osborne owned not only a TV reality show, but a family business, how bad would it be? Describe "CEO Oz": Tattooed hands clasped their heads, desperate to face the cost accumulated by his wife as an IT Manager, and kept complaining: "Damn it! Sharon, I didn't know that Gucci also made damn computers!" Imagine that salesperson Kelly crammed budget forecast data into the combat pants pocket of financial director Jack, screaming, "this is the consequence of you cutting my XX direct mail expenditure XX!"
I found that love, money and dominance mixed in the "mixer" of family businesses may turn into poisonous wine, which owners and managers are increasingly disgusted with. For this reason, but also because of the buyout funds available to salable enterprises, business owners are increasingly reluctant to pass on the company to future generations. According to a survey by Grant Thornton, in 1996, 30% of owner managers planned to hand over their baton to their children when they abdicated. Last year, this proportion has dropped to 8%, and the remaining 92% are considering selling the company to outsiders
David Brooks, head of the financial department of Grant Thornton, said, "great changes have taken place now, and the company is completely not handed down from generation to generation." That means that the proportion of British enterprises owned and operated by families will decline. According to the estimates of London Business School, the number of such enterprises currently accounts for about three quarters of the total number of British enterprises. According to Tony bogod, CEO of BDO stoy Hayward Centre for family business, this trend has been clearly reflected in the sale of large family businesses such as brake brothers, Hobbs, linpac and weetabix
in order to find someone who regrets the decline of the family business, I called a large enterprise that has spread to the second generation, which is run by a famous close three brothers. One of the three brothers answered, but he sounded bored with my explanatory opening remarks. He said, "I can't talk about family relations. I'm sure you can understand. Now is not the time." You can almost hear the slamming door and the low pitched quarrel at the other end
unfortunately, for the founders of the company, appointing a child to take care of the business in the future is no longer a safe way to prevent such sibling disputes. If a century ago, you only need to choose one of the 14 people in the outside office who have been used to imitating foreign products for a long time, he will answer you like this: "dear elder, I am deeply honored that you chose me to take charge of the anti flatulence drug business of the Harbert family. I will try my best to live up to your deep trust in me." The other 13 grandchildren will have to accept this fact
now, when you interrupt the younger generation who is practicing tai chi and tell him that he will appoint him as the successor of the company, even if he will not reply angrily, "spare me!", You can still annoy everyone else. A man I know passed on his sporting goods company to a son who was a securities trader and traveled around the world. That means that this man let down another son who had worked for him for many years. But this is still the right decision. The successful successor is very smart and has more experience, which shows that he is most likely to make the business sustainable. But it is not difficult to understand that the abandoned son was hurt and resigned to join a rival company
entrepreneurs often feel in a dilemma. They don't know whether they should be loyal to their families or ensure that the company continues to operate successfully after they retire. A second-generation owner manager with 1000 employees told me, "my son wants to take over the company, but I'm not sure whether he is competent. It's rare for business to spread to the third generation." Dawn Gibbins, the chairman of flowcrete, and her father founded this ground materials franchise. She said that her teenage daughters were not interested in working in the company, but added: "I also advised them not to join. I don't like my children to intervene in the enterprise and let people ridicule this kind of nepotism."
arranging succession plans is very unpleasant, so few entrepreneurs can do this. "They don't want to think about it because the company is their life and they can't choose between many people," Mr. bogaud said This embarrassing inaction may lead to resentment and quarrels, because the potential successor will spend years fighting for a seat
to promote a company, the simpler way is to give cash to your children and grandchildren, and let them continue to engage in professional kite surfing, design cloaks, or do anything else that fascinates them. If that is not attractive, Mr. bogaud advocates making succession planning a process that involves all family members interested in business. That means choosing the replacement of the company's leaders smoothly and on the basis of consensus
in an unforgettable episode of the 2003 BBC TV series i'll show them who's boss, Gerry Robinson, the former boss of Granada TV station and the bragging king of the board meeting room, proved how not to do so. He asked the three brothers who ran a coffee business to sit down, and then everyone begged to be in charge of the company. The three brothers' coffee company was founded by their late father. Mr. bogaud commented, "he added