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Family Planning Framework Essay

1069 Words5 Pages

Unlikely, family businesses succeed in managing the interdependence between business and family concerns. While family concerns relate to the nurturing of family members and loyalty to the firm, business concerns reflect the drive for exceptional operational processes and expert management (Pounder, 2015). In this context, (1) structured planning frameworks, (2) corporate governance, (3) family governance and business governance, as well as (4) family councils make the difference and help to gain perspective. They can alleviate some of the challenges that can arise when typical family traits become a driving force (Gulzar & Wang, 2010, p. 125).

Planning Frameworks
Concrete planning frameworks are the basis to overcome most of the challenges mentioned above. According to Pounder (2015, p. 121),” the ideal plan will allow the company to balance family and business needs to everyone’s advantage …”. Four specific types of planning framework should be implemented for this purpose: (1) family planning frameworks, (2) business planning frameworks, (3) succession planning frameworks and (4) estate planning frameworks. However, an effective planning framework is tied to a range of factors, including company size, business complexity, number of family generations, geographic distribution, and whether the family includes external leaders. Whereas the planning …show more content…

(2012, p. 55), family businesses have to regulate their governance holistically – for the family and the business. Therefore, the governance codex is designed to help family businesses to optimally determine management-, control- and family structures. The codex addresses aspects that relate to the appointment of management, succession, pay-out and long-term strategic issues. Aside from rational matters, the codex also tackles emotional issues that should be solved without conflict. The codex aims to define guidelines for owners in order to implement concrete governance

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