The Successful Family Business: A Proactive Plan for Managing the Family and the Business

by Edward D. Hess

Overview

Over 80% of the businesses in the United States are family-owned and managed. From the corner deli or barbershop to global empires in brewing, media, and cleaning products, family businesses embody the entrepreneurial spirit that drives innovation and economic growth and that represents the hopes and dreams of millions for independence, self-sufficiency, and wealth. And yet the track record for entrepreneurial businesses is poor: over three-quarters will fail during the first five years and only 10% will survive a decade. Family business statistics show that fewer than one-third pass succesfully to a second generation, often the result of insufficient planning. Drawing from numerous in-depth examples (both positive and negative), Edward Hess offers a fascinating glimpse into the dynamics of family business management and specific strategies to promote the health of the enteprise. A comprehensive guide, The Successful Family Business covers the spectrum of topics from creating a family values statement and code of conduct to resolving conflicts among siblings to managing transitions in leadership and the potential sale of the business. Other issues include: defining perks and benefits (for family and non-family members), working with the board of directors, and going public. Hess concludes with a series of operating rules that apply to every family business and a listing of practical references and resources.

Product Details

ISBN-13:	9780275988876
Publisher:	Bloomsbury Academic
Publication date:	11/30/2005
Edition description:	New Edition
Pages:	176
Sales rank:	710,721
Product dimensions:	6.14(w) x 9.21(h) x 0.44(d)

About the Author

Edward D Hess is Adjunct Professor of Organization and Management, Founder and Executive Director of the Center for Entrepreneurship and Corporate Growth, and Founder and Executive Director of the Values-Based Leadership Institute at Goizueta Business School, Emory University, where he teaches courses in entrepreneurship, leadership, and business growth. He also maintains an active consulting practice with family businesses. Prior to joining Emory, he spent over 30 years as a lawyer, investment banker, and consultant, specializing in private family business. He has written a regular column for the Georgia business magazine, The Catalyst, the author of Make It Happen: Six Tools for Success and Executing Organic Growth: How Great Companies Consistently Grow from Within, and lead editor and author of The Search for Organic Growth and Leading with Values: Values, Virtue and High Performance.

Table of Contents

Introduction
1. Dynamic and Different Perspectives
2. A Proactive Family Business Management Process
3. A Family Values Statement
4. A Family Code of Conduct
5. Annual Family Meetings
6. Employing, Compensating, and Managing Family Employees
7. Corporate Perks, Benefits, and Dividends
8. Sibling and Cousin Rivalries
9. Stock Ownership and Liquidity
10. Board of Directors
11. Succession
12. Case Study: The Beach Company
13. Choosing a Non-Family Successor CEO
14. Case Study: Edens & Avant
15. Sale of the Business
16. Going Public or Recapitalizing Your Family Business
17. Family Business Operating Rules
Resources
Index

What People are Saying About This

Jack Spector

"For anyone who works in a family business, this book should be kept at your fingertips and referred to often. The book is written in a style that is straightforward and easy to comprehend, but Ed Hess's common sense approach should not mask the great wisdom that is contained within the pages. As a person who has worked in a family business for the past 21 years, I find Ed Hess's advice to be right on the mark -- I only wish I had the opportunity to read the book years ago. For anyone considering a career with a family business, whether as a family member or an outsider, you simply must read this book to begin to gain an appreciation for the very complex nature of family businesses."

—

Jack Spector, President, Hixon Properties Incorporated, San Antonio, TX

Stuart C. Johnson

"Anyone who is involved with a family business -- family shareholders, family employees, other family members, independent directors, and advisors to each of these groups -- would benefit from this work. Ed Hess has digested a lifetime of real-world experience into an issues-oriented and example-filled resource that addresses the questions, issues, and tensions that family business participants will find very familiar. As an attorney who works with closely-held and family businesses every day, I am pleased to have such a practical resource to recommend to my clients."

—

Stuart C. Johnson, Partner, Corporate Group, Arnall Golden Gregory LLP, President, Association of Corporate Growth, Atlanta Chapter

Jeffrey A. Scott

"An engaging, action-oriented book for family businesses both large and small. There's no substitute for the experience Ed Hess brings to his subject. From my 20 years of working with family businesses in the real estate industry, Ed Hess's observations, operating rules, and sensitivity to the issues involved with operating and growing a family business should be welcomed by a variety of family business leaders."

—

Jeffrey A. Scott, Managing Director, Real Estate Corporate Finance, Wachovia Securities

Joseph H. Astrachan

"Through compelling real-life stories and practical lessons, Ed Hess provides a solid look at family business life. If family business leaders follow Ed Hess's advice and implement methodical programs to achieve the ideals set forth in this book, they will find the ultimate dream within reach: a successful business and a happy, harmonious, and productive family."

—

Joseph H. Astrachan, Director, Cox Family Enterprise Center, Wachovia Eminent Scholar Chair of Family Business, Editor, Family Business Review, Coles College of Business, Kennesaw State University

Jack Spector

"For anyone who works in a family business, this book should be kept at your fingertips and referred to often. The book is written in a style that is straightforward and easy to comprehend, but Ed Hess's common sense approach should not mask the great wisdom that is contained within the pages. As a person who has worked in a family business for the past 21 years, I find Ed Hess's advice to be right on the mark — I only wish I had the opportunity to read the book years ago. For anyone considering a career with a family business, whether as a family member or an outsider, you simply must read this book to begin to gain an appreciation for the very complex nature of family businesses."

Joseph H. Astrachan

"Through compelling real-life stories and practical lessons, Ed Hess provides a solid look at family business life. If family business leaders follow Ed Hess's advice and implement methodical programs to achieve the ideals set forth in this book, they will find the ultimate dream within reach: a successful business and a happy, harmonious, and productive family."

Stuart C. Johnson

"Anyone who is involved with a family business — family shareholders, family employees, other family members, independent directors, and advisors to each of these groups — would benefit from this work. Ed Hess has digested a lifetime of real-world experience into an issues-oriented and example-filled resource that addresses the questions, issues, and tensions that family business participants will find very familiar. As an attorney who works with closely-held and family businesses every day, I am pleased to have such a practical resource to recommend to my clients."

Jeffrey A. Scott

"An engaging, action-oriented book for family businesses both large and small. There's no substitute for the experience Ed Hess brings to his subject. From my 20 years of working with family businesses in the real estate industry, Ed Hess's observations, operating rules, and sensitivity to the issues involved with operating and growing a family business should be welcomed by a variety of family business leaders."

Editorial Reviews

Hess argues that the business and the family are overlapping living organisms, and in order for both to thrive, the family business must develop a proactive process for defining and communicating roles and goals. He gives advice on everything from resolving conflicts among siblings to working with the board of directors. Readership for the book includes all those involved in a family business.” —Reference & Research Book News

From the Publisher