Family-owned businesses contribute significantly to the economic development, wealth creation, and employment of most emerging economies. Though family businesses are key components of the economies of most countries, only a few of them survive between the founding generation to the next. The failure rate is so high that less than 30% of family businesses survive to the second generation, while under 10% of them survive to the third generation.
The implication is that the survival rate of most African family businesses beyond the founder’s generation is extremely low. However, the most successful family firms are those in which there is a good balance between professional management, responsible business ownership, and a healthy family dynamic.
The family business management seminar has been structured to address the key issues that impact the growth and sustainability of such family businesses. The seminar is planned to equip families-in-business with the required understanding, planning, and leadership for co-creating a shared and sustainable future.
Key Learning Objectives/ Benefits
After the programme, you will be able to:
- Articulate the family business model and leverage the unique strengths of family businesses to achieve superior performances and healthy family relationships
- Develop the key elements of institution building, governance/strategy and the need/steps to professionalise the management and board of the business for efficiency and sustainability
- Differentiate between the roles and responsibilities of management, boards & the family institutions (family assembly, family councils etc)
- Evaluate the key elements of transgenerational succession and how to develop a concrete action plan for a successful transition
- Articulate the key decisions and action steps required to sustain the family wealth and legacy
Module 1: The Uniqueness/Dynamics of Family Businesses
- Understanding the unique features/Dynamics of family businesses and the paradoxes: importance, successes, and challenges
- Managing growth and intrafamily challenges
Module 2: Institutionalising the Family Enterprise
- Good governance & institutionalisation of the family business: Structures, imperatives, and challenges
- Discussion topic: Steps/actions required to create effective management structures for family businesses.
- Effective financial management for family businesses
- Discussion topic: Important books of account for family businesses
Module 3: Importance of Governance for multigenerational Businesses-owning Families
- Processes & structures for effective governance of business-owning families
- Discussion topic: Importance of governance & required structures to ensure coherence in the families that own the business
- Managing the family’s relationship with the business for effective outcomes: Sharing experiences with a business leader
Capstone Project: Assess the effectiveness of your organisation’s Family Governance:
Module 4: Managing Succession – The leadership Challenge
- Intrafamily succession: Managing the challenges & preparing the business/family for succession
- Discussion topic: Importance of succession & the leadership challenges for founders/leaders
- Required steps to prepare the successor/business/family for effective succession
- Looking beyond today: Putting structures in place for business sustainability
- The experience of a family business leader
Module 5: Managing Succession – Successor Choice Dilemmas and Strategies for Effective Implementation
- Evaluating and choosing from succession candidates: issues for consideration
- Transgenerational succession and strategic plan implementation: issues and challenges
Module 6: Maintaining and Growing the Family Wealth
- Protecting the family wealth and legacies: Using Trusts/Wills as Effective Tools
- Discussion topic: Understanding the steps required to sustain the wealth and family legacy
- Tax Issues, Estate Planning, Trusts, & their best uses
- The role of Family Offices
- Develop a concrete action plan for estate planning
- Closing Lecture – Bringing it together: Programme Summary of learnings.