Emerging Trend in Family Business

Emerging Trend in Family Business

The Family Business Interactions1.Family member working in the business with ownership of the business

2.Family member whom does not work in the business and does not

have any ownership

3. Family member working in the business BUT

with no ownership

4. Family member with ownership But

does not work in the business

5. Investor as an owner (non-family members)

6. Non-Family employee

7. Non-family employee with some ownership

8. The blended family member not working in the

business AND with no ownership

9. The blended family member working in the

business But with no ownership

1

28

3, 9

6

41

7 5


The Family Business Drivers

1.Values – What the family stands for – Not negotiable

2.Legacy – What the family is recognised for internally and externally

3.Stewardship – Of the family name, assets and longevity

4.Custodianship – Of the family business

This is the Family story

2


The Family Business paradigm

3

PEOPLE

ASSETS

Fixed Mobile Operational

SUPPLY CHAIN

Upstream Downstream

Internal Associated

1

3

4

5

6

7

8

9

10

2


The Family Generational ladder

4


The Generational Mix – Value drivers

Baby Boomer – Builder, Contributor and Strive for Stability (5.3m)

Generation X – Very Independent, Very Protective of Self and Work Life Balance (4.4m)

Generation Y – Very Tech Savvy, Highly Mobile, Demand Value from EVERYTHING (3.8m)

Generation Z (ME) – Skeptical of Information, Less NEEDY, Strive Stability Globally (??)

5


The emerging “AGE” We are moving into the Business Network Relationship Age

Clients do not one stop shops as they strive for flexibility and stability Family Businesses have networks throughout their supply chains Family Businesses and clients want people who respect them, their business and their supply chain

What does a Family Business demand in this AGE Access to people who don’t want to be embedded in their business WISDOM accompanied with technical expertise Competency based strategic thinking VALUE – Technically, Emotionally, Personally, for the Business and the Supply Chain

The four segments of the Family Business supply chain Upstream – Where they source things from Downstream – Where they send their outputs Internal – Workforce and Family Associated – This is our group

6


The Emerging Global Trend Australia is trusted across a range of areas that is important to affluent people

Bio-Security

Environmental Management

Social equity

Quality Assurance

Product traceability

Governance

Family business longevity is one area the Western and Eastern cultures align

Family values is another area the two cultures align

Eastern consumers like to know the “supply chain” story and Family Business has direct, long standing and an emotional connection with their supply chain

7


Family Business Stakeholders

8

Legal professional

Professional

Consultancy

Finance provider

s

Financial

Services

Accounting Professiona

l

CLIENT

AIMA Candidate

s


The Strategic Opportunity

Become VERY AWARE of the family’s VALUES and LEGACY

Gain an in-depth understanding of the family business story and the businesses supply chain story

Identify the “soft” or “intangible” benefits of the business and make these the competitive advantage

Leverage the above RESPECTFULLY and GENUINELY

Adopt a SLOW BURN approach to the relationship

Develop an extensive (scale and scope) network of trusted advisers that have the capacity to value add to you as the family business Executive

9


TCB Solutions contact

Lloyd and Julie Russell

P O Box 128

ARANA HILLS Qld 4054

0413 549 748

[email protected]

www.tcbsolutions.com.au

10

mailto:[email protected]

http://www.tcbsolutions.com.au/

Documents

Emerging Trend in Family Business