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Governance of Family Businesses must include the concerns of the numerous and diverse third Family Business Governancegeneration.  Establishing a set of Councils and Boards is essential in addressing critical transition issues.  With a Governance Model, Family Businesses can address acute short-term challenges and prepare the business for subsequent generations.

Starting the change process can be difficult. Ideally, aunts and uncles will call the cousins together and say,

“What has worked so well for us and makes us proud of what we have achieved will not work for you.  You must go out and find your own model.”

When siblings are wise enough to give such a mandate, the cousin generation has a greater chance of enlisting support from the earlier generation and being successful.   However, many sibling groups avoid or delay dealing with the issue, leaving it up to the cousins to organize themselves.  In most cases, highly educated and qualified cousins leave the business once they find the barriers to establishing Governance Structures so high.

Given the way that Family Businesses tend to become more complex over time, it is often up to the third-generation owners to redefine the role of the family and set the direction of the business.  Setting up an effective Governance Model puts the Family Business on a new trajectory for success.

The 7 Core Elements of the Governance Model

Family-business-Governance1-595

  1. Shareholders’ Assembly – The Shareholders’ Assembly is primarily responsible for dealing with classical legal functions.
  2. Family Assembly – The Family Assembly instills family values in the next generation and make sure that responsible shareholders are raised.
  3. Shareholders’ Council – The Shareholders’ Council is the most important link to the company. It is responsible for regulating relationships among family shareholders and between shareholders and the business.
  4. Holding Board – The Holding Board is the link between Management and the Shareholders’ Council. It is responsible for the overall performance of the group and its CEO.
  5. Family Council – It is the Family Council’s mission to transfer values and traditions across generations.  It serves as an important communications bridge between the business and the individual family members.
  6. Investment Office – The Investment Office is responsible for managing the family assets other than the core business. It provides a sense of security to those distant from the business and that their interests are being considered.
  7. Foundation - The Foundation is the one responsible for the family’s social and charitable investments.  It nurtures consensus from generation to generation on the direction of their philanthropic activities.

Taking that Giant Step to Governance

Kickstarting the change process can be a challenging part of the sibling-to-cousins transition.  There are cases that exist where highly educated and qualified cousins find the barriers to establishing Governance structures so high that they leave the business.

In making sure that the Family Business can keep the Governance up and running, it must be able to master two critical steps to Governance.

One of the two steps is developing a clear idea both of the status quo and of the desired destination.  What are our goals? Are there existing gaps in the structure? What are our priorities?  These must be clear before we can ever start the Family Business Governance running.

Missing on this step (and the second step as well) will lead Family Business to a difficult turn and very bumpy road to success.

Interested in gaining more understanding of Family Business: Governance? You can learn more and download an editable PowerPoint about Family Business: Governance here on the Flevy documents marketplace.

Are you a management consultant?

You can download this and hundreds of other consulting frameworks and consulting training guides from the FlevyPro library.

Here is another massive compilation of PowerPoint diagrams and templates, mostly for us in business presentations.  It’s called the Monster PowerPoint Templates Deck.  The full documents is 321 slides.  See a partial preview below.

 

Download the full document here: https://flevy.com/browse/business-document/monster-powerpoint-templates-deck-1099

The slides have been categorized into the following groupings:

  • Project Management (PM) Diagrams
  • Circular diagrams
  • Bar charts
  • Pie charts
  • Circular diagrams
  • Line Charts
  • Diagram trees
  • Box diagrams
  • Textbox diagrams
  • Other diagrams
  • Linear Flows
  • Equilibrium diagram
  • Feedback diagrams
  • Obstacle diagrams
  • Interaction diagrams
  • World maps
  • HR template
  • Benchmark diagrams
  • Representative graphs
  • Useful objects

Looking for other types of business diagrams in PowerPoint?  Peruse Flevy’s full library of PowerPoint Templates, updated weekly, here.

 

This week, LearnPPT added a new section to their site: Operational Excellence.

What exactly is Operational Excellence?

Operational Excellence is a set of business principles, tools, and frameworks aimed to achieving sustainable improvement of key performance metrics. Much of this management philosophy is based on continuous improvement methodologies, such as Lean Management (or Lean Enterprise), Six Sigma, Kaizen, Hoshin Kanri, 5S Workplace Productivity, and PDCA. The focus of Operational Excellence goes beyond the traditional event-based model of improvement toward a long-term change in organizational culture.

The page is currently divided into 4 main sections:

Questions, thoughts, concerns?  Go to my site (learnppt.com) and shoot me an email.

For other business frameworks, visit our library of consulting-quality business frameworks and methodologies here: http://learnppt.com/powerpoint/frameworks/.  These diagrams were professionally designed by management consultants. Give your presentations the look and feel of a final product made by McKinsey, BCG, Bain, Booz Allen, Deloitte, or any of the top consulting firms.

In previous articles, we have covered various PowerPoint template/diagram compilations that focus on business frameworks and management models.  Here are some examples:

This latest may be the biggest of them all — 100 Business Excellence Frameworks.  The total document spans close to 400 slides.

61

Here is the full list of business excellence frameworks/methodologies covered:

  • 3 Cs Strategy Triangle
  • 4 Ps Marketing Mix
  • 5S Principles
  • 8D Problem Solving
  • Activity Based Costing
  • ADKAR Change Model
  • Agile Model
  • AHRI Model of Excellence
  • Ansoff’s Growth Matrix
  • APQC Benchmarking Methodology
  • ASTD Competency Model
  • Australian Business Excellence Framework
  • Balanced Scorecard
  • Baldrige Performance Excellence Model
  • BCG Matrix
  • Beer & Nohria’s E & O Theories
  • Blue Ocean Strategy
  • Branding Pentagram
  • Bridges’ Transition Model
  • Business Process Redesign
  • Capability Maturity Model Integration (CMMI)
  • Cause & Effect Diagram
  • COBIT 5
  • COPC-2000
  • Cost of Quality
  • Covey’s Seven Habits
  • Covey’s Time Management Matrix
  • Crosby’s Law of 10
  • Curry’s Pyramid
  • De Bono’s Six Thinking Hats
  • Deming Cycle
  • Drucker’s Management By Objectives
  • DuPont Analysis
  • EFQM Business Excellence Model
  • Eight Types of Waste
  • Emotional Competence Framework
  • Five Principles of Lean
  • Four Stages of Contribution Model
  • Gemba Framework
  • Greiner’s Growth Model
  • Harmon’s Process-Strategy Matrix for Outsourcing
  • Harvard Model of Strategic HRM
  • Heinrich’s Rule on Safety
  • High-Impact Learning Organization
  • Hofstede’s Cultural Dimensions
  • Hoshin Kanri Strategy Deployment
  • House of Gemba
  • IMPA HR Competency Model
  • ISO 9001 Quality Management
  • ISO/IEC 15504 (SPICE)
  • ISO/IEC 27001 Information Security Management Systems
  • IT Infrastructure Library (ITIL v3)
  • Kotter’s Eight Phases of Change
  • Kraljic’s Purchasing Model
  • Lean Leadership & Kaizen Model
  • Lean Levers
  • Lean Management Model (TPS)
  • Lean Maturity Model
  • Lencioni’s Five Dysfunctions of a Team
  • Lewin’s Three Stage Change Model
  • MABA Analysis
  • McKinsey 7-S Framework
  • Mistake Proofing Process
  • NAPA Competency Model for HR Professionals
  • Nolan’s Stages of Growth for IT Systems
  • Ofman’s Core Quadrants
  • Organizational Project Management Maturity Model (OPM3)
  • PACE Prioritization Matrix
  • Payoff Evaluation Matrix
  • PDCA Problem Solving Process
  • People Capability Maturity Model (PCMM)
  • PEST Analysis
  • Porter’s Five Forces
  • PRINCE2 Project Management
  • Project Management Body of Knowledge (PMBOK)
  • PricewaterhouseCoopers Outsourcing Model
  • Scrum Model
  • Senge’s Five Disciplines
  • SERVQUAL
  • Shingo Model for Lean Transformation
  • SHRM Elements for HR Success
  • Six Sigma Methodology
  • Strategic Business Planning Methodology
  • Strategic Dialog
  • SWOT Analysis
  • Talent Management Framework
  • Total Productive Maintenance (TPM)
  • Total Quality Management
  • TRADE Best Practice Benchmarking Model
  • Training Within Industry (TWI)
  • Treacy & Wiersema Value Disciplines
  • Tuckman’s Model of Team Development Stages
  • Ulrich’s Five Rules for Leadership
  • Ulrich’s HR Competency Model
  • Ulrich’s Matrix on the Four Roles of HR
  • Ulrich’s Stages of Employee Connection to the Organization
  • Value Chain Model
  • Value Stream Mapping
  • Value-based Management
  • Xerox Benchmarking Model

This deck is a collection of PowerPoint diagrams and templates used to convey 100 different business excellence frameworks comprising key strategy, marketing and sales, finance, operations, IT, organization, change and HR models.

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