Kelin E. Gersick - Generation to generation: life cycles of the family business
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Generation to Generation presents one of the first comprehensive overviews of family business as a specific organizational form. Focusing on the inevitable maturing of families and their firms over time, the authors reveal the dynamics and challenges family businesses face as they move through their life cycles. The book asks questions, such as: what is the difference between an entrepreneurial start-up and a family business, and how does one become the other? How does the meaning of the business to the family change as adults and children age? How do families move through generational changes in leadership, from anticipation to transfer, and then separation and retirement? This book is divided into three sections that present a multidimensional model of a family business. The authors use the model to explore the various stages in the family business life span and extract generalizable lessons about how family businesses should be organized.
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Generation to Generation : Life Cycles of the Family Business
author
:
Gersick, Kelin E.
publisher
:
Harvard Business School Press
isbn10 | asin
:
087584555X
print isbn13
:
9780875845555
ebook isbn13
:
9780585217697
language
:
English
subject
Family-owned business enterprises--Management, Family-owned business enterprises--Succession.
publication date
:
1997
lcc
:
HD62.25.G46 1997eb
ddc
:
658/.041
subject
:
Family-owned business enterprises--Management, Family-owned business enterprises--Succession.
Page iii
Generation to Generation
Life Cycles of the Family Business
Kelin E. Gersick John A. Davis Marion McCollom Hampton Ivan Lansberg
Harvard Business School Press Boston, Massachusetts
Page iv
Some images in the original hardcopy book are not available for inclusion in the netLibrary eBook.
Copyright 1997 by the Owner Managed Business Institute All rights reserved Printed in the United States of America 01 00 99 98 97 5 4 3 2 1
Library of Congress Cataloging-in-Publication Data
Generation to generation : life cycles of the family business / Kelin E. Gersick... [et al.]. p. cm. Includes bibliographical references and index. ISBN 0-87584-555-X (alk. paper) 1. Family-owned business enterprisesManagement. 2. Family-owned business enterprisesSuccession. I. Gersick, Kelin E. HD62.25.G46 1997 658.041dc20 96-12529 CIP
The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Printed Library Materials Z39.49-1984
Page v
CONTENTS
Preface
vii
Acknowledgments
ix
Introduction: A Developmental Model of Family Business
1
Part I: The Three-Dimensional Developmental Model
27
1. The Ownership Developmental Dimension
29
2. The Family Developmental Dimension
57
3. The Business Developmental Dimension
103
Part II: Four Classic Family Business Types
133
4. Founders and the Entrepreneurial Experience
135
5. The Growing and Evolving Family Business
153
6. The Complex Family Enterprise
175
7. The Diversity of Successions: Different Dreams and Challenges
193
Part III: Managing the Developing Family Business
223
8. Structures and Plans for Guiding Development
225
9. Consulting with Family Businesses
251
Page vi
Conclusion: Lessons from the Life Cycles
273
References
279
Index
293
About the Authors
301
Page vii
PREFACE
One of Kurt Lewin's most famous aphorisms is "There is nothing so practical as a good theory." But that was only half of his message, and our experience writing this book also supports the other part, that nothing contributes more to good theory than practice. The four authors of this book all came to their focus on family business from academic backgrounds. All of us had been university based, conducting research and teaching undergraduate and graduate students. But each of us had also been drawn to the applied aspects of social science, so we were also consultants and field researchers. In our work with family businesses we found a great opportunity. This was a field drawing on the richest traditions of all the social and management sciences, which presented unexplored conceptual and theoretical territory and still provided almost-unlimited opportunities to offer practical service to fascinating real-world clients.
The particular activity that brought us together and got us writing this book was a consultation. In the early 1980s, John Davis and Ivan Lansberg began a project with Caterpillar, Inc. That multinational giant, itself a $100 billion, publicly held company that began as a family firm, distributes its product in North America through a network of independent dealerships95 percent of which are family businesses. The executive leadership of Caterpillar wanted to assist its dealership group in all aspects of business survival, including managing family operations and continuity. In 1983 the Owner Managed Business Institute began what became a decade of collaboration with Caterpillar on these issues. Kelin Gersick joined the project in 1984 and Marion McCollom, in 1989. For all of us, that team effort was a unique and invigorating experience.
It was our work with the seventy Caterpillar dealers that prompted us to formalize the model presented in this book. As we got to know the
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