Index. death, sudden (founder s), 85 6 Deci, Edward, 29

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1 References American Family Business Survey The Mass Mutual, Kennesaw State University, Family Firm Institute American Family Business Survey. Springfield, MA: MassMutual Financial Group. Bowen, Murray Family Therapy in Clinical Practice. Northvale, NJ: Jason Aronson. Deci, Edward, and Richard Ryan Intrinsic Motivation and Self- Determination in Human Behavior. New York, NY: Plenum Press. Elder, G. H., and E. K. Pavalko Work Careers in Men s Later Years: Transitions, trajectories, and Historical Change. Journal of Gerontology 48 (4): S180 S191. Gee, S., and J. Baillie Happily Ever After? An Exploration of Retirement Expectations. Educational Gerontology 25: Laird Norton Tyee Family to Family: Laird Norton Tyee Family Business Survey Conducted in conjunction with the Austin Family Business Program at Oregon State University and the Albers School of Business and Economics at Seattle University. Tuckman, Bruce Developmental Sequence in Small Groups. Psychological Bulletin 63 (6): Ward, J. L Keeping the Family Business Healthy: How to Plan for Continuing Growth, Profitability, and Family Leadership. San Francisco, CA: Jossey-Bass.

2 The Authors S tephanie Brun de Pontet is senior consultant of the Family Business Consulting Group, Inc. and specializes in advising family enterprises facing important transitions. She has extensive experience working with sibling teams, developing training programs to educate next-generation family members, and building the framework for next-generation collaborations. In addition to her consulting work, Stephanie is the executive editor of the Family Business Advisor and has coauthored a book, Building a Successful Family Business Board, with Drs. Jennifer M. Pendergast and John L. Ward. Craig E. Aronoff is cofounder, principal, and chairman of the board of the Family Business Consulting Group, Inc., the founder of the Cox Family Enterprise Center, and professor emeritus at Kennesaw State University. He invented and implemented the membership-based, professional service provider-sponsored Family Business Forum that has served as a model of family business education for universities worldwide Drew S. Mendoza is managing principal of the Family Business Consulting Group, Inc. He was the founding director of the Loyola University Chicago Family Business Center during which time his consulting work addressed family firm succession, family meetings, and developing high functioning sibling and cousin teams. As the managing principal of the Family Business Consulting Group, Drew is currently focused on business development, assessing client needs, and finding the most appropriate resources for clients and prospective clients. In addition to his consulting work, Drew presents on a variety of family business issues for family business centers, trade organizations, and advisor groups.

3 98 THE AUTHORS John L. Ward is cofounder and senior advisor of the Family Business Consulting Group, Inc. He is clinical professor at the Kellogg School of Management. He researches and teaches strategic management, business leadership and family enterprise continuity, governance, and philanthropy.

4 Index advisors, 71 Age of Sibling Partnerships, 5 age spread of siblings, 22 3 allocation of profit, American Family Business Survey (2007), 5 aptitudes, 13, 36, 49 autonomy, 25, 27, 55 7 baby-boom generation ( ), 5 Baillie, J., 38 blood tie benefits, 24 board of directors, 32, 37 8, 40, 48 51, 61, 65 6, 67 8, 70 2, 74, 84 5, 89, 93 boomerang CEO, 77 8 Bowen, Murray, broad family togetherness, 45 7 business governance, 70 1 cash flow, 72 centralized management, 29 30, 55 6, 67 challenges and opportunities in sibling partnerships, change, fear of, chief executive officer (CEO), 37 41, 65 6, 70 1, 78, 84, 85, 90 co-ceos, essentials for, 66 co-owners, 30 code of conduct, 37, 47, 60 1, 74 collaboration, 8, 12, 15, 24 5, 29, 31 5, 55 6, 59, 64, 74, 77 8, 83 preparing children for, 31 5 commitment, 14 15, 19, 44, 46 7, 50, 56 8, 66, 72 4, 83, communication, 14 15, 17, 21 2, 26, 32, 37, 41, 46, 60 6, 69, 72, 78 9, 81 3, 92 3 policies, 78 9 stakeholder, 81 community property, 53 company loan policies, 62 compensation, 61, 74 complexity of transition to sibling partnerships, 3, 9 17, 26 conflict of interest, 62 conflict resolution, 4, 13, 21 3, 32 3, 35, 45 7, 74, 80 1, 92 3 creative solutions to, 13 and mediation, 80 1 and spouses, 45 7 controlling nature of founders, 21 2, 29 30, 55 cousin generation, 19, 50, 74, 87 90, 92 creative solutions to conflicts, 13 creativity, 7 cultural norms, and sibling partnerships, 6 7 culture shock, and spouses, 45 6 death, sudden (founder s), 85 6 Deci, Edward, 29

5 100 INDEX decision making, 4, 8, 10, 14 17, 21 2, 24, 29 30, 32, 37, 40, 55 6, 59, 68, 79, 87, 90, 92 3 and controlling parents, 21 2, 29 30, 55 6 and sibling teams, Developing Family Business Policies: Your Guide to the Future, 62 developing sibling partnerships, differences, embracing, disability, 61 diversity, 13 16, 49, 57, 64 dividends, 14, 16, 62, 74, 82, 88 divorce, 44, 52 3, 61 education sibling, 71 2 of spouses, 45, 48 50, 92 Elder, G. H., 38 emergency management team, 85 6 emotional issues, 20 4 and adopting your parents baby, 22 and age spread of siblings, 22 3 and controlling behavior of parents, 21 2 example, 20 1 and individual growth, 23 4 and mothers, 23 and sibling rivalry, 22 empathy, 15, 38, 44, 70, 77 employment policies, 61, 74 enmeshed families, and spouses, 45 7, 50 Enterprise, 7 entrepreneurship, 3, 6, 10, 21 2, 29 30, 37 8, 40 and personality type, 21 2 equality, and family business, 6, 23 estate planning, 7, 20, 38 9, 48, 72 3, 75 exit and redemption policies, 62, 75 exit planning, 31, 38 9 family, importance of remembering, 35 7, 57, 91 3 Family Business Advisor newsletter, 49 Family Business Compensation, 61 Family Business Leadership series, 49, 59, 61 2, 73, 87 Family Business magazine, 49 Family Business Values: How to Assure a Legacy of Continuity and Success, 59 family constitution, 74 family council, 73 4 family feuds, 80 1 family history, 58 9, 73 family-in-the-business committee, 39 family meetings, 21, 33, 37, 47, 50, 63, 72 5, 89, 93 Family Meetings: How to Build a Strong Family and a Stronger Business, 73 family relationships, impact of, 35 7, 57, 91 2 family retreats, 59 60, 92 family vacations, 50, 59 favorite child, family business as, 20, 22 financial independence, 14, 39 financial literacy, 72 financial reporting, 68 first generation (G1), See founders firstborn son, 5 8, 65, 84

6 INDEX 101 forming stage of teambuilding, 12 founders (parents) absence of, 29 age, 5 and centralized management, 29 30, 67 controlling style of, 21 2, and decision making, 15 departure of, and hub-and-spoke style, 29 30, 67 and letting go, See letting go and parental approval, 22, 47 and preparing the kids for transition, See founders role in preparing for transition and refusal to let go, 77 8 and retirement, See retirement and spouses, 47 9 and succession, 83 5 sudden death of, 85 6 ten tips for, 34 founders role in preparing for transition, 1 2, and exercises for preparation, 31 5 and exit planning, 38 9 and family relationships, 35 6 and the ideal transition, and personality, and policies and practices, 37 8 and succession priorities, 30 1 ten tips for, 34 four key tasks of the sibling stage, 25 6 From Siblings to Cousins: Prospering in the Third Generation and Beyond, 87 full disclosure, 52, 74 and prenuptials, 52 and sibling team success, 74 G1, See founders G2, See sibling partnerships G3, See cousin generation Gee, S., 38 gifting, 7, 52 3, 63, 74 stock, 7 goals for sibling partnerships, establishing, goals for sibling teams, 26 good memories, 92 growing up with the business, growth, 9 10, 14 16, 26, 37, 44, 58 60, 69, 79 hub-and-spoke management style, 29 30, 67 in-laws, See spouses independent directors, 37, 70 1, 75, 84 inheritance, 52 3, 63, 84 initiative, 25 6 insider-outsider dilemma, 62 3, 82 3 example, 82 tension, 82 3 intimacy, 19 Kennesaw State University, 39 key tasks of the sibling stage, 25 7 kitchen table, 17, 20, 24 knowledge gap, 12, 14, 16 Laird Norton Tyee, 5, 38 9 lawsuits, 80

7 102 INDEX leadership models, 12, 33, 41 structure, 64 6 style, resistance to, 81 legacy, 24, 30, 37, 58 9, 87 8 letting go, 9, 22, 25 6, 55, 68, 77 8 example of difficulty in, 77 8 limited autonomy, 55 7 long-term business success, predictors of, 72 3 long-term strategy, 8, 60, 72, 81 management structure, 29 30, 67 75, 84 and advisors, 71 and board of directors, See board of directors and business governance, 70 1 and independent directors, See independent directors and professionalization, market value of business, 39 marriage, 3, 35, 43 53, 56, 92 See also prenuptial agreements; spouses Mars, 7 mediation, 80 1 mission, establishing, mothers, 23, 64 as Chief Emotional Officer, 64 and saving the family, 23 non-family executives, 12, 26, 58, 68 9, 75, 81, 83, 85, 93 Nordstrom, 7 norming stage of teambuilding, 12 obstacles to sibling partnerships, and differences in generational plans, and family feuds, 80 1 and founder refusal to let go, 77 8 and insider-outsider tension, 82 3 and resistance to leadership style, 81 and sudden death of founders, 85 6 office of the president, 66 parental approval, 22, 47 parents, See founders participation agreement, 61, 74 passion, 19 20, 24, 48 9, 62 3 Pavalko, E. K., 38 performing stage of teambuilding, 12 personal relationships with siblings, 23 6, 93 personality characteristics of founders, 21 2, personality testing, 72 philanthropy, 63, 73 4, 92 planning for the future, challenges in, policies and practices, 17, 26, 31, 34, 37 8, 38, 59 63, 65, 69, 74, 78 9, 86, 87 9, 92 3 and code of conduct, 37, 47, 60 1, 74 communication, 78 9 and compensation, 61 and employment and participation, 61, 74 and exit and redemption, 62

8 INDEX 103 and shareholders agreements, 61 positioning, 26 7 post-nuptial agreement, 51 prenuptial agreements, 34, 42 4, 49, 51 3 and attorneys, 52 fairness of, 52 3 and full disclosure, 52 legality of, 52 3 and voluntary agreement, 53 preparing for transition to sibling partnership, 1 2, and exit planning, 38 9 and family relationships, 35 6 and founders personalities, and the ideal transition, and policies and practices, 37 8 and succession priorities, 30 1 ten tips for, 34 professional advisors, 71 professionalization, 10, 37, 68 71, 89 publicity policy, 62 purpose, shared, See shared purpose redemption and exit policies, 62, 75 religious families, 58 9 resentment, 20, 24, 45 6, 51, 80, 88 respect, 15, 30, 35 6, 46, 50, 57, 60 3, 66, 70, 73, 75, 81, 87, 93 responsibility, 2 3, 8, 25, 32 3, 37 8, 40, 44, 57, 63, 66 8, 83, retirement, 5, 22, 38 9, 61 2, 78 policies, 62 rules, determining, 60 2 example of, 60 Ryan, Richard, 29 second generation (G2), 1 4, 13, 37, 62, 90 See also sibling partnerships secular families, 58 9 self-image, 36 shared history, 58 9, 73 shared purpose, 25, 55 7, 74, 93 important qualities regarding, 57 questions to answer regarding, 56 shareholders agreements, 61 shoptalk, limits on, 49 sibling meetings, 59 60, 69, 82 sibling rivalry, 19, 22 3, 26, 29, 31, 34, 56, 69, 88 sibling spouses, See spouses (in-laws) sibling stage, key tasks of, 25 7 and autonomy, 25 and growth, 26 and initiative, 25 6 sibling, sibling teams, 11 17, 26 7, 74 5 goals for, 26 7 and making decisions, and to-do list for success, 74 5 See also teambuilding/ teamwork Smith brothers example, 88 90

9 104 INDEX spouses (in-laws), 2 3, 14, 34, 36, 43 53, 61, 92 3 and culture shock, 45 6 and employment policies, 61 example of, 43 6 and expectations, 47 and family meetings, 50 and individual relationships, 47, 49 and learning the business, 45, 48 50, 92 and parents role, 47 9 and prenuptial agreements, 51 3 role of, 36 and siblings role, 46 8 suggestions for, and taking sides, 45 6, treatment of, 34, 36, and values, 44 stakeholders, 2, 10 11, 30, 55 6, 68, communication example, 81 stock ownership, and prenuptials, 51 storming stage of teambuilding, 12 strategic planning, 26 7, 39, 70, 72, 79 80, 85 and positioning, 26 substance abuse, 52 succession, 5, 9, 25 6, 30 1, 38, 63, 70, 83 5, 89 90, 97 challenges in, 83 5 example of, 38 questionable, 83 5 priorities for the success of, 30 1 taking initiative in, 25 summer jobs, 20 supporting sibling partnerships, and business governance, 70 1 and family meetings, 72 5 and professional advisors, 71 and professionalizing the business, and skills and knowledge, 71 2 and to-do list for success, 74 5 taking sides, 45 6, 49 50, 93 tax planning, 39 teambuilding/teamwork, 2, 4, 5, 11 17, 26 7, 31 6, 39, 55, 72, 74 5 and embracing differences, exercises for, See teambuilding/teamwork exercises goals for sibling teams, 26 7 preparing children for, 31 6 stages of development in, 12 tasks for developing, 31 6 teambuilding/teamwork exercises, 31 2, 72 family vacation, 32 ropes courses, 72 stock market investment, 31 waterskiing, 32 ten tips for founders, 34

10 INDEX 105 third generation, See cousin generation to-do list for sibling team success, 74 5 transition to sibling partnerships, See sibling partnerships transition to one child CEO, 40 1 triangulation, 35 6 trust, 11, 19, 24, 29, 43, 49, 64 5, 74, 79, 82, 87 8 values, 15, 24, 44, 48, 50, 56 9, 66, 89, 93 example of, 57 8 and spouses, 44 vision, 57 9 Ward, John L., 3 will, 39 women, and family business, 6 youth, and family business, 7