August 1, 2012
The Bucket List
1996 the first FFI Body of Knowledge Committee identified four core
disciplines—later referred to as "the buckets”—as key to understanding
family enterprise advising and consulting.
They are behavioral
science, finance, law, and management science.
In today’s Internet age breaking news and the
"latest” on any particular topic of interest comes to us as fast as we can
refresh our browsers or tap the icons of our cell phone apps. In an effort to
sift through the noise while keeping abreast of the core disciplines, The
Practitioner brings you some of the latest thinking in the "buckets”—some
of which is quite different from what was considered "cutting edge” more
than 25 years ago!
Do birds of a feather really flock
together? A recent study published in Proceedings of the Royal Society B found
that a highly social species of birds who forego breeding are "far more
likely to care for their own close relatives." The research suggests that
there might be a cooperation instinct in order to promote the success of kin
who share DNA. An interesting finding. For our purposes, does (and should)
cooperation really come "naturally" for those in the family?
Read the full story here. The complete research study is available here.
Compensation in the family business
can at times become a source of significant conflict. Pay-for-performance (or
merit pay) models are typically used as incentives for productivity in
organizations of all sizes. But which plans are most effective? The latest
study entitled "How and What You Pay Matters: The Relative Effectiveness
of Merit Pay, Bonuses and Long-Term Incentives on Future Job Performance”
published in Compensation
and Benefits Review "examines how three different forms of
pay-for-performance plans—merit pay, individual-based annual bonuses and
long-term incentive plans—influence employee future performance when they
full article here.
Special thanks to Compensation and Benefits Review for making
this article available in its entirety to FFI Practitioner readers.
Whether or not you knew it, June 13, 2012 was a
game-changing day for businesses around the world (and their attorneys) when
the Internet Corporation for Assigned Names and Numbers released applications
for new top-level domains (allowing businesses to buy domain names such as
.shop or .google). While at first glance this seems rather innocuous, it opens
up a host of trademark and business risks especially for longstanding family
businesses with coveted name recognition. "The next step in the domain
name land grab is for all brand owners, trademark holders, and attorneys to
sift through all the applications to find those that could pose potential
trademark or business risks.”
Read the article here.
approach to management has in recent years become less and less viable."
("Leadership Is a Conversation," Harvard Business Review, June
2012). In this article and their new book Talk, Inc.: How Trusted Leaders Use Conversation to Power
Their Organizations (Harvard Business Review Press, 2012),
Boris Groysberg and Michael Slind present a new form of organizational
communication. Arriving at this new methodology after two years of interviews
with top leaders at over 100 companies including "large and small, blue
chip and start-up, for-profit and nonprofit, U.S. and international." But,
is this really new? Or are we, as practitioners, ahead of the curve—already
employing this methodology with our clients? You decide.
Read the article and listen to the interview online here.
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Yours in Practice,
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