Family Business ConferenceBudapest, 11 September 2008

The Family Business Academy:

Trends and Practices

Dr Panikkos Poutziouris

President , IFERA

color (2)

Agenda

� Why family business focus ?

� The emergence of the family business discipline ; FFI, FBN

� The emergence of IFERA

� The case of the Cy – FBA initiative

� Lessons for Hungary

Why Family Firms under the microscope ?

� 1/3 Euro SMEs – in transition

� 610,000 units

� 2.4m jobs

� 35% - partnership of generations

� Strategic socio-economic imperative:

� Survival and growth ?

� Regulate the role of family in business ?

The axis of

ENTREPRENEURIAL DEVELOPMENT

III GENO -10%

FOUNDER - 60%

II HEIRS - 30%

LOCAL

NATIONAL

GLOBAL

OWNER

OPERATED

MANAGED

MARKET

DEVELOPMENT

BUSINESS

TRANSFERS

BUSINESS

GROWTH

MICRO

95%

LARGE

0.2%

MEDIUM

0.6%

© Dr Panikkos Poutziouris, Manchester Business School , 2001

SMALL

4.2 %

OUTPUT MARKET

� marketing strategy

�consortia- marketing

� exporting

� internationalisation

OWNER

MANAGED

OPERATED

CORPORATE

MANAGEMENT

TEAM

ETHNIC

INPUT MARKET

� Capital Options

� Human Capital

� Technology-INNOVATION

� Outsourcing

CORPORATE

DEVELOPMENT

CORPORATE DEVELOPMENT

� Strategic planning

� OMD vision, Leadership style

� Delegation, Communication

� Professionalisation

� NED, Governance

� Motivation-Incentives

BUSINESS TRANSFERS

� Ownership -Control

� Company valuation

� Exit Routes: Sale, MBO, PLC

� Family Business - Constitution

� Succession Planning

Business Axis

Organizational Behaviour, Steven L. McShane, Canadian 3rd ed. 1998, McGraw-Hill Ryerson Ltd.

Family Axis

Ownership Axis

Maturity

Expansion/ Formalization

Start-Up

SurvivalYoung

Family FirmEntering the

BusinessWorking Together

Passing the Baton

Controlling Owner

Sibling Partnership

Cousin Consortium

Permutations of Trust, Bond,

Unity, Congruence of Goals

The Three

Dimension

Developmental

Model

The Family Business Stakeholders

• 128 family business centres across the globe

• 50 premiere business schools with family business programmes

• Professional Associations ( FFI, CAFÉ, FBA)

• Academic research associations ( IFERA)

• FBOM-global regional groups (FBN-I, GEEF)

• National : Institute for Family Business (UK)…

The chronology of FBA -1970’s

• 1953 : Grant H. Calder completes the first doctoral dissertation on family business studies in North America entitled: Some management problems of the small family controlled manufacturingbusiness, School of Business, Indiana University.

• 1962 Léon and Katy Danco co-found ‘The Center for Family Business’ in Cleveland, Ohio. America's oldest national organization for business owners and their families.

• 1964 Robert Donnelley's article entitled: The family business, published in Harvard Business Review, 42(3).

• 1975: First dedicated family business consulting firm established: Bernhoeft Consultoria in Brazil (Founder: Renato Bernhoeft).

• 1975: Ralph Marotta Chair of Private Enterprise established at Loyola University. While the original purpose was to promote free enterprise education, an interest in family business emerged in 1978.

• 1978 : Streich Chair in Family Business established at Baylor University.

The chronology of FBA – early 80’s

• 1982 : Wharton Family Business Program launched @ Wharton Applied Research Center.

• 1982: John A. Davis completes his dissertation : The influence of life stage on father–son work relationship in family companies. Harvard University. 3-circle model on pages 14–15.

• 1983 Organizational Dynamics publishes a special issue on family business studies (Co-Editors: Richard Beckhard and Warner Burke).

• 1983: Barbara S. Hollander completes her dissertation entitled: Family-Owned Business as a System: A Case Study of Family, Task, and Marketplace. Unpublished document, University of Pittsburgh.

• 1983: Canadian Association of Family Enterprise founded in Canada (a not-for-profit association of family business owners, 15 founding directors).

• 1984 Yale establishes program for the Study of Family Firms.

• 1984: First MBA elective course entitled: Management of the Family Business offered at the University of Southern California.

• 1985 The College of Business, Oregon State University starts the second university-based Family Business Program in the US.

• 1985: First Family Business Research Conference, University of Southern California (Chair: John Davis; 30 attendees; At the end, Barbara Hollander Chairs the FFI meeting).

• 1986 Founding of the Family Firm Institute Inc. (FFI) (Founding President - Barbara Hollander).

• 1986: Kennesaw State University - Family Business Center.• 1987: First Family Business Chair established in Europe at IESE

Business School, University of Navarra, Barcelona.• 1987: Institute for Family Enterprise @ Baylor University.• 1988 : Family Business Review launched (Editor: Ivan Lansberg). • 1988: First FFI research conference hosted by Boston University

(Chair: Marion McCollom Hampton; 40 attendees).• 1988: Carl R. Zwerner endowed professorship in Family Business

established at Georgia State University in US.• 1988: First international education seminar launched at IMD

entitled: Leading the Family Business

The chronology of FBA – late 80’s

• 1990: Founding of the Family Business Network (FBN). 1st FBN World Conference held in Switzerland chaired by FBNs founding President: AJ Thomassen; 50 attendees.

• 1990: Loyola Family Business Center established.• 1992 First FFI Educators Conference @ Northeastern University, Boston.• 1992: IMD Business School in Lausanne, Switzerland establishes family business chair.• 1993: FBN organizes its first research forum at the Annual World Conference, hosted by

Bocconi University, Italy • 1994: Family Business Division established at the USASBE.• 1994: Entrepreneurship Theory & Practice publishes a special issue on family business • 1994: Australian Center for Family Business, Bond University based. First FB Center• 1994: Ibrahim and Ellis publish Family Business Management: Concepts and Practice,

Kendall/Hunt Publishers. First family business text book in English.• 1996: First Family Business concentration in management offered at the Texas Tech

University.• 1997 First National Family Business survey (first large US study using household sample).

25 researchers from 17 institutions involved in this study. • 1997: Family business courses introduced at Graduate and Undergraduate levels in Bond

University, Australia. First FB courses in Australia.• 1999 First Family Business professorship at the University of Jyväskylä, Finland.• 1999: Founding of GEEF, the European Group of Owner Managed and Family Enterprises

dedicated to family business lobbying at European

The chronology of FBA – 1990’s

The chronology of FBA – 2000+• 2000: Poutziouris hosts largest family business research forum, FBN-London 2000 • 2001: International Family Enterprise Research Academy (IFERA ) founded ; (Founding

President: Albert Jan Thomassen). First IFERA conference hosted by INSEAD Fountainbleau• 2001: First Theories of Family Enterprise (ToFE) conference co-hosted in Edmonton by the

Universities of Alberta and Calgary. (Conference co-organizers: Chrisman, Chua, & Steier).• 2003 Journal of Business Venturing publishes two special issues on family business studies

(Co-Editors_18(4) issue - Chrisman, Chua, & Steier; and for 18(5) issue Rogoff and Heck).• 2003: Entrepreneurship Theory & Practice launches a series of special issues on family

business linked to the ToFE Conference (editors: Chrisman, J Chua, & Steier)• 2003: Anderson & Reeb's article entitled: Founding-family ownership and firm performance:

Evidence from S&P500 published in Journal of Finance.• 2003: European Ministers of Economic Affairs and Finance gather in Madrid for special

family business seminar (hosted by Mariano Puig and Fernando Casado, IEF, Spain).• 2004: First family business at the undergraduate level launched at Stetson University. • 2004: First Family Business Casebook Annual published (Eds. Joseph Astrachan, Panikkos

Poutziouris & Khaled Soufani. Published by Kennesaw State University).• 2005 International Masters Programme for Family Business established at the University of

Jyväskylä, Finland and at the EHSAL European University College, Brussels, Belgium.• 2005: First Family Enterprise Research Conference (FERC) hosted by the Austin Family

Business Program, Portland (co-organizers: Green and Sharma; 55 attendees).• 2006 First cross disciplinary undergraduate major in family business studies launched by

University of Alberta's School of Business.• 2009: IFERA redefines its global family business research conference, offering doctoral -

junior faculty consortia ; research discussion groups, policy forum www.ifera2009.org

Family Firms Institute (1986)www.ffi.org

• “ dedicated to providing interdisciplinary education and networking opportunities for family business advisors, consultants, educators and researchers and to raising public awareness about trends and developments in the family business field”

• 1500 individuals and organizations from across the globe - 65% of the members are in the US, with 35% in other countries throughout the world.

• Approximately 75% of the members are family business or family wealth advisors or consultants; 21% are educators or researchers, and 4% are students.

• annual conference to bring together members• organize regional study groups and workshops so that members could

be involved in “grassroots networking” with their peers and discuss common problems and challenges in the family business arena

• publish a journal, Family Business Review (FBR),

Family Business Networkwww.fbn-i.org

• “ The world’s leading network of business owning families, promoting the success and sustainability of Family Business” “ by families, for families”

• FBN is present in forums where conditions of family businesses are discussed

• FBN supports education and research

• FBN fully understands every day life of family business

• FBN is an international and national voice –via chapters

• FBN engages opinion leaders

• FBN provides objective and solid arguments and insights

• FBN organises World Summit for owner-managers

• Sponsors: Family Business EFMD Case Writing Competition 2008

• Sponsors : IFERA best family business research paper award

• Sponsors : Best PhD research proposal competition award

• www.geef.org• Established in 1997; Groupement Européen des

Enterprises Familiales - European Group of Owner Managed and Family Enterprises)

• To promote a full understanding of the key role of family-owned enterprises in Europe’s economy, to press for policies at both European and Member State levels which will support their well-being over the long term, and to ensure recognition of their contribution to an entrepreneurial culture and to social stability.

• Owner-managed and family businesses provide an estimated two-thirds of Europe’s private-sector jobs

International Family Enterprise

Research Academy

� Founded officially in 2001—the genesis was in 1999at IESE

� Vision: to be the driving force of an international network that

ensures that family business, as a multi-disciplinary field,

becomes a leading field in business research.

� About 100 members

� 35 countries and 6 continents worldwide

� 60% top academics

� 35% doctorate students

� 5% service providers

color (2)

I.F.E.R.A…

• Interface : research + best practice + policy

• Foster links , forward and connected thinking

• Exchange ideas – methods - findings

• Rigorous research –climb the pecking order

• Advance our research agenda and co-operations– academically, theoretically, methodologically, practically

– globally, regionally and locally

color (2)

Who we are…..

� President: Panikkos Poutziouris

Cyprus International Institute of Management, Cyprus

� Vice President: Lloyd Steier

University of Alberta, Canada

� Treasurer: Salvo Tomaselli

Università degli Studi di Palermo, Italy

� Office Manager: Elias Hadjielias

PhD Lancaster University, UK

� 10 International Board Members

� 3 sub-committees

color (2)

IFERA BoardPetrina Faustine

Widyatama University

Indonesia

Roberto FlörenNyenrode Business Universiteit

The Netherlands

Sanjay GoelUniversity of Minnesota Duluth

USA

Gonzalo Gomez-Betancourt

INALDE, Colombia

Ramona Heck

Baruch College, USA

Mattias Nordqvist

Jönköping International

Business School, Sweden

Daniela MontemerloSDA Bocconi, Bocconi University

Italy

Pramodita SharmaWilfrid Laurier University

Canada

Kosmas SmyrniosRMIT University

Australia

Josep TàpiesIESE, University of Navarra

Spain

color (2)

IFERA FellowsCraig Aronoff

USA

Joe Astrachan

USA

Christine Blondel

France

Kristin Cappuyns

Spain

Guido Corbetta

Italy

John Davis

USA

Rik Donckels

Belgium

Miguel Gallo

Spain

Frank Hoy

USA

Manfred Kets de Vries

France

Matti Koiranen

Finland

Alden Lank

USA

Sabine Klein

Germany

Leif Melin

Sweden

Ken Moores

Australia

Barbara Murray

Spain

Guillermo Perkins

Argentina

Albert-Jan Thomassen

The Netherlands

Alvaro VilasecaUruguay

John Ward

USA

Shaker Zahra

USA

color (2)

IFERA Advisory Council

Jesus Cassado

Executive Director

GEEF

Jess Chua

Associate Editor

ETP Journal

Judy Green

Executive Director

FFI

Frank Hoy

FERC

Olivier de Richoufftz

Executive Director

FBN

plus others ...

EIASM

EU

ICSB

color (2)

Key Initiatives

� Global annual research conferences and workshops

� National and Regional meetings and events (IFERA @ Italy in 2007)

� Activities at other international conferences (IFERA @ The

Academy of Management)

� IFERA Board Members’ collaboration with academic journal

special issues (FBR, EJFBS, JBV, ETP, JBR, JMS, JEBR, JSBM, JMO, ERD)

� Special cooperations on research events, projects and

publications

� Quality research guidelines

� www.ifera.org

� Newsletters reaching a database of 600 researchers

color (2)

� Family Business Network (FBN) International

� World Academic Research Forum @ FBN Conferences (2000-2005)

� Production and editing of Research Forum proceedings

� Mutual promotion and support of research projects

� Family Firm Institute (FFI) London 2001 , Conference-research forum

� FFI London 2008 Conference, research & edu day

� Elgar Publishing – The Handbook of Research on Family Business

� Family Business Case Book Annual in 2004 and 2005

The Latest:

� Input into Gallupe Family Business Barometer (FBN-I initiative)

� FBN sponsored EFMD Family Business Case Writing Competition

� European Commission – DG Enterprise Family Business Experts Group

� IFERA PhD Research Proposal Competition (sponsored by FBN-I)

International Collaborations

color (2)

� 1999 – First IFERA meeting, Foundation @ IESE, Barcelona, Spain

� 2000 – Second IFERA meeting @ Free University, Amsterdam

� 2000 – London, England: Research Forum @ FBN

� 2001 – INSEAD, France: 1st IFERA Spring Conference

� 2001 – Rome, Italy: Research Forum @ FBN

� 2002 – Trier, Germany: 2nd IFERA Spring Conference

� 2002 – Helsinki, Finland: Research Forum @ FBN

� 2003 – Bocconi, Italy: 3rd IFERA Spring Conference

� 2003 – Lausanne, Switzerland: Research Forum @ FBN

� 2004 – Jönköping, Sweden: 4th IFERA Spring Conference

� 2004 – Copenhagen, Denmark: Research Forum @ FBN

� 2005 – IESE, Spain: 5th IFERA Spring Conference

� 2005 – Brussels, Belgium: Research Forum @ FBN

� 2006 – Jyväskylä, Finland: 6th IFERA Spring Conference

� 2007 – European Business School, Germany: 7th Conference

� 2008 – Nyenrode University, Netherlands, 8th Conference,

Global Annual Research Conferences

IFERA Cyprus 2009, June 24-27Grand Resort –Hawaii HotelAmathus – City of Limassol

www.ifera2009.org

color (2)

IFERA CYPRUS 2009

� 9th Annual IFERA Conference, 24-27 June, 2009

� Global Perspectives on Family Business

Developments : Theory-Practise-Policy

� Day 1: 24 June : Doctoral Junior Faculty Consortia

� Day 2 : 25th June :Work-in-progress forum

� Day 3: 26th June : Competitive full papers

� Day 4 : 27th June : Policy Forum

� Plus cultural tour, cruise !!!

IFERA 2009 CyprusGlobal Perspectives on Family Business Developments : Theory-Practise-Policy

� 4th Day : 27th of June : The Family Business –Policy Day

� Participation: FBN , FFI, GEEF, EU, STEP etc...

� Macro, Micro and Enterprise Level

� Funding Schemes to close Equity Gap

� Family Business Transfer Agenda

� Taxation

� HRD and training, edu programmes

� The emerging economies

The CIIM –Forum

� Entrepreneurial Initiative – MBA electives for owner-managed business and u: Venture Capital,

Managing SMEs, Starting Up a Business,

– UNDP – AYEC Business Plan Competition, Young Managers -- STAB

– Family Business Forum in co-op with other regional academic & family business forums –the FBA label

� Family Business Academy – Executive Development Programmes: Family Business Continuity and

Succession Planning – 2 day (HRDA, UNDP)

– Family Business Academy – 5 day open exchange for heirs

– In F-i-B training , consulting , coaching for parallel strategic planning

� Outreach, conferences, lecture series

� Research projects and case studies

� The IFERA Presidency

Family Business Activities

Nicosia, 9-13 June, 2009

Research-Publications

The UK Family Business IndexPoutziouris (2005-06)

30.00%

50.00%

70.00%

90.00%

110.00%

130.00%

150.00%

170.00%

01/1

0/99

01/0

1/00

01/0

4/00

01/0

7/00

01/1

0/00

01/0

1/01

01/0

4/01

01/0

7/01

01/1

0/01

01/0

1/02

01/0

4/02

01/0

7/02

01/1

0/02

01/0

1/03

01/0

4/03

01/0

7/03

01/1

0/03

01/0

1/04

01/0

4/04

01/0

7/04

01/1

0/04

01/0

1/05

01/0

4/05

01/0

7/05

01/1

0/05

FB 30

FB AllShare

FTSE 100

FTSE 250

FTSE SmallCap

FTSE All Shares

Action Plan for Hungary

� SEED- University – Sponsors and FBOMs forum

� Family Business Management MBA module

� Lunch-Breakfast briefings

� Directors Forum – symposium with quest speaker

� Workshops on Family Business Dynamics

� Day Conference with Magyar case studies

� Family Business Awards

� Joint Forums with IFB (UK)

� Next Generation Forum – Euro Exchange

� Resource centres, books, video-case studies, e- news

� Research survey , case studies

More Information on the Family Business Forums

Dr Panikkos PoutziourisAssociate Professor in Entrepreneurship-Family Business

Director – Family Business Academy CIIM, Akademias Avenue, P.O. Box 20378 ,

CY-2151 Nicosia , CYPRUSDirect Tel: +357-22-462210 Fax: +357-22-331121

http://www.ciim.ac.cy

poutziouris@ciim.ac.cy