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Generation to Generation: Life Cycles of the Family Business, by Kelin E. Gersick, John A. Davis, Marion McCollom Hampton, Ivan Lansberg
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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.
- Sales Rank: #479782 in Books
- Published on: 1997-01-01
- Original language: English
- Number of items: 1
- Dimensions: 9.50" h x 1.20" w x 6.44" l, 1.45 pounds
- Binding: Hardcover
- 320 pages
From Booklist
The authors claim that between 65 to 80 percent of all businesses worldwide are family owned or managed, including up to 40 percent of the Fortune 500. Yet most of what we read about family businesses are sensational accounts of blood feuds and internecine battles over money and control. This study takes a more analytical look at what makes family firms different from other corporations; it grew out of the authors' collaboration at the Owner Managed Business Institute, where they worked on an ongoing project for Caterpillar, Inc., that began more than a dozen years ago. Now a multinational conglomerate, Caterpillar began as a family firm, and many of its products are distributed through family-operated dealerships. From that work, the authors developed a model that looked at these businesses from three different aspects: ownership, family, and business. They also identified four classic family-business types and here address the management issues that arise as firms evolve from one type to the next. David Rouse
Review
“Generation to Generation is not only a Rand McNally for family businesses, it is a Fodor’s as well. Participants in family businesses, no matter what their ages, will find this book an invaluable road map and guide.” — Frank Perdue, Poultry Executive
“A seminal book about a topic usually neglected if not ignored—the family owned business—which is what makes Generation to Generation so important and vital. Bringing their rich experiences to bear, along with powerful analytic heft, the authors have written what will be, in a very short time, a classic.” — Warren Bennis, University Professor and Distinguished Professor of Business Administration, University of Southern California, and author of Organizing Genius and On Becoming a Leader
“A family controlled business can be a blessing or a curse. For those of us fated to cope with these issues, Generation to Generation is a long overdue ‘must read.’” — William K. Coors, Chairman of the Board & President, Adolph Coors Company
“Anyone interested in the survival of the family business should read this book carefully. In a very sensible and sensitive way the authors provide a wealth of insight into the generational vicissitudes of this kind of enterprise.” — Manfred F. R. Kets de Vries, Clinical Professor of Management and Leadership, INSEAD
“The authors have zeroed in on the distinctive culture, the unique strengths, and the complexities and challenges of the family controlled business. In practice, this model will help those who run, consult with, or work for family businesses.” — Ralph J. Roberts, Chairman, Comcast Corporation
About the Author
Kelin E. Gersick is a professor of organizational psychology at the California School of Professional Psychology, Los Angeles, and a cofounder and senior partner of Lansberg, Gersick and Associates, a consulting and research firm specializing in family enterprise and philanthropy. John A. Davis is a senior lecturer of business administration at the Harvard Business School and president of the Owner Managed Business Institute, Santa Barbara, an international educational institute for family business specializing in consulting, customized programs, and presentations. Marion McCollom Hampton is an associate professor of management at Boston University. Ivan Lansberg is a cofounder and senior partner of Lansberg, Gersick and Associates.
Most helpful customer reviews
0 of 1 people found the following review helpful.
The most AUTHORITATIVE work on family firms
By Hubert Shea
This book is the most authoritative work on family firms.Part I of the book applies the three-circle model to the characterization of different predictable development stages of family firms in different dimensions. For instance, the family dimension consists of four development stages including young business family, entering the business, working together, and passing the baton.. The ownership dimension consists of three development stages including controlling ownership, sibling partnership, and cousin consortium. Besides, the business dimension covers three development stages, ranging from start-up, expansion/formalization, to maturity.
Part II covers four cases of classic family business types and each family business type has unique organizational characteristics and different mounting challenges. The founder-run family firm has a paucity of talents and the competencies of the founder can influence whether family firms can be successful or not. The organizational structure is in a hub and spokes format because the family firm founder tends to involve himself with every business aspect. In the growing and evolving family business type, there are more family members who are connected to the family firm and common challenges in this stage of family firm development include consolidation of ownership control in the sibling generation, ownership distribution planning for family members in the next generation, business and organizational restructuring to initiate and sustain growth. The complex family firm is a multigenerational and cousin-owned family firm. According to Gersick, Davis, Hampton, and Lansberg, not more than 5% of family firms in the US reach this development stage and comparing with the founder-run and the growing and evolving family business types, family firm in this development stage has considerable complexity in terms of ownership, family, and business. The key to effective management of family shareholder issues is to establish a well-designed board of directors and family council. Since emotion residue of cousin-owned family firm is died down, there are more and more internal struggles over recognition, power, and money among family members. As the cousin-run family firm has reached its maturity in business development, it has to be more responsive, innovative, and disciplined in leadership and business development. In the fourth classic business type of family firms, succession becomes an important journey and the tradition of primogeniture and equal distribution of assets among family members is still a common succession form. The formulation of a shared dream among family members can provide key foundation for the survival and growth of family firms after post-succession.
Part III of the book covers two key topics pertinent to best practices of family firms and family firm consultation. Gersick, Davis, Hampton, and Lansberg suggest that a well-designed board of directors, shareholders meeting and family council become effective information-sharing routines and governance structures when more and more family members are connected to ownership and business development of the firm. Skilled consultants in general management, financial planning, law, insurance, estate planning, and family therapy can be hired when family firm owners are need of professional advice. The last chapter also provides basic principles for family firm consultants to undertake consulting work with family firms.
This book helps readers to have a full understanding of the salient features of family firms. Like other non-family firms, family firms have heterogeneous cultural types, ownership forms, governance structures, business development strategies in different development stages. The three-circle development model is a very useful analytic tool to shield light on why some family firms can survive and grow whereas others cannot last for years. This book is highly recommended to family entrepreneurs who intend to sail along their family businesses from generation to generation and to business executives from non-family firms and professional consultants who have to undertake business with family firms.
4 of 4 people found the following review helpful.
A 'must-read' for the whole family !!
By Murat Saracoglu
"Generation to Generation", published by Harvard Business School Press, is an attempt to model how family businesses work in essence. The authors' research include interesting vignettes and 'lessons-learned' from a variety of families; how they achieved their goals, how they resolved conflicts between family members etc. Since the topic of family business in academics is fairly new, this book can be considered as one of the best in its field.
Important topics (such as succession, development stages and inter & intragenerational issues) are covered in detail to enlighten the reader. Contrasting viewpoints are also included to make the reader think for his or herself.
In general, the book is fairly easy to read since it explains the modeling theory with examples from numerous enterprises.
I strongly recommend it all who are destined to work in the complex system called family business.
1 of 1 people found the following review helpful.
Family Business Types, Managing, Growing and Governance
By Fariz
A very well methodical approach on issues relating to governance of a family business which invariably covers multi-dimensional issues of emotions, tradition, moving forward and competing interests. Short of meeting John Davis himself, this is a good guide for a 'family' business. John Davis with his experience over more than 30 years consulting family businesses world wide crystalises some hard issues family enterprise deals with. It covers Dimensional development model of Ownership, Family and Business as well as the 4 Classic Family Business Types right through to Managing the developing a family business. It can be a good guide not only to family businesses but also those who work closely with or for family businesses such as consultants and key employees.
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