To Professor Christen Enos & Classmates

From: Brian Jacobus

Subject: Unit 2 Topic Memo
Topic
For Unit 3, I will continue to discuss the importance of leadership and management,
specifically within the context of succession issues in family business environments. It
is important for family-held and/or family-operated businesses to understand that in
order for survival in future generations, there needs to be an active desire from both
family members and non-family members to manage issues concerning both business
and family dynamics. I will look specifically at succession planning and how effective
strategic planning as well as strong leadership can significantly increase the chances
of family business success.
Genre & Audience
I am going to write a detailed report on the importance of effective leadership on
succession planning, restructuring of power, formulation of a family identity, and
strategic planning. These factors will ultimately determine the success or failure of a
family business. The audience of the report will be family business executives
(including C-suite executives and board members) as well as family-business
consultants who serve as advisors to family business executives. Addressed to
executives, I plan to publish the report on Family Business Magazine, and distribute
hard copies of the report to family business centers in the US and around the world
for maximum exposure. The report will also be available to purchase online, which
will give executives and consultants easy access to it from anywhere in the world.
Purpose
The purpose of my report will be to educate family firm leaders as well as family
business experts/consultants on how leadership and managerial education is vital to
the success of family businesses. The argument that I am making is that effective
management and allocating resources to improve leadership and management
functions is not only important to large multinational corporations, but equally if not
more important to family businesses.
Motive
The problem with many family business executives is the gap between the knowledge
regarding leadership management and best practices and the actual implementation
of these practices. Family business executives know that leadership is important, but
the problem is implementing and consciously taking steps to improve these functions
within the business. I hope with my report, more executives will not only learn more
about leadership best practices, but also implement my recommendations directly to
the family business.

Tentative Outline
1. Introduction: What is a family firm and what constitutes as family firm
identity?
2. Body
a. How can can family aspect help drive business growth and affect
leadership/management styles?
b. What are some issues with succession in family businesses and what is
the role of leadership before, during, and after the transition period?
i. Siblings and succession
ii. Power transference
iii.Stakeholder respect and approval
iv. Transition process management
c. Looking at two dimensional planning of family and business goals (Jaffe,
2005, p.50)
i. Council of family members: to deal with the business of the family
and alignment of business with family plans
ii. Board of directors: needs of the business and business realities
d. In what ways do strong leadership help drive family business growth and
family business identity?
3. Conclusion: Summary of important points in leadership conversation and
overview of future managerial challenges in family business sphere
Current sources
Miller, W. D. (1998). Siblings and succession in the family business.Harvard Business
Review,76, 22-40.
This essay explores the case of a family business that has to choose a successor
after the death of its current president & CEO
The case is then analyzed by four family business experts who give their
opinion on the best successor and how the family business should move forward
under new leadership
This document is particularly useful for me because it explores the different
opinions that exist surrounding one particular family business case. However
the difference in opinion does not come from disagreement; the four analysts
actually give advice that I will use symbiotically to enhance my exploration of
leadership in times of change and succession
Jaffe, D. T. (2005). Strategic planning for the family in business.Journal of Financial
Planning,18(3), 50-56.
This essay provides a two-dimensional planning process that all family
businesses should look to implement. This model consists of the family and the

business as separate but horizontally aligned entities that are separately

managed and conducted
Family will be represented by Council of Family Members, while business
represented by a Board of Directors
I will use Jaffes two-dimensional theory as the backbone of how effective
leadership should be viewed and implemented in a family business. I will also
discuss the dynamics between these two separate identities and how they can
support each other to move the business forward.

Lansberg, I. (2007). The tests of a prince.harvard business review,85(9), 92-101.

This essay posits the theory that successors need to establish credibility and
authority and that stakeholders cannot be taken for granted
It describes the testing/initiation process for new leaders, which is broken
down into four types of tests: qualifying, self-imposed, circumstantial, and
political
Within the results of the four tests of leadership I am going to explore key
traits that is either positive or negative to an individuals leadership
competence
I will look at political tests in depth and argue its high importance in leadership
positions
Eddleston, K. (2011). 15. The family as an internal and external resource of the firm:
the importance of building a family-firm identity.
This essay looks at the family aspect of family businesses and argues that
family firms are unique in that they perform better than others because of the
family element
Two approaches: essence approach (familys influence on business) and
components of involvement approach (emphasizes ownership and control)
Building upon theory of family identity, I will use the ideas in the essay to
provide a framework for leadership identity and how this should be aligned
to the family business identity and business objectives
I will also tie in family identity with leadership identity, and how a specific
leadership identity should be a subset of a broader family identity

Works Cited
Miller, W. D. (1998). Siblings and succession in the family business.Harvard Business
Review,76, 22-40.
Jaffe, D. T. (2005). Strategic planning for the family in business.Journal of Financial
Planning,18(3), 50-56.
Lansberg, I. (2007). The tests of a prince.harvard business review,85(9), 92-101.
Eddleston, K. (2011). 15. The family as an internal and external resource of the firm:
the importance of building a family-firm identity.