GIFASP 2019 MARINELLI

Family Business From one generation to the next : a fine balance between continuity and transformation Dott.ssa Roberta Marinelli

Families and Businesses are COMPLEX ORGANIZATIONS An organization is an entity comprising multiple people and that has a

particular purpose

and it is driven by a specific set of values and rules

Family members are the executives in their business love

Trust care

Brother hood

Meritocracy Change

Productivity

Competitions trust equality

Effectiveness

Business

30% second generation 12% third generation

4% fourth generation and more

Everything starts with the FOUNDER Including the difficulties that may cause the business to fail 3 important invisible dynamics: The business is essentially an extension of himself , a medium of his personal gratification The company is both the baby and the mistress ( thus those who work for him are instruments in the process of shaping the organization) Rivalry is a profound psychological conflict compounded by feelings of guilt when more than 1 family member is involved Father-Son Rivalry Brother-Brother Rivalry

Most recurrent traps TRAP 1: There is ALWAYS a Place for you here: making children feel obligated to join the company To escape the trap: insist on proper training and screening.

A job with the company shouldn’t be an entitlement. Family members deserve no special accommodation.

Focus on COMPETENCIES & TALENTS

TRAP 2: The business can’t grow enough to support everyone: Families often grow more quickly than their businesses do.

To escape the trap: Manage family entry and scale for growth. Families that have avoided trap 1 by ensuring that only committed qualified relatives are allowed to join the company have already reduced trap 2 Focus on building a GOOD GOVERNANCE that separate the FAMILY interest and the business needs

TRAP 3: Family members remain in silos according to Bloodline. Huge tendency of fathers and sons to specialize in the same aspect of the business. So next generation managers fail to gain the cross functional expertise needed for executive leadership.

Second when close family members supervise one another, the personal dynamic may prevent candid feedback and coaching.

To escape this trap: Along with including non family managers also Appoint non family mentors Focus on building a Diverse & Inclusive Leadership

Competencies and Behaviors Experiences we generate for our customers and our employees

GOOD GOVERNANCE PRACTICES THAT SEPARATE THE FAMILY AND THE BUSINESS

How we create VALUE

Diversity & Inclusion Foster Innovation and lead to Business Results

Six behavior indicators of inclusive leaders ensuring that team members speak up and are heard; making it safe to propose novel ideas; empowering team members to make decisions; taking advice and implementing feedback; giving actionable feedback; and sharing credit for team success

Family Gravity CULTURE & PURPOSE

Continuity & Transformation

Operative systemic tools

Take what you find here and make it better and better Colonel Eli Lilly