ENTR 6300 FWTP Chapter 10 Role Clarity

ENTR 6300:

ENTR 6300 Chapter 10 Role Clarity and Development

Role Development:

Role Development FAMILY Emotional Support Security Fun Inward Focus BUSINESS Tangible Outcomes Task Oriented Productivity Outward Focused Ownership Creates The Plan Vision Future Growth Wealth Stewardship Overlap What is a Role? A position in the subsystem to successfully carry out a particular function in the subsystem We will look at Hernandez Family in 3 Ring Model to see who may fit future roles. But first…

Role Development:

Role Development Has long term implications Generally a fun area for the family to be involved Goal is directing wealth toward development of Human Capital Provide details of what to do Provides education, training, practice

Role Development:

Role Development Who fills role upon retirement from person having this role? How will this role be filled? Is it still necessary and consider abandonment? Is it relevant? Can single role be segmented over multiple individuals? How will family members practice new roles? Collaborative Roles of Management Oversight Stewardship ***

Role Development:

Role Development Function or purpose What is the job? Accomplishment? Define Success? Metrics and outcomes? Tasks for Function & Purpose How will individual how the job should be done? Define how role connects with other roles Who does person work for? Work with? Communications protocols… Internal… External

Role Development:

Role Development FAMILY Emotional Support Security Fun Inward Focus BUSINESS Tangible Outcomes Task Oriented Productivity Outward Focused Ownership Creates The Plan Vision Future Growth Wealth Stewardship Overlap Role – Whom – Why – Capacity – Constraints Functions Tasks How to do job Role connections with others

Role Development – Case pg 236, 237:

Role Development – Case pg 236, 237 Bart’s Roles Explicit Implicit Articulate the role differentiation Articulate the role confusion

Governance Systems:

Governance Systems The rules of the road on How to build wealth Allocation of benefits For family and non family Governance makes possible Family Wealth Continuity (started semester with this) Good Stewardship Healthy Family Relations Family Legacy

Governance Systems:

Governance Systems Management Role Closely tied to operations of the company Titles such as CEO, President, Exec VP, etc. Must deal effectively with members in Oversight roles (boards) What business skills? The generational exponential problem: As family grows, there may be less positions available vs. family to fill them What may be the selection process?

Governance Systems:

Governance Systems Oversight Role Ask Right Questions Right Ways Right Time Getting right information and acting on it appropriately Not involved with operations or at least regularly Keeping business on track (following strategy) Allocating wealth Family and non family Investment for growth Steward for next generation

Governance Systems:

Governance Systems Oversight Role Skills How to make decisions Face conflict openly and productively Understand KPI’s. Example of KPI? Understand financial statements Understand strategic planning and positively add to that process Recognize stakeholders Stay out of the way

Structures that fit:

Structures that fit Transferor Value diminished What will I do with my time? Loss. Giving up the “baby”. No one can take care of this better than I Insufficient cash flow to end of life Transaction not hand

Can we create comprehensive Role plan:

Can we create comprehensive Role plan

Empowerment :

Empowerment Empowerment includes the following, or similar, capabilities:- The ability to make decisions about circumstances The ability to access information and resources for decision-making Ability to consider a range of options from which to choose (not just yes/no, either/or.) Able to be assertive in collective decision making Positive-thinking about the ability to make change Ability to learn and access skills for improving personal/collective circumstance. Self initiated continuous growth process Positive self-image and overcoming stigma Ability in discreet thinking to sort out right and wrong

Empowerment :

Empowerment Empowerment in summary Gain the knowledge… Skill-sets and attitude… To manage changes and circumstances personally or in business

ENTR 6300:

ENTR 6300 Chapter 10 Role Clarity and Development