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FAMILY BUSINESS ENTERPRISE TEAM OF LECTURERS UNIVERSITAS PELITA HARAPAN 2016

FAMILY BUSINESS ENTERPRISE

TEAM OF LECTURERS UNIVERSITAS PELITA HARAPAN

2016

MEETING 6:

TRUST AND COMMITMENT IN FAMILY BUSINESS

Family Business Enterprise | Universitas Pelita Harapan

TOPICS TO COVER

  • 1. Unhealthy family culture (Poza 2010, 27)

  • 2. Zero Sum Dynamics (Poza 2010, 31-32)

  • 3. Family System Perspective (Poza 2010, 34-37)

  • 4. Family Genograms (Poza 2010, 34-37)

  • 5. Family Emotional Intelligence (Poza 2010, 37-38)

Family Business Enterprise | Universitas Pelita Harapan

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Unhealthy Family Culture

Characterized by:

1. Secrecy

  • 2. Lack of information

  • 3. Low levels of family emotional intelligence

  • 4. Little knowledge of the business among at least some family members

Family Business Enterprise | Universitas Pelita Harapan

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Unhealthy Family Culture

A result of:

  • 1. A founding culture that supported autocratic leadership

  • 2. The family’s belief in benefits of privacy

  • 3. Zero-sum dynamics

Family Business Enterprise | Universitas Pelita Harapan

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Zero-sum dynamics

Zero-sum dynamics are characterized by exchanges in which one party’s perceived gain is the other party’s perceived loss

The absence of growth (and increased wealth and career opportunities) in the family business is fertile ground for zero-sum

dynamics

Family Business Enterprise | Universitas Pelita Harapan

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The Family Systems Perspective

Considers the family to be the building block of emotional life Uses systems thinking to understand the complex interaction between individual members of the family

Family Business Enterprise | Universitas Pelita Harapan

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The Family Systems Perspective

Suggests that change in any family member’s behavior is more likely to be sustainable at the family than at the individual level

Argues that the interdependence that is the source of social/physical/intellectual/emotional rewards in the family also

gives rise to conflicting needs, desires, and priorities as the family grows and ages

Family Business Enterprise | Universitas Pelita Harapan

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The Family Systems Perspective

Argues that while families often look to an individual to blame whenever there is trouble and tensions mount, sharing responsibility for the difficulty and its

remediation is more effective than individual solutions

Argues compellingly for the tremendous influence of an individual’s family of origin

Patterns and processes set in motion from two or three preceding generations still matter

The analysis of earlier generations is essential to understanding what ails or distresses a family in the present

Family Business Enterprise | Universitas Pelita Harapan

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Family Genograms

A genogram, a cousin of the traditional family tree, informs us not just of family names, relationships, ages, and lineal descendants, but also captures

critical events (e.g. divorce), the waulity of relationships (e.g. highly conflictual or extremely close), and important messages transmitted across generations (e.g. education and hard work are both important).

To construct a genogram of your own family, follow the genogram template in figure 2.1 (page 35).

Family Business Enterprise | Universitas Pelita Harapan

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Family Genograms

4 Family Genograms Family Business Enterprise | Universitas Pelita Harapan

Family Business Enterprise | Universitas Pelita Harapan

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Family Genograms

Some cautionary statements to keep in mind:

  • 1. Doing the research for a genogram may entail sensitive conversations with some members of your family.

  • 2. After creating your genogram you should equally careful about whom you discuss it with and under what conditions or principles of confidentiality.

  • 3. Different people may have different information and different perceptions about what the genogram says and means. Be receptive to differences, and encourage open discussion of them.

Family Business Enterprise | Universitas Pelita Harapan

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Family Emotional Intelligence

Refers to the capacity to recognize our own feelings and those of others and the ability to manage our emotions and relationships with others.

Ultimately, emotional intelligence seeks to increase the ability to handle feelings with skill and harmony even in the face of differences between family members, so

that better decisions can be made and teamwork and family unity can thrive Emotional competence inventories with their 360-degree feedback process can be particularly helpful to next-generation members of a family in business

Family Business Enterprise | Universitas Pelita Harapan

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5

Family Emotional Intelligence

Refers to the capacity to recognize our own feelings and those of others and the ability to manage our emotions and relationships with others.

Ultimately, emotional intelligence seeks to increase the ability to handle feelings with skill and harmony even in the face of differences between

family members, so that better decisions can be made and teamwork and family unity can thrive

Family Business Enterprise | Universitas Pelita Harapan

5
5

Family Emotional Intelligence

Emotional competence inventories with their 360-degree feedback process can be particularly helpful to next-generation members of a

family in business

Family Business Enterprise | Universitas Pelita Harapan

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5

Family Emotional Intelligence: the ECI-U Model

Self-Awareness

Emotional self-awareness Accurate self-assessment Self-confidence

Self-Management

Emotional self control

Trustworthiness

Conscientiousness

Adaptability

Optimism

Initiative

Family Business Enterprise | Universitas Pelita Harapan

Social Awareness

Empathy Organizational awareness Service orientation

Relationship Management

Developing others

Inspirational leadership

Influence

Communication

Change catalyst

Achievement orientation

Building bonds

Teamwork and collaboration

The Emotional Competence Inventory

THANK YOU

FAMILY BUSINESS ENTERPRISE | UNIVERSITAS PELITA HARAPAN 2016

THANK YOU FAMILY BUSINESS ENTERPRISE | UNIVERSITAS PELITA HARAPAN 2016
THANK YOU FAMILY BUSINESS ENTERPRISE | UNIVERSITAS PELITA HARAPAN 2016