Laurea Magistrale in Economia dei Mercati e degli Intermediari Finanziari

Aggiornato A.A. 2021-2022

<p align="center">
    <strong> </strong>
</p>
<p align="center">
    <strong>FAMILY BUSINESS</strong>
</p>
<p align="center">
    <strong> </strong>
</p>
<p align="center">
    <strong>(Prof. Luca Gnan)</strong>
</p>
<p>
    <strong> </strong>
</p>
<p>
    <strong> </strong>
</p>
<p>
    <strong><u>Teaching Staff responsible for the course:</u></strong>
</p>
<p>
    Prof. Luca Gnan
</p>
<p>
    E-mail: <a href="mailto:luca.gnan@uniroma2.it">luca.gnan@uniroma2.it</a>
</p>
<p>
    Availability: Contact via e-mail
</p>
<p>
    Prof.ssa Giulia Flamini
</p>
<p>
E-mail:    <a href="mailto:giulia.flamini@uniroma2.it">giulia.flamini@uniroma2.it</a>
</p>
<p>
    Availability: Contact via e-mail
</p>
<p>
    We are committed to making this course a valuable learning experience for
    you. After the first month, we will spend part of a class session
    evaluating our progress, and we will make any necessary changes to keep us
    on track. However, we welcome your feedback at any time in the semester. It
    is easiest to reach us by e-mail or during office hours, but we are always
    happy to set up an appointment. Additionally, if you have a disability that
    requires unique accommodation, please let us know ASAP so that we can be
    helpful to you.
</p>
<p>
    <strong>E-mails, Office Hours &amp; Feedback on Assignments</strong>
</p>
<p>
    We endeavor to answer e-mails within one day. If you have not heard from us
    within that time, please resend the e-mail. Grades &amp; comments will be
    posted online in the materials section of the course website. We will be
    happy to give feedback and discuss assignments after all grading is
    complete for a specific task. Office hours are scheduled by e-mail request.
</p>
<p>
    We may answer questions of assignment clarification in class and via
    e-mails to benefit the entire class. We may also give extra grades (see
    below Team Project) during the course that, while generally designed to
    support learning in the course, will also help your participation grade.
    These are pass/fail and do not include comments.
</p>
<p>
    <strong><u>Pre-requisites for the Course:</u></strong>
</p>
<p>
    None
</p>
<p>
    <strong><u>Course Description and Learning Objectives</u></strong>
</p>
<p>
    Family businesses show distinct core competencies that can result in unique
    competitive advantages. They take a long-run view of the business—across
    generations, rather than publicly traded quarterly reports. Their capital
    can be very patient. Owners will sacrifice their salaries to make payroll.
    They are an integral part of their communities, unlike publicly traded
    counterparts that might abandon a community at the blink of a budget. They
    can engender a great deal of loyalty on the part of employees, and the
    existence of family may reduce agency problems.
</p>
<p>
    Family Businesses also face challenges that threaten their continuity. The
    challenges are primarily the result of issues presented by the interaction
    of family, management, and ownership—particularly where the family wishes
    to perpetuate its influence and/or control from generation to generation.
    Family firms seem to be as agile in one generation as they are fragile
    across generations.
</p>
<p>
    Family businesses start with an owner-managed first generation (usually an
    entrepreneur). The next generation—G2—is the sibling generation, and G3 is
    the cousin era. The probability of passing the company to the next
    generation diminishes significantly, with fewer than half making it to G2
    and only about less than 15% making it to G3. So, despite the benefits of
    family, there can be some significant issues.
</p>
<p>
    The course explores and analyzes the continuity challenges of a family
    business and its best management practices. This course focuses on
    pragmatic, action-oriented management, governance, finance, and
    family/business leadership skills.
</p>
<p>
    Attention is devoted to evaluating family firms and their growth options to
    provide a roadmap for analyzing how family ownership, control, and
    management affect performances and how family firms can create and ensure
    more value through generations.
</p>
<p>
    The course presents seven different sections:
</p>
<p>
    · SECTION 1: Family firms: prevalence and relevance
</p>
<p>
    · SECTION 2: Governance in the family firm
</p>
<p>
    · SECTION 3: Strategic management in the family firm
</p>
<p>
    · SECTION 4: Succession in the family firm
</p>
<p>
    · SECTION 5: Change and transgenerational value creation
</p>
<p>
    · SECTION 6: Interpersonal relationships and conflict in the family firm
</p>
<p>
    · SECTION 7: Financial management in the family firm
</p>
<p>
    The course addresses the governance, management, and finance of established
    family businesses. It examines succession, values, life cycles, business
    and marketing strategies, conflict resolution, communications, legal, and
    financial aspects, estate planning, management, philanthropy, and other
    topics that uniquely touch family business governance, management, and
    finance. It will convey the characteristics that differentiate family
    businesses from other businesses.
</p>
<p>
    One of the features, which make this course unique and particularly modern,
    is a part of Section 7: Financial management in the family firm dedicated
    to the mysterious and fascinating world of the family office. This is the
    little-known but key professional practice of advising entire
    families-in-business, frequently large, diversified, and with wide
    ramifications, about the complete spectrum of activities necessary to
    ensure that wealth is created, preserved, transmitted, and spread across
    the enlarged family community. These services range from asset allocation
    to risk management, education, efficient tax structuring, corporate
    finance, corporate governance, intra-, and inter-generational transmission,
    philanthropy, etc. Given the enormous amount of wealth and power concerned,
    this phenomenon is increasingly important and starts to attract some focus,
    particularly on the best graduate students and professional talents.
</p>
<p>
    Upon completion of this course, students should understand:
</p>
<ol start="1" type="1">
    <li>
        The unique assets and vulnerabilities of family enterprises.
    </li>
    <li>
        The role of the CEO in governance, management, and the transfer of
        power.
    </li>
    <li>
        The relationship between the role of the board, the family council, and
        top management in providing effective governance for family business
        continuity.
    </li>
    <li>
        Key family dynamics.
    </li>
    <li>
        The relevance for families to manage collectively wealth created in
        professional ways,
    </li>
</ol>
<p>
    and be able to:
</p>
<ol start="1" type="1">
    <li>
        Identify the various stakeholders and the role of trust among family
        members and their impact on succession and continuity.
    </li>
    <li>
        Discuss the developmental needs and challenges of next-generation
        leaders.
    </li>
    <li>
        Analyze the effect of estate taxes on ownership transfer across
        generations of family business owners and the implications of ownership
        structures on the competitive advantages of family businesses.
    </li>
    <li>
        Explain the importance of strategic planning to family business
        continuity.
    </li>
    <li>
        Explore the critical role and challenges that nonfamily managers play
        in family-owned operations.
    </li>
    <li>
        Analyze the impact of family culture, communication, conflict, and
        unity and explore their interaction effects on the family business.
    </li>
    <li>
        Assess whether they want to seek employment in family businesses as key
        employees/managers or in a professional advisory role.
    </li>
</ol>
<p>
    <strong><u>Teaching methods</u></strong>
</p>
<p>
    Lessons will be characterized by the transfer of knowledge and the strong
    interaction within the classroom; there are analyses of situations,
    problems, and business cases to facilitate participants in learning.
</p>
<p>
    <strong>
        Regular attending students are strongly recommended to participate in
        all the lectures, preparations, and presentations of the business
        cases.
    </strong>
</p>
<p>
    This course uses readings, lectures, exercises, cases, individual and team
    assignments, and class discussions to meet its goals. Case assignments
    provide an important foundation for class discussion and must be completed
    before each class session. The due dates for all cases and other
    assignments are listed in the class schedule at the end of the syllabus.
    Lectures will highlight key points from the readings and provide additional
    information to supplement the readings. Cases will allow you to apply what
    you have learned to real-world issues and scenarios. Because each of you
    brings unique perspectives and experiences to the class, participation in
    class discussions and activities is essential to your learning and that of
    other class members. To further enrich your learning, you will also be
    matched with an MScBA Teaching Assistant.
</p>
<p>
    <strong><u>Textbook</u></strong>
</p>
<p>
    Zellweger, T. Managing the Family Business: Theory and Practice, Edward
    Elgar Publishing, 2017: ISBN: 9781783470709
</p>
<p>
    <strong><u>Cases</u></strong>
</p>
<p>
    During the course, we will discuss 10 cases:
</p>
<p>
    1. More than a move to Mexico (Chapter 4: Zellweger, pages: 43-45)
</p>
<p>
    2. Beretti Holdings—More than a retirement decision (Chapter 5: Zellweger,
    pages: 109-112)
</p>
<p>
    3. Henkel’s Genthin plant (Chapter 6: Zellweger, page: 125)
</p>
<p>
    4. Branding and CSR at HiPP (Chapter 6: Zellweger, pages: 165-166)
</p>
<p>
    5. Managing paradoxes (Chapter 6: Zellweger, pages: 193-194)
</p>
<p>
    6. Bernet's choice—Valuation, emotional value, family discount and fair
    distribution of assets within the family (Chapter 7: Zellweger, pages:
    306-307)
</p>
<p>
    7. Transgenerational value creation at Ahlstrom (Finland) (Chapter 8:
    Zellweger, pages: 361-363)
</p>
<p>
    8. Conflict in the Solomon family (Chapter 10: Zellweger, pages: 488-491)
</p>
<p>
    9. Tom's world (Chapter 9: Zellweger, pages: 422-424)
</p>
<p>
    (the following case from Harvard Business School Publishing. You need to
    register to download the cases at the following link: https://hbr.org, then
    download the case at the indicated link)
</p>
<p>
    10. Medco Energi Internasional
</p>
<p>
    <strong><u>Additional References</u></strong>
</p>
<p>
    - Poza, E. J., "Family Business", First Edition. Mason, OH: Thomson
    South-Western, 2004.
</p>
<p>
    - Gnan, L. and Montemerlo, D., (2006), "Family-firm relationship in Italian
    SMEs: ownership and governance issues in a double-fold theoretical
    perspective", in P. Z. Poutziouris P., Smyrnios, K. X., and Klein, S. B.,
    "Handbook of research on family business", Edward Elgar Publishing.
</p>
<p>
    - Zattoni, A., Gnan, L., Huse, M., (2012) , "Does Family Involvement
    Influence Firm Performance? Exploring the Mediating Effects of Board
    Processes and Tasks", Journal Of Management, ISSN: 0149-2063, DOI:
    10.1177/0149206312463936
</p>
<p>
    - Gnan, L. and Songini, L., (2015), "Family involvement and agency cost
    control mechanisms in family small and medium-sized enterprises", Journal
    Of Small Business Management, vol. 53, p. 748-779, ISSN: 0047-2778, DOI:
    10.1111/jsbm.12085
</p>
<p>
    - Gnan, L., Montemerlo, D., Huse, M. (2015), "Governance systems in family
    SMEs: the substitution effects between family councils and corporate
    governance mechanisms", Journal of Small Business Management, p. 1-27,
    ISSN: 1540-627X, DOI: 10.1111/jsbm.12070
</p>
<p>
    - Gnan, L., Montemerlo, D., Schulze, W., Corbetta, G., (2008), “Governance
    Structures in Italian Family SMEs” In: (a cura di): Comacchio A. and
    Pontiggia A., “L'organizzazione fa la differenza”, Roma: Carocci Editore,
    ISBN: 9788843045587
</p>
<p>
    - Gnan, L. and Montemerlo, D., (2007), "Family-firm relationship in Italian
    SMEs: ownership and governance issues in a double-fold theoretical
    perspective" In: "Handbook of research on family business", Elgar, ISBN:
    978-1845424107
</p>
<p>
    - Songini, L., Gnan, L., Morelli, C., Vola, P., (2015), "The why and how of
    managerialization of family businesses: evidences from Italy", Piccola
    Impresa / Small Business, vol 1, DOI: 10.14596/pisb.179, pp 85-117
</p>
<p>
    - Songini, L., Gnan, L., Malmi, T (2013), "The role and impact of
    accounting in family business", Journal of Family Business Strategy, vol.
    4, p. 71-83, ISSN: 1877-8585, DOI: 10.1016/j.jfbs.2013.04.002
</p>
<p>
    - Gnan, L., Songini, L., (2014), "The glass ceiling in SMEs and its impact
    on firm managerialisation: a comparison between family and nonfamily SMEs",
    International Journal of Business Governance And Ethics, vol. 9, ISSN:
    1477-9048
</p>
<p>
    - de Pedys, V. and Antonelli, A,. (2008) "Family office for family
    business", Oxford management Publishing, ISBN 978-1-906728-01-4
</p>
<p>
    - Poutziouris, P., (2001) "Understanding family firms", in (Ed.) Adam, J.,
    Institute of Directors, "The Growing Business Handbook", London: Kogan
    Page, Chapter 6.3: pp. 9-15, 4th edition, ISBN 074943600X
</p>
<p>
    - Levin, R. and Travis, V., (1987), "Small company finance: what the books
    don't say", Harvard Business Review, nov-dec: 87608
</p>
<p>
    - Villalonga, B. and Amit, R., (2005), "How do family ownership, control
    and management affect firm value", Journal of financial economics, 80:
    385-417
</p>
<p>
    - Wilson, R., (2013), "The family office Report", FamilyOfficesGroup.com
</p>
<p>
    - Amit, R. and Perl, R., (2012) "2012 Family Governance Report", Wharton
    Global family Alliance, Wharton School, University of Pennsylvania
</p>
<p>
    - Amit, R. and Lichtenstein, H., (2010), "Benchmarking the Single Family
    Office" Wharton Global Family Alliance, Wharton School, University of
    Pennsylvania
</p>
<p>
    <strong><u>Suggested videos </u></strong>
</p>
<p>
    1. Introductory video: 4 Lessons from the Best Family Businesses
</p>
<p>
    <a
        href="https://hbr.org/video/4660653966001/4-lessons-from-the-best-family-businesses"
    >
        https://hbr.org/video/4660653966001/4-lessons-from-the-best-family-businesses
    </a>
</p>
<p>
    2. Three circle model: importance of governance, setting goals, holistic
    leadership and caring for the interests of the family
</p>
<p>
    <a href="https://www.youtube.com/watch?v=D85pqiL1tNM">
        https://www.youtube.com/watch?v=D85pqiL1tNM
    </a>
</p>
<p>
    3. The unique strengths and weaknesses of family businesses today,
    contrasting it with the humble mom-and-pop store the term usually brings to
    mind
</p>
<p>
    <a href="https://www.youtube.com/watch?v=suL-HkP-2Ts">
        https://www.youtube.com/watch?v=suL-HkP-2Ts
    </a>
</p>
<p>
    4. The topic of Building a Family Business That Lasts and provides viewers
    with four key points to walk away with
</p>
<p>
    <a href="https://www.youtube.com/watch?v=vZ52w3wBP1U">
        https://www.youtube.com/watch?v=vZ52w3wBP1U
    </a>
</p>
<p>
    5. The key attention points and delicacies involved in preparing and
    transferring a business to the next generation
</p>
<p>
    <a href="https://www.youtube.com/watch?v=Io9aWtuSEh4">
        https://www.youtube.com/watch?v=Io9aWtuSEh4
    </a>
</p>
<p>
    6. Family Business Governance: Family Constitution
</p>
<p>
    <a href="https://www.youtube.com/watch?v=i5psd_84euA">
        https://www.youtube.com/watch?v=i5psd_84euA
    </a>
</p>
<p>
    7. Family-owned companies need to be run with emotional, as well as
    professional leadership
</p>
<p>
    <a href="https://www.youtube.com/watch?v=2bYo2Ph48_E">
        https://www.youtube.com/watch?v=2bYo2Ph48_E
    </a>
</p>
<p>
    8. Toward a theory of how some family firms nurture transgenerational
    entrepreneurship
</p>
<p>
    <a href="https://www.youtube.com/watch?v=AzFginXvSrM">
        https://www.youtube.com/watch?v=AzFginXvSrM
    </a>
</p>
<p>
    9. Family Business Longevity
</p>
<p>
    <a href="https://www.youtube.com/watch?v=uoHRNLuoYHM">
        https://www.youtube.com/watch?v=uoHRNLuoYHM
    </a>
</p>
<p>
    10. 5 Ways For Private Equity Firms to Raise Capital From Family Offices
</p>
<p>
    <a href="https://www.youtube.com/watch?v=EX8TnQmOFyc">
        https://www.youtube.com/watch?v=EX8TnQmOFyc
    </a>
</p>
<p>
    11. Address the challenges faced by family businesses
</p>
<p>
    <a href="https://www.youtube.com/watch?v=mItel08kE-Q">
        https://www.youtube.com/watch?v=mItel08kE-Q
    </a>
</p>
<p>
    12. Conflict in the Family Business
</p>
<p>
    <a href="https://www.youtube.com/watch?v=CVILBwkMVxc">
        https://www.youtube.com/watch?v=CVILBwkMVxc
    </a>
</p>
<p>
    13. Stories of Wasteful Conflict in Family Businesses
</p>
<p>
    <a href="https://www.youtube.com/watch?v=elzfKRYw1yA">
        https://www.youtube.com/watch?v=elzfKRYw1yA
    </a>
</p>
<p>
    <strong><u>Case Discussions </u></strong>
</p>
<p>
    Regular attending students are expected to be fully engaged in the entire
    learning process. Regular attending students are expected to:
</p>
<p>
    1) prepare the assigned readings of the cases before each class.
</p>
<p>
    2) prepare as a group work a PowerPoint presentation on the case, based on
    the specific assignment.
</p>
<p>
    3) come to class ready to participate and discuss to enhance the
    individual's learning and the class.
</p>
<p>
    <strong>
        On the website of the course, students find for each case the relative
        assignment. Please carefully read the questions before the session and
        use them for preparing the PowerPoint presentation.
    </strong>
</p>
<p>
    Each student will be involved in the class discussion on the cases and tie
    the assigned reading for the session. The objective is to bring all class
    members into the debate. The cases are designed to integrate the concepts
    from the case into the context of the course.
    <strong>
        The preparation and the discussion of the cases do not exclude the
        study of the theoretical concepts useful for the discussion of the
        cases themselves and the passing of the course exam.
    </strong>
</p>
<p>
    With the cases' discussions in the <strong>CLASSROOM</strong>, each student
    will develop:
</p>
<p>
    1. The ability to set the parameters for the problem (key concepts from the
    case).
</p>
<p>
    2. A depth of knowledge about the case subject (understanding of material,
    excellent response to the observations of others).
</p>
<p>
    3. The ability to tie in the case with other course concepts.
</p>
<p>
    4. The ability to get others involved in the discussion.
</p>
<p>
    To adequately discuss the cases, students do:
</p>
<p>
    · Be prepared with facts and specific quotes from the case.
</p>
<p>
    · Be prepared to comment, ask a question, or develop ideas about the case.
</p>
<p>
    During the discussion, students do:
</p>
<p>
    · Take a position on a question or a point.
</p>
<ul>
    <li>
        Ask clarifying questions.
    </li>
</ul>
<p>
    · Help keep the discussion moving and on track.
</p>
<p>
    · Help draw others into the discussion.
</p>
<p>
    · Integrate theories and content from other cases.
</p>
<p>
    During the discussion, students do not:
</p>
<p>
    · Be unprepared and show your lack of knowledge.
</p>
<ul>
    <li>
        Monopolize the discussion.
    </li>
    <li>
        Make irrelevant comments.
    </li>
</ul>
<p>
    · Be insensitive to other's desire to speak or to their opinions.
</p>
<p>
All the regular attending students are kindly invited to build up    <strong>workgroups (MINIMUM 3 PERSONS – MAXIMUM 5 PERSONS)</strong>. Each
    workgroup should prepare a PowerPoint presentation for each case. Into the
    first slide, the names of the students belonging to the group should be
    reported.
</p>
<p>
    The <strong>structure of the presentation</strong> should follow the
    following outline:
</p>
<ol start="1" type="1">
    <li>
        One or more introductory slides aimed at describing/reporting the
        story, the characters, and all the necessary elements to define the
        context and boundaries of the case clearly.
    </li>
    <li>
        One slide mentioning the questions of the assignment and underlining
        the learning goals of the case.
    </li>
    <li>
        One or more slides reporting the answers to each question of the
        assignment.
    </li>
    <li>
        One or more slides reporting the final remarks on the case.
    </li>
    <li>
        One closing slide about the lessons learned after the group discussion
        of the case.
    </li>
</ol>
<p>
    <strong>How to prepare the PowerPoint presentation of the case?</strong>
</p>
<p>
    <strong> </strong>
</p>
<p>
    <strong>Introduction</strong>
    – short presentation of the case, brief description of the problems and
    situations that should be coped with the discussion.
</p>
<p>
    <strong>Diagnosis</strong>
    – Problem setting of the context and the situation. Description of the
    mains facts and elements connected with the concepts and models of Family
    Business. What went wrong, and which actions/situations, instead, were
    right? Which elements could be considered for the diagnosis?
</p>
<p>
    <strong>Solution</strong>
    – Students should provide a possible answer to questions/problems related
    to the case and a possible and clear indication of how to approach the
    situation and how to solve it. The entire proposal should represent a
    consistent action plan in terms of behaviors and expected results.
</p>
<p>
    <strong>Conclusions</strong>
    – Conclusions should not be longer than 300-500 words and should describe
    how the situation and the problem characterized the case, how Family
    Business schemata might help solve the case, and what the proposed solution
    might generate in terms of organizational consequences.
</p>
<p>
    <strong>Lessons learned</strong>
    – At the end of the presentation elements/suggestions/advice that we
    "take-home" from the case discussion should be identified and reported.
</p>
<p>
    <strong>NOTE: </strong>
    During the case discussion, students should explicitly address the context
    and the different situations with concepts related to Family Business and
    with models and theories of this course.
</p>
<p>
    <strong>Case Discussions' Class Participation</strong>
</p>
<p>
    The best way to learn, especially about FB, is to participate in your
    education actively. In this class, "participation" is defined as quality
    contributions to class discussion and exercises. There are four
    pre-requisites for successful participation:
</p>
<ol start="1" type="1">
    <li>
        <strong>Be here on time and prepared.</strong>
If you are not here, you cannot contribute much to class discussion.        <strong>If you need to miss class for a predictable reason</strong>
        (e.g., job interview, athletic competition),
        <strong>
            please notify us at least 24 hours in advance so that we can make
            arrangements for any in-class exercises and so that you can obtain
            the materials distributed during the class.
        </strong>
        Of course, we realize that in some cases, unforeseeable emergencies
        arise. Although we will not directly penalize you for non-attendance,
        be aware that multiple absences will indirectly hurt you by preventing
        you from participating in class, thereby lowering your participation
        grade. To contribute to class discussion, you must come to class having
        carefully prepared all assignments (i.e., readings, cases, exercises).
    </li>
    <li>
        <strong>Be brave.</strong>
        Everyone in this class is smart, engaging, and has unique life
        experiences to share. You will get the most out of this course if you
        ask questions, voice opinions, and express your thoughts to one
        another. If you feel uncomfortable talking in class, please send me an
        e-mail or set up an appointment to talk with me early in the semester.
        We will do everything we can to accommodate your circumstances, but we
        can only do so if they are brought to our attention.
    </li>
    <li>
        <strong>Be courteous.</strong>
        Successful participation includes treating your classmates respectfully
        and professionally. Listen carefully to the comments and questions that
        your classmates voice. You may learn something new from their
        perspectives, and you will be able to avoid merely repeating something
        that another classmate has said earlier in the discussion. Also, it is
        perfectly acceptable for you to voice disagreement with an opinion
        provided by another student. The open debate often leads to the most
        thoughtful and informative class discussions. However, please express
        your argument in a kind and considerate manner.
    </li>
    <li>
        <strong>Be engaged.</strong>
        This class is "unplugged."
        <strong>
            Once class starts, all electronics (e.g., computers, cell phones,
            tablets, etc.) should be turned off and put away.
        </strong>
        If you need to use a device because of a language or disability issue,
        you need to secure permission at the beginning of the class. The misuse
        of an electronic device (e.g., surfing the web or texting) will
        adversely affect your grade.
    </li>
</ol>
<p>
    <strong>
        To facilitate the visioning of its PowerPoint presentation in the
        classroom, each workgroup should take a personal computer with
        PowerPoint installed and an available VGA connection.
    </strong>
</p>
<p>
    <strong> </strong>
</p>
<p>
    <strong>
        By 8 pm of the day before the case discussion, all regular attending
        students should send to the Course's Instructors, attaching the case
        presentation prepared. ONLY STUDENTS WHO HAD HANDED OVER ALL THE CASE
        PRESENTATIONS WILL BE ADMITTED TO THE 1^st EXAM AFTER THE
        COURSE.
    </strong>
</p>
<p>
    <strong> </strong>
</p>
<p>
    <strong>Policy for Late Assignments</strong>
</p>
<p>
    As in the business world, work must be received on time to receive full
    credit. If you are late on an assignment, your access to the 1^st
    exam after the course will be compromised. You are always welcome to hand
    in an assignment before its due date if you know that you will be busy as
    the due date approaches. If you think that you will not complete an
    assignment by the stated due date, please speak with us in advance to make
    alternative arrangements. Our policy on late assignments will depend on the
    specific circumstances surrounding the problem and thus may differ from
    student to student. Providing advance notice about a late assignment will
    minimize the penalty you receive on that assignment but does not guarantee
    that there will be no penalty for turning the assignment in late.
</p>
<p>
    <strong><u>Other learning sources</u></strong>
</p>
<p>
    Slides and other materials will be available on the course website.
</p>
<p>
    <strong>
        THE SLIDES DO NOT REPRESENT A SUPPORT FOR AN EFFECTIVE AND SUCCESSFUL
        PREPARATION FOR THE EXAM OF THE COURSE. THEY REPRESENT ONLY A HELP TO
        FACILITATE THE TRANSFER OF THE KNOWLEDGE TO STUDENTS DURING THE
        LECTURES.
    </strong>
</p>
<p>
    <strong><u>Attendance</u></strong>
</p>
<p>
    Because of the concentrated nature of the MScBA program, attendance in
    class is crucial.
</p>
<p>
    <strong>
        Not regular attending students will be required to prepare for the exam
    </strong>
    <strong><u>ALL</u></strong>
    <strong>
        the chapters of the textbook Zellweger, T. Managing the Family
        Business: Theory and Practice, Edward Elgar Publishing, 2017: ISBN:
        9781783470709 and <u>ALL</u> the cases discussed in the classroom.
    </strong>
</p>
<p>
    <strong>NOTE: </strong>
    Attendance to the first class session is mandatory. Important information
    about the course and the instructor's expectations are given during the
    first session. If you know that you will have to be absent for one session,
    please contact your instructor to ensure that absence from a session is
    acceptable.
</p>
<p>
    <strong><u>Exam</u></strong>
</p>
<p>
    The 1^st exam after the course is a written exam (the 1st), while
    all the other exams will be oral.
</p>
<p>
    In the case of a written exam, the duration is about 3-4 hours, and it
    includes:
</p>
<p>
    a) <strong>Case discussion</strong> - You may be given a case study to
    which some questions may pertain to lead the discussion. As you respond to
    the questions, please use specific content and theories (use names to
    identify theories and models) as the basis of your analysis. You will not
    receive credit for your personal opinions unless backed by theory, lecture,
    and/or text material. Also, describe how you see the content/theory
    applying to the situation. Your answers will be evaluated based upon both
    quantity and quality. Answers that are more complete and demonstrate a
    higher level of understanding and analysis will receive more points.
</p>
<p>
b)    <strong>Some questions directly connected to the course textbook</strong> –
    The questions could be open, closed (multiple choice), or a combination of
    both. You may be asked to discuss the models and the theories presented
    during the course. You will be asked to interpret some real incidents and
    focus your attention on specific theoretical issues.
</p>
<p>
    <strong>
        <u>
            1^st exam after the course participation and exam grades
            registering on the booklet
        </u>
    </strong>
</p>
<p>
    <strong><u> </u></strong>
</p>
<p>
    <strong>
        Only regular attending students that have delivered the hard copies of
        ALL the cases to the Instructors can take the 1^st exam after
        the course with a format explicitly dedicated to them.
    </strong>
</p>
<p>
    <strong> </strong>
</p>
<p>
    <strong>
        Only regular registered students on the DELPHI System will be allowed
        to register their grades.
    </strong>
</p>
<p>
    <strong> </strong>
</p>
<p>
    <strong>
        The 1^st exam grades will be registered after the official
        exam date; Teachers will communicate that date. It is compulsory to
        come on that exam date to record the grade on the Delphi and the
        booklet.
    </strong>
</p>
<p>
    <strong><u>Team Project</u></strong>
</p>
<p>
    <strong><u> </u></strong>
</p>
<p>
    The purpose of the project is to allow your team to apply what has been
    learned in the course (through course lectures, readings, and case
    discussions) to problems in a family firm of your team's choice.
</p>
<p>
    <strong>
        Class members, regular attending students, will work in teams of four
        (4) people.
    </strong>
</p>
<p>
    <strong> </strong>
</p>
<p>
    <strong>
        To the Team Project, regular attending students will be allowed to
        achieve a -3/+3 extra points to the final grade of the 1^st
exam after the course. Only regular attending students taking the 1        ^st exam after the course will be accepted for the Team
        Project.
    </strong>
</p>
<p>
    Your team should identify a family firm to study (Please, no student
    groups).
</p>
<p>
    Your team is to gather information from people in the family firm through
    direct contact. You may supplement this information with data from the
    media, the organization's literature, and other secondary sources. You
    should identify a relatively recent problem to analyze (i.e., this should
    not be a historical account of a problem and the company's solution). You
    should focus your analysis by applying the concepts from the course. While
    it is acceptable to incorporate several concepts from the course, please
    aim for depth rather than breadth regarding course concepts. Your goal is
    to diagnose the mechanisms causing the problem or issue of concern in the
    organization. Initially, you may notice many symptoms (for instance, a
    crisis after the succession, seemingly an unhealthy family culture, low
    family members' commitment and involvement, governance issues, etc.), but
    your task is to get to the underlying reason for these symptoms. And
    beware, sometimes the initial symptoms we think we see are not what they
    appear to be.
</p>
<p>
    There are three broad goals for this assignment:
</p>
<p>
    1. One goal of this assignment is obviously to take the initiative to make
    a positive contribution to a family firm.
</p>
<p>
    2. Another primary goal is to provide an opportunity for you to learn more
    about family businesses firsthand and use your critical thinking and
    reflection skills to link your experience with this family firm to your
    learning concerning family business theories.
</p>
<p>
    3. The final goal is to provide a forum for you to hone your team member
    and leader skills and reflect on the learning gained from this team
    experience. Each team will make a presentation and write a paper that
    describes what you did for the family firm, what you learned about the
    family business, and what you learned about working on a team.
</p>
<p>
    To meet these broad goals, your team should answer the following questions
    in the assignments detailed below.
</p>
<p>
    a) What are the issues or problems facing the family firm?
</p>
<p>
    b) What can Course concepts be applied to understand why this problem is
    occurring?
</p>
<p>
    c) What recommendations can you offer to help improve the family business
    functioning?
</p>
<p>
    <strong>Deliverables of the Team Project:</strong>
</p>
<p>
    <strong>
        1. The project proposal is due to Instructors by the 9^th
        session of the course by 5 pm. It should include:
    </strong>
</p>
<p>
    a) the names of your group members
</p>
<p>
    b) your team name
</p>
<p>
    c) the name of the organization
</p>
<p>
    d) the name, contact information, and level of your contact person
</p>
<p>
    e) the method you will use to gain access to the organization
</p>
<p>
    f) a brief description (one paragraph) of the problem facing the
    organization.
</p>
<p>
    <strong>
        2. Your written project is due to Instructors by the 18th session of
        the course by 5 pm
    </strong>
    .
</p>
<p>
    It should contain a maximum of 15 double-spaced pages (1 cm margins, 12
    point font). You will be penalized significantly for exceeding this limit.
    The limit does not include appendices, which you are free to use to provide
    charts, figures, or other background material not necessary in the main
    body of your analysis. However, appendices that are not directly referenced
in the main text will not be read.    <strong>LATE PROJECT WRITE-UPS WILL NOT BE ACCEPTED</strong>.
</p>
<p>
    This written project should summarize what you did for/within the
    organization, what you have learned about organizational behavior, and what
    you have learned about working on a team.
</p>
<p>
    <strong>Grading of the Team Project:</strong>
</p>
<p>
    Your group project will be evaluated on the following criteria:
</p>
<p>
    a. Problem definition: How well (i.e., thoroughly and concisely) describe
    the organizational context, the relevant parties, and the factors that are
    important to the problem?
</p>
<p>
    b. Accurate and thorough use of course concepts.
</p>
<p>
    c. Integration of course concepts with information about the company and
    problem, i.e., how well do you integrate course concepts with details about
    the problem to illuminate the problem in a way that leads to solutions?
</p>
<p>
    d. The extent to which recommendations are consistent with analysis.
</p>
<p>
    e. Quality of written analysis.
</p>
<br clear="all"/>
<p>
    <strong><u>Analytical Syllabus </u></strong>
</p>
<div align="center">
    <table border="1" cellspacing="0" cellpadding="0" width="105%">
        <tbody>
            <tr>
                <td width="6%">
                    <p align="center">
                        <strong>#</strong>
                    </p>
                </td>
                <td width="69%">
                    <p align="center">
                        <strong>Agenda</strong>
                    </p>
                </td>
                <td width="14%">
                    <p align="center">
                        <strong>Lecture/</strong>
                    </p>
                    <p align="center">
                        <strong>Case</strong>
                    </p>
                    <p align="center">
                        <strong>discussion</strong>
                    </p>
                </td>
                <td width="10%">
                    <p align="center">
                        <strong>Lecturer</strong>
                    </p>
                </td>
            </tr>
            <tr>
                <td width="100%" colspan="4">
                    <p align="center">
                        <strong>SECTION 1:</strong>
                        <strong></strong>
                    </p>
                    <p align="center">
                        <strong>Family firms: prevalence and relevance</strong>
                        <strong></strong>
                    </p>
                </td>
            </tr>
            <tr>
                <td width="6%">
                    <p align="center">
                        1
                    </p>
                </td>
                <td width="69%">
                    <p>
                        <strong>Introduction of the Course</strong>
                    </p>
                    <p>
                        <strong>(Chapter 1: Zellweger, pages: 1-3)</strong>
                    </p>
                    <p>
                        1. Thematic focus
                    </p>
                    <p>
                        2. Intended audience
                    </p>
                    <p>
                        3. Structure and pedagogical tools
                    </p>
                    <p>
                        <strong>Defining the family business</strong>
                    </p>
                    <p>
                        <strong>(Chapter 2: Zellweger, pages: 4-22)</strong>
                    </p>
                    <p>
                        1. The distinction between family and nonfamily firms
                    </p>
                    <p>
                        2. Defining family business by type of family
                        involvement
                    </p>
                    <p>
                        3. Circle models of family influence
                    </p>
                    <p>
                        4. Family firm identity
                    </p>
                    <p>
                        5. Family business definition
                    </p>
                </td>
                <td width="14%">
                    <p align="center">
                        <strong>Lecture</strong>
                    </p>
                </td>
                <td width="10%">
                    <p align="center">
                        GNAN
                    </p>
                </td>
            </tr>
            <tr>
                <td width="6%">
                    <p align="center">
                        2
                    </p>
                </td>
                <td width="69%">
                    <p>
                        <strong>
                            Prevalence and economic contribution of family
                            firms around the globe
                        </strong>
                    </p>
                    <p>
                        <strong>(Chapter 3: Zellweger, pages: 24-33)</strong>
                    </p>
                    <p>
 

Aggiornato A.A. 2018-2019

FAMILY BUSINESS

(Prof. Luca Gnan)

Teaching Staff responsible for the Course:

Prof. Luca Gnan

Email: luca.gnan@uniroma2.it

Availability: Contact via email

Prof.ssa Giulia Flamini

E-mail: giulia.flamini@uniroma2.it

Availability: Contact via email

We are committed to making this course a valuable learning experience for you. After the first month, we will spend part of a class session evaluating our progress, and we will make any necessary changes to keep us on track. However, we welcome your feedback at any time in the semester. It is easiest to reach us by email or during office hours, but we are always happy to set up an appointment. Additionally, if you have a disability that requires special accommodation, please let us know ASAP so that we can be helpful to you.

Emails, Office Hours & Feedback on Assignments

We endeavor to answer emails within 1 day. If you have not heard from us within that time, please resend the email. We will post grades & comments online in the materials section of the course website. We will be happy to give feedback and discuss assignments after all grading is complete for a certain assignment. We schedule office hours by email request.

We may answer questions of assignment clarification in class and via emails to benefit the entire class. We may also give extra grades (see below Team Project) during the course that, while generally designed to support learning in the course, will also help your participation grade. These are pass/fail and do not include comments.

Pre-requisites for the Course:

None

Course description and Learning Objectives

Family businesses shows distinct core competencies that can result in unique competitive advantages. They take a long run view of the business—across generations, rather than publicly traded quarterly reports. Their capital can be very patient, owners will sacrifice their salaries in order to make payroll, and they are an integral part of their communities, unlike publicly traded counterparts that might abandon a community at the blink of a budget. They can engender a great deal of loyalty on the part of employees, and the existence of family may reduce agency problems.

Family Businesses also face challenges that threaten their continuity. The challenges are primarily the result of issues presented by the interaction of family, management, and ownership—particularly where the family wishes to perpetuate its influence and/or control from generation to generation. Family firms seem to be as agile in one generation as they are fragile across generations.

Family businesses start with an owner-managed first generation (usually an entrepreneur). The next generation—G2—is the sibling generation, and G3 is the cousin era. The probability of passing the company to the next generation diminishes significantly, with fewer than half making it to G2 and only about less than 15% making it to G3. So, despite the benefits of family, there can be some significant issues.

The course explores and analyzes continuity challenges of family business and their best management practices. The focus of this course is on pragmatic, action-oriented, management, governance, finance, and family/business leadership skills.

Attention is devoted to evaluating family firms and their growth options to provide a roadmap for analyzing how family ownership, control, and management affect performances and how family firms can create and ensure more value through generations.

The course presents seven different sections:

· SECTION 1: Family firms: prevalence and relevance

· SECTION 2: Governance in the family firm

· SECTION 3: Strategic management in the family firm

· SECTION 4: Succession in the family firm

· SECTION 5: Change and transgenerational value creation

· SECTION 6: Interpersonal relationships and conflict in the family firm

· SECTION 7: Financial management in the family firm

The course addresses the governance, the management, and the finance of established family businesses. It examines succession, values, life cycles, business and marketing strategies, conflict resolution, communications, legal, and financial aspects, estate planning, management, philanthropy and other topics that uniquely touch family business governance, management and finance. It will convey the characteristics that differentiate family businesses from other businesses.

One of the features, which make this course unique and particularly modern, is a part of the Section 7: Financial management in the family firm dedicated to the mysterious and fascinating world of the family office. This is the little-known, but key professional practice of advising entire families-in-business, frequently large, diversified and with wide ramifications, about the complete spectrum of activities necessary to ensure that wealth is created, preserved, transmitted and spread across the enlarged family community. These services range from asset allocation to risk management, to education, efficient tax structuring, corporate finance and corporate governance, intra- and inter- generational transmission, philanthropy, etc. Given the enormous amount of wealth and power concerned, this phenomenon shows increasingly importance and starts to attract some focus, particularly by the best graduate students and professional talents.

Upon completion of this course, students should understand:

1. The unique assets and vulnerabilities of family enterprises.
2. The role of the CEO in governance, management, and the transfer of power.
3. The relationship between the role of the board, the family council, and top management in providing effective governance for family business continuity.
4. Key family dynamics.
5. The relevance for families to manage collectively wealth created in professional ways,

and be able to:

1. Identify the various stakeholders and the role of trust among family members and their impact on succession and continuity.
2. Discuss the developmental needs and challenges of next generation leaders.
3. Analyze the effect of estate taxes on ownership transfer across generations of family business owners and the implications of ownership structures on the competitive advantages of family businesses.
4. Explain the importance of strategic planning to family business continuity.
5. Explore the critical role and challenges that non-family managers play in family-owned operations.
6. Analyze the impact of family culture, family communication, family conflict, and family unity and explore their interaction effects on the family business.
7. Assess whether they want to seek employment in family businesses both as key employees/managers or in a professional advisory role.

Teaching methods

Lessons will focus on transferring knowledge and on a strong interaction within the classroom; there are analysis of situations problems and business cases in order to facilitate participants in learning.

Regular attending students (in order to be a regular attending student, a participant should achieve at least an 85% of presence to lectures and case discussions) are strongly recommended to participate to all the lectures and to all the preparations and presentations of the business cases.

To meet its goals, this course uses readings, lectures, exercises, cases, individual and team assignments, and class discussion. Case assignments provide an important foundation for class discussion and must completed prior to each class session. The analytical syllabus (at the end of this document) shows due dates for all cases and other assignments in the class schedule. Lectures will highlight key points from the readings and provide additional information to supplement the readings. Cases will provide you with the opportunity to apply what you have learned to real world issues and scenarios. Because each of you brings unique perspectives and experiences to the class, participation in class discussions and activities is essential to your own learning as well as that of other class members. To enrich further your learning, an MScBA Teaching Assistant will also match you.

Textbook

Zellweger, T. Managing the Family Business: Theory and Practice, Edward Elgar Publishing, 2017: ISBN: 9781783470709

Cases

During the course, we will discuss 10 cases:

1. More than a move to Mexico (Chapter 4: Zellweger, pages: 43-45)

2. Beretti Holdings—More than a retirement decision (Chapter 5: Zellweger, pages: 109-112)

3. Henkel’s Genthin plant (Chapter 6: Zellweger, page: 125)

4. Branding and CSR at HiPP (Chapter 6: Zellweger, pages: 165-166)

5. Managing paradoxes (Chapter 6: Zellweger, pages: 193-194)

6. Bernet’s choice—Valuation, emotional value, family discount and fair distribution of assets within the family (Chapter 7: Zellweger, pages: 306-307)

7. Transgenerational value creation at Ahlstrom (Finland) (Chapter 8: Zellweger, pages: 361-363)

8. Conflict in the Solomon family (Chapter 10: Zellweger, pages: 488-491)

9. Tom’s world (Chapter 9: Zellweger, pages: 422-424)

(the following case from Harvard Business School Publishing. You need to register to download the cases at the following link: https://hbr.org, then download the case at the indicated link)

10. Medco Energi Internasional

Additional References

- Poza, E. J., “Family Business”, First Edition. Mason, OH: Thomson South-Western, 2004.

- Gnan, L. and Montemerlo, D., (2006), “Family-firm relationship in Italian SMEs: ownership and governance issues in a double-fold theoretical perspective”, in P. Z. Poutziouris P., Smyrnios, K. X., and Klein, S. B., “Handbook of research on family business”, Edward Elgar Publishing.

- Zattoni, A., Gnan, L., Huse, M., (2012) ,“Does Family Involvement Influence Firm Performance? Exploring the Mediating Effects of Board Processes and Tasks”, Journal Of Management, ISSN: 0149-2063, DOI: 10.1177/0149206312463936

- Gnan, L. and Songini, L., (2015), “Family involvement and agency cost control mechanisms in family small and medium-sized enterprises”, Journal Of Small Business Management, vol. 53, p. 748-779, ISSN: 0047-2778, DOI: 10.1111/jsbm.12085

- Gnan, L., Montemerlo, D., Huse, M. (2015), “Governance systems in family SMEs: the substitution effects between family councils and corporate governance mechanisms”, Journal of Small Business Management, p. 1-27, ISSN: 1540-627X, DOI: 10.1111/jsbm.12070

- Gnan, L., Montemerlo, D., Schulze, W., Corbetta, G., (2008), “Governance Structures in Italian Family SMEs” In: (a cura di): Comacchio A. and Pontiggia A., “L'organizzazione fa la differenza”, Roma: Carocci Editore, ISBN: 9788843045587

- Gnan, L. and Montemerlo, D., (2007), “Family-firm relationship in Italian SMEs: ownership and governance issues in a double-fold theoretical perspective” In: “Handbook of research on family business”, Elgar, ISBN: 978-1845424107

- Songini, L., Gnan, L., Morelli, C., Vola, P., (2015), “The why and how of managerialization of family businesses: evidences from Italy”, Piccola Impresa / Small Business, vol 1, DOI: 10.14596/pisb.179, pp 85-117

- Songini, L., Gnan, L., Malmi, T (2013), “The role and impact of accounting in family business”, Journal of Family Business Strategy, vol. 4, p. 71-83, ISSN: 1877-8585, DOI: 10.1016/j.jfbs.2013.04.002

- Gnan, L., Songini, L., (2014), “The glass ceiling in SMEs and its impact on firm managerialisation: a comparison between family and non-family SMEs”, International Journal of Business Governance And Ethics, vol. 9, ISSN: 1477-9048

- de Pedys, V. and Antonelli, A,. (2008) “Family office for family business”, Oxford management Publishing, ISBN 978-1-906728-01-4

- Poutziouris, P., (2001) “Understanding family firms”, in (Ed.) Adam, J., Institute of Directors, “The Growing Business Handbook”, London: Kogan Page, Chapter 6.3: pp. 9-15, 4th edition, ISBN 074943600X

- Levin, R. and Travis, V., (1987), “Small company finance: what the books don’t say”, Harvard Business Review, nov-dec: 87608

- Villalonga, B. and Amit, R., (2005), “How do family ownership, control and management affect firm value”, Journal of financial economics, 80: 385-417

- Wilson, R., (2013), “The family office Report”, FamilyOfficesGroup.com

- Amit, R. and Perl, R., (2012) “2012 Family Governance Report”, Wharton Global family Alliance, Wharton School, University of Pennsylvania

- Amit, R. and Lichtenstein, H., (2010), “Benchmarking the Single Family Office” Wharton Global Family Alliance, Wharton School, University of Pennsylvania

Suggested videos

1. Introductory video: 4 Lessons from the Best Family Businesses

https://hbr.org/video/4660653966001/4-lessons-from-the-best-family-businesses

2. Three circle model: importance of governance, setting goals, holistic leadership and caring for the interests of the family

https://www.youtube.com/watch?v=D85pqiL1tNM

3. The unique strengths and weaknesses of family businesses today, contrasting it with the humble mom-and-pop store the term usually brings to mind

https://www.youtube.com/watch?v=suL-HkP-2Ts

4. The topic of Building a Family Business That Lasts and provides viewers with four key points to walk away with

https://www.youtube.com/watch?v=vZ52w3wBP1U

5. The key attention points and delicacies involved in preparing and transferring a business to the next generation

https://www.youtube.com/watch?v=Io9aWtuSEh4

6. Family Business Governance: Family Constitution

https://www.youtube.com/watch?v=i5psd_84euA

7. Family-owned companies need to be run with emotional, as well as professional leadership

https://www.youtube.com/watch?v=2bYo2Ph48_E

8. Toward a theory of how some family firms nurture transgenerational entrepreneurship

https://www.youtube.com/watch?v=AzFginXvSrM

9. Family Business Longevity

https://www.youtube.com/watch?v=uoHRNLuoYHM

10. 5 Ways For Private Equity Firms to Raise Capital From Family Offices

https://www.youtube.com/watch?v=EX8TnQmOFyc

11. Address the challenges faced by family businesses

https://www.youtube.com/watch?v=mItel08kE-Q

12. Conflict in the Family Business

https://www.youtube.com/watch?v=CVILBwkMVxc

13. Stories of Wasteful Conflict in Family Businesses

https://www.youtube.com/watch?v=elzfKRYw1yA

Case Discussions

We expect that regular attending students are fully engaged in the entire learning process. This means that we expect regular attending students to:

1) prepare the assigned readings of the cases prior to each class;

2) prepare as a group work a PowerPoint presentation on the case, based on the specific assignment;

3) come to class prepared to participate and to discuss in order to enhance the learning of the individual and the class.

On the web site of the course, students find for each case the relative assignment. Please read carefully the questions before the lesson and use them for preparing the PowerPoint presentation.

Each student will be involved the class discussion on the cases and tie the assigned reading for the session. The objective is to bring all class members into the discussion. The cases intend to integrate the concepts from the case into the context of the course. The preparation and the discussion of the cases do not exclude the study of the theoretical concepts useful for the discussion of the cases themselves and for the passing of the exam of the course.

With the cases’ discussions in CLASSROOM, each student will develop:

1. The ability to set the parameters for the problem (key concepts from the case).

2. A depth of knowledge about the case subject (understanding of material, good response to the observations of others).

3. The ability to tie-in case with other course concepts.

4. The ability to get others involved in the discussion.

In order to discuss effectively the cases, students do:

· Be prepared with facts and specific quotes from the case.

· Be prepared to make a comment, ask a question, or make a statement about the case.

During the discussion, students do:

· Take a position on a question or a point.

• Ask clarifying questions.

· Help keep the discussion moving and on track.

· Help draw others into the discussion.

· Integrate theories and content from other cases.

During the discussion, students do not:

· Be unprepared and show your lack of knowledge.

• Monopolize the discussion.
• Make irrelevant comments.

· Be insensitive to other’s desire to speak or to their opinions.

We kindly invite all the regular attending students to build up work groups (MINIMUM 3 PERSONS – MAXIMUM 5 PERSONS). Each work group should prepare a PowerPoint presentation for each case. Into the first slide, each work group should report the names of the students belonging to the group.

The structure of the presentation should follow the following outline:

1. One or more introductory slides aimed at describing/reporting the story, the characters, all the necessary elements in order to define clearly the context and the boundaries of the case.
2. One slide mentioning the questions of the assignment and underlining the learning goals of the case.
3. One or more slides reporting the answers to each question of the assignment.
4. One or more slides reporting the final remarks on the case.
5. One closing slide about the lessons learned after the group discussion of the case.

How to prepare the PowerPoint presentation of the case?

Introduction – short presentation of case, short description of the problems and situations that should be coped with the discussion.

Diagnosis – Problem setting of the context and of the situation. Description of the mains facts and elements connected with the concepts and models of Family Business (e.g. Ownership issues, conflicts, family culture, governance issues, leadership, managing people, succession, etc.). What went wrong and which actions/situations, instead, were right? Which elements could be considered for the diagnosis?

Solution – Students should provide a possible solution to questions/problems related with the case and a viable and clear indication on how to approach the situation and how to solve it. The entire proposal should represent a consistent action plan in terms of behaviors and expected results.

Conclusions – Conclusions should not be longer than 300-500 words and should provide a description on how the situation and the problem characterized the case, on how Family Business schemata might help to solve the case, and what the proposed solution might generate in terms of family and managerial consequences.

Lessons learned – At the end of the presentation elements/suggestions/advices that we “take home” from the case discussion should be clearly identified and reported.

NOTE: During the case discussion, students should explicitly address the context and the different situations with concepts related with Family Business and with models and theories of this course.

Case Discussions’ Class Participation

We believe that the best way to learn, especially about family Business, is to actively participate in your education. In this class, “participation” is defined in terms of quality contributions to class discussion and exercises. There are four prerequisites for successful participation:

1. Be here on time and prepared. If you are not here, you cannot contribute much to class discussion. If you need to miss class for a predictable reason (e.g., job interview, athletic competition), please notify us at least 24 hours in advance so that we can arrange for any in-class exercises and so that you can obtain the materials distributed during the class. Of course, we realize that in some cases unforeseeable emergencies arise. Although we will not directly penalize you for non-attendance, be aware that multiple absences will indirectly hurt you by preventing you from participating in class, thereby lowering your participation grade. To contribute to class discussion, you must come to class having carefully prepared all assignments (i.e., readings, cases, exercises).

2. Be brave. Everyone in this class is smart, interesting, and has unique life experiences to share. You will get the most out of this course if you ask questions, voice opinions, and express your thoughts to one another. If you feel uncomfortable talking in class, please send me an email or set up an appointment to talk with me early in the semester. We will do everything we can to accommodate each of your individual circumstances, but we can only do so if they are brought to our attention.

3. Be courteous. Successful participation includes treating your classmates in a respectful and professional manner. Listen carefully to the comments and questions that your classmates voice. You may learn something new from their perspectives, and you will be able to avoid simply repeating something that another classmate has said earlier in discussion. Also, it is perfectly acceptable for you to voice disagreement with an opinion provided by another student. Open debate often leads to the most thoughtful and informative class discussions. However, please voice your disagreement in a kind and considerate manner.

4. Be engaged. This class is “unplugged.” Once class starts, all electronics (e.g., computers, cell phones, tablets, etc.) should be turned off and put away. If you need to use a device because of a language or disability issue, you need to secure permission at the beginning of the class. The misuse of an electronic device (e.g., surfing the web or texting) will adversely affect your grade.

In order to facilitate the visioning of its own PowerPoint presentation in classroom, each work group should take a personal computer with PowerPoint installed and an available VGA connection.

By the 8pm of the day before of the case discussion, all regular attending students should send an email to the course’s Instructors, attaching the case presentation prepared. They have to hand over a hard copy of the PowerPoint presentation. ONLY THE HANDING OVER OF THE HARD COPY CERTIFIES THE PREPARATION OF THE CASE FOR THE DISCUSSION. ONLY STUDENTS WHO HAD HANDED OVER ALL THE CASE PRESENTATIONS WILL BE ADMITTED TO THE PRE-EXAM.

Policy for Late Assignments

As in the business world, work must be received on time in order to receive full credit. If you are late on an assignment, your access to the Pre-Exam will be compromised. You are always welcome to hand in an assignment before its due date if you know that you will be busy as the due date approaches. If you think that you will not be able to complete an assignment by the stated due date, please speak with us in advance to make alternative arrangements. Our policy on late assignments will depend on the specific circumstances surrounding the problem, and thus may differ from student to student. Providing advance notice about a late assignment will minimize the penalty you receive on that assignment, but does not guarantee that there will be no penalty for turning the assignment in late.

Other learning sources

Slides and other material will be available on the course website.

THE SLIDES DO NOT REPRESENT A SUPPORT FOR AN EFFECTIVE AND SUCCESFUL PREPARATION TO THE EXAM OF THE COURSE. THEY REPRESENT ONLY A HELP TO FACILITATE THE TRANSFER OF THE KNOWLEDGES TO STUDENTS DURING THE LESSONS.

Attendance

Because of the concentrated nature of the MScBA programme, attendance in class is very important.

Students with less than 85% of attendance to lectures and case discussions (including arriving late or leaving early) will be required to prepare for the exam ALL the chapters of the textbook Zellweger, T. Managing the Family Business: Theory and Practice, Edward Elgar Publishing, 2017: ISBN: 9781783470709 and ALL the cases discussed in classroom.

NOTE : Attendance for the first class session is mandatory as important information regarding the course and the instructors’ expectations are given. If you know in advance that you will be absent for one session, please contact your instructor to ensure that absence from a particular session is acceptable.

Exam

The exam, depending on the number of the registered student, is a written exam or an oral exam.

In case of a written exam, the duration is about 3-4 hours and it includes:

a) Case discussion - You may be given a case study to which some questions may pertain in order to lead the discussion. As you respond to the questions, please use specific content and theories (use names to identify theories and models) as the basis of your analysis. You will not receive credit for your personal opinions unless backed by theory, lecture, and/or text material. Also, describe how you see the content/theory applying to the situation. Your answers will be evaluated based upon both quantity and quality. Answers that are more complete and demonstrate a higher level of understanding and analysis will receive more points.

b) Some questions directly connected to the course textbook – The questions could open, closed (multiple choice), or a combination of the both. You may be asked to discuss the models and the theories presented during the course. You will be asked to interpret some real incidents and to focus your attention to some specific theoretical issues.

Pre-Exam participation and exam grades registering on the booklet

Only regular attending students (85% of attendance to lectures and case discussions, including arriving late or leaving early) that have delivered the hard copies of ALL the case to the Instructors are allowed to take the pre-exam.

Only regular registered students on the DELPHI System will be allowed to register their grade.

The pre-exam grades will be registered on the first official exam date AFTER THE COURSE ENDING. It is compulsory to come on that date of the exam for registering the grade on the Delphi and on the booklet.

Team Project

The purpose of the project is to give your team an opportunity to apply what has been learned in the course (through course lectures, readings, and case discussions) to problems in a family firm of your team's choice.

Class members, regular attending students, will work in teams of four (4) people.

To the Team Project regular attending students will be allowed to achieve a -3/+3 extra points to the final grade of the Pre-Exam. Only regular attending students, taking the Pre-Exam will be accepted for the Team Project.

Your team should identify a family firm to study (Please, no student groups).

Your team is to gather information from people in the family firm through direct contact. You may supplement this information with data from the media, the organization's literature, and other secondary sources. You should identify a relatively recent problem to analyze (i.e., this should not be an historical account of a problem and the company's solution). You should focus your analysis by applying the concepts from the course. While it is acceptable to incorporate several concepts from the course, please aim for depth rather than breadth regarding the use of course concepts. Your goal is to diagnose the mechanisms that are causing the problem or issue of concern in the organization. Initially, you may notice many symptoms (for instance, a crisis after the succession, seemingly an unhealthy family culture, low family members’ commitment and involvement, governance issues, etc.), but your task is to get to the underlying reason for these symptoms. And beware, sometimes the initial symptoms we think we see are not what they appear to be.

There are three broad goals for this assignment:

1. One goal of this assignment is obviously to take the initiative to make a positive contribution to a family firm.

2. Another major goal is to provide an opportunity for you to learn more about family businesses first hand and to use your critical thinking and reflection skills to link your experience with this family firm to your learning in relation to family business theories.

3. The final goal is to provide a forum for you to hone your skills as a team member and leader and to reflect on the learning gained from this team experience. Each team will make a presentation and write a paper that describes what you did for the family firm, what you learned about family business, and what you learned about working on a team.

To meet these broad goals, your team should answer the following questions in the assignments detailed below.

a) What are the issues or problems facing the family firm?

b) What course concepts can be applied to understand why this problem is occurring?

c) What recommendations can you offer to help improve the family business functioning?

Deliverables of the Team Project:

1. The project proposal e-mail is due by email to Instructors by the date of the 9^th session of the course by 5pm. It should include:

a) The names of your group members

b) Your team name

c) The name of the organization

d) The name, contact information and level of your contact person

e) The method you will use to gain access to the organization

f) A brief description (one paragraph) of the problem facing the organization.

2. Your written project is due by email to Instructors by the date of the 18th session of the course by 5pm .

It should contain a maximum of 15 double spaced pages (1 cm margins, 12 point font). You will be penalized significantly for exceeding this limit. The limit does not include appendices, which you are free to use to provide charts, figures, or other background material not necessary in the main body of your analysis. However, appendices that are not directly referenced in the main text will not be read. LATE PROJECT WRITE-UPS WILL NOT BE ACCEPTED.

This written project should summarize what you did for/within the family firm, what you have learned about family business, and what you have learned about working on a team.

Grading of the Team Project:

Your group project will be evaluated on the following criteria:

a. Problem definition: How well (i.e., thoroughly and concisely) do you describe the family business context, the relevant parties, and the factors that are important to the problem?

b. Accurate and thorough use of course concepts.

c. Integration of course concepts with information about the family firm and problem, i.e., how well do you integrate course concepts with information about the problem to illuminate the problem in a way that leads to solutions?

d. Extent to which recommendations are consistent with analysis.

e. Quality of written analysis.

Analytical Syllabus

Aggiornato A.A. 2017-2018

FAMILY BUSINESS

(Prof. Luca Gnan)

Teaching Staff responsible for the Course:

Prof. Luca Gnan

Email: luca.gnan@uniroma2.it

Availability: Contact via email

Prof.ssa Giulia Flamini

E-mail: giulia.flamini@uniroma2.it

Availability: Contact via email

We are committed to making this course a valuable learning experience for you. After the first month, we will spend part of a class session evaluating our progress, and we will make any necessary changes to keep us on track. However, we welcome your feedback at any time in the semester. It is easiest to reach us by email or during office hours, but we are always happy to set up an appointment. Additionally, if you have a disability that requires special accommodation, please let us know ASAP so that we can be helpful to you.

Emails, Office Hours & Feedback on Assignments

We endeavor to answer emails within 1 day. If you have not heard from us within that time, please resend the email. We will post grades & comments online in the materials section of the course website. We will be happy to give feedback and discuss assignments after all grading is complete for a certain assignment. We schedule office hours by email request.

We may answer questions of assignment clarification in class and via emails to benefit the entire class. We may also give extra grades (see below Team Project) during the course that, while generally designed to support learning in the course, will also help your participation grade. These are pass/fail and do not include comments.

Pre-requisites for the Course:

None

Course description and Learning Objectives

Family businesses shows distinct core competencies that can result in unique competitive advantages. They take a long run view of the business—across generations, rather than publicly traded quarterly reports. Their capital can be very patient, owners will sacrifice their salaries in order to make payroll, and they are an integral part of their communities, unlike publicly traded counterparts that might abandon a community at the blink of a budget. They can engender a great deal of loyalty on the part of employees, and the existence of family may reduce agency problems.

Family Businesses also face challenges that threaten their continuity. The challenges are primarily the result of issues presented by the interaction of family, management, and ownership—particularly where the family wishes to perpetuate its influence and/or control from generation to generation. Family firms seem to be as agile in one generation as they are fragile across generations.

Family businesses start with an owner-managed first generation (usually an entrepreneur). The next generation—G2—is the sibling generation, and G3 is the cousin era. The probability of passing the company to the next generation diminishes significantly, with fewer than half making it to G2 and only about less than 15% making it to G3. So, despite the benefits of family, there can be some significant issues.

The course explores and analyzes continuity challenges of family business and their best management practices. The focus of this course is on pragmatic, action-oriented, management, governance, finance, and family/business leadership skills.

Attention is devoted to evaluating family firms and their growth options to provide a roadmap for analyzing how family ownership, control, and management affect performances and how family firms can create and ensure more value through generations.

The course presents seven different sections:

· SECTION 1: Family firms: prevalence and relevance

· SECTION 2: Governance in the family firm

· SECTION 3: Strategic management in the family firm

· SECTION 4: Succession in the family firm

· SECTION 5: Change and transgenerational value creation

· SECTION 6: Interpersonal relationships and conflict in the family firm

· SECTION 7: Financial management in the family firm

The course addresses the governance, the management, and the finance of established family businesses. It examines succession, values, life cycles, business and marketing strategies, conflict resolution, communications, legal, and financial aspects, estate planning, management, philanthropy and other topics that uniquely touch family business governance, management and finance. It will convey the characteristics that differentiate family businesses from other businesses.

One of the features, which make this course unique and particularly modern, is a part of the Section 7: Financial management in the family firm dedicated to the mysterious and fascinating world of the family office. This is the little-known, but key professional practice of advising entire families-in-business, frequently large, diversified and with wide ramifications, about the complete spectrum of activities necessary to ensure that wealth is created, preserved, transmitted and spread across the enlarged family community. These services range from asset allocation to risk management, to education, efficient tax structuring, corporate finance and corporate governance, intra- and inter- generational transmission, philanthropy, etc. Given the enormous amount of wealth and power concerned, this phenomenon shows increasingly importance and starts to attract some focus, particularly by the best graduate students and professional talents.

Upon completion of this course, students should understand:

1. The unique assets and vulnerabilities of family enterprises.
2. The role of the CEO in governance, management, and the transfer of power.
3. The relationship between the role of the board, the family council, and top management in providing effective governance for family business continuity.
4. Key family dynamics.
5. The relevance for families to manage collectively wealth created in professional ways,

and be able to:

1. Identify the various stakeholders and the role of trust among family members and their impact on succession and continuity.
2. Discuss the developmental needs and challenges of next generation leaders.
3. Analyze the effect of estate taxes on ownership transfer across generations of family business owners and the implications of ownership structures on the competitive advantages of family businesses.
4. Explain the importance of strategic planning to family business continuity.
5. Explore the critical role and challenges that non-family managers play in family-owned operations.
6. Analyze the impact of family culture, family communication, family conflict, and family unity and explore their interaction effects on the family business.
7. Assess whether they want to seek employment in family businesses both as key employees/managers or in a professional advisory role.

Teaching methods

Lessons will focus on transferring knowledge and on a strong interaction within the classroom; there are analysis of situations problems and business cases in order to facilitate participants in learning.

Regular attending students (in order to be a regular attending student, a participant should achieve at least an 85% of presence to lectures and case discussions) are strongly recommended to participate to all the lectures and to all the preparations and presentations of the business cases.

To meet its goals, this course uses readings, lectures, exercises, cases, individual and team assignments, and class discussion. Case assignments provide an important foundation for class discussion and must completed prior to each class session. The analytical syllabus (at the end of this document) shows due dates for all cases and other assignments in the class schedule. Lectures will highlight key points from the readings and provide additional information to supplement the readings. Cases will provide you with the opportunity to apply what you have learned to real world issues and scenarios. Because each of you brings unique perspectives and experiences to the class, participation in class discussions and activities is essential to your own learning as well as that of other class members. To enrich further your learning, an MScBA Teaching Assistant will also match you.

Textbook

Zellweger, T. Managing the Family Business: Theory and Practice, Edward Elgar Publishing, 2017: ISBN: 9781783470709

Cases

During the course, we will discuss 10 cases:

1. More than a move to Mexico (Chapter 4: Zellweger, pages: 43-45)

2. Beretti Holdings—More than a retirement decision (Chapter 5: Zellweger, pages: 109-112)

3. Henkel’s Genthin plant (Chapter 6: Zellweger, page: 125)

4. Branding and CSR at HiPP (Chapter 6: Zellweger, pages: 165-166)

5. Managing paradoxes (Chapter 6: Zellweger, pages: 193-194)

6. Bernet’s choice—Valuation, emotional value, family discount and fair distribution of assets within the family (Chapter 7: Zellweger, pages: 306-307)

7. Transgenerational value creation at Ahlstrom (Finland) (Chapter 8: Zellweger, pages: 361-363)

8. Conflict in the Solomon family (Chapter 10: Zellweger, pages: 488-491)

9. Tom’s world (Chapter 9: Zellweger, pages: 422-424)

(the following case from Harvard Business School Publishing. You need to register to download the cases at the following link: https://hbr.org, then download the case at the indicated link)

10. Medco Energi Internasional

Additional References

- Poza, E. J., “Family Business”, First Edition. Mason, OH: Thomson South-Western, 2004.

- Gnan, L. and Montemerlo, D., (2006), “Family-firm relationship in Italian SMEs: ownership and governance issues in a double-fold theoretical perspective”, in P. Z. Poutziouris P., Smyrnios, K. X., and Klein, S. B., “Handbook of research on family business”, Edward Elgar Publishing.

- Zattoni, A., Gnan, L., Huse, M., (2012) ,“Does Family Involvement Influence Firm Performance? Exploring the Mediating Effects of Board Processes and Tasks”, Journal Of Management, ISSN: 0149-2063, DOI: 10.1177/0149206312463936

- Gnan, L. and Songini, L., (2015), “Family involvement and agency cost control mechanisms in family small and medium-sized enterprises”, Journal Of Small Business Management, vol. 53, p. 748-779, ISSN: 0047-2778, DOI: 10.1111/jsbm.12085

- Gnan, L., Montemerlo, D., Huse, M. (2015), “Governance systems in family SMEs: the substitution effects between family councils and corporate governance mechanisms”, Journal of Small Business Management, p. 1-27, ISSN: 1540-627X, DOI: 10.1111/jsbm.12070

- Gnan, L., Montemerlo, D., Schulze, W., Corbetta, G., (2008), “Governance Structures in Italian Family SMEs” In: (a cura di): Comacchio A. and Pontiggia A., “L'organizzazione fa la differenza”, Roma: Carocci Editore, ISBN: 9788843045587

- Gnan, L. and Montemerlo, D., (2007), “Family-firm relationship in Italian SMEs: ownership and governance issues in a double-fold theoretical perspective” In: “Handbook of research on family business”, Elgar, ISBN: 978-1845424107

- Songini, L., Gnan, L., Morelli, C., Vola, P., (2015), “The why and how of managerialization of family businesses: evidences from Italy”, Piccola Impresa / Small Business, vol 1, DOI: 10.14596/pisb.179, pp 85-117

- Songini, L., Gnan, L., Malmi, T (2013), “The role and impact of accounting in family business”, Journal of Family Business Strategy, vol. 4, p. 71-83, ISSN: 1877-8585, DOI: 10.1016/j.jfbs.2013.04.002

- Gnan, L., Songini, L., (2014), “The glass ceiling in SMEs and its impact on firm managerialisation: a comparison between family and non-family SMEs”, International Journal of Business Governance And Ethics, vol. 9, ISSN: 1477-9048

- de Pedys, V. and Antonelli, A,. (2008) “Family office for family business”, Oxford management Publishing, ISBN 978-1-906728-01-4

- Poutziouris, P., (2001) “Understanding family firms”, in (Ed.) Adam, J., Institute of Directors, “The Growing Business Handbook”, London: Kogan Page, Chapter 6.3: pp. 9-15, 4th edition, ISBN 074943600X

- Levin, R. and Travis, V., (1987), “Small company finance: what the books don’t say”, Harvard Business Review, nov-dec: 87608

- Villalonga, B. and Amit, R., (2005), “How do family ownership, control and management affect firm value”, Journal of financial economics, 80: 385-417

- Wilson, R., (2013), “The family office Report”, FamilyOfficesGroup.com

- Amit, R. and Perl, R., (2012) “2012 Family Governance Report”, Wharton Global family Alliance, Wharton School, University of Pennsylvania

- Amit, R. and Lichtenstein, H., (2010), “Benchmarking the Single Family Office” Wharton Global Family Alliance, Wharton School, University of Pennsylvania

Suggested videos

1. Introductory video: 4 Lessons from the Best Family Businesses

https://hbr.org/video/4660653966001/4-lessons-from-the-best-family-businesses

2. Three circle model: importance of governance, setting goals, holistic leadership and caring for the interests of the family

https://www.youtube.com/watch?v=D85pqiL1tNM

3. The unique strengths and weaknesses of family businesses today, contrasting it with the humble mom-and-pop store the term usually brings to mind

https://www.youtube.com/watch?v=suL-HkP-2Ts

4. The topic of Building a Family Business That Lasts and provides viewers with four key points to walk away with

https://www.youtube.com/watch?v=vZ52w3wBP1U

5. The key attention points and delicacies involved in preparing and transferring a business to the next generation

https://www.youtube.com/watch?v=Io9aWtuSEh4

6. Family Business Governance: Family Constitution

https://www.youtube.com/watch?v=i5psd_84euA

7. Family-owned companies need to be run with emotional, as well as professional leadership

https://www.youtube.com/watch?v=2bYo2Ph48_E

8. Toward a theory of how some family firms nurture transgenerational entrepreneurship

https://www.youtube.com/watch?v=AzFginXvSrM

9. Family Business Longevity

https://www.youtube.com/watch?v=uoHRNLuoYHM

10. 5 Ways For Private Equity Firms to Raise Capital From Family Offices

https://www.youtube.com/watch?v=EX8TnQmOFyc

11. Address the challenges faced by family businesses

https://www.youtube.com/watch?v=mItel08kE-Q

12. Conflict in the Family Business

https://www.youtube.com/watch?v=CVILBwkMVxc

13. Stories of Wasteful Conflict in Family Businesses

https://www.youtube.com/watch?v=elzfKRYw1yA

Case Discussions

We expect that regular attending students are fully engaged in the entire learning process. This means that we expect regular attending students to:

1) prepare the assigned readings of the cases prior to each class;

2) prepare as a group work a PowerPoint presentation on the case, based on the specific assignment;

3) come to class prepared to participate and to discuss in order to enhance the learning of the individual and the class.

On the web site of the course, students find for each case the relative assignment. Please read carefully the questions before the lesson and use them for preparing the PowerPoint presentation.

Each student will be involved the class discussion on the cases and tie the assigned reading for the session. The objective is to bring all class members into the discussion. The cases intend to integrate the concepts from the case into the context of the course. The preparation and the discussion of the cases do not exclude the study of the theoretical concepts useful for the discussion of the cases themselves and for the passing of the exam of the course.

With the cases’ discussions in CLASSROOM, each student will develop:

1. The ability to set the parameters for the problem (key concepts from the case).

2. A depth of knowledge about the case subject (understanding of material, good response to the observations of others).

3. The ability to tie-in case with other course concepts.

4. The ability to get others involved in the discussion.

In order to discuss effectively the cases, students do:

· Be prepared with facts and specific quotes from the case.

· Be prepared to make a comment, ask a question, or make a statement about the case.

During the discussion, students do:

· Take a position on a question or a point.

• Ask clarifying questions.

· Help keep the discussion moving and on track.

· Help draw others into the discussion.

· Integrate theories and content from other cases.

During the discussion, students do not:

· Be unprepared and show your lack of knowledge.

• Monopolize the discussion.
• Make irrelevant comments.

· Be insensitive to other’s desire to speak or to their opinions.

We kindly invite all the regular attending students to build up work groups (MINIMUM 3 PERSONS – MAXIMUM 5 PERSONS). Each work group should prepare a PowerPoint presentation for each case. Into the first slide, each work group should report the names of the students belonging to the group.

The structure of the presentation should follow the following outline:

1. One or more introductory slides aimed at describing/reporting the story, the characters, all the necessary elements in order to define clearly the context and the boundaries of the case.
2. One slide mentioning the questions of the assignment and underlining the learning goals of the case.
3. One or more slides reporting the answers to each question of the assignment.
4. One or more slides reporting the final remarks on the case.
5. One closing slide about the lessons learned after the group discussion of the case.

How to prepare the PowerPoint presentation of the case?

Introduction – short presentation of case, short description of the problems and situations that should be coped with the discussion.

Diagnosis – Problem setting of the context and of the situation. Description of the mains facts and elements connected with the concepts and models of Family Business (e.g. Ownership issues, conflicts, family culture, governance issues, leadership, managing people, succession, etc.). What went wrong and which actions/situations, instead, were right? Which elements could be considered for the diagnosis?

Solution – Students should provide a possible solution to questions/problems related with the case and a viable and clear indication on how to approach the situation and how to solve it. The entire proposal should represent a consistent action plan in terms of behaviors and expected results.

Conclusions – Conclusions should not be longer than 300-500 words and should provide a description on how the situation and the problem characterized the case, on how Family Business schemata might help to solve the case, and what the proposed solution might generate in terms of family and managerial consequences.

Lessons learned – At the end of the presentation elements/suggestions/advices that we “take home” from the case discussion should be clearly identified and reported.

NOTE: During the case discussion, students should explicitly address the context and the different situations with concepts related with Family Business and with models and theories of this course.

Case Discussions’ Class Participation

We believe that the best way to learn, especially about family Business, is to actively participate in your education. In this class, “participation” is defined in terms of quality contributions to class discussion and exercises. There are four prerequisites for successful participation:

1. Be here on time and prepared. If you are not here, you cannot contribute much to class discussion. If you need to miss class for a predictable reason (e.g., job interview, athletic competition), please notify us at least 24 hours in advance so that we can arrange for any in-class exercises and so that you can obtain the materials distributed during the class. Of course, we realize that in some cases unforeseeable emergencies arise. Although we will not directly penalize you for non-attendance, be aware that multiple absences will indirectly hurt you by preventing you from participating in class, thereby lowering your participation grade. To contribute to class discussion, you must come to class having carefully prepared all assignments (i.e., readings, cases, exercises).

2. Be brave. Everyone in this class is smart, interesting, and has unique life experiences to share. You will get the most out of this course if you ask questions, voice opinions, and express your thoughts to one another. If you feel uncomfortable talking in class, please send me an email or set up an appointment to talk with me early in the semester. We will do everything we can to accommodate each of your individual circumstances, but we can only do so if they are brought to our attention.

3. Be courteous. Successful participation includes treating your classmates in a respectful and professional manner. Listen carefully to the comments and questions that your classmates voice. You may learn something new from their perspectives, and you will be able to avoid simply repeating something that another classmate has said earlier in discussion. Also, it is perfectly acceptable for you to voice disagreement with an opinion provided by another student. Open debate often leads to the most thoughtful and informative class discussions. However, please voice your disagreement in a kind and considerate manner.

4. Be engaged. This class is “unplugged.” Once class starts, all electronics (e.g., computers, cell phones, tablets, etc.) should be turned off and put away. If you need to use a device because of a language or disability issue, you need to secure permission at the beginning of the class. The misuse of an electronic device (e.g., surfing the web or texting) will adversely affect your grade.

In order to facilitate the visioning of its own PowerPoint presentation in classroom, each work group should take a personal computer with PowerPoint installed and an available VGA connection.

By the 8pm of the day before of the case discussion, all regular attending students should send an email to the course’s Instructors, attaching the case presentation prepared. They have to hand over a hard copy of the PowerPoint presentation. ONLY THE HANDING OVER OF THE HARD COPY CERTIFIES THE PREPARATION OF THE CASE FOR THE DISCUSSION. ONLY STUDENTS WHO HAD HANDED OVER ALL THE CASE PRESENTATIONS WILL BE ADMITTED TO THE PRE-EXAM.

Policy for Late Assignments

As in the business world, work must be received on time in order to receive full credit. If you are late on an assignment, your access to the Pre-Exam will be compromised. You are always welcome to hand in an assignment before its due date if you know that you will be busy as the due date approaches. If you think that you will not be able to complete an assignment by the stated due date, please speak with us in advance to make alternative arrangements. Our policy on late assignments will depend on the specific circumstances surrounding the problem, and thus may differ from student to student. Providing advance notice about a late assignment will minimize the penalty you receive on that assignment, but does not guarantee that there will be no penalty for turning the assignment in late.

Other learning sources

Slides and other material will be available on the course website.

THE SLIDES DO NOT REPRESENT A SUPPORT FOR AN EFFECTIVE AND SUCCESFUL PREPARATION TO THE EXAM OF THE COURSE. THEY REPRESENT ONLY A HELP TO FACILITATE THE TRANSFER OF THE KNOWLEDGES TO STUDENTS DURING THE LESSONS.

Attendance

Because of the concentrated nature of the MScBA programme, attendance in class is very important.

Students with less than 85% of attendance to lectures and case discussions (including arriving late or leaving early) will be required to prepare for the exam ALL the chapters of the textbook Zellweger, T. Managing the Family Business: Theory and Practice, Edward Elgar Publishing, 2017: ISBN: 9781783470709 and ALL the cases discussed in classroom.

NOTE : Attendance for the first class session is mandatory as important information regarding the course and the instructors’ expectations are given. If you know in advance that you will be absent for one session, please contact your instructor to ensure that absence from a particular session is acceptable.

Exam

The exam, depending on the number of the registered student, is a written exam or an oral exam.

In case of a written exam, the duration is about 3-4 hours and it includes:

a) Case discussion - You may be given a case study to which some questions may pertain in order to lead the discussion. As you respond to the questions, please use specific content and theories (use names to identify theories and models) as the basis of your analysis. You will not receive credit for your personal opinions unless backed by theory, lecture, and/or text material. Also, describe how you see the content/theory applying to the situation. Your answers will be evaluated based upon both quantity and quality. Answers that are more complete and demonstrate a higher level of understanding and analysis will receive more points.

b) Some questions directly connected to the course textbook – The questions could open, closed (multiple choice), or a combination of the both. You may be asked to discuss the models and the theories presented during the course. You will be asked to interpret some real incidents and to focus your attention to some specific theoretical issues.

Pre-Exam participation and exam grades registering on the booklet

Only regular attending students (85% of attendance to lectures and case discussions, including arriving late or leaving early) that have delivered the hard copies of ALL the case to the Instructors are allowed to take the pre-exam.

Only regular registered students on the DELPHI System will be allowed to register their grade.

The pre-exam grades will be registered on the first official exam date AFTER THE COURSE ENDING. It is compulsory to come on that date of the exam for registering the grade on the Delphi and on the booklet.

Team Project

The purpose of the project is to give your team an opportunity to apply what has been learned in the course (through course lectures, readings, and case discussions) to problems in a family firm of your team's choice.

Class members, regular attending students, will work in teams of four (4) people.

To the Team Project regular attending students will be allowed to achieve a -3/+3 extra points to the final grade of the Pre-Exam. Only regular attending students, taking the Pre-Exam will be accepted for the Team Project.

Your team should identify a family firm to study (Please, no student groups).

Your team is to gather information from people in the family firm through direct contact. You may supplement this information with data from the media, the organization's literature, and other secondary sources. You should identify a relatively recent problem to analyze (i.e., this should not be an historical account of a problem and the company's solution). You should focus your analysis by applying the concepts from the course. While it is acceptable to incorporate several concepts from the course, please aim for depth rather than breadth regarding the use of course concepts. Your goal is to diagnose the mechanisms that are causing the problem or issue of concern in the organization. Initially, you may notice many symptoms (for instance, a crisis after the succession, seemingly an unhealthy family culture, low family members’ commitment and involvement, governance issues, etc.), but your task is to get to the underlying reason for these symptoms. And beware, sometimes the initial symptoms we think we see are not what they appear to be.

There are three broad goals for this assignment:

1. One goal of this assignment is obviously to take the initiative to make a positive contribution to a family firm.

2. Another major goal is to provide an opportunity for you to learn more about family businesses first hand and to use your critical thinking and reflection skills to link your experience with this family firm to your learning in relation to family business theories.

3. The final goal is to provide a forum for you to hone your skills as a team member and leader and to reflect on the learning gained from this team experience. Each team will make a presentation and write a paper that describes what you did for the family firm, what you learned about family business, and what you learned about working on a team.

To meet these broad goals, your team should answer the following questions in the assignments detailed below.

a) What are the issues or problems facing the family firm?

b) What course concepts can be applied to understand why this problem is occurring?

c) What recommendations can you offer to help improve the family business functioning?

Deliverables of the Team Project:

1. The project proposal e-mail is due by email to Instructors by the date of the 9^th session of the course by 5pm. It should include:

a) The names of your group members

b) Your team name

c) The name of the organization

d) The name, contact information and level of your contact person

e) The method you will use to gain access to the organization

f) A brief description (one paragraph) of the problem facing the organization.

2. Your written project is due by email to Instructors by the date of the 18th session of the course by 5pm .

It should contain a maximum of 15 double spaced pages (1 cm margins, 12 point font). You will be penalized significantly for exceeding this limit. The limit does not include appendices, which you are free to use to provide charts, figures, or other background material not necessary in the main body of your analysis. However, appendices that are not directly referenced in the main text will not be read. LATE PROJECT WRITE-UPS WILL NOT BE ACCEPTED.

This written project should summarize what you did for/within the family firm, what you have learned about family business, and what you have learned about working on a team.

Grading of the Team Project:

Your group project will be evaluated on the following criteria:

a. Problem definition: How well (i.e., thoroughly and concisely) do you describe the family business context, the relevant parties, and the factors that are important to the problem?

b. Accurate and thorough use of course concepts.

c. Integration of course concepts with information about the family firm and problem, i.e., how well do you integrate course concepts with information about the problem to illuminate the problem in a way that leads to solutions?

d. Extent to which recommendations are consistent with analysis.

e. Quality of written analysis.

Analytical Syllabus