Half-Course: Management of the Family Business

Course Number 1655

Senior Lecturer John A. Davis
Early Fall, 15 Session half-course
1.5 credits
Exam

The US and the world economy are dominated by family-owned businesses, which generate most of the world's economic output and wealth. In some regions of the world, family companies virtually control the economy. While family companies are often strong competitors, they have vulnerabilities that need to be managed. Only a third of family companies pass successfully from the founder generation into the second generation, and only half pass from the second into the third generation. Why?

Career Focus

This course is intended for HBS and cross-registered students interested in understanding how to capitalize on the strengths and manage the challenges of family-owned companies, including:

• students whose family (or spouse's family) owns a business, whether or not the student intends to work in the business or will be a shareholder of it; and
• students who may work with these businesses as a non-family manager, consultant, investment banker, private banker or in other roles.

Educational Objectives

Half-Course: Management of the Family Business explores the management, family, career and personal issues found in family-owned and managed companies. The course develops a student's understanding of these organizations and skills to address the challenges family companies and families in business face.

Students have the opportunity to get to know one another in and out of class and to enter a lifelong learning relationship on this topic at HBS. Students are encouraged to bring family members and other guests to classes.

Course Content and Organization

Half-Course: Management of the Family Business has 15 class sessions and an exam. Grading is based half on class participation and half on performance on the final exam.

Classes include case discussions of family companies from around the world, interesting guest speakers from family companies and lecture/discussions on real world topics:

• how family-business-ownership systems predictably evolve
• managing business, family and shareholder relationships including family conflict
• dealing with nepotism and encouraging professionalism in the family business
• encouraging change in the family business system
• women's issues in the family businesss
• developing family members as family business managers and/or shareholders
• managing succession and continuity
• designing effective family business boards and family governance
• practices of successful family companies and business families
• managing business, family and shareholder relationships including family conflict

Students are encouraged to take advantage of office hour appointments with Professor Davis to discuss their family business system and career plans. The final exam will be held in a self-scheduled electronic format, with further details available after term start.