Continuity Model Generation Integrating Wealth, Strategy, Talent, and Governance Plans

Organize and plan for your family business’s continued, intergenerational success

Continuity Model Generation: Integrating Wealth, Strategy, Talent, and Governance Plans delivers a cohesive and comprehensive plan for family business leaders who seek to improve the chances of sustaining success across generations. Incorporating four distinct—but closely related—plans, Continuity Model Generation shows family businesses how to manage their strategy, their wealth, their talent, and their governance to achieve multi-generational success. The book also offers:

• A coherent framework (Continuity Canvas) for the integration of its multiple plans affecting every critical aspect of the family-owned or controlled business
• Straightforward and practical frameworks, meta-frameworks, and cornerstones to ground your family business’s strategy
• A variety of templates, checklists, and forms to organize your thinking and strategy

Ideal for business-owning families, as well as their stakeholders and those who advise them, Continuity Model Generation: Integrating Wealth, Strategy, Talent, and Governance Plans is required reading for anyone interested in maintaining and developing family-based wealth.

JUSTIN B. CRAIG, PhD, is Professor of Entrepreneurship and Family Enterprise at Bond University in Australia and Visiting Professor of Family Enterprise and program director of the Center for Family Enterprises at the Kellogg School of Management, Northwestern University. He is the co-author of Leading a Family Business: Best Practices for Long-Term Stewardship.

List of Illustrations VI

List of Illustrated Tables VII

List of Configuration Plans VII

ACKNOWLEDGEMENTS AND APPRECIATION VIII

INTRODUCTION TO THE CONTINUITY MODEL GENERATION X

PART ONE ‐ 21 FRAMEWORKS AND 6 META‐FRAMEWORKS 1

KEYSTONE META‐FRAMEWORK 1

Four Foundational Theoretical Approaches 1

Agency Theory 1

Stewardship Theory 4

Resource‐Based View 7

Principal Cost Theory 9

Two Complementary Logics 10

Three Circles Framework 12

FAMILIAL META‐FRAMEWORK 17

The Big Tent Framework 17

RIPCC Best Practice Dimensions 19

Four Ps Framework 20

Four Cs Framework 21

INDIVIDUAL META‐FRAMEWORK 26

Five Servant Leadership Dimensions 26

Four Tests Framework 28

Four Leadership Priorities 30

Four Exit Strategies 32

GENERATIONAL META‐FRAMEWORK 35

Four Ls Framework 35

Four Ownership Stages 38

Four Entrepreneurship Principles 41

TACTICAL META‐FRAMEWORK 44

Family Enterprise Heterogeneity Frameworks 44

Four Rs Framework 46

Four Strategy Dimensions Framework 48

FUNDAMENTAL META‐FRAMEWORK 51

Four Trust Dimensions 51

Five‐Stage Life Cycle Framework 53

Stage One: Existence 54

Stage Two: Survival 54

Stage Three: Success 54

Stage Four: Renewal 54

Stage Five: Decline 55

Church and State Framework 55

Four Innovation Capabilities 57

Technology Development Capabilities 57

Business‐Driven Capabilities 57

PART TWO: THE CONTINUITY CANVAS 59

STRATEGY: STRATEGIC PLANNING FOR CONTINUITY 60

Strategic Planning for Continuity I: Collecting and Collating Basic Information 60

Strategic Planning for Continuity II: Corner Concept Equals a Quadruple‐Bottom‐Line Scorecard 63

Financial Perspective 64

Keystone Meta‐Framework: Agency, Owner–Steward, and Manager–Steward 64

Familial Meta‐Framework: Issues are the Same, Perspectives Differ 65

Individual Meta‐Framework: Persuasiveness 66

Generational Meta‐Framework: Affordable Loss 66

Tactical Meta‐Framework: Financial Perspective of the Balanced Scorecard 66

Fundamental Meta‐Framework: Business Equals State  67

Social Perspective 67

Keystone Meta‐Framework: Social Logic 68

Familial Meta‐Framework: Commitment to Us 68

Individual Meta‐Framework: Organizational Stewardship from the Four Servant Leadership Dimensions 68

Generational Meta‐Framework: Learn Our Family Business 69

Tactical Meta‐Framework: Customer 69

Fundamental Meta‐Framework: Family Equals Church 70

Environmental Perspective 71

Keystone Meta‐Framework: Resource‐Based View 71

Familial Meta‐Framework: Philanthropy Leader 72

Individual Meta‐Framework: Organizational Stewardship 72

Generational Meta‐Framework: Learn to Lead 73

Tactical Meta‐Framework: Innovation and Learning 73

Fundamental Meta‐Framework: Technology Development Capability 74

Talent Perspective 74

Keystone Meta‐Framework: Principal Cost 74

Familial Meta‐Framework: Community 75

Individual Meta‐Framework One: Four Tests Framework 75

Generational Meta‐Framework: Learn Business, Learn Our Family Business 76

Tactical Meta‐Framework: Four Rs Framework 77

Fundamental Meta‐Framework: Four Trust Dimensions Framework, Business‐Driven Capabilities 77

TALENT: SUCCESSORS’ TALENT DEVELOPMENT PLANNING FOR CONTINUITY 79

Successors’ Talent Development Planning for Continuity I: Collecting and Collating Basic Information 88

Successors’ Talent Development Planning for Continuity II: Cornerstone Concept Equals Develop an Informed Individual Philosophy of Stewardship 90

Values – History – Legacy 91

Keystone Meta‐Framework: Stewardship and Resource‐Based View 91

Familial Meta‐Framework: A Commitment to Us 92

Individual Meta‐Framework: Altruism 92

Generational Meta‐Framework: Learn our Family Business 92

Tactical Meta‐Framework: The Steward 93

Fundamental Meta‐Framework: Benevolence 94

Financial Literacy and Value Creation 94

Keystone Meta‐Framework: Economic 94

Familial Meta‐Framework: Big Tent Executive or Employee 96

Individual Meta‐Framework: Self‐Imposed Test 96

Generational Meta‐Framework: Affordable Loss 97

Tactical Meta‐Framework: Financial Perspective of the Balanced Scorecard 98

Fundamental Meta‐Framework: Renewal 99

Governance Role Preparation 100

Keystone Meta‐Framework: Three Circles 100

Familial Meta‐Framework: Business or Family Governor 100

Individual Meta‐Framework: Governor Exit Style 100

Generational Meta‐Framework: Cousin Consortium 101

Tactical Meta‐Framework: The Governor 102

Fundamental Meta‐Framework: Ability and Consistency 103

Individual Development 104

Keystone Meta‐Framework: Three Circles 104

Familial Meta‐Framework: Four Ps 104

Individual Meta‐Framework: Political Test 104

Generational Meta‐Framework: Learn to Let Go 105

Tactical Meta‐Framework: Four Rs 105

Fundamental Meta‐Framework: Trust Dimensions 106

WEALTH: ASSET, WEALTH, AND ESTATE PLANNING FOR CONTINUITY 107

Asset, Wealth, and Estate Planning for Continuity I: Collecting and Collating Basic Information 107

Asset, Wealth, and Estate Planning for Continuity II: Cornerstone Concept Equals Produce a Handwritten Individual Legacy Statement 109

Keystone Meta‐Framework 110

Familial Meta‐Framework 111

Individual Meta‐Framework 112

Generational Meta‐Framework 113

Tactical Meta‐Framework 115

Fundamental Meta‐Framework 116

GOVERNANCE: GOVERNANCE PLANNING FOR CONTINUITY 117

Governance Planning for Continuity I: Collecting and Collating Basic Information  117

Governance Planning for Continuity II: Cornerstone Concept Equals Craft the Family’s Governance Philosophy 118

Business Governance 120

Keystone Meta‐Framework: Four Foundational Theories 120

Familial Meta‐Framework: Business Governor — Family Governor 121

Individual Meta‐Framework: Four Tests Framework 122

Generational Meta‐Framework: Learn Our Family Business 123

Tactical Meta‐Framework: Governance — The Governor 124

Fundamental Meta‐Framework: Renewal — Business‐Driven Capabilities 126

Family Governance 126

Keystone Meta‐Framework: Family Steward 126

Familial Meta‐Framework: Sense of Purpose 127

Individual Meta‐Framework: Political 127

Generational Meta‐Framework: Learn to Lead 127

Tactical Meta‐Framework: Four Rs — Role 127

Fundamental Meta‐Framework: Trust 128

Ownership Governance 128

Keystone Meta‐Framework: Owner–Stewards 128

Familial Meta‐Framework: Four Ps — Protocols Before Needed 129

Individual Meta‐Framework: Persuasiveness 131

Generational Meta‐Framework: Sibling Partnership 132

Tactical Meta‐Framework: Responsibility 132

Fundamental Meta‐Framework: Church 133

The Foundation  133

Keystone Meta‐Framework: Social 133

Familial Meta‐Framework: Big Tent — Philanthropy 134

Individual Meta‐Framework: Empathy and Altruism 134

Generational Meta‐Framework: Crazy Quilt 135

Tactical Meta‐Framework: Customer 135

Fundamental Meta‐Framework: Business‐Driven Capabilities 136

PART THREE: CONFIGURING A PLAN FOR THE PLANS 137

Configuration Plan One 137

Configuration Plan Two 139

Configuration Plan Three 139

Configuration Plan Four 140

APPENDIX 141

Educating Educators 141

A Program Example 144

Section One: Frameworks and Meta‐Frameworks 144

Section Two: Four Plans and Cornerstone Concepts for Continuity 147

Section Three: Presenting Configuration Examples 149

Section Four: Developing Your Own Continuity Canvas and Cornerstone Concepts 151

REFERENCES AND ADDITIONAL READINGS 151

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.