SI340 Syllabus PDF

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SI340 – Family Business Management Fall-2021

Boston University Questrom School of Business

SI340 - Family Business Management Please be sure to read this Syllabus thoroughly prior to your 1st class session! I know it is long, but it is an essential guide for the course!

I.

Course Administrative Details

 Instructor: Patrick Abouchalache, Questrom School of Business, (201) 446 6405, [email protected], LinkedIn  Office Hours: I will regularly be keeping office hours in person or over Zoom. Please e-mail to schedule.  Course Dates/Times/Location & # credits: 2-Sep-2021 to 9-Dec-2021 / Tue, Thu 9:30 - 10:45am / HAR 418 (Rafik B. Hariri Building) & 4.0 credits  Hub credits: Historical Consciousness, Global Citizenship and Intercultural Literacy, Critical Thinking II. Course Description, Learning Goals, Structure, & Materials A. Course Description & Learning Goals  Family business historically represents a significant part of the U.S. economy and an even larger proportion of the global economy. Worldwide 80% of all businesses are classified as “family businesses.” Whether you are remotely involved in your family business or contemplating joining your family-owned enterprise or someone else’s after graduation. This course is intended for students seeking to understand generational family business, innovation, management, and investment across a variety of global sectors, functions, and ecosystems. It will expose students to approaches, frameworks, and ways-of-thinking that can be utilized to identify meaningful problems and constantly changing individual needs, conceive actionable ideas and solutions, and propel them to fruition. Student teams will author a final paper addressing one or more opportunities and challenges addressing their family business or a contemporary multigenerational enterprise belonging to another family. At the end of the semester, the teams will make a confidential presentation integrating the principles and skills learned through the course to a panel of faculty, alumni, and family business peers.  Key Learning Outcomes o Understand the historical importance of family businesses in the global economy - both developed and developing world perspectives o Become familiar with the operational and organizational dynamics of a family business o Understand the differences and sensitivities across multigenerational family businesses o Learn about effective governance and succession models for family businesses o Learn how to form and / or manage a family business and the conditions where suitable

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B. Course Structure & Pedagogy  Each class will involve a reading, video, podcast, case study, class exercise, and / or guest speaker sharing a personal experience. Representative class topics include:               

What is a family business? Entering the family business Transforming the business into a professional organization What makes an aligned successful multigenerational family and family firm? Properly anticipating today’s & tomorrow’s operating, funding, and community needs Leadership and the emotional complexities of family and family business Establishing expectations and trust Managing conflicts Proper governance and succession Growth through innovation Driving purpose and profit while doing good Equitably managing diverse family and nonfamily members and employees Managing through crises: pivot or stay the course? Adapting family businesses for a post-Covid world? What is a family office? Do I need one?

 Syllabus Changes and Updates: The intention is to follow the syllabus as initially developed. However, changes in both the nature and order of content could occur to improve the course or make the best use of extremely current and dynamic developments and issues as well as available or new resources (e.g., articles, developments, guest speakers). If a material change is made to the syllabus, then a new syllabus will be posted on the course site, and students will be notified. If new readings are added to the syllabus less than one week before a class, they will be optional. C. Course Materials  There is no assigned textbook for this course.  Reading materials, cases, and other materials can be found on the Course Site under Questrom Tools as well as on Harvard Business Plublishing (HBP). For HBP articles, cases and simulations, purchase coursepack by Clicking Here or https://hbsp.harvard.edu/import/857186.  The course emphasizes exposure to the latest vocabulary, tools, developments, and trends underlying family business as it relates to general management, innovation, fundraising, investing, social impact / ESG, real estate, governance and succession. Please get in the habit of following the daily local, national, and international news, trade associations, lectures, webinars, and newsletters; for example, Family Capital, Family Business, Campden Wealth, The New York Times, Boston Business Journal, Questrom News & Events, Innovate@BU. III. Course Policies A. Attendance Policy Attendance is mandatory and will be taken at the beginning of each class. It is vital that you attend every class since so much of the learning for you and your classmates is gained from in-class interactions. You are permitted two excused absences (illness, unavoidable conflict with out-of-town job interview, etc), and please notify me in advance. Absent extenuating circumstances, a third absence will result in a grade deduction unless you arrange to make up the missed class. Repeatedly missing portions of class (arriving late, leaving early) will also result in a grade deduction. Because this course moves quickly, and interrelated issues and material builds across the semester, falling behind will put you at 2 of 14

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a

disadvantage.

Assignments are always due at the beginning of class on their due date, even if students are unable to attend class that day. Please note that BU policy ( link here) and Massachusetts State Law consider absences for religious reasons to be “excused absences.” B. Diversity & Inclusion Statement  In developing this course, we have aimed to be thoughtful about how identity and culture impact the course content. We invite all students to engage with these sensitive conversations in search of common ground vis-à-vis diversity, racism, equity and inclusion. If there are topics or conversations that you feel would benefit from incorporation of social context, a differing perspective, or the support of our Questrom’s Office of Diversity & Inclusion, please inform me and I will explore resources and opportunities for us to engage a wide variety of perspectives in our classroom. If you have concerns or ideas about diversity and inclusion at Questrom you can also reach the Questrom Diversity & Inclusion office at [email protected]. C. Academic Accommodations for Students With Special Needs  In keeping with University policy, any student with a disability who needs or thinks they need academic accommodations should visit the Office of Disability Services’ website to complete an intake form or renew their accommodation (https://www.bu.edu/disability/). You can also call 617-353-3658 to arrange a confidential appointment with a Disability Services staff member. Accommodation letters must be delivered to your instructor in a timely fashion (not later than two weeks before any major examination). Please note that accommodations will not be granted without an official letter of accommodation. D. Academic Integrity Policy  The University has developed an Academic Conduct Code. E. Sexual Misconduct/Title IX Policy  The Questrom School of Business is committed to fostering a safe learning environment for all members of the its community and preventing sexual misconduct. All forms of sexual misconduct, including rape, acquaintance rape, sexual assault, domestic and dating violence, stalking, and sexual harassment are violations of Boston University’s policies, whether they happen on or off campus.  Title IX of the Education Amendments of 1972 is a federal civil rights law that prohibits sex-based discrimination in federally funded education programs and activities. This law makes it clear that violence and harassment based on sex and gender is a Civil Rights offense subject to the same kinds of accountability and the same kinds of support applied to offenses against other protected categories such as race, national origin, etc. If you or someone you know has been harassed or assaulted, you can find the appropriate resources at http://www.bu.edu/safety/sexualmisconduct/ F. Intellectual Property  The projects you work on in this class are for experiential learning purposes only. At the conclusion of a course, any student will be free to further develop any idea incorporated into their team’s project, with or without the participation of other students on the team. BU and its faculty will not be directly involved in any such activity, but organizations such as the BU startup law clinic and Innovate@BU can give students advice on issues arising during creation of a new venture. In our experience, the success of a startup venture is generally a function of the successful execution of the team that implements the venture, rather than the quality of the original idea.

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IV. Course Evaluation & Expectations A. Course Evaluation  Class Grades will be assigned as follows; o

Grading: The relative weighting of assignments in your course grade is as follows:

o o o o o o o

Evaluation Activity Class Participation Class Preparation Homework Family Interview Experience Presentation Final Project Paper Final Project Presentation TOTAL

% of Course Grade 20% 20% 20% 20% 20% 100%

If you have any questions about grades that you receive on particular assignments, you must raise them within two weeks of receiving your grade on that assignment. Unless I have made computational errors, I will be unable to alter grades after final grades have been determined. If you have particular grade-related considerations that you think are important, please raise these with me as early as possible so I can help you approach the course in a way that will help you achieve your best possible performance. B. Assignment Descriptions & Expectations  Class Participation tied to effective and thoughtful contribution in class.  Class Preparation Homework Most classes include questions outlined in the syllabus. Please prepare written answers and submit under your ‘Assignments’ folder on Questrom Tools; Word format only. File name should contain your name and the class number (1-27). These assignments are specifically designed to prepare you for effective learning and class participation.  Students are responsible for insuring all assignments are turned in on time, in valid file.  Two Team Projects  An integral part of the course is the “Family Interview Experience”, where each student team will interview a family business different from them in race, national origin, religion, socio-economic status, gender identity, generation, industry, or major life experience. Students will interview one or more internal or external members of that family business about issues they face and give short oral presentations (no power points) on their experiences to the class. Oral presentations should be about 10 minutes / followed by questions from their peers, highlight topics and concepts discussed in class as well as why topics were interesting or surprising. This non-traditional assignment, along with the personal perspectives incorporated into the course, will enable students to understand concepts that they cannot learn in a classroom or in a library. At the end of Session 4 (September 14, 2021), students will sign up for a “Family Interview Experience” presentation date. You will be graded on a scale of 1 - 20 for your oral presentation (no written work product is required for this assignment) based on your ability to apply the chosen family business / members to course concepts and ideas, the quality of your interview(s), analyses, and key findings , and your ability to present in a cogent, interesting, and engaging manner.  In the “Final Project” you will focus on your or one of your classmates’ family business. The project will have two parts, o

Presentation You will present an expansion plan for your selected family business. This plan should be supported by both primary and secondary research. The expansion could be in the form of growing the 4 of 14

SI340 – Family Business Management Fall-2021

exisiting business(es) or entering new markets (more details in assignment expectations document). Please use pseudonyms where confidentiality concerns may exist. o

Paper This should be a 360 degree assessment of your focused family business. Your report should cover areas we have discussed in class such as governance and succession planning (more details in assignment expectations document).

V. Course Schedule Session 1:

Course Introduction (Sep 2) Reading #1 The History of Family Business, 1850 - 2000, 2003. Chapter 1. Reading #2 Business Insider, How the Waltons - America's wealthiest family and heirs to the Walmart empire - live their lives, Feb 6, 2020. Reading #3 CampdenFB, ASIA'S TITANS: 10 ASIAN FAMILY BUSINESSES YOU SHOULD KNOW ABOUT, Oct 31, 2013. Reading #4 Family Business in China, Volume 1 A Historical Perspective, Chapter 2 Household and Family Nov 30, 2020. Learning Goals: 1. Understand the historical importance of family businesses in the global economy Assignment Due: Answer questions and describe problems below. Remember that all assignments must be placed in your Questrom Tools ‘Assignments’ folder prior to class. Written responses must be in Word format. 1. What do you think of when you hear the word family business? Which generation is your family business in? Who do you think of when you think of a family matriarch or patriarch? How would you define your family business and management style and skills? (e.g., leading by example, firm but fair, approachable, empathetic). 2. Describe three problems / challenges of family business that you think might be worth solving or addressing. They can be simple and local (e.g., “my sibling wants to join the family business but are they best qualified / intentioned”), or of a larger scale (e.g., “how to transform our 2nd generation business into a professional organization”). 3. Qualify and prioritize each problem / challenge? 4. Who wants to solve it and why? How do family members’ interests differ or overlap? 5. How many family members want to solve it? 6 . Do I need internal / external support to solve it?

Session 2:

History of Family Business (Sep 7) Reading #1 FamilyBusiness.org, Research Reveals How Business Families Have Coped With COVID-19, Oct 16, 2020. Reading #2 McKinsey, The family-business factor in emerging markets, Dec 1, 2014. Reading #3 National Determinants of Family Firm Development? Family Firms in Britain, Spain, and Italy in the Nineteenth and Twentieth Centuries , Mar 2003. Learning Goals: 1. Frame traditional vs. new perspectives 5 of 14

SI340 – Family Business Management Fall-2021

2. Sensitivity to individual family businesses ‘You’ve met one family business, you’ve met one family business’ 3. Compare and contrast different geographies, cultures...Americas, Europe, MENA, Asia, LATAM 4. Lingering problems and questions Session 3:

Building Blocks for Starting a Successful Family Business (Sep 9) Reading #1 Lahore University of Management Sciences, Business Family Constitution: An Overview, Dec 1, 2019. (HBP Coursepack) Reading #2 Entrepreneur, 5 Keys to Successfully Leading a Family Business, Jun 16, 2019. Reading #3 JustBusiness, 12 Family Business Ideas - Plus Tips for Starting a Family Business, Oct 22, 2020. Learning Goals: 1. Building blocks overview 2. Curiosity, teamwork, and adaptability 3. Developing a strong business / family plan Assignment Due: Prepare an overview of your business family constitution using the 4W (What, When, Why, Where) and 1H (How) approach. All assignments must be placed in your Questrom Tools ‘Assignments’ folder prior to class. Written responses must be in Word format.

Session 4:

Key Generational Actors: Family, Business and Owners (Sep 14) Reading Cambridge Family Enterprise Press, How Three Circles Changed the Way We Understand Family Business, 2018. Class Exercise Simulation - Honey Heritage (HBP Coursepack) Learning Goals: 1. Become familiar with the operational and organizational dynamics of a family business 2. Three-Circle Model: Understand the dynamics between the family, business, and ownership dimensions in a family business 3. Familiarize to critical issues that could arise in a family business environment 4. Create an understanding that the decisions will change over generations, and each generation will deal with a different set of decisions 5. Life cycle management: Learn the multigenerational implications of choices on the family, business, and ownership dimensions

Session 5:

Keeping Up with the Demands of Family and Business (Sep 16) Reading #1 Cornell SC Johnson College of Business, Family Business Facts. Reading #2 Harvard Business Review, Is the Next Generation of Your Family Business Entrepreneurial Enough?, May 8, 2020. (HBP Coursepack) Reading #3 New York Times, These 6 Businesses Have Survived the Depression, War and Now the Pandemic, Aug 28, 2020. Reading #4 Boston Globe, Jeremy Jacobs gives control of Bruins to his six children, Sep 6, 2019. Learning Goals: 1. Overview of common and evolving family business needs 2. e.g., Ownership, governance, education / training, succession, investment, philanthropy 3. Provide unique first hand perspectives 6 of 14

SI340 – Family Business Management Fall-2021

Assignment Due: Choose a family business (single or multigenerational) and provide a brief summary / scorecard. Touch on company culture, ability to maintain innovation across generations, governance, succession planning, strong stewardship. Session 6:

Evolving Intergenerational Needs: As the Business Grows, So Does the Family (Sep 21) Reading #1 Forbes, 3 Myths About Family Businesses And Their Role In Asia's Economies, Dec 19, 2017. Reading #2 BCG, What Makes Family Businesses in Emerging Markets So Different?, Sep 8, 2016. Reading #3 Forbes, The 10 Leading Family Businesses In Africa, Jan 8, 2014. Reading #4 Forbes, 5 Benefits Of Having A Multigenerational Family Business, Jan 8, 2019. Class Exercise Cementing Identity and Citizenship Learning Goals: 1. How to maintain a balance between business goals (growth, innovation, hiring the best talent) and family goals (preserving family values and wealth) 2. Understanding how intergenerational needs evolve differently in individual parts of the world, different size businesses (starting point matters)

Session 7:

Ownership (Sep 23) Reading #1 Harvard Business Review (HBR), The 5 Models of Family Business Ownership, Sep 20, 2016. (HBP Coursepack) Learning Goals: 1. Lead actor in many businesses is the CEO; in family business lead actor(s) are owners. Who gets to be an owner? 2. Who gets to make which decision, and how? 3. How to achieve engaging ownership

Session 8:

Principles of Sound Governance (Sep 28) Reading #1 HBR, 6 Traits of Strong Family Businesses, Jun 18, 2019. (HBP Coursepack) Learning Goals: 1. Understanding building blocks of strong governance 2. The role of corporate boards, advisory boards, family councils...to help manage critical issues like CEO performance and succession, compensation, and forward-looking strategy 3. How to codify consensus and boundaries Assignment Due: Apply Fernández-Aráoz, Iqbal, Ritter, and Sadowski’s Family Gravity 6 Traits framework to a family firm (your own or someone else’s). Comment...