FAMILY BUSINESS ENTERPRISE

TEAM OF LECTURERS
UNIVERSITAS PELITA HARAPAN
Family Business Enterprise | Universitas Pelita Harapan 2016
 MEETING 6:
TRUST AND COMMITMENT IN FAMILY BUSINESS
Family Business Enterprise | Universitas Pelita Harapan
 TOPICS TO COVER

1. Unhealthy family culture (Poza 2010, 27)

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

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

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

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

Family Business Enterprise | Universitas Pelita Harapan
1 Unhealthy Family Culture

Characterized by:
1. Secrecy
2. Lack of information
3. Low levels of family emotional intelligence
4. Little knowledge of the business among at least some family
members

Family Business Enterprise | Universitas Pelita Harapan

1 Unhealthy Family Culture

A result of:
1. A founding culture that supported autocratic leadership
2. The familys belief in benefits of privacy
3. Zero-sum dynamics

Family Business Enterprise | Universitas Pelita Harapan

2 Zero-sum dynamics

Zero-sum dynamics are characterized by exchanges in which one

partys perceived gain is the other partys perceived loss

The absence of growth (and increased wealth and career

opportunities) in the family business is fertile ground for zero-sum
dynamics

Family Business Enterprise | Universitas Pelita Harapan

3 The Family Systems Perspective

Considers the family to be the building block of emotional life

Uses systems thinking to understand the complex interaction

between individual members of the family

Family Business Enterprise | Universitas Pelita Harapan

3 The Family Systems Perspective

Suggests that change in any family members behavior is more likely

to be sustainable at the family than at the individual level

Argues that the interdependence that is the source of

social/physical/intellectual/emotional rewards in the family also
gives rise to conflicting needs, desires, and priorities as the family
grows and ages

Family Business Enterprise | Universitas Pelita Harapan

3 The Family Systems Perspective

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

Argues compellingly for the tremendous influence of an individuals family of

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

The analysis of earlier generations is essential to understanding what ails or distresses a family
in the present
Family Business Enterprise | Universitas Pelita Harapan
4 Family Genograms

A genogram, a cousin of the traditional family tree, informs us not just of

family names, relationships, ages, and lineal descendants, but also captures
critical events (e.g. divorce), the waulity of relationships (e.g. highly
conflictual or extremely close), and important messages transmitted across
generations (e.g. education and hard work are both important).

To construct a genogram of your own family, follow the genogram template in

figure 2.1 (page 35).

Family Business Enterprise | Universitas Pelita Harapan

4 Family Genograms

Family Business Enterprise | Universitas Pelita Harapan

4 Family Genograms

Some cautionary statements to keep in mind:

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

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

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

Family Business Enterprise | Universitas Pelita Harapan

5 Family Emotional Intelligence

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

Ultimately, emotional intelligence seeks to increase the ability to handle feelings

with skill and harmony even in the face of differences between family members, so
that better decisions can be made and teamwork and family unity can thrive

Emotional competence inventories with their 360-degree feedback process can be

particularly helpful to next-generation members of a family in business

Family Business Enterprise | Universitas Pelita Harapan

5 Family Emotional Intelligence

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

Ultimately, emotional intelligence seeks to increase the ability to handle

feelings with skill and harmony even in the face of differences between
family members, so that better decisions can be made and teamwork
and family unity can thrive

Family Business Enterprise | Universitas Pelita Harapan

5 Family Emotional Intelligence

Emotional competence inventories with their 360-degree feedback

process can be particularly helpful to next-generation members of a
family in business

Family Business Enterprise | Universitas Pelita Harapan

5 Family Emotional Intelligence: the ECI-U Model
Self-Awareness Social Awareness
Emotional self-awareness Empathy
Accurate self-assessment Organizational awareness
Self-confidence Service orientation

Self-Management Relationship Management

Emotional self control Developing others Change catalyst
Trustworthiness Inspirational leadership Achievement orientation
Conscientiousness Influence Building bonds
Adaptability Communication Teamwork and collaboration
Optimism
Initiative The Emotional Competence Inventory
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 THANK YOU
FAMILY BUSINESS ENTERPRISE | UNIVERSITAS PELITA HARAPAN 2016

Family Business Enterprise | Universitas Pelita Harapan