Amer International Group

This chapter advances a political perspective on goal setting in family firms by foregrounding the role of issues and coalitional dynamics. Building on the Behavioral Theory of the Firm, it argues that goal formation is not a purely cognitive or s...

Two actionable toolkits to preserve control: flexible exits with governance frameworks, and family councils that foster cohesion

Caroline Schmidt, 55, chief strategy officer of Edelweiss Corporation, has just led her company through a remarkable turnaround. When Henri Vonlanthen, CEO of Léman Corporation – a company twice Edelweiss's size – invites her to join Léman's board, Caroline sees a genuine opportunity: a bigger stage on which to apply the strategic and financial expertise that turned Edelweiss around, and a chance to help a storied family enterprise chart its next chapter. Léman, built over three generations by the Keller family and taken public in 2010, is a company with real assets and real needs: a strong balance sheet but a flat top line, two fast-growing subsidiaries alongside stagnant ones, and no clear long-term strategy. Its aging patriarch, Samuel Keller, remains chairman, and the board might need refreshment. Could Caroline, working alongside her ally Henri and maybe other board members, build the coalition needed to drive the strategic change Léman requires? Or would she find herself without the influence to move a set board, exposed instead to legacy issues and a possible conflict of interest with her own company? As Caroline's first appointment to a major board, her decision also carries a signaling dimension; the boards that a rising executive chooses to join, and how visibly she vets them, shape how the market will read her judgment for years to come. The case gives students a realistic, decision-forcing vehicle for weighing a directorship's opportunities against its risks: What due diligence a prospective director should conduct, how to assess whether one can genuinely influence and ally with fellow directors, and how a first major board appointment signals character and judgment to the market.

Discover five principles that help a multigenerational family enterprise prosper, preserve unity and create lasting value across generations.

Ever since scholars recognized that family firms are heterogeneous, many studies have attempted to compare different types of family firms without ensuring that the source of heterogeneity is unique to family firms. When the source of heterogeneit...

Family enterprises represent a substantial share of the global economy, accounting for approximately 70% of businesses worldwide. 1 Similarly, mental health conditions are highly prevalent, with nearly one in seven people (1.1 billion) around the ...