Presentation on theme: "Women in Business in general- The Diversity Issue Women on Boards of Directors Women as owners in their Family Businesses Challenges of Family Businesses-"— Presentation transcript:
Women in Business in general- The Diversity Issue Women on Boards of Directors Women as owners in their Family Businesses Challenges of Family Businesses- Inheritance Issues/- Gender Issues Values Ownership/Management/Family Recommendations
Women are a minority in the workplace. In the US, Europe and the ME. More and more women are entering the workplace Statistically, the number is increasing year after year, However, the number of women in Leadership position, although increasing is still very limited.
In a study I conducted at LAU, the average earnings of Males is higher than that of Females, however, as Females get higher educational levels, this difference gets smaller. Which basically shows that the more females get competitive, the lower the earning gap. This study was published in the International Journal of Business and Emerging markets- Inderscience publishers.
Women are under represented on Boards of Directors, they currently hold only 12% of Standard & Poors board seats. Women either control or influence nearly all consumer purchases, so it is important to have their perspective represented on boards
Women executives outperform their male colleagues on skills such as: being able to motivate others, promoting good communication, turning out high quality work, and being a good listener
The Hagberg Group performed in depth evaluations of 425 top executives in a variety of industries and each executive was rated by approximately 25 people. Of the 52 skills assessed, women received higher ratings than men on 42 skills, though at times the differences were small. All in all, studies such as these make one wonder why the glass ceiling continues to hamper the progress of women in business.
Studies have shown that women entrepreneurs are more reliable than their male counterparts, and the UN has decided to allocate more funds to them.
Family Businesses are considered pillars of economic growth and of all businesses. In the US. 80% to 90% of the businesses are family businesses In the Middle East, this percentage gets to 98% of businesses in general Family Businesses in general employ 78% of all new job opportunities, and 65% of all paid salaries and 60% of all job opportunities, and 50% of GDP.
More and more women play roles in family businesses A recent study showed that more than 25% of family businesses are waiting for a women in the top management positions. The same study conducted after 7 years showed that this percentage has gone up to 34%
The number of women in family businesses has doubled Family businesses headed by women are twice as productive as those headed by men. Those studies have also shown that women have different leadership and management styles, which shows the success of family businesses lead and owned by women.
According to Sharia the male gets two times the share of the female. In Oriental cultures, the females are alienated from the family firm In many families, the female gets only minor assets especially in very wealthy families and they influence females to sign off on their inheritance rights In poor families, the male is the money provider and hence should inherit
The problem of the In-laws They are alienated from the family firm, they get other assets They are in managerial positions only in the absence of males in the family or depending on their birth order. They are always encouraged to chose social work
How can Families Work Together more Effectively ?
Stresses PredictableUnpredictablePatterns from previous generations Governance Structures Family Family Family Shareholder Board of Management Meetings Councils Retreats Meetings Directors Team Empathy Trust Belongingness Shared Values Openness Respect Conflict Management Skills Problem Solving Skills Communication Factors Family Cohesiveness Successor Development Estate Planning Operational Policies Improved Survival Probability of Business Results FB
Definition and Purpose Basic Concepts and Beliefs Guide Decisions and Behavior Determine Right from Wrong Determine What Should be Done Determine How it Should be Done Determine Why Things are Done We take for granted that we share the same values, but do we?
Name It: Make Explicit Define It: Through Behavior Tell It: Through Stories Live It: By Daily Example
Family Realm Business Realm A Durable Value System that Benefits Both Realms Improved Family Behavior Family Pride Founder(s) Beliefs Sincerity and Genuineness in Manifesting Values Important and Practical Values Exercised in the Business Strength to Business Source: Family Business Values: How to Assure a Legacy of Continuity and Success, vol. 12 in the Family Business Leadership Series.
1. Accountability 2. Adding value 3. Collective good 4. Valuing input and interaction (give and take 5. Education and development 6. Ethical conduct 7. Focus on values and values education 8. Fun 9. Justice 10. Meritocracy 11. Openness 12. Practical Realism 13. Risk-taking 14. Self-reliance 15. Servant leadership 16. Social purpose 17. Entrepreneurial spirit 18. Stewardship 19. Trust 20. Valuing stakeholders
Family: Keeping Family Cohesion Ownership: Maintaining Committed Shareholders Business: Selecting Family Managers and Board Members
Answers found by Long-lasting Family Firms to typical Challenges Family: Keeping Family Cohesion Ownership: Maintaining Committed Shareholders Business: Selecting Family Managers and Board Members
A difficult issue, which if not properly addressed will lead to conflicts Within the family Why her and not me? Why their branch and not ours?… Within the business - Risk of demotivation of non-family managers - Risk of lower business performance
No family in management, only on board (Haniel from Germany has been here for 100 years) Only one family member: the CEO A few selected family managers, not necessarily in the top jobs All family members can work in the business in appropriate jobs (even in small jobs).
Family elders search for them and ask them to join A committee advises family members on their careers and evaluates those who wish to join the business (for example: an HR specialist, a family member, a non-family manager) Internships are encouraged
Graduate Studies Outside Experience Outside promotion for certain jobs
Same criteria as non-family members. Have a Good Mentor (boss). Evaluation by non-family members on the board. Career committee And of course a retirement age.
Answers found by Long-Lasting Family Firms to Typical Challenges Family: Keeping Family Cohesion Ownership: Maintaining Committed Shareholders Business: Selecting Family Managers and Board Members
Unhappy shareholders can sell their shares to a third party, ultimately leading to the sale of the family business Keeping shareholders happy is an important task for any business leader, and of course for family business leaders
Information Through holding general assemblies Through providing a constant flow of information Financial Care Paying out dividends regularly Offering liquidity mechanisms (market for shares) When shareholders cannot get out, they are looking for ways to get out So it is better to find a mechanism to sell shares Diversification of Wealth through a family office (also brings services to shareholders )
Training Finance Governance Family Business Dynamics Plant Visits, meeting with key managers Introductory weekend for future shareholders Family Retreats and Family Events
Family: Keeping Family Cohesion Business: Selecting Family Managers and Board Members Ownership: Maintaining Committed Shareholders
The family element brings an element of over performance to businesses (several studies outlined this over performance to stock market companies) However, when families are not well organized, or when cohesion is lost, they stop bringing value to the business
Organizing Family Meetings 2 days including a plant visit, a party, a business update, presentations by younger family members on their own businesses A week-end mixing work in plenary sessions, in small groups, and team-building games A memorable trip every three years Formalizing the Rules of the Game or building Family Policies Develop rules for ownership, management, governance Develop code of conduct for family members Develop conflict resolution procedures for handling conflict in the family
Reflecting on the Family Values and History Setting up a philanthropic foundation Redefining the relationship between the family and the Business Using a Fair Process in all decision making
Let the Process be fair- The Process is important in solving family business issues Let them know the rule of the game ahead of time Manage their expectations Create enlightened owners Inform Family Members permanently Separate between ownership and management Establish an exit policy
Nothing is given, it should be earned You can work as a pioneer in your family and your family business The sky is the limit!!
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