Session 3: Emotional dynamics in FB & the movie "you will be my son"

Question 1

Name the 4 stakeholders in the succession process!

Answer 1

1. Owner/founder
2. Professional managers/employees
3. Family
4. Successor (s)

Question 2

There are 3 main factors preventing intra-family succession. Which?

Answer 2

1. Individual factors
2. Relational factors
3. Financial factors

Question 3

“The Fredo effect”

Answer 3

A character from the films of Ford Coppola and The Godfather novels of Puzo and Winegardner
He is initially portrayed as a loyal but relatively inept family member who was passed over in the succession process in favor of his younger brother, Michael
In the story, Fredo is introduced as an obedient son whose lack of ability leads him to be tasked with unimportant duties in the family business
When rivals attempt to kill his father, The Godfather, Fredo freezes and is not able to protect him from the attack. Fredo is then sent to Las Vegas to work in the family’s casino operations
Along the way, Fredo comes up with bad business ideas that are poorly received and not adopted by the family firm, which results in him becoming a pawn of Corleone rivals
Fueled by his sense of inadequacy and his rejection for elevation to family firm leader, Fredo betrays the family - which ultimately results in the order of his younger brother, Michael, to have him murdered

Question 4

4 main explanations why succession fail

Answer 4

1. Convoluted behaviour
   - lack of trust and misunderstandings - conflict avoidance etc
2. Lack of meritocracy
   - the next generation does not have the required skills that match those needed
3. Lack of clarity
   - the lack of planning and governance
4. Weak or misaligned values
   - lack of common understanding of what values the company and the family lives by and wants to preserve