Independent board directors: How to improve their contribution to the family business

This study is based on information obtained from two questionnaires, one sent to the presidents and CEOs of a sample of family businesses and the other sent to independent members of the Boards of Directors of the same businesses. The main points of agreement and the main differences of opinion between these two groups are identified and grouped under the following headings: 1) governance practices; 2) reasons for retaining or seeking the resignation of independent board directors; 3) reasons why independent board directors do not give the best of themselves, and 4) most appreciated and most missed qualities in independent board directors. The most important findings are: a) The main reasons for including independent board directors are to improve the structure of corporate governance and to resolve succession problems; b) The main reasons for seeking the resignation of independent board directors are lack of the necessary personal qualities, lack of the right relationship with the other directors, and calls for their resignation from significant shareholders, and c) According to independent board directors, the main reasons why they fail to give the best of themselves are that the owners are not genuinely committed to having a professional and effective Board of Directors, and the fact that important decisions are made by the family without taking the independent directors' opinions into account. The authors put forward six propositions to help get the most out of independent board directors and offer some recommendations on how to improve the structure of family business governance.independent board directors; corporate governance; family business governance;

Effort, loyalty and idealism

The purpose of this pioneering study in the field of family business is to measure the degree of commitment to the family business among family members who do not actually work in the firm. After analyzing the characteristics of these people, we identify four very different groups. The existence of these four groups suggests that there is a "natural evolution" in relations between families and their businesses. Based on the behavior of the people in each of the four groups, we aim to identify the factors that can significantly affect the degree of commitment of family members.family business; non-active members; family commitment; unity;

Ethics of personal behaviour in family business.

This paper summarizes the preliminary findings of a research project of an exploratory nature currently being conducted by IESE's Family Business Chair into violations of ethics in Spanish family businesses. The main results indicate that ethics violations are perceived to be most frequent in behaviors such as delaying succession, preventing the implementation of a strategy that would be beyond one's own capacities or ambitions, and building an organization by buying loyalty. These types of behavior are perceived in different ways, depending on the age of the person who is judging them.ethics; family business;

Family members who do not work in the family business: How to enhance their "unity" and "commitment"

This study builds on the results of a recent international study, "Success as a Function of Love, Trust and Freedom in Family Business" (Gallo et al., 2001), which introduced a new conceptual model identifying family unity and commitment as driving forces behind the success of Family Businesses (FBs). Whereas the earlier research dealt with family members who are active in the business, this study aims primarily to reflect what non-active family members, from their position as "outsiders," think about the business of which they, too, are a part. One of our principal hypotheses is that successful FBs are supported by families that place an emphasis on family unity and commitment. Secondly, based on a typology of family members according to their levels of effort, loyalty and idealism, the study identifies a number of rewards or motivators that can help to raise these levels over generations.Family business; family values; agents commitment; sustainability family unity;

Characteristics of successful family businesses

In response to the statistics showing high mortality among family businesses, this study looks at a group of Spanish family businesses (FBs) that have demonstrated an ability to grow and innovate. Typically, these FBs have gained prestige in the Spanish economy not only because they have reached the top 1000, but also because they have stayed there for over 30 years. We collected data from interviews with the managers of 21 of the 64 companies that fulfilled both these conditions. Our aim was to learn from these successful business leaders what, in their personal opinion, had been the driving force behind their firms' success. The factors they mentioned included a set of values that successful business families have made a way of life. They are what we have called the "ELISA" values. These values are the bedrock of these firms' culture, inspiring top performance, reducing the cost of capital, and resolving other related issues that are made easy to deal with by adherence to these values.family business; success factors; business culture;

Apuntes para un inventario del megalitismo en el norte de la provincia de Palencia

Nuevas aportaciones al catálogo del Megalitismo en el norte de la provincia de Palencia, obtenidas principalmente en el desarrollo de un proyecto de investigación financiado por la Junta de Castilla y León. El objetivo es la localización de menhires de una posible alineación entre la Meseta y la cordillera Cantábrica, para lo que se ha hecho una prospección extensiva de amplias comarcas. La conclusión es la existencia de numerosos yacimientos que permiten suponer la existencia de otros focos megalíticos.New contributions to the catalog of megalithic sites in the north of the province of Palencia (Spain), obtained in the development of a research project financed by the Junta de Castilla y León. The aim is to find the menhirs of a possible alignment between the plateau and the Cantabrian mountain range, with an extensive exploration of large regions. The conclusion is the existence of numerous megalithic sites and assumption of the existence of other

Los enterramientos tumulares del Valle del Valdelucio (Burgos), un ejemplo de distribución espacial diferenciada

En los páramos de la Lora de Valdelucio -existe una gran necrópolis prehistórica, con abundancia de dólmenes, túmulos y menhires. Al sur, ya en el valle, desaparecen los enterramientos megalíticos, que no se volverán a encontrar, salvo casos aislados, hasta el límite occidental de la cuenca del río Duero. La acumulación y los vacíos parecen deberse a las características geográficas diferenciales del páramo frente a la campiña.In the bleak plateau of Valdelucio exists a great prehistoric zone, with abundance of meghalits. To the south, already in the valley, the tombs disappear, that will not become to find, except for isolated cases, until the western limit of the Duero river basin. The accumulation and the emptiness seem to be due to the geographic characteristics differentials of the bleak plateau and valley

Internationalization via strategic alliances in family businesses.

It has been observed in previous studies that certain characteristics of family businesses may impede internationalization. These characteristics include the concentration of decision-making in the hands of a single shareholder or small group of shareholders, delays in the succession process, aversion to internationalization, etc. Despite these obstacles, a large number of family businesses have chosen to internationalize as a means of revitalizing themselves. The results of the study reported here indicate three important pre-requisites for family businesses that are seriously considering internationalization as an aid to growth: they need to have a market-leading product, adequate financial resources, and a suitable organizational structure. Apart from these preliminary conditions, the example of the family businesses studied here demonstrates that success in forming and developing strategic alliances for internationalization also leads to: 1) an enhanced ability to manage in contexts in which objectives are not necessarily shared; 2) stronger personal preferences for the use of alliances; and 3) a deeper trust in the partner organization. The most interesting result of this study is that, contradicting previous literature in the family business field, it shows that family firms' intrinsic characteristics are not the real barrier to internationalization. Rather, the most powerful determinant of successful internationalization appears to be the owner-manager's personal commitment to the long-term survival of the family business.family business; strategic alliances; internationalization; emerging economies;

Governance mechanisms for effective leadership: The case of Spain.

Most recent work on Boards of Directors has been focused on what can be considered best practices for effective governance in terms of roles, composition, process and style. Furthermore, this literature can be divided among very practically oriented managerial work, and more rigorous, theoretically based work. Most of the empirical research in this area has been centered on Anglo-Saxon countries. Some European countries, like Spain, have a very different governance tradition. Given this context, our present work pursues with three complementary objectives: 1. To ascertain the current status of governance practices in Spain. 2. To obtain evidence about which of these practices may be associated with effective governance. 3. To find out what factors account for the composition of General Managers’ compensation.leadership; effective governance;

Ethics of personal behaviour in family business (II): Differences of perception

The results presented in the following research paper are based on information collected by means of a questionnaire sent to 1,800 medium-sized and large Spanish family businesses. The owners and managers of these firms were asked about their perceptions of the frequency of violations of ethics in personal behaviour in family businesses. A total of 33 types of behaviour to do with ways of obtaining ownership, ways of gaining power, business strategy, company organization and shareholders was listed. This study reveals a number of factors that influence perceptions of ethics violations in family businesses. Level of education is without any doubt the factor with the greatest influence on the perception of ethics violations in family businesses: the more highly educated a person is, the more violations he or she perceives. Other statistically significant factors include: wh ether or not the respondent is a shareholder in the family business, what share he or she has in the ownership of the business, the respondent's age, the latest generation to join the family business, and whether any one shareholder owns over 50% of the company capital.Family business; ethics; personal behaviour;