August 18, 1999
Business plan writing isn't the only discount service popping up
to assist entrepreneurs. A group of Southland consultants has cooked
up a new tool to help family firms identify roadblocks to a smooth
succession.
The Family Fortune Wheel is a list of 108 true or false questions
covering a variety of topics from compensation and estate planning
to family dynamics and leadership styles. Owners and key employees
answer the questions, whose numeric values are summarized, then
plotted graphically in the form of a pie chart or "wheel."
The goal is to provide an easy-to-read, quantitative assessment
of the risk factors threatening a firm's transition to the next
generation, according to Nelson Dodge, a principal in the California
Family Business Institute (CFBI). For example, if family members
feel they are communicating well, that slice on the pie chart will
appear full and expansive. Squabbling between brothers and sisters?
The wheel will show a glaring gap where sibling relationships are
measured.
CFBI is targeting the product to family business advisors looking
to give their clients a quick checkup, as well as business owners
trying to identify potential trouble spots before hiring expensive
consultants.
That might seem a little odd coming from a firm whose roots are
in traditional, full-service family business consulting. But the
principals of Los Angeles-based CFBI say so many family companies
will be facing succession issues over the next 15 years that they've
added a mass-market product to meet the demand. The Family Fortune
Wheel currently is available only in published form, but CFBI also
is working on an Internet version.
"You're not going to solve these complex issues for 300 bucks,"
Dodge said. "But it does serve as a good starting point to get some
of this stuff out on the table."
For more information on the CFBI's Family Fortune Wheel, check
out the Web site at www.solutionsage.com.
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