Chapter 3 Second Leadership Imperative Promoting Trust Among Family Members Family Business, First Edition, by Ernesto J. Poza Copyright © 2004 South-Western/Thomson Learning

3-2 Roles of CEO Spouses Factors that influence role adopted by spouse  Relationship with CEO  Knowledge of and interest in business  Commitment to continuity of family participation  Perception of need  Ability to perform needed leadership role  Availability of others to perform communication and trust-enabling functions

3-3 CEO Spouses... Are stewards of family legacy Keep “family” in family business Instill sense of purpose, responsibility, and community in family members Embody spirit of cooperation and unconditional support

3-4 CEO Spouse Role Types Jealous Spouse Chief Trust Officer Business Partner Vice President Senior Advisor Free Agent

3-5 Jealous Spouse Feels that CEO loves the business so much it is the first priority Competes with business for time and affection and thus experiences jealousy May provide motivation for greater delegation and professionalization of business

3-6 Chief Trust Officer Provides “glue” that holds family together Acts as healer, trust-catalyst, mediator, facilitator, “communications central” May also create family council, keep family history, host meetings, plan celebrations

3-7 Business Partner Is critical to start-up and early stages of business through investment or skills May then move on to different role May be descendant of owning family or may be large shareholder

3-8 Vice President Often critical to running business, similar to Business Partner Technical, professional, or administrative skills are part of management of business Unlike Business Partner, acts as trusted employee, not owner

3-9 Senior Advisor Is similar to Chief Trust Officer, but more than relationships problem-solver Helps children understand importance of business to family and nurtures love for business Often has no visible role in business, enhancing respect and influence

3-10 Free Agent Though aware of both family and business matters, chooses to grow and develop a separate identity May be available for consultation and advice during challenging times Generally has active life as community leader, volunteer, “legacy-bearer”