Managing Conflict in a Family Business

Why is family business conflict so extreme, so intractable, and so difficult to manage? There are a wide range of conflict management tools, techniques and resources available, but these must be carefully chosen and applied to be effective. Often, conventional dispute resolution techniques, which seem logical and correct, have unfortunate outcomes when applied to family business conflicts.

Indeed, they may even make matters worse. The reasons and forces underlying the conflict must be well understood by the advisor so that he/she may be able to apply the appropriate conflict management approach in the proper sequence. In addition, it is crucial that the ongoing relationships among stakeholders be considered throughout the conflict management process.

Family business conflict is often more extreme than conflict in non-family businesses because for stakeholders in a family business, it is not simply about a ‘job’ or ‘shares’ or ‘money’. Management roles and ownership often strike to the heart of the stakeholder’s identity and needs. At the other end of the spectrum, stakeholders may perceive their role or ownership in the business as the ultimate safety net and without it, their future in terms of job and career is jeopardized. In either extreme, roles and ownership in a family business may not be as negotiable as they might otherwise be in a non-family enterprise.

Conflict in a family owned and managed business is also extremely difficult to manage because it is systemic in nature and is often not merely about individual, easily identifiable disputes. Moreover, the potential for conflict is inherent in family businesses due to the overlapping roles and systems involved–each with its own set of priorities, goals and resources. It is crucial in any approach to managing conflict in family business, therefore, that the advisor fully understand the complex business, family and ownership system that he or she is addressing.

Conflict in a family business includes disputes over economic interests, power and control, as well as issues concerning the relationships among stakeholders. Some families may be close and able to reach compromise, while others may not feel that their family is much of an interconnected economic and social entity. They may not be able to reach compromise easily.

1. Underlying reasons and triggers for conflict

To understand which approaches work best in managing family business conflict, it is important to first understand what causes conflict in these systems. There are generally very self evident reasons for conflict– differences over economic issues; related issues of power and control; clashes of personality and values; and, historical family impasses. These differences and clashes by themselves, however, may never actually escalate to significant conflict. Significant conflict must be triggered by another factor. That factor is power. When Power is exerted by one stakeholder over another in such a way that it is considered illegitimate or inappropriately used by the target, conflict can be triggered. Advisors to families must be alert to where power is held and how it is exerted in order to best manage conflict.

2. Approaches to Managing Conflict

Economic issues, and related issues of power and control, can often be addressed by conventional dispute resolution approaches. Direct negotiation and mediation are effective methods to achieve a mutually agreeable solution within defined parameters. Arbitration and litigation can also be used to force an outcome on the stakeholders– typically to the advantage of one over the other. Such use of a forced outcome can often exacerbate conflict. The relatively new practice of collaborative law may provide a useful and manageable compromise between litigation and mediation, as each stakeholder would have an advocate, but one which is precluded from serving if the conflict escalates to outright litigation.

Emotion laden issues, such as personality clashes, differences in values, and family history, however, do not respond to negotiation or litigation. More importantly, they cannot be ignored in a family business where the ongoing relationships matter. Attending to these relationship issues first is crucial because improved relationships, and relationship skills, may enable more effective negotiation and discourage brutal litigation.

In addition, evaluating the structure, policies and procedures regarding the business and ownership systems may reveal the need for structural improvements. The result can be better managed conflict.

A collaborative team of specialists (e.g. business consultants, mediators, coaches, trust and estate planners, accountants, and attorneys) can address the full range of issues underlying the conflict. They may range from helping individuals develop better communication skills to making structural improvements through organizational analysis, estate planning, and establishment of improved business practices and procedures.

3. Conclusion

Managing conflict in a family business often benefits from the use of a collaborative team which can understand and address all systemic issues. From conflicting business goals (e.g. compensation, title, authority, mission) to addressing old grudges and clashing values and personalities, different sources of conflict require different approaches and, often, different professionals. Business consultants, mediators, psychologists, trust, estate and contract attorneys, accountants, coaches and even litigators, may all be part of a team needed to successfully manage conflict in a family business. The timing of each intervention must be well planned and its impact on the important continuing family relationships needs to be well considered (Baumoel, 2010).

In my own opinion, I emphasise on three important things. First, the degree of centralisation of family business should be maintained at an appropriate level, which can utilise positive effects of task and process conflict while avoiding the negative impact of relationship conflict. Second, direct communication should be encouraged, which can gradually ease the conflicts and even completely remove it. There are many factors in family business that hinder the direct communication. For example, the content may be rather awkward. Another case in point is family members live together for a long time and they may think they understand each other well and don’t need to spend time on further communication. Therefore, family firms should create an atmosphere for face-to-face communication between family members. Third, the exit mechanism for the family members should be built. When the conflict can not be reconciled, the only calm way to solve the conflict is for someone to exit the business. However, due to a large cost, family members are generally reluctant to do so. Therefore, family firms must establish a viable exit mechanism, offering an appropriate compensation for family members who withdraw.

Baumoel, D. (2010). ‘Managing Conflict in a Family Business: An Introduction’. http://continuityfbc.com/blog/?p=1

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While doing research for my portfolio, I found a useful YouTube video that may be helpful for others. Click here for the link.

Nelson Davis interviews Andrew Keyt on succession planning. It is an interesting discussion, despite the fact that it is very staged, for Andrew Keyt gives three key phases an owner must do in order to ensure that succession onto the next generation runs as smoothly as possible.

• Ownership transition and their financial future.
• Management transition - how to prepare the successor to run the business.
• Psychological transition - what does their future look like without being the business owner.

“Fact 1: Almost half of family offices invest in hedge funds; 48.9% of them allocate to this asset class.

Fact 2: They want more. While the average allocation to hedge funds is currently 14%, the average target asset allocation is a bit higher, at 16.1%

Fact 3: More is better. The average family office is invested in 10 hedge funds, both directly and through funds of hedge funds.

Fact 4: They’ve been at it for a while. The average family office in North America has been using hedge funds for 15 years.

Fact 5: They tend to stay local. Eighty-six percent of family offices in North America prefer hedge funds on their own continent. Fifty-two percent like global hedge funds, and Europe, emerging markets, and Asia come in at 14%, 12%, and 8% respectively.

Fact 6: Diverse strategies are the norm. The fund of hedge funds approach leads with 53%. Long/short equity follows at 28%, and macro is next with 27%. Distressed and arbitrage strategies are toward the bottom, with 11% and 10%, respectively.”

click article for more info..

Businessman, Fernand Van Assche (55) from Waasmunster (Belgium) has been put behind bars on a charge of having paid a hitman in order to kill his brother and ex-associate. They were having a row for quite some time.

For some considerable time, the two brothers, Fernand and Eric Van Assche were arguing concerning the continuation of the family business.

Three years ago, Fernand Van Assche stepped out of the family business, through disbursment of his part of the shares. At that moment the company had 120 employees.

His younger brother, Eric, continued the acitivities of the family business. Eric wanted to put an end to the quarrel and tried to solve it. Nevertheless, Fernand could not accept this action and wanted to take revenge on his brother Eric.

Investigation shows that Fernand had approached a profession assassin and paid him an advance of €8000 to kill his brother. After the job was done, the hitman was promised to receive €50,000. The job was ordered several times over three years and was confessed by Fernand Van Assche. The reason was related to conflicts within the family business.

After the first death traits, Eric immediately brought in the police and soon it appeared that the hitman was not an unknown to the police.

The brothers had very different characters but nobody would have imagined that the quarrel would lead to such a dramatic story. Fortunately, Eric was not killed because of the quick intervention of the police. Although the exit of his brother was correctly arranged, Fernand could not deal with the success his younger brother.            

Tuesday 3th November 2009, “Het nieuwsblad”

http://www.nieuwsblad.be/article/detail.aspx?articleid=8G2HFAAU

You have now been engaged with learning about Family Businesses and related concepts for 9 weeks.

Below please embed 1 concept map which captures the essence of Family Business for you. Capture all your learning about the various themes, issues, topics and their respective sub-categories into ONE MAP…not multiple Maps

That is 1map/individual...make sure you identify yourself as the map creator- by including your name in the central bubble. This is not optional as it will be considered by Azam Ali and myself as part of your Individual learning portfolio.

Below is sample of a concept map that I have derived from my lecture slides about FB..ie from the lecture on ‘Definitions’ and the lecture on ’succession’…this is just the start.

Ψ Yours needs to look more like the second Concept Map on the subject of Innovation.

You are required to provide comprehensive and rich (pictures, colours, etc) maps such as the second sample that depicts your understanding of the weekly themes and sub-themes. The key themes could form your initial parental branches and then sub-themes branch outwards, etc, etc. Please make sure you embed the images here….this map will also be included in your individual learning portfolio submission.

Below the maps I have provided links to MindMapping sources (free software)- do not feel obliged to construct your maps by using the software- feel free to hand draw, scan and embed:

Useful Concept Mapping Freeware- you do need to sign on for some:

1. Freemind

2. Mind42

3. You also have a great mapping tool called Inspiration available through the college’s Citrix applications resource.

4. You can see last year’s efforts here- we expect more elaborate maps this year given the benefits you have of the previous years’ content and experience

Majella Mark

Maddy Jones

Anthony V.

Philipp K.

Ralph-Steven Petang

Kitty

Alejandra Abilahoud - Concept Map Portofolio

Enejo Oruma

Annabel

Othmane Benzit

Abhishek Kapoor: -

Veronica

Lead team:

MOB: PierLuigi, Philipp, Kitty

Introduction

Situation:

1- Noren Discount Stores: How could the death of the company been avoided?

- declining sales and profits at the end

- terrible management atmosphere

- Fights and legal troubles within the management

- low cash flow forces the family to sell

2- Consultant report recommendations.

3- Disagreements between shareholders and management.

Agenda

Ice breaker. (5 min)

Summary Case. (2 min)

Annual Shareholder meeting (20 min)

Conclusion (3 min)

Total time required 30 minutes

Roles

Each team will represent the main roles for the annual shareholders’ meeting.

-Team MEP: Joel Noren (son)

-Team MOB: Sam Hershman (COO)

-Team X: Max (CEO/COB) and Sarah Noren

-Team David’s posse : Leo Aaronson (COB)

-Team 1: Sam Hershman VP & COO

-Ed: Art Grossmann Sr. VP. Admin.

Family governance

Davis (1996) pointed out three components of family governance:

1) Periodic assemblies of the family - all families in business can benefit from this activity.

2) Family council meetings - for those families that benefit from a representative group of their members doing planning, creating policies, and strengthening business-family communication and bond.

3) A family constitution - the family’s policies and guiding vision and values that regulate members’ relationship with the business. This written document can be short or long, detailed or simple, but every family in business benefits from this kind of statement.

According to his article, basic governance structure of the family business system is illustrated by the following scheme:

Davis Also gives his vision of the coordination of the family council and family assembly with management and the board on some key plans affecting family companies:

Structures and Plans to Govern a Family Business System

Furthermore, there is an article about How to manage effective family business meetings (Kansas Rural Center, 2004). It considers the example of agricultural business, but the findings could be implemented in any kind of family business meetings.

The major rules of providing effective family business meeting are the following:

1. Choose a meeting facilitator. Begin with someone, either outside or within the family, who naturally has the respect of the family. Later this role can be rotated among family members to broaden the leadership. The facilitator makes sure discussions stay on topic, the meeting keeps flowing, everyone gets to participate and individuals listen to each other. This person helps the family separate business from family issues and problem solving from making decisions.

The facilitator must help the group constructively resolve conflicts.

2. Set an agenda. The purpose of family meetings is to improve communication and understanding about the business. These meetings also can develop the values and policies that will guide the business. Family meetings need to create a safe environment to have conversations about the crucial issues. Meetings can also organize activities to share family news, family history, family memories, and enhance relational skills. Set realistic time allotments with each agenda item. Make sure everyone gets the agenda in advance so they can adequately prepare for the meeting.

3. Invite the right people. Depending on the agenda of the meeting, invite family members who are old enough to participate, in-laws and family members who have a stake in the business. Sometimes it helps to have an outside facilitator, a business advisor or key employees.

4. Plan family retreats. Retreats should balance discussion about the firm with activities that build relationships. Include fun activities such as games, plays, tournaments, talent shows, exercise, music, recognition of achievements, family rituals, and food. Family retreats should happen away from the distractions of the firm.

5. Set ground rules. These help maintain healthy interactions. Some examples are suggested below.

• Be on time and come prepared.

• Listen to understand and then speak to be understood.

• All relevant information should be shared openly with each other.

• Accept and support group decisions.

• Issues should not be shared beyond the family except by common agreement.

6. Keep a record. Delegate someone to record important decisions and discussions. This documentation should be filed so that your family remembers what was decided and why.

7. Organize the next meeting. Ask for suggested discussion topics for the next family meeting. Set a date, time and place. Rotate meeting roles and responsibilities among family members to build leadership and teamwork.

References:

Davis, J. (1996). ‘Bivalent attributes of the family firm’. Family Business Review, 9(2).

Kansas Rural Center (2004), ‘How to manage effective family business meetings’,

http://www.kansasruralcenter.org/publications/FamBusMMG.pdf

The Werhahn KG – a 160 years old family business with 9.100 employees and 2.5 billion Euros turnover anually.

Over more than 160 years, Werhahn has developed into a corporate group with diverse activities in Germany and abroad. A close relationship with their markets and customers, reliability and social responsibility are the values of the mid-sized family-run business.

The family orginially made its money with Oil and flour mills, that turned into a diversified conglomerate.

Wilh. Werhahn KG is decentralized in its structure. The companies belonging to the Group, legally independent as a rule, and are organized into six corporate divisions. Their flat management structure, with short and non-bureaucratic decision-making channels, provides room for maneuver. This enables the requirements of the market to be fulfilled rapidly and flexibly – to the benefit of our customers. For each individual employee, this means a high level of motivation as well as individual responsibility.

Central corporate management functions are performed directly by Wilh. Werhahn KG. Among the areas which this covers are those of long-term strategic orientation as well as the financing of individual companies and the review of their performance. With the aim of continuously safeguarding and further developing the Group, organization is directed towards an economic and structural balance between the corporate divisions in the interests of risk distribution.

Wilh. Werhahn KG is a company for entrepreneurs, a family-run business which places great value on a relationship of mutual trust with its customers, business partners and employees. The corporate culture which is based upon this is the vital foundation for our success.

Today, the Werhahn family is according to manager-magazin the seventh wealthiest tribe in Germany. The group is current led by Anton Werhahn.

http://www.werhahn.de/en/home.html

http://de.wikipedia.org/wiki/Wilh._Werhahn_KG

Family firms can enjoy substantial longevity. Ironically, however, they are often imperiled by

the very process that is essential to this longevity. Using the concept of managerial discre-

tion as a starting point, we use a human agency lens to introduce the construct of successor

discretion as a factor that affects the family business succession process. While important

in general, successor discretion is positioned as a particularly relevant factor for produc-

tively managing organizational renewal in family businesses. This study represents a foun-

dation for future empirical research investigating the role of agency in entrepreneurial action

in the family business context, which consequently can contribute to the larger research

literature on succession and change.

Lead team:

MOB: PierLuigi, Philipp, Kitty

Introduction

Situation:

1- Noren Discount Stores: How could the death of the company been avoided?

- declining sales and profits at the end

- terrible management atmosphere

- Fights and legal troubles within the management

- low cash flow forces the family to sell

2- Consultant report recommendations.

3- Disagreements between shareholders and management.

Agenda

Ice breaker. (5 min)

Summary Case. (2 min)

Annual Shareholder meeting (20 min)

Conclusion (3 min)

Total time required 30 minutes

Roles

Each team will represent the main roles for the annual shareholders’ meeting.

-Team MEP: Joel Noren (son)

-Team MOB: Sam Hershman (COO)

-Team X: Max (CEO/COB) and Sarah Noren

-Team David’s posse : Leo Aaronson (COB)

-Team 1: Sam Hershman VP & COO

-Ed: Art Grossmann Sr. VP. Admin.

You have now been engaged with learning about Family Businesses and related concepts for 9 weeks.

Below please embed 1 concept map which captures the essence of Family Business for you. Capture all your learning about the various themes, issues, topics and their respective sub-categories into ONE MAP…not multiple Maps

That is 1map/individual...make sure you identify yourself as the map creator- by including your name in the central bubble. This is not optional as it will be considered by Azam Ali and myself as part of your Individual learning portfolio.

Below is sample of a concept map that I have derived from my lecture slides about FB..ie from the lecture on ‘Definitions’ and the lecture on ’succession’…this is just the start.

Ψ Yours needs to look more like the second Concept Map on the subject of Innovation.

You are required to provide comprehensive and rich (pictures, colours, etc) maps such as the second sample that depicts your understanding of the weekly themes and sub-themes. The key themes could form your initial parental branches and then sub-themes branch outwards, etc, etc. Please make sure you embed the images here….this map will also be included in your individual learning portfolio submission.

Below the maps I have provided links to MindMapping sources (free software)- do not feel obliged to construct your maps by using the software- feel free to hand draw, scan and embed:

Useful Concept Mapping Freeware- you do need to sign on for some:

1. Freemind

2. Mind42

3. You also have a great mapping tool called Inspiration available through the college’s Citrix applications resource.

4. You can see last year’s efforts here- we expect more elaborate maps this year given the benefits you have of the previous years’ content and experience

Majella Mark

Maddy Jones

Anthony V.

Philipp K.

Ralph-Steven Petang

Kitty

Alejandra Abilahoud - Concept Map Portofolio

Enejo Oruma

Annabel

Othmane Benzit

Abhishek Kapoor: -

Veronica

The Werhahn KG – a 160 years old family business with 9.100 employees and 2.5 billion Euros turnover anually.

Over more than 160 years, Werhahn has developed into a corporate group with diverse activities in Germany and abroad. A close relationship with their markets and customers, reliability and social responsibility are the values of the mid-sized family-run business.

The family orginially made its money with Oil and flour mills, that turned into a diversified conglomerate.

Wilh. Werhahn KG is decentralized in its structure. The companies belonging to the Group, legally independent as a rule, and are organized into six corporate divisions. Their flat management structure, with short and non-bureaucratic decision-making channels, provides room for maneuver. This enables the requirements of the market to be fulfilled rapidly and flexibly – to the benefit of our customers. For each individual employee, this means a high level of motivation as well as individual responsibility.

Central corporate management functions are performed directly by Wilh. Werhahn KG. Among the areas which this covers are those of long-term strategic orientation as well as the financing of individual companies and the review of their performance. With the aim of continuously safeguarding and further developing the Group, organization is directed towards an economic and structural balance between the corporate divisions in the interests of risk distribution.

Wilh. Werhahn KG is a company for entrepreneurs, a family-run business which places great value on a relationship of mutual trust with its customers, business partners and employees. The corporate culture which is based upon this is the vital foundation for our success.

Today, the Werhahn family is according to manager-magazin the seventh wealthiest tribe in Germany. The group is current led by Anton Werhahn.

http://www.werhahn.de/en/home.html

http://de.wikipedia.org/wiki/Wilh._Werhahn_KG

Family firms can enjoy substantial longevity. Ironically, however, they are often imperiled by

the very process that is essential to this longevity. Using the concept of managerial discre-

tion as a starting point, we use a human agency lens to introduce the construct of successor

discretion as a factor that affects the family business succession process. While important

in general, successor discretion is positioned as a particularly relevant factor for produc-

tively managing organizational renewal in family businesses. This study represents a foun-

dation for future empirical research investigating the role of agency in entrepreneurial action

in the family business context, which consequently can contribute to the larger research

literature on succession and change.

Structural Risk = [Family Complexity + Business Complexity] – Structure Development

Based on the authors’ Formula, there are three ways for this family to reduce structural risk:

• Decrease family complexity

For example, one of the brothers could buy out all the other shareholders. The model would change to the less complex ‘captain’ model. There would be fewer incidents with one owner than with several partners.

• Decrease business complexity

As an extreme example, the family could sell off the factory where the nephew might have been going to work. With no jobs, there can’t be any arguments about family employment. Instead the family could put their assets into a passive investment company that uses only professional portfolio managers.

• Develop a relationship structure between the family and the business

The brothers could write a formal policy about family employment. Once the policy was agreed, the heat would be taken out of any questions about any nephews. The business would have moved one step nearer to the corporation model.

Over generations, the corporation model becomes the dominant one. After 20 years of being in business, around 10% of family enterprises fit the corporation model, according to the authors’ database of Spanish companies. But after 100 years around 50% of surviving family enterprises fit the corporation model.

sources:

http://www.fbn-i.org/feb-11/article4.html

Based on interviews with top executives in 1,606 family companies from 35 countries, these are the top causes of ‘some’ or ‘a lot of’ tension:

• Discussions about the future strategy of the business (44%).
• Performance of family members actively involved in the business (36%).
• Failure of family members actively involved in the business to consult the wider family on key issues (31%).
• Decisions about who can and can’t work in the business (31%).
• The role ‘in-laws’ should or shouldn’t play in the business (26%).
• The setting of remuneration levels for family members actively involved in the business (26%).
• Decisions about the reinvestment of profits in the business versus the payment of dividends (26%).

SOURCES:

http://www.fbn-i.org/dec-10/article3.html

Mr. Dhirubhai Ambani, One of the leading Indian businessmen was born on December 28, 1932 in Gujarat, India. He headed The Reliance Industries, India’s largest private enterprise. Mr. Dhirubhai started off as a small time worker with Arab merchants in the 1950s and moved to Mumbai in 1958 to start his own business in spices. After making modest profits, he moved into textiles and opened his mill near Ahmadabad. Dhirubhai founded Reliance Industries in 1958. After that it was a saga of expansions and successes.

His journey of real rags to riches, took off in 1958 when he, with his cousin and a capital of Rupees 15000 (£200 approx.), started The Reliance Industries. He loved taking risk, because of which his company achieved many milestones thereafter. He had a new style of management, which was really successful & earned him the confidence of nearly 1.2 million investors by 1985. Later the business tycoon established such a big business house that every body in India and abroad was envy of the progress. It was in 1977 when Dhirubhai Ambani took initiative for first IPO. In 1993 the IPO of Reliance was the largest IPO of India at that time.

It was in 1981, his elder son Mukesh Ambani (left in the picture) joined the business. He then initiated Reliance industry’s backward integration journey from textiles into polyester fibers and further into petrochemicals, petroleum refining and going up-stream into oil and gas exploration and production. Followed by his younger brother Anil Ambani (right in the picture), who joined the company in 1983, as the co-chief executive officer and is credited with pioneering many financial innovations in the Indian capital markets.

This incredible rise and growth in the business was so enormous that by 2007, the combined fortune of the Ambanis was 100 Billion dollars. In 1992, Reliance became the first Indian company to issue Global Depository Receipts in global market. Later in 1999-2000 followed by the establishment of world’s largest integrated grassroots refinery in Jamnagar.

Another major milestone was the launch of the CDMA mobile telephony in India, in 2002. This was when the mobile communication actually entered the revolutionary era. The famous 500 Rupees (£6) mobile offered by the company, this brought mobile phones to every nook and corner of India. From CEOs to auto rickshaw drivers, every body was laced with mobiles! The high growth figures and innovations of company made it the first Indian private sector company to enter Fortune’s Global 500 list.

This was when, a great visionary, who loved to dream big and to attain them, passed away on the 6^th of July 2002 in Mumbai, without providing a succession plan for such a giant corporation. It may be because he never thought that even such huge empire would fall short of the aspirations of his two little Ambanis. He failed to understand the strategic importance of planning the succession in advance and in the year 2004 the split and sibling rivalry in reliance became the most talked story in the business world, which also affected badly on the stock markets

Result After Split:

Step 1: Split the Ambani family stake in RIL in the 30:30:40 ratio among the two

Brothers and Kokilaben (Dhirubhai’s wife). Anil Ambani to relinquish control to Mukesh, who gets full control of Reliance Industries’ core oil and gas business.

Step 2: Create a special purpose vehicle to house RIL’s stake in Reliance Energy and

Reliance Capital. Anil Ambani to continue heading the two firms.

Step 3: In lieu of Anil giving up control in RIL, Mukesh Ambani transfers part of his

45% stake in Infocomm to Anil, who now gets to run the venture.

Reliance split is a burning case presenting the biggest challenge for any family indulged in business. Just after the split the company slipped in Forbes list. Even if the reliance do not suffer severely, it certainly devalues the status of the family in the society and trust of the customers and the shareholders. If Mr. Dhirubhai Ambani had planned a business envisioning the inherent conflict it could have been another story altogether, where both the siblings would have complemented each other with their unique skills and have consolidated the empire created by their father into a well established and cared family business not just another business.

Non Profit organizations is a big “business” in the United States and the benefits of these organizations have helps millions of individuals across the world for many devastating issues. Big non profit organizations with 50 plus employees include the American Cancer Society, NAACP and the Urban League. Although these major organizations are not run by families there is one organization that happens to be mainly run by a family I know personally.

The National Action Network have helps millions of people across the United States, especially the black community. They are located in HARLEM!, where many black politician, actors, music artists and established entrepreneurs are settled. Harlem have its bad parts especially the recent increase in police brutality in the past couple of years.

Reverend Al Sharpton is a celebrity in his own right even running for president before Obama. His daughter Dominique is currently the Director of Membership. Dominique went to Temple University for acting and do pursue her acting career. The question is when it comes time to take over the organization for the better good of the community will she step up to the plate or will she go toward the lime light instead. Many heirs to major corporations have this issue of succession, but the motive is usually to continue making money for the family. There is no real benefits for the Sharpton family, but Reverend Sharpton’s money from appearances and occasional publicity and party invitations. Is this enough to continue the Sharpton legacy?

So I was conducting in an ancient past time this morning that many of you have forgotten about called reading the newspaper. I  came across an article in the City AM by Elizabeth Fournier called “A Night to Celebrate Asians in Business”. Apparently it is the Asian community that is keeping the UK economy afloat, bringing in billions of pounds and productivity into the country. I was specifically intrigued by the Hinduja family that was awarded last night for their diverse investment portfolio including the list of companies below.

The Hinduja Group incorporates:

• Ashok Leyland
• Gulf Oil
• Hinduja Bank Switzerland
• IndusInd Bank
• Hinduja Global Solutions (formerly named HTMT Global Solutions)
• Hinduja TMT
• Hinduja Ventures
• IndusInd Media and Communications Ltd.
• Hinduja Foundries
• P D Hinduja Hospital
• Defiance Technologies Limited

A lot of the family’s businesses is in India still, but as mentioned in class last week the family empires are the ones really keeping our business operations going, most of them coming from the Asian continent. China bailed out the United States during the devastating bank crash a few years ago and despite natural downfalls recently, they seem to be developing fairly quickly. The Kone Corporation in Finland (elevators and escalator industry) made most of their money for the past two years from Asia. So it makes you think… are the Asians the backbone of the world’s economy and if so, does this mean that the Western World is no longer the top dog on earth.