Introduction to the Family Business – Snowhite Dry Cleaners Pakistan

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Role of Predecessors at Pre-Business Involvement Phase

The leadership qualities of the predecessor are a major contributing factor towards the successful succession of the family business as described by Lansberg (1991) and Handler (1994). This factor of leadership qualities is substantiated by the interviewees in both the cases of FB-SDC and FB-SSS.
In the former case the successors knew the role and importance of the predecessor’s leadership qualities during successors’ pre-business involvement phase. During this case successors were able to learn the management skills after following the behavior of the predecessor. They learned through observing the behavior of the predecessor as a leader. This role of predecessor is substantiated by Handler (1989) in his Mutual Role Adjustment Model in the initial stage, where predecessor is acting as a ‘sole operator’ and successor plays no active role in the business but only acts as an observer. Lam-brecht (2005), in his Six Stepping Stones Model calls this period as a period of ‘inter-preneurship period’ which is the first step towards the successful succession process. During this step, the successor goes through the non-formal training of the business.
These steps have been validated by the predecessor and successors in the first case of FB-SDC. The succession process at FB-SDC has been considered smooth and effective by both the parties and they agree on the point that this transition has affected the busi-ness positively in the long run.
In the later case of FB-SSS there was no proper succession plan followed by the prede-cessors and empirical study shows that the non-involvement of the successors at the ini-tial stages of the business proved disadvantageous to the family business. As they were not part of the business in the initial stages so later on, when they took over the business they had to learn the business activities by themselves. This slowed down the progress of the business and they were not effective in leading the business. This problem leads to almost closure of the business in the second generation.
Findings of FB-SSS are in accordance to the importance of role of predecessor in pre-business involvement phase of different business models as discussed for the former case of FB-SDC. If this step of pre-involvement is not being followed then it is going to lead to the problematic succession, as Lambrecht (2005) discusses the importance of this stage for the knowledge transfer, leadership characteristics and most importantly for the transfer of the soul of the business to the following generation and presence of these characteristics is going to ensure the successful transition.

Role of the predecessors in the Development Phase

The theoretical framework shows that in the second phase of the succession planning, the role of the predecessors’ leadership qualities changes to some extent. At this point the leaders are expected to delegate to the successor and also work around finding the new life opportunities for themselves. This search for new opportunities also means that predecessors should be able to develop ability to dis-associate from the current business. Churchill and Hatten (1987) define this stage as the stage of training and development. During this stage the preliminary work starts for looking the future opportunities while delegating abilities are more paced as compared to the stage one. Similarly results are concluded by the Handler (1989), where successor acts as a helper with more responsi-bility than the first phase.
FB-SDC provides a good example of conformity to all these models in one way or the other. In case of FB-SDC, the owner provided the guidance for the choice of education to its successor as described by Lambrecht (2005) in the steps of ‘studies’ and ‘formal internal education’ phase. The decision to choose business administration field as a study field was majorly influenced by the predecessor. When selecting the, specializa-tion field for the undergraduate degree, again there was a major influence by the prede-cessor. This influence was not limited to the first successor but it was also there when the future plan for the second son and successor of the other business was being chosen. This helped the successor of FB-SDC to collaborate his theoretical learning and part time practical work in the organization.
When we look at the other individual factors related to the predecessor, like ability to dis-associate from the business and look for the new life opportunities, the FB-SDC provides a good example of that as described by Handler (1989). In order to develop new opportunities for himself the predecessor at FB-SDC started the business of import-ing sports goods. Although the venture was a failure but it was in accordance with the succession plan as developed by the predecessor. Later on, he moved to the cosmetics business to develop it as a new life opportunity for him and to dis-associate from the current business of FB-SDC. However, lately he has developed a new interest for the politics and after the second succession of cosmetics business; he is planning to move into main stream politics of the country. Handler (1989) describes this process of dis-associating from the business and looking for the new opportunities of self reflection, necessary for the successful execution of the succession process.

READ Analysis of Key Informant Interviews

1 Introduction .
1.1. Background .
1.2. Problem Discussion
1.3. Purpose
2. Frame of Reference.
2.1. Succession in the Family Business .
2.1.1. Predecessor and Level Analysis
2.2. Individual Level Factors Affecting Succession ..
2.3. Succession Models and Individual Factors .
2.4. Theoretical Framework..
3. Method .
3.1 Method of Research: Quantitative Vs Qualitative
3.2 Research Strategy: Case study
3.3 Case Design
3.4 Data Collection Method: Interview and Observation
3.6 Analysis of Data
3.7 Credibility of Data
4. Results and Analysis
4.1. Introduction to the Family Business – Snowhite Dry Cleaners Pakistan
4.1.1. Structure of Family Business
4.1.2. Role of Predecessor in the Succession Process .
4.1.4. Impact of Succession Plan
4.2. Introduction to the Family Business – Students’ Shoe Store Bangladesh
4.3. Cross Case Analysis .
5. Conclusion and Discussion
5.1. Role of Predecessor related Individual factors
5.2. Individual Level Factors and Succession Planning Models
5.3. Emergent Results from the study .
5.4. Limitations .
5.5. Future Studies
References