FREE AGENT SPOUSEJEALOUSY SPOUSEINTERIM SPOUSE

THE ROLE, THE CHARACTERISTICS,

ADVANTAGES & DISADVANTAGES OF

CEO SPOUSES

CEO spouses play an important role in the family business. In some cases they actually helped in the starting up of the business, giving emotional and moral support to the CEO at all times. Because of this role, the female spouse has been given the term CEO (Chief Emotional Officer) in some business circles. It is also important to note that nowadays family firms owned by women are increasing and the spouse now might be a male.

CEO SPOUSES

The spouse has usually taken on the role of chief caregiver to the family’s needs at home, allowing the marital partner to concentrate on running the business. According to Poza E J (2001)119 CEO spouses make a unique contribution to the survival of the business and in some cases they are the unifying thread within the family business. When sample data was analysed from a research carried out in the …… in (2009) ?it emerged that CEO spouses can be classified in six different categories according to their characteristics and the role they play in family businesses.

CEO SPOUSES

He /she must be able to provide moral strength. The CEO usually does not have many with whom to share struggles, doubts and worries.

They usually get home exhausted and home should be a place where the CEO renews his desire to keep going.

He/she must show interest in the business. If the spouse has an interest in the business he/she will understand all situations and be able to give the needed support at the right time.

CEO SPOUSES

He/she must be a good listener. The CEO needs a trusted ear on which to dump his thoughts and concerns.

The willingness to listen plays a huge role in the success of both the business and the family.

The third role for the CEO’s spouse is to the voice of perspective. Running a business can involve a lot of emotions.

The spouse’s job is to help him not get too high with the highs or too low with the lows.

CEO SPOUSES

He/she can help him remember how similar situations have worked out in the past. That levelling influence is invaluable to a CEO especially coming from the spouse.

The CEO spouse’s fourth role is to initiate communication on how the CEO’s work is affecting the family.

Most CEO’s have good intentions with the time and energy they pour into work, but they still spend more time in the business than with their families sometimes without realizing it.

CEO SPOUSES

The spouse needs to confront these issues because bottling them up is a recipe for disaster.

Open and honest communication will help in balancing the time spent in both business and family.

The other role of the CEO spouse is that of managing the money at home. He/she will most likely control the spending at home, so he/she must learn to budget and be able to stretch a dollar. There will be times that the family needs financial reserves.

CEO SPOUSES

FOR THE PURPOSE OF THIS ASSIGNMENT,

ONLY THREE TYPES OF CEO SPOUSES WILL BE EXAMINED IN DETAIL AND THESE ARE THE

FREE AGENTJEALOUSY SPOUSE &INTERIM CEO”

• THESE WERE ONCE INVOLVE IN THE BUSINESS

• HE/SHE IS AWARE OF BOTH THE BUSINESS AND FAMILY ISSUES BUT CHOOSES TO LEAD A LIFESTYLE THAT IS INDEPENDENT FROM THE BUSINESS.

•THEY LOVE FREEDOM FROM BUSINESS.

CHARACTERISTICS

FREE AGENT - SPOUSE

FREE AGENT – CHARACTERISTICS

He/she may be involved in social organisations (for Philanthropy) like SAFOD

– Southern Africa Federation of the Disabled,

CPS CHILD PROTECTION Society and the Rotary Club which raises

funds for the needy.

FREE AGENT – CHARACTERISTICS

The Free Agent Spouse feels that it is necessary to create a separate life style from family business because they feel that their lifeline will mean that when the business is in trouble then her whole life is in trouble, and also on the death of their spouse their life may come to an abrupt stop if he/she lived in the family business for the family business by the family business.

FREE AGENT – CHARACTERISTICS

The Free Agent Spouse is always available for advice during difficult times.

FREE AGENT – EXAMPLES

Jeanne Hall wife of Forbes contributor and lifetime entrepreneur Alan Hall, is one example.

According to Forbes Magazine, prior to his successes with MarketStar, Mercato Partners venture capital, and his vast base of early-stage investments, Allan had experienced several entrepreneurial failures.

FREE AGENT – EXAMPLES

He recalls the worst moment of his life being when, in his forties, one of those failures left him with a business debt so deep that it required Jeanne going back to work as a teacher and counsellor to help to pay it back off. “She managed to raise our children on a salary that was below the poverty line for an entire two years,” he recalls

FREE AGENT – EXAMPLES

Even now that he has vast entrepreneurial holdings, Alan notes that while she fails to be impressed with his standing, her lifestyle has remained largely the same, she drives a car with enough miles on it that he claims to have been tempted to buy her a new vehicle and pretend he had won it on “Let’s Make A Deal,” but he fears that even at that point, she’d refuse it and find a way to give it away. While she would have the option of affording herself every leisure, she prefers to spend her time in work on philanthropic efforts through their church and through their Hall Foundation instead.

FREE AGENT – PICTURES

Michele Obama is one of the Free Agent Spouse who owns her own philanthropy work.

FREE AGENT – ADVANTAGES

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 leaders, volunteer, “legacy-bearer”

JEALOUS SPOUSE

CHARACTERISTICSThe Jealous spouse is one that feels that the

family business owner has a relationship with the business, that it is not that different from having an affair.

The family has to compete with the business for the CEO's attention, affection, money, and time.

JEALOUS SPOUSE - CHARACTERISTICS

Jealous spouses feel that the CEO loves the business so much that it has become his or her first priority.

The Jealous spouse is one who feels that the family business owner has a relationship with the business that it is not that different from having an affair.

The family has to compete with the business for the spouse’s attention, affection, money and time.

JEALOUS SPOUSE

JEALOUSY SPOUSE

JEALOUS SPOUSE - DISADVANTAGES

This type of spouse is often a major obstacle to finding willing family successors to the CEO.

INTERIM CEO SPOUSE

The Interim CEO spouse is one that is requested to provide leadership of the corporation or the family business before a full transfer of power to next generation.

During the succession process which may take long and maybe dominated by power struggles, the CEO spouse may be asked to take over until the successor is found.

INTERIM CEO SPOUSE

Installing spouses as interim CEOs can, under help in keeping the family business under the founding family’s control across generations while not subjecting the firm to unmotivated, untested, or incompetent leadership.

The CEO spouse may be installed because the successors are too young or are not yet ready to become the CEO, and a motivated surviving owner represents both a role model and a provider of substantive mentoring in their developmental process.

INTERIM CEO SPOUSE

CHARACTERISTICS OF THE INTERIM CEO SPOUSE

Resilience – the Interim CEO spouse exhibits resilience which is central to keeping the family business moving forward.

People Sense – the Interim CEO spouse often has a knack for identifying and attracting top talent, and has is a certain degree of cold-eyed resolve to act when someone turns out not to be the correct fit for the company.

INTERIM CEO SPOUSE

Intellectual Humility – the Interim CEO spouse listens to Feedback and even does something with that feedback.

Risk Awareness (and Tolerance) – the Interim CEO Spouse has the ability to embrace and tolerate uncertainty and risk.

Vision and passion – the Interim CEO spouse shares the same vision and passion for the family business with the founder.

ADVANTAGES - INTERIM CEO SPOUSE

Installing a spouse as Interim CEOs can, help in keeping the family business under the founder family’s control across generations while not subjecting the firm to unmotivated, untested, or incompetent leadership.

Provides a motivated surviving owner who represents both a role model and a provider of substantive mentoring to the next generation.

ADVANTAGES - INTERIM CEO SPOUSE

Provides a powerful voice that the other family members can listen to after the death or incapacitation of the founding member, like in the case of the Ambani brothers of Reliance Industries in India.

Brings on board the shared values and inimitable competitive advantage which is usually unique to the family owned enterprises.

DISADVANTAGES - INTERIM CEO SPOUSE

There is no guarantee of success beyond the transition stage.

The time frame for the Interim CEO is not definite and is usually difficulty to put across as the period is difficult to come up with.

Appointing of an Interim CEO can affect strategy in the sense that it comes unplanned and may plunge the business into further crisis

REFERENCE

Ernesto.J. Poza, (2011) Third Edition:167-170, Thunderbird: The Garvin School of International Management.

GROUP MEMBERS

Litha MoyoSinqobile NdebelePatrobes MugadzaShalom NdlovuPermanent Ngoma

Presentation made on 24 September 2014