Introduction/Key Issues:
The Costas family had developed a successful business founded by Mike Sr. and his wife Maureen. They both dedicated much time and effort so that they would be able to provide a good lifestyle for their family. Maureen was the company’s official bookkeeper and thanks to her frugal business decisions the company was able to grow. But when the second generation got introduced and started to work on the company neither Maureen or Mike Sr. had developed an effective succession plan that involved their 2 sons, Mike Jr. and Robert, and her daughter, Vanessa. Mike Jr. was his father’s pride; Mike Sr. saw his own resemblance when he looked at his son. This resemblance was in part was due to his tough complexity and physical …show more content…
One son was to become CEO while the others were Vice-Presidents of different divisions within the company. One alternative the founders could have thought of when retirement started to become part of the conversation is evaluating each child on different rubrics including effective decisions making and through that find a better successor. Also, instead of having the CEO have the power to make all decisions, Mike Sr. and Maureen could have set up a board of directors where the others siblings could weight in when important decisions had to be taken. Because Robert and Vanessa have equal ownership of the company their opinion should be considered as well. It is important to always have the company’s best interest at mind and Mike Jr. might have forgotten this. By increasing his own salary and undermining the work his siblings were doing for the company he was neglecting his responsibilities towards the company. Another alternative Maureen and Mike Sr. had was delaying their retirement until Maureen felt Mike Jr., Robert, and Vanessa were ready to take over the company by themselves, guiding them through the process. By not giving up total ownership but gradually handing more responsibilities to their offspring, Maureen and Mike Sr. would be able to monitor the decisions Mike Jr. was taking. If the founders had stayed a longer time period in the company they would be able to supervise Jr., Robert, and Vanessa giving them an understanding of who was more prepared to lead the company and promote its
The Costas family had developed a successful business founded by Mike Sr. and his wife Maureen. They both dedicated much time and effort so that they would be able to provide a good lifestyle for their family. Maureen was the company’s official bookkeeper and thanks to her frugal business decisions the company was able to grow. But when the second generation got introduced and started to work on the company neither Maureen or Mike Sr. had developed an effective succession plan that involved their 2 sons, Mike Jr. and Robert, and her daughter, Vanessa. Mike Jr. was his father’s pride; Mike Sr. saw his own resemblance when he looked at his son. This resemblance was in part was due to his tough complexity and physical …show more content…
One son was to become CEO while the others were Vice-Presidents of different divisions within the company. One alternative the founders could have thought of when retirement started to become part of the conversation is evaluating each child on different rubrics including effective decisions making and through that find a better successor. Also, instead of having the CEO have the power to make all decisions, Mike Sr. and Maureen could have set up a board of directors where the others siblings could weight in when important decisions had to be taken. Because Robert and Vanessa have equal ownership of the company their opinion should be considered as well. It is important to always have the company’s best interest at mind and Mike Jr. might have forgotten this. By increasing his own salary and undermining the work his siblings were doing for the company he was neglecting his responsibilities towards the company. Another alternative Maureen and Mike Sr. had was delaying their retirement until Maureen felt Mike Jr., Robert, and Vanessa were ready to take over the company by themselves, guiding them through the process. By not giving up total ownership but gradually handing more responsibilities to their offspring, Maureen and Mike Sr. would be able to monitor the decisions Mike Jr. was taking. If the founders had stayed a longer time period in the company they would be able to supervise Jr., Robert, and Vanessa giving them an understanding of who was more prepared to lead the company and promote its