DS DS Rethinking family business succession KAJSA HAAG From a problem to solve to an ongoing practice KAJSA HAAG Rethinking family business succession business Rethinking family As the title denotes, I suggest we think differently about family business succes- sion. I propose to rethink succession from a problem to a practice. This means that Rethinking family business succession is not a problem to solve but something people do in family business; it succession is ongoing, it is integrated and it is ordinary. It poses an alternative to the common view of succession as something problematic, separate and extraordinary to handle From a problem to solve to an ongoing practice in order to carry on with the business. To view succession as a practice opens up new understanding of succession as a continuing flow of activities embedded in the everyday life of business families instead of a problem to overcome through succession planning. This notion is philosophically inspired by sociology of practice, theoretically based in a practice KAJSA HAAG perspective of strategy, and empirically explored in a case of succession at Karl Andersson & Söner. Three conceptions are developed that aid the analysis of suc- cession, framing it as originating from socialization, included in everyday routines and progressing without design. The study shows how succession evolves as family members are socialized, en- gaged and trained through the durée of daily life. Beyond that, it shows how succession is not just about handing the business over from one generation to the next. It is also about working together in the moment, developing the business while preserving its essence. Engaging in the family business to be part of develop- ing it is fundamentally different from joining because transfer of leadership and/or 082 JIBS Dissertation Series No. ownership is needed. It questions the idea of succession as a purpose in itself and suggests a shift from “taking over” to “being part”. Jönköping International Business School Jönköping University JIBS Dissertation Series No. 082 • 2012 ISSN 1403-0470 ISBN 978-91-86345-35-8 JIBS DS DS Rethinking family business succession KAJSA HAAG From a problem to solve to an ongoing practice KAJSA HAAG Rethinking family business succession business Rethinking family As the title denotes, I suggest we think differently about family business succes- sion. I propose to rethink succession from a problem to a practice. This means that Rethinking family business succession is not a problem to solve but something people do in family business; it succession is ongoing, it is integrated and it is ordinary. It poses an alternative to the common view of succession as something problematic, separate and extraordinary to handle From a problem to solve to an ongoing practice in order to carry on with the business. To view succession as a practice opens up new understanding of succession as a continuing flow of activities embedded in the everyday life of business families instead of a problem to overcome through succession planning. This notion is philosophically inspired by sociology of practice, theoretically based in a practice KAJSA HAAG perspective of strategy, and empirically explored in a case of succession at Karl Andersson & Söner. Three conceptions are developed that aid the analysis of suc- cession, framing it as originating from socialization, included in everyday routines and progressing without design. The study shows how succession evolves as family members are socialized, en- gaged and trained through the durée of daily life. Beyond that, it shows how succession is not just about handing the business over from one generation to the next. It is also about working together in the moment, developing the business while preserving its essence. Engaging in the family business to be part of develop- ing it is fundamentally different from joining because transfer of leadership and/or 082 JIBS Dissertation Series No. ownership is needed. It questions the idea of succession as a purpose in itself and suggests a shift from “taking over” to “being part”. Jönköping International Business School Jönköping University JIBS Dissertation Series No. 082 • 2012 ISSN 1403-0470 ISBN 978-91-86345-35-8 JIBS Rethinking family business succession From a problem to solve to an ongoing practice KAJSA HAAG Jönköping International Business School P.O. Box 1026 SE-551 11 Jönköping Tel.: +46 36 10 10 00 E-mail: [email protected] www.jibs.se Rethinking family business succession: From a problem to solve to an ongoing practice JIBS Dissertation Series No. 082 © 2012 Kajsa Haag and Jönköping International Business School ISSN 1403-0470 ISBN 978-91-86345-35-8 Printed by ARK Tryckaren AB, 2012 2 Acknowledgement This is the beginning of the book but demarcates the end of the dissertation. For that I feel happy, proud, relieved and a little sad. There are so many I wish to thank. I begin with my supervisors Leif Melin, Anders Melander and Robin Holt. Leif, your sense of combining freedom and guidance have made me feel both independent and cared for. Thank you for initiating our family business center (CeFEO) and letting me be part of enriching projects. Thank you for sharing your grate knowledge and experience. I feel truly privileged to be one of your doctoral students. Anders, although you so talently play the devil’s advocate with your endless questioning, your kindness and support is highly valued. Besides your tutoring of the dissertation you have taught me about teaching. The strategy class has been my teaching school and the interaction with our students keeps me constantly learning new things. Robin, your writing is utterly important for my understanding of strategy and your comments gave me new insights and the courage to continue my pursuit of succession without planning. Having you on-board was both challenging and reassuring. Thank you for lighting up new ways of seeing. Carlo Salvato, thank you for being the opponent at my final seminar, posing critical questions yet in your lovely way, making the seminar a pleasure. Annika Hall, Anna Larsson and Mattias Nordqvist, thank you for important feedback in various stages. Ethel Brundin and Anna Blombäck, your job as discussants at my research proposal seminar is much appreciated and the continued support even more so. Ladies of the Hat Order, Benedikte Borgström, Lisa Bäckvall, Jenny Helin, Anette Johansson, Maria Norbäck and Elena Raviola, the advice, joy and support you provide is of a special kind. Thinking of future possibilities of joint efforts is a pure source of inspiration. Jean-Charles Languilaire, although we no longer share office-space, your place in my heart makes us eternal room-mates. People of ESOL/EMM, CeFEO, JIBS; dear colleagues, current and former ones, I hope that you can feel my gratitude. I think of the 6th floor as a special place, made up of its people, physically located there or not. When I was a master student at JIBS you seemed to have so much fun up there. Getting to join the 6th floor was one of my motives to pursue the doctorate. I was also drawn to the complexity of exploring phenomenon without any right answers that my master courses spurred. The travel from engineering to business was mind-blowing. I am so glad that I fell down the rabbit hole and arrived here. People of Karl Andersson & Söner, especially Ingvar, Maria, Sara and Andreas, thank you for your openhearted sharing. You have taught me invaluable things about family business management. 3 My family, Mamma, Pappa and Gustaf, Farmor, Mormor and Morfar, I love you. Your love and support is what make things like writing a dissertation possible. Thank you for guiding me in life and helping me out with the big and the small things. Mathias and Albin, mina killar, you are my everything. I love you so much that it hurts. JIBS, 6th floor, 29 June 2012 Kajsa Haag 4 Abstract As the title denotes, I suggest we think differently about family business succession. I propose to rethink succession from a problem to a practice. This means that succession is not a problem to solve but something people do in family business; it is ongoing, it is integrated and it is ordinary. It poses an alternative to the common view of succession as something problematic, separate and extraordinary to handle in order to carry on with the business. To view succession as a practice opens up new understanding of succession as a continuing flow of activities embedded in the everyday life of business families instead of a problem to overcome through succession planning. This notion is philosophically inspired by sociology of practice, theoretically based in a practice perspective of strategy, and empirically explored in a case of succession at Karl Andersson & Söner. Three conceptions are developed that aid the analysis of succession, framing it as originating from socialization, included in everyday routines and progressing without design. The study shows how succession evolves as family members are socialized, engaged and trained through the durée of daily life. Beyond that, it shows how succession is not just about handing the business over from one generation to the next. It is also about working together in the moment, developing the business while preserving its essence. Engaging in the family business to be part of developing it is fundamentally different from joining because transfer of leadership and/or ownership is needed. It questions the idea of succession as a purpose in itself and suggests a shift from “taking over” to “being part”. 5 Contents 1. Introduction ........................................................................................................ 13 1.1 Problems of family business succession ....................................................... 13 1.2 Possibilities of a practice perspective ............................................................ 16 1.3 Purpose .............................................................................................................. 18 1.4 Structure of the thesis .....................................................................................