Module - Corporate Governance

Corporate Governance, Human Capital, Migrant’s Integration

Leader: Cracow University of Economics
150 pages training material in traditional form (with practical exercises, case studies, recommended reading, etc.) and at least 8 hours online e-learning part divided into submodules.

The purpose of this module is to improve the ability of Family Business managers to face daily issues  when making decisions in a family context and in integrating and adding value to the human capital of their enterprises.

Mentoring mirror
Submodules and description:

1. Challenges for decision making in a family context.

Theory and techniques to avoid distortions.
Distortions with special relevance in FAME include:

  1. Habits leading to terrible decisions;
  2. Saliency bias, i.e. being overly influenced by past successes and project a conclusion for a different circumstance when repeating the same decision might prove to be disastrous;
  3. Confirmation bias, neglecting counter arguments and seeking evidence which proves the intended decision; seasoned decision makers focus on counter arguments instead, and move ahead only if these are not convincing or frightening otherwise;
  4. Availability bias, when you rely on available information only but do not ask what information would you really need to form an informed decision;
  5. Sunk cost fallacy, when you are willing to sacrifice the future of the business to save the already invested efforts. Instead you should focus on the future. If the investment proved to be irrelevant in this context, no need to prove it otherwise at your peril;
  6. Overconfidence; the enemy of every decision maker;
  7. Loss aversion, when we are willing to give up great gains to avoid minor losses at any cost, every human is susceptible to this distortion; and
  8. Disaster neglect, not considering worse case scenarios at all.

2. Reward policies for new, start up and high growth organizations.

HR with special attention to reward management for engaged performance. Building understanding and trust.

Reward management is especially difficult in family business context where you rely on long-term relationships and building loyalty is key.
You might need different reward policies at different stages of your business.
In a family context rewarding family members and rewarding staff has different dimensions to consider and these aspects may have long lasting consequences.