Page 30 - MS Year in Review 2017_Neat

A DYSFUNCTIONAL FAMILY ON THE EDGE

Today, the Buss family (the family that owns the Lakers) owns a family business on
the edge of disaster. Not only are the Lakers in decline as a basketball team, but
there is a classic family civil war going on among members of the Buss family—and
there is nothing “civil” about it! Jeanie Buss, who was specified to be the
“controlling owner” of the Lakers by her deceased father, has fired her own brother,
Jim Buss, who was running basketball operations. In turn, Jim and his brother
Jonnie brought suit to prevent a meeting at which they would have effectively
removed Jeanie as a director of the Lakers. Jeanie Buss sought and received an
injunction to prevent her brothers from doing this.

Widespread Phenomena of Failed Family Business Generational Transitions

The underlying cause of the problems of the Buss Family, and, in turn, the Lakers is
a dysfunctional family. The situation confronting the Lakers is dramatic because
they are a high profile family business. However, the problems and underlying
causes facing the Lakers are common to many (if not most) family businesses.

Preventing this Type of Family Business Drama

Was it possible to prevent this type of Family Business Drama? They answer is a
qualified “yes”. The nature of some families is so toxic that nothing can realistically
be done to prevent “Family Business Drama.” However, in other families, there is
more of “garden variety” dysfunctionality, and prevention from excessive drama
and even chaos is possible.

The solution need to be done before the passing of the senior family leader—not
after! In the case of the Lakers, a legal protocol for ownership and management of
the Lakers was laid out and Dr. Jerry Bus might well have believed that he had
done everything he need to do correctly. However, without further steps the
organizational arrangement prescribed for the Lakers was a recipe for a
future disaster; and in 2017 the disaster actually happened.

Need for a “Strategic Family Business Plan”

What the Buss family needed and what is in fact needed in all family business is
what we term a “strategic family business plan.” A “Strategic Family Business Plan”
is not a strategic plan for the family business per se; rather it is plan for the
family’s use of the family business.

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