scenarIo B: QuesTIons for GraduaTe sTudenTs

Although the family-oriented organizational structure has worked for the single-unit hotel, the same management structure may not be adequate to carry the partnership into the future as a multiunit organization. In addition to changes in the business, the Mitchell family is changing as well, with the upcoming entry of adult children into management roles.

Business expansion and a new generation entering management are changes that are common to all organizations, but family-managed organizations can experience other challenges as well. They can be significantly affected by unexpected changes in the family unit, and when those changes are not anticipated, they can be catastrophic to the organization. People die and get divorced, family members may adopt self-destructive behaviors, and sometimes family members get so angry with each other that they can no longer work together. These are difficult issues to manage in any business, but in a family business an unexpected event or dispute can put the organization in jeopardy, and the usual solutions are not always possible.

How would you advise hotel management to plan for family changes?

Design a succession plan for this organization.

What are your recommendations for resolving the issue of a new CEO from the next generation, considering that Jeff believes his daughter will be the next CEO and Chad and Cindy believe the next CEO will be their son?