Course Description:
This course explores the distinctive leadership strategies, structures, and skills required to lead closely-held and family firms through change and growth. Because of the unique agency relationships between ownership and management, closely-held and family firms have special challenges when facing change and growth. Leaders and consultants often overlook or intentionally try to ignore these role and relationship issues, leading to the unintended result that their recommendations, strategies, or leadership activities are often less than successful and at times even destructive. Using a process consulting and problem solving framework, we will analyze cases and interact with business leaders and family companies on their change and growth scenarios. The content for the course is drawn from the process consultation arena, the field of family enterprising, the entrepreneurial growth and change literature, and general business management.

Class Format:
The class meets on two intensive weekends (February and April) which allows the companies to join the class. The class weekends focus on both the process and content aspect of leadership, change and growth. The process is "how" change and growth occurs. The content is "what" needs to be done. The classroom dynamics, interactions, and projects are structured as a live process consultation for both students and professors. Students will interact with real businesses and need to use their process consulting skills to effectively assess the growth and change situations in these companies. On the content side, students are taught the skills and models used by consultants, and the knowledge content for managing closely-held and family firms. Students also receive personal and team coaching as well as a leadership development workshop. The primary deliverables for the class are in conjunction with the team process consultations to the companies.

Syllabus: Click here to view the complete 2005 syllabus.

2004 Student Response:

"The Leading Growth and Change class was very relevant to helping me understand the issues of my family firm. I think it really opened the door for me to understand my family’s business. After graduating, I spent a month analyzing our business. The class helped me, as well as my family, look at not only the current familial and business issues that we have, but also potential future issues that we may face."
      - Aaron B. Glick M'04

"The class helped me better understand what a family company is all about. I have just started working for my family business and the decision-making process is completely different from what you would expect. That does not mean it is necessarily bad, just different. This class helped me understand those differences and how to deal with them...I really enjoyed the class and am interested in the subject, so keep me posted."
      - Ali Fakhro M'04

2005 Case Companies:

1. Pet Food Experts

Pet Food Experts was originally founded in 1936 by Herbert “Salty” Baker in the basement of his Rumford, R.I. home. Three generations later, with over 100 members of “extended” family the Bakers now operate the business out of a 200,000 square foot distribution center about 10 miles way from where it all started. With Babson alumnus Mike Baker now at the helm, the company serves 2,000 customers and over 50 vendors.

Pet Food Experts takes great pride in serving their customers throughout the Northeast with friendly and professional service, accurate next–day deliveries, and a great selection of products from the leading pet food and pet supply brands.

For more information on Pet Food Experts visit them on the web at http://www.pfxne.com/

2. The Najri Group

The Najri Group is a family owned group of companies in the Dominican Republic. The group participates in several industries among them automobile sales and distribution, agrochemical, and the consumer products and pharmaceutical industries. Included in its holdings are: Delta Comercial, importer and distributor of Toyota and Lexus, Fertilizantes Químicos Dominicanos, an agrochemical company, Máximo Gomez P. a consumer and pharmaceutical goods company, and Sebastian Del Caribe, a professional hair care distributor.

The group was initiated in 1943 by Jose Najri, and is now in the hands of his sons Jose Antonio and Marcial. In fact, most members of the third generation are working in the businesses. The family’s influence is extending into the fourth generation as well as Marcial’s son Eduardo Najri is currently a Babson MBA student who plans on returning to the family group in the Dominican Republic when he is finished.

3. Carsense

Carsense is a car dealership that specializes in selling high-quality, reconditioned automobiles at fair, no-haggle prices. Under the leadership of founder and owner Fran McGowen, Carsense has experienced tremendous growth. In 5 years Carsense has grown from a vision to a 110 employee and $70 million operation. Carsense has two successful locations and is currently planning its third.

Carsense has been built on differentiating itself from the traditionally disreputable car dealership community. Carsense prides itself on its simple policies, no haggle prices and honest salespeople.

For more information on visit Carsense on the web at www.carsense.com

4. New England Piping:

New England Piping (NEP) is the largest non-union, commercial HVAC contractor in southeastern Massachusetts. NEP was incorporated by Paul Busse in 1976. At the time, Paul was a master pipefitter working in a power plant in Fall River and decided to leave a stable blue collar job to start his own commercial plumbing and heating company. Paul operated the business by himself for approximately 10 years and earned a good living to support his wife Sharon and their two children Lisa and Paul Jr.

Paul Jr. joined the business in 1987 and together they have grown the business steadily to its current level employing 30 with 2003 revenue of $6.5M. The company is headquartered in Dartmouth, MA in an 11,500 square foot building. This building serves as headquarters for all operations including an 8500 square foot fabrication shop. The large fabrication shop is unique in this industry and gives NEP a competitive advantage allowing higher efficiency and lower cost.

The challenge for NEP in the coming years is to continue its aggressive growth and to formally transfer ownership to the second generation. Paul Jr. is an active manager in the business. Lisa has no involvement in the business, but her husband Brian, a Babson MBA student works part-time consulting in the business. NEP’s near term goal is to become the leading mechanical contractor in Massachusetts by 2010.