Posting by:  Debbie Andrews
Date: October 22, 2009

When the product or service of a business is primarily the creativity itself, as in fashion design, the differentiator and the branding is that creative mind.  Such is the case with Giorgio Armani SpA, where anyone in the capitalist world knows what is meant when an Armani suit is worn.  Because up to this point, it’s been all about Giorgio, his designs, his presence, his business decisions.  Although this is a family business, it’s really a Giorgio Armani business.

A Business Structure Fit to a Tee

It’s hard to argue with a control freak when they are a genius and their business is successful because of both their creativity and their business skills.  One of the most hands-on guys in the business, Armani had to relinquish some control at least temporarily while ill, and perhaps seeing his possible mortality, has started making reorganizational changes.  As we’ve seen in other family businesses in this blog, the winds of change indicate some non-family members are receiving more power, and could possibly be named in a succession plan, if one were forthcoming.  It isn’t as yet, but when a business owner wants to make it clear that only the family will have all control, the signals are usually very clear.

Read More About the Armani Organization, and Reorganization

Read the complete text of the Wall Street Journal article at the link below, and comment on your own family business (or that of one of your clients).  Do you see a particular family business as really about the embodiment of the creative aspect, or as the entire participating family?  Are some business sectors more difficult than others to separate the person from the family, thus making succession after departure of main creative inspiration a lost cause? 

See the article at:  http://online.wsj.com/article/SB125432242199552699.html

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