Bethmann Bank AG is a German private bank headquartered in Frankfurt am Main . It is a subsidiary of the Dutch ABN AMRO Bank N.V. and was the product of a merger between the historical German banks Delbrück, Bethmann and Maffei under the umbrella of the renowned Dutch ABN AMRO Bank. LGT Bank Deutschland joined this group in 2011. Bethmann Bank acquired the German private banking activities of Credit Suisse in December 2013. The acquisition positions Bethmann Bank, ABN AMRO's private bank in Germany, as the third largest private bank in Germany.
50-639: Bethmann Bank focuses on management, advisory services and planning for major private assets. It also supports clients in succession planning for family-owned companies and in establishing charitable foundations. The bank's archive is today located in the Frankfurt City archive. Together with the Goethe University Frankfurt am Main and F.A.Z. Media Solutions, Bethmann Bank organised a discussion series called Weltenwandler.tv, which addressed broad social issues. Delbrück & Co. Delbrück & Co.
100-743: A constitutional crisis in which large portions of the government resign or are removed, creating unclear succession. Historic examples include the aftermath of the assassination of Julius Caesar , the Time of Troubles in the Tsardom of Russia , the defeat of France in the Franco-Prussian War , the Mexican Revolution after the Porfiriato , the Russian Civil War in the aftermath of World War I , and
150-640: A bank for "important projects and clients", Bethmann served Maria Theresa of Austria, Pope Pius VI, Tsar Alexander I and the Goethe family. The private bank helped to finance the construction of the Eiffel Tower and today remains one of the largest promoters of art in Frankfurt am Main. Maffei Bank The Maffei family, who hailed from Verona, established their own bank in Munich in 1802 and ran it for over 100 years. The family
200-418: A business becomes incapacitated or passes away, it is often necessary to shut down an otherwise healthy business. Or in many instances, successors inherit a healthy business, which is forced into bankruptcy because of lack of available liquidity to pay inheritance taxes and other taxes. Proper planning helps avoid many of the problems associated with succession and transfer of ownership. Business Exit Planning
250-443: A formal, written succession plan; 38% have an informal, unwritten plan; and the remaining 52% do not have any succession plan at all. A 2004 CIBC survey suggests that succession planning is increasingly becoming a critical issue. The CIBC estimated that by 2010, $ 1.2 trillion in business assets would be poised to change hands. Research indicates many succession-planning initiatives fall short of their intent. "Bench strength", as it
300-487: A move away from competence-based approaches. In a future that is increasingly hard to predict leaders will need to see opportunity in volatility, spot patterns in complexity, find creative solutions to problems, keep in mind long-term strategic goals for the organisation and wider society, and hold onto uncertainty until the optimum time to make a decision. Professionals in the field, including academics, consultants and corporate practitioners, have many strongly-held views on
350-413: A part of a holistic strategy called "talent management". According to the company PEMCO, "talent management is defined as the activities and processes throughout the employee life cycle: recruiting and hiring, Onboarding , training, professional development, performance management, workforce planning , leadership development, career development, cross-functional work assignments, succession planning, and
400-488: A physical vacuum to the political condition "when someone in a place of power, has lost control of something and no one has replaced them." The situation can occur when a government has no identifiable central power or authority . The physical analogy suggests that in a power vacuum, other forces will tend to "rush in" to fill the vacuum as soon as it is created, perhaps in the form of an armed militia or insurgents , military coup , warlord or dictator . The term
450-404: A predetermined period of time and make the succession process less painful and eventful for everybody. In these cases, an interim leadership is usually what is best for the company. The employees can get accustomed to changes while getting to know the future CEO. With the global proliferation of SMEs, issues of business succession and continuity have become increasingly common. When the owner of
500-490: Is a body of knowledge which began developing in the United States towards the end of the 20th century , and is now spreading globally. A Business Exit Planning exercise begins with the shareholder(s) of a company defining their objectives with respect to an eventual exit, and then executing their plan, as the following definition suggests: Business Exit Planning is the process of explicitly defining exit-related objectives for
550-407: Is a process and strategy for replacement planning or passing on leadership roles. It is used to identify and develop new, potential leaders who can move into leadership roles when they become vacant. Succession planning in dictatorships , monarchies , politics, and international relations is used to ensure continuity and prevention of power struggle . Within monarchies succession is settled by
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#1732885151463600-499: Is also often used in organized crime when a crime family becomes vulnerable to competition. Hereditary or statutory order of succession or effective succession planning are orderly ways to resolve questions of succession to positions of power. When such methods are unavailable, such as in failed dictatorships or civil wars , a power vacuum arises, which prompts a power struggle entailing political competition, violence , or (usually) both. A power vacuum can also occur after
650-515: Is clear that leaders who rely on instinct and gut to make promotion decisions are often not effective. Research indicates that the most valid practices for assessment are those that involve multiple methods and especially multiple raters. "Calibration meetings" composed of senior leaders can be quite effective in judging a slate of potential senior leaders with the right tools and facilitation. With organisations facing increasing complexity and uncertainty in their operating environments some suggest
700-788: Is commonly called, remains a stubborn problem in many if not most companies. Studies indicate that companies that report the greatest gains from succession planning feature high ownership by the CEO and high degrees of engagement among the larger leadership team. Companies well known for their succession planning and executive-talent development practices include: General Electric , Honeywell , IBM , Marriott , Microsoft , Pepsi and Procter & Gamble . Research indicates that clear objectives are critical to establishing effective succession planning. These objectives tend to be core to many or most companies that have well-established practices: In other companies these additional objectives may be embedded in
750-499: Is described as the "financier to the Prussian state". The institution supported young entrepreneurs in the late 19th century, such as Siemens and Krupp. Adelbert Delbrück was one of the founders of Deutsche Bank. Clients at Delbrück & Co and Bethmann were able to use corporate finance and asset management services long before these Anglicisms entered the German language. Bethmann Bank As
800-431: Is expected to further increase in the coming years. Small business succession tends to focus on how a business will continue to operate once its founder or initial leadership team retires or otherwise leaves the business. While small businesses on the whole often fail after the departure of their initial leadership team, succession planning can result in significantly improved chances for a business's continuation. Within
850-484: Is one of important processes in leadership pipeline. According to a 2006 Canadian Federation of Independent Business survey, slightly more than one third of owners of independent businesses plan to exit their business within the next 5 years - and within the next 10 years two-thirds of owners plan to exit their business. The survey also found that Small and medium-sized enterprises (SMEs) are not adequately prepared for their business succession: only 10% of owners have
900-434: Is the process used to transition the ownership and management of a business to the next generation. Effective succession or talent-pool management concerns itself with building a series of feeder groups up and down the entire leadership pipeline or progression. In contrast, replacement planning is focused narrowly on identifying specific back-up candidates for given senior management positions. Thought should be given to
950-554: The Ba'ath Party was removed, no local figures were on hand to immediately assume the now vacant administerial posts. For this reason, Paul Bremer was appointed by the United States government as the interim head of state to oversee the transition. In other western-led interventions such as in Kosovo (1999) and Libya (2011) where the initial claim of justification in each case was a humanitarian matter, there had been active opposition fighting on
1000-456: The House of Rothschild , the business was entrusted to Bethmann, on the ground that the property of that house was 'well known to be so great as to require no other security than a duly binding contract or debenture.' This was a triumph of Bethmann over Rothschild, and it was because the importance and financial greatness of the firm of Rothschild, which at that time [1814] was still of very recent date,
1050-503: The order of succession . In business, succession planning entails developing internal people with managing or leadership potential to fill key hierarchical positions in the company . It is a process of identifying critical roles in a company and the core skills associated with those roles, and then identifying possible internal candidates to assume those roles when they become vacant. Succession planning also applies to small and family businesses (including farms and agriculture) where it
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#17328851514631100-424: The retention of key employees, and the consequences that the departure of key employees may have on the business. The practice of business succession planning is conducted either by organisations themselves, or with the support of specialist Management consulting firms. Fundamental to the succession-management process is an underlying philosophy that argues that top talent in the corporation must be managed for
1150-569: The Human Resources Planning Society, are sources of some effective research-based materials. Over the years, organizations have changed their approach to succession planning. What used to be a rigid, confidential process of hand-picking executives to be company successors is now becoming a more fluid, transparent practice that identifies high-potential leaders and incorporates development programs preparing them for top positions. As of 2017 corporations consider succession planning
1200-497: The Leadership Powered Company", by Charan, Drotter and Noel is noteworthy. A new edited collection of materials, edited by Marshall Goldsmith, describes many contemporary examples in large companies. Most large corporations assign a process owner for talent and succession management. Resourcing of the work varies widely - from numbers of highly dedicated internal consultants to limited professional support embedded in
1250-524: The bank's innovation of breaking the Austrian emperor's borrowing down into "sub-bonds" ( Partialobligationen ) at 1000 gulden each offered to the public, which made them tradeable in secondary markets. This transformed the bank from a lender to an underwriter of bond issues. At one point, the profits of Gebrüder Bethmann exceeded those of all its Frankfurt competitors together, and it ranked first among all German banks. In spite of this new offensive in favor of
1300-483: The business prospers. The strategy should also take into account contingencies such as illness or death. All personal, financial, and business aspects should be taken into consideration. This is also a good time to plan an efficient transfer from the point of view of possibly applicable estate taxes, capital gains taxes, or other taxes. Sale of a business is not the only form of exit. Forms of exit may also include initial public offering , management buyout, passing on
1350-404: The business. Small businesses and perhaps especially family businesses benefit from creating a disciplined succession process, involving, No part of the process should be rushed, with the integration process being expected to take roughly two years. Power vacuum In political science and political history , the term power vacuum , also known as a power void , is an analogy between
1400-445: The context of succession planning, where a small business is owned by a group of managers or partners, thought should be given to the transition of the business to the partners, how departure from a business will be managed, and how shares or ownership interest will be valued for purposes of sale or buy-out. When succession occurs within a company's hierarchy, succession plans should consider issues that may arise relating to retention of
1450-782: The course of the Ming treasure voyages (1405–1433), the Chinese Ming empire was the dominant political and military force within the Indian Ocean. However, in 1433, the Chinese government withdrew their treasure fleet and thus left a large void within the Indian Ocean. In 2003, when the United States led a coalition to oust Saddam Hussein in the Iraq War , the absence of an all-out Iraqi opposition force at war with government forces meant that once
1500-565: The decrease in power of Great Britain and France in the Middle East after the Suez Crisis . China is the first country still existing to have been united other than Egypt, and has had repeated power vacuums throughout its history. China was first unified under emperor Qin Shi Huang in 221 BCE, ushering in more than two millennia in which China was governed by one or more imperial dynasties. From
1550-420: The employee exit process". When managing internal talent, companies must "know whether the right people, are moving at the right pace into the right jobs at the right time". An effective succession-planning strategy, coupled with solid career-development programs, will help paint a more promising future for employees. A substantial body of literature discusses succession planning. The first book that addressed
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1600-426: The firm to next-of-kin, or even bankruptcy. Bringing on board financial strategic or financial partners may also be considered a form of exit, to the extent that it may help ensure succession and survival of the business. In developed countries, the so-called " baby boomer " demographic wave is now reaching the stage where serious consideration needs to be given to exit. Hence, the importance of Business Exit Planning
1650-415: The greater good of the enterprise. Assessment is a key practice in effective succession-planning. There is no widely accepted formula for evaluating the future potential of leaders, but many tools and approaches continue to be used today, ranging from personality and cognitive testing to team-based interviewing and simulations and other Assessment centre methods. Elliott Jaques and others have argued for
1700-879: The greater good of the enterprise. Merck and other companies argue that a "talent mindset" must be part of the leadership culture for these practices to be effective. Organizations use succession planning as a process to ensure that employees are recruited and developed to fill each key role within the company. Through one's succession-planning process, one recruits superior employees, develops their knowledge, skills, and abilities, and prepares them for advancement or promotion into ever more-challenging roles. Actively pursuing succession planning ensures that employees are constantly developed to fill each needed role. As one's organization expands, loses key employees, provides promotional opportunities, or increases sales, one's succession planning aims to ensure that one has employees on hand ready and waiting to fill new roles. Succession planning
1750-613: The ground to oust the relevant governments (in the case of Kosovo, this meant removal of state forces from the desired territory rather than ousting the government itself). Subsequently, successor entities were immediately effective in Libya and Kosovo. Power vacuums often occur in failed states sometimes referred to as Fragile states where the state has lost the power to prevent its citizens from forming states within states, such as in post-communist Moldova 's Transnistria . The ongoing war in Sudan
1800-526: The importance of focusing assessments narrowly on critical differentiators of future performance. Jaques developed a persuasive case for measuring candidates' ability to manage complexity, formulating a robust operational definition of business intelligence. The Cognitive Process Profile (CPP) psychometric is an example of a tool used in succession planning to measure candidates' ability to manage complexity according to Jaques' definition. Companies struggle to find practices that are effective and practical. It
1850-413: The intended successor, the possibility of jealousy by other employees, and how other employees will respond when they learn of the succession plan. Additional issues are likely to arise if succession is to a family member, particularly if more than one child of the managing owner works for the business or if siblings who do not work for the business will gain shares without having invested time and energy in
1900-462: The owner(s) of a business, followed by the design of a comprehensive strategy and road map that take into account all personal, business, financial, legal, and taxation aspects of achieving those objectives, usually in the context of planning the leadership succession and continuity of a business. Objectives may include maximizing (or setting a goal for) proceeds, minimizing risk, closing a Transaction quickly, or selecting an investor that will ensure that
1950-442: The replacement of a CEO in family firms. The role of advisors is important as they help with the transition of leadership between the current-generation leaders and the successors. Advisors help family-owned businesses establish their own leadership skills. This process is relatively long if the successors want to be accepted by all employees. They need to take higher managing positions gradually to be respected. During this process,
2000-400: The roles of human-resources generalists. Often these staff resources are separate from external staffing or recruiting functions. As of 2017 some companies seek to integrate internal and external staffing. Others are more inclined to integrate succession management with the performance management process in order simplify the work for line managers. A prior preparation needs to be done for
2050-473: The so-called "game-planning" approach to succession and talent management. In these and other companies annual reviews are supplemented with an ongoing series of discussions among senior leaders about who is ready to assume larger roles. Vacancies are anticipated and slates of names are prepared based on highest potential and readiness for job moves. Organization realignments are viewed as critical windows-of-opportunity to utilize development moves that will serve
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2100-572: The start, China has experienced power vacuums after dynasties have been toppled, usually resulting in civil wars between different factions vying to form the next dynasty or political regime. These have included but are not limited to the Warring States period (475-221 BC), Three Kingdoms (220-280 AD), the Manchu conquest of China (1618-1683 AD), and the Chinese Civil War (1927-1949 AD). During
2150-650: The succession process: Companies devise elaborate models to characterize their succession and development practices. Most reflect a cyclical series of activities that include these fundamentals: In many companies, over the past several years, the emphasis has shifted from planning job assignments to development, with much greater focus on managing key experiences that are critical to growing global-business leaders. North American companies tend to be more active in this regard, followed by European and Latin American countries. PepsiCo , IBM and Nike provide current examples of
2200-408: The successors are asked to develop different skills such as leadership. This is where the role of advisors fully exemplifies its importance. It is when the managing position is shared between the first-generation leader, the second and the advisors. An advisor helps with communication because emotional factors between family members can badly affect the company. The advisors help manage everything during
2250-565: The topic fully was "Executive Continuity" by Walter Mahler. Mahler was responsible in the 1970s for helping to shape the General Electric succession process which became the gold standard of corporate practice. Mahler, who was heavily influenced by Peter Drucker , wrote three other books on the subject of succession, all of which are out of print. His colleagues, Steve Drotter and Greg Kesler, as well as others, expanded on Mahler's work in their writings. "The Leadership Pipeline: How to Build
2300-469: The topic. Best practice is a slippery concept in this field. There are many thought-pieces on the subject that readers may find valuable, such as "Debunking 10 Top Talent Management Myths", Talent Management Magazine , Doris Sims, December 2009. Research-based writing is more difficult to find. The Corporate Leadership Council, The Best Practice Institute (BPI) and the Center for Creative Leadership, as well as
2350-566: The trading enterprise of his uncle Jakob Adami in 1746, officially took his brother Simon Moritz as a partner. From that point the enterprise was called Gebrüder Bethmann . Within a short span of time, the Bethmann bank developed into one of Frankfurt's leading (Christian-owned) banks, on a scale comparable only to its younger rival, the House of Rothschild . The bank's fortunes began to rise in 1754 based on its business in imperial, princely and municipal bonds and skyrocketed from 1778, thanks to
2400-591: Was also a co-founder of the Bayerische Hypotheken- und Wechselbank (later HypoVereinsbank) and the insurance company Münchener Rückversicherung (later Allianz). A member of the family reopened the Maffei Bank after the Second World War. In the years that followed, it continued to move from being a specialist in securities and energy-sector lending to a pure private bank. ABN AMRO The forerunner of ABN AMRO
2450-554: Was founded in the Netherlands by King William I in 1824 and began at an early stage to concentrate on world trade. The financing business led the bank to open branches on all continents, laying the foundation for today's international network. The establishment of the Bethmann bank in Frankfurt am Main is dated to 1748, the year when Johann Philipp Bethmann (1715–1793) , who had inherited
2500-635: Was not appreciated at Vienna, and even Barbier had more faith in the old Christian firm of Bethmann than in the upstart Jewish firm. What happened was this. Until the beginning of the revolutionary wars in France, in the mid-1790s, European merchant banking was dominated by non-Jews: the Barings of London, the Hopes of Amsterdam , and the Gebrüder Bethmann of Frankfurt. Succession planning Succession planning
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