Section 3
Cases Notes and Discussion Questions
Case 1: The Bingham Family and the Louisville Courier
Journal Companies Case
Suggestions for Use
The Binghams and the Louisville Courier Journal case is an excellent example of the
vulnerabilities that are unique to family-controlled corporations on the basis of blurred
boundaries between family, management, and ownership.
This particular case can easily be used as a primer to the course because of its simple yet
I conduct this case discussion with an action orientation, that is, I ask students to put
themselves in the shoes of the CEO, the CEO spouse and next generation members and
discuss what they would have done differently that would have changed the outcomes of
this case. While some students rightfully insist on going back in time and discussing
Executive Brief
The Bingham family/Louisville Courier case is a simple yet powerful scenario to
highlight the absolute necessity of family communication and its salutary effect on family
unity. It also presents a compelling rationale for the three leadership imperatives of the
three protagonists of the family business succession drama. In the Bingham case, Barry
Here are the teaching points that I emphasize during the case discussion:
Leadership behaviors that would have changed the outcomes of this case:
Visible leadership by the CEO that signals commitment to family business
continuity (e.g., Samuel Johnson III of S.C. Johnson, a Family Company, stating:
Leadership by a chief trust officer that promotes trust and win-win dynamics (or
A vision by the next generation successor that is compelling and engaging enough
to all shareholders that they allow this successor to lead them into the future. This
leadership capacity is earned, not inherited. Barry Jr. may have never been able to
quite do this in the shadow of the death of his charming older brother, the one
everybody in the family expected to be the next CEO. But there is not much
evidence of his behaving as if to earn this leadership capacity with his siblings.
Establishing a family council or meeting frequently as a family to discuss, address
and resolve whenever possible family and shareholder issues impacting the
business. In the absence of family meetings, owners relied too much on the family
board to govern the family-business relationship and the family conflict
contaminated and paralyzed the board.
Implementing managerial and equity structures that facilitate corporate control
Discussion Questions:
1. If you were Barry Bingham Sr., what would you have done differently over the
past 5 to 7 years that could have changed the outcomes of this case?