What is the “Fredo” effect- and how might it impact your Family Business? S2 (EP13)

In this episode of the Finish Big Podcast, Host Mark Dorman sits down with Professor Kimberly Eddleston of Northeastern University and Cornell University’s Smith Family Business Initiative.
Professor Edelston is one of the world’s leading scholars in family business and entrepreneurship—ranked among the top 2% of scientists by Stanford University and recognized by Family Capital as one of the world’s Top 25 Family Enterprise Academics.

Mark and Kim discuss:

The Fredo Effect – What it means, how it appears in real family businesses, and why it’s so hard to talk about.

Family Dynamics – How loyalty, guilt, and generational expectations can turn a strength into a weakness.

Research Findings – 33% of families admit to having a “family impediment” member—and why the real number is likely much higher.

Nepotism vs Accountability – What happens when roles aren’t clearly defined and bad behavior goes unchecked.

Prevention & Governance – Practical tools to reduce risk: rules of entry, clear job descriptions, and outside boards of advisors.

Culture & Communication – How open dialogue, fairness, and transparency can keep both relationships and revenue healthy.

Connect with Mark Dorman:

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• (330)-416-9271

• [e-mail]

About the Guest:

Professor Kimberly Eddleston is a globally recognized expert in family business, entrepreneurship, and innovation. She serves as a Research Fellow at Cornell University’s Smith Family Business Initiative and teaches at Northeastern University in Boston. Her groundbreaking work explores how families can be both a resource and a constraint in their companies.

Kim has authored award-winning papers, delivered workshops around the world, and helped countless families navigate the complex emotions of succession and leadership transition.