Thursday, October 29, 2009

Entertainment Pic: Dinner Rush


Looking for a good title to rent or something new to pop into your Netflix cue?

Dinner Rush, which takes place during one crazy night in a trendy, family-owned restaurant, contains everything a film should have: drama, crime, suspense and comedy. One of plots involves a father (Danny Aiello) who doesn’t want to turn the business over to his son (Eduardo Ballerini) who has too many new ideas about gourmet food.

One critic described the film as a “tasty dish,” with a superb ensemble. Worth checking out.

Tuesday, October 27, 2009

When do you need a mediator?

By Mary Beth Matteo, Founding Director
S. Dale High Center for Family Business

Most of us are “do it yourselfers” and like to solve our own problems. In fact, a “roll up your sleeves” attitude has been key to many family's success. So, when it comes to family issues, when do we decide we need an objective outsider to help us? Here’s a short checklist:
  • When old conflicts and “baggage” begin to affect the family’s ability to plan for the future
  • When poor communication is affecting the bottom line
  • When the lines between people’s family role and business role seem to be blurring
  • When it becomes difficult to obtain opinions and information from family members, e.g. people are withholding information
  • When the natural leader is perceived by others to have an agenda, e.g. not objective
When will a mediator NOT be able to help you?
To be effective, members of the family group must want to resolve their issues: although members of family businesses can disagree about the end goal and the means, all members of the group must want to resolve the major issues. Otherwise the process will be sabotaged.

Would you consider using outside mediation? Why or why not? Has mediation worked for your family enterprise?

Monday, October 26, 2009

Quote of the week

“Although it takes two to have a relationship, it takes only one to change its quality. Just as we react to others, they react to us. By changing our behavior, we will change the way they react.”

--Roger Fisher and Scott Brown, Getting Together, quoted from Working with the Ones You Love

Friday, October 23, 2009

Should we hire in-laws… or not?

by Mike McGrann, Executive Director
S. Dale High Center for Family Business

This is an important question – one that most family business owners struggle with at some point in the life cycle of their firm. Some families say yes. Some say no.

However, a simple yes or no doesn’t apply to the broader question for family ownership teams: “How will we manage the influence of our in-laws?” The answer should be considered from three perspectives:
  1. As a potential employee of the business
  2. As a potential shareholder
  3. As a stakeholder in the family firm
As a Potential Employee
Most of us would agree that highly qualified in-laws can be productive and loyal employees and that it would be a loss to not hire them simply because they are married to family members. However, the decision to hire in-laws can dramatically impact the organization and the family and should be made within the context of a discussion at the ownership level to define the “rules of the game” for in-laws. A Family Member Involvement Policy clarifies how the family and the business will interact. Among other things, such a policy should define the process by which family members and in-laws are:
  • Hired
  • Evaluated
  • Promoted
  • Fired
The boundaries for in-law employees should be very clear: “You will be treated like any other employee.” In addition, they must be willing to accept their place within the organizational hierarchy – and to respect this hierarchy at all times, which means a deliberate conversation prior to hiring.

The reality is that treating an in-law (or working family member) like “any other” employee is extremely difficult. A Family Employment Committee can ensure that the hiring, evaluation, promotion, and (if necessary) firing of in-laws (and family members) occurs according to norms established by the company.

As a shareholder
A second consideration is whether a family will allow in-laws to own stock in the company. Most families we know prefer to limit ownership via stock restriction agreement to direct descendents (or adopted children) of the founding family member.

As a stakeholder
In-laws have an important and influential roll as stakeholders in the family business system. Their influence (positive or negative) comes via their relationship with the family member. They should be managed by the family business system leader. In addition, the policies that family members establish – such as the Family Member Involvement Policy - impact their children. Thus, they should be informed of what is happening in the system.

If your family has created a Family Member Involvement Policy, share it with the in-laws and ask for their input. They do not have the right to approve or change the policy, but their voice / opinion should be considered. Why? 1) Because asking their opinion makes them feel a part of the process and builds a relationship with them, and 2) because the policy will impact their children.

Families should include spouses in part of a family meeting at least once a year. Possible agenda items for a meeting with in-laws could include:
  • A brief and general overview of what has happened in the business over the last year.
  • A brief description of the plans for the coming year.
  • An update on the creation of any family policies or structures. (Family member involvement, perks, vacation, etc.)
  • Other topics related to the family.
A presentation from a local expert on an issue of interest to the group (Parenting skills, communication skills, building healthy marriages, estate planning, etc.)

Mike’s Bottom Line
Give in-laws what they deserve: information and a voice (not a vote). In doing so you will build trust, and hopefully, ensure that their influence on the system is positive.
Do you have a Family Member Involvement Policy in your family business? How has it worked for you? Feel free to leave a comment or take our poll in the sidebar.

Thursday, October 22, 2009

Quote of the Week

"Dialogue. Dialogue. Dialogue. Stay in conversation. Stay in relationship. Don’t end up isolated. Get everyone talking together and see if you can find compromises. Find middle ground.”


Dr. Stephen Treat, Presenter, November 12 Seminar

Sunday, October 18, 2009

From the board room to the dinner table: Relating to your adult children peer-to-peer

by Mike McGrann, Executive Director
S. Dale High Center for Family Business

Great business leaders who empower individuals and create honest dialogue in the workplace can create outcomes as successful in the home as they are on the shop floor. So, here are three tips from the business world to better interaction with your teenage child:

1. Great business leaders create an environment of open and honest dialogue in order to build a great team. Give your teens space to have a real voice around the house. I am not speaking of the kind of voice for which we as parents often feel we need earplugs. Rather, do the hard work as a parent to ask three, four or five questions of your kids to ensure that you really understand their perspective on an issue. In doing so, you demonstrate to your child that i) their opinion matters, ii) that you care deeply about them, and iii) they don’t need to shout because they will have a turn to express their needs. Once you demonstrate this to your son or daughter, you have a much better chance of them actually listening to you. Great business leaders understand that they must create an environment of open and honest dialogue if they are going to build a great team. The more your family functions like a team, the more fun it is. While somewhat counter intuitive, the reality is that if you want your child to really listen to you, you must first demonstrate that you are listening to him/her.

2. Great leaders realize that words are cheap, but action is deep. Do as I do, not as I say. Kids, like employees, are always watching the boss. The leader who demands great customer service, but belittles an employee in public has little chance of success. Similarly, the way in you treat your spouse is the model for how your child will treat his or hers someday. The way you treat your child is the way he or she will treat you, and the care you demonstrate for yourself is how your child learns to care for him/herself.

3. Great business leaders understand that they can treat their subordinates as peers, without fear of losing their place in the hierarchy. Great business leaders often speak of creating “peership” within their hierarchy. By this, they mean that they will seek feedback, ideas, and challenges from anyone in the organization. They want subordinates to tell them why an idea is a good one or bad one. It is in this kind of dialogue that employees feel empowered, engaged and confident. Confident leaders know they can have this kind of dialogue without abdicating their position as the company’s final decision maker. Similarly, the goal with our children should be for them to feel confident that they can share their ideas and challenge their parents in a respectful way… and that their ideas will be respected. This does not mean that their ideas are feasible, but their ideas, their wishes are always welcome. It is said that one of the marks of a great parent is how quickly you can establish a peer-based relationship with your child. You can do so with the confidence that giving children a voice as a peer does not mean abdicating your role as parent.

4. Make time for meetings. Great business leaders make time for their team. Most often this implies regular face to face discussions of tactical issues to ensure alignment and to help the team stay focused on important issues. Similarly, families should make time for regular meetings with parents and children to discuss the issues that are impacting the well-being of the family.

5. Great leaders open themselves to feedback. They understand that only by demonstrating a willingness to grow and change personally, can they expect their company grow and change. This implies an openness to feedback and willingness to reflect on how their actions are impacting the team. Similarly, parents who demonstrate that they are willing to grow and change as parents are more likely to see the changes they wish to see in their children.

Mike’s Bottom Line: Embrace openness. Be authentic. Be a leader. Connect. Encourage feedback.

Thursday, October 15, 2009

Book Pics: Relationships

by Mike McGrann, Executive Director, S. Dale High Center for Family Business
Since we're examining relationships in family business this season on "High Ground," I'd consider the following book a must-read. Working with the Ones you Love: Strategies for A Successful Family Business by Dennis T. Jaffee, Ph.D.

The first book on family business written by a family therapist, Working with the Ones you Love is a wealth of information and insight. Its chief strength is its blend of theory and pragmatism. Through descriptions of conflict situations and case histories, it provides practical tools to work through each.

Some of the areas addressed are:
• “How Family Patterns Mold the Business”
• “The Family Council”
• “Married to the Business…And Each Other”
• “A Tough Act to Follow…Growing up in the Business
• “Bringing Family into the Business”

One reviewer, Harold H. Bloomfield, writes, “A must book for anyone in a family business—thoughtful, effective…brilliant insights, guidelines and strategies for work with a loved one.

If you have siblings in the family business, feel free to take our poll in the sidebar. What advice would you have for others with siblings in the family business?

Friday, October 9, 2009

Tom Wolf Presents to CFB Membership in September


Tom Wolf, former PA Secretary of Revenue, spoke to members and guests on September 17, 2009, the first in the CFB's 2009-10 series of Educational and Benchmarking Seminars.

Wolf is chairman and CEO of The Wolf Organization, a family owned building materials business based in York, Pennsylvania, founded in 1843, with distribution through 30 branches along the Eastern Seaboard.

Wolf doesn't believe family businesses should make it easy for the next generation to assume ownership of the family business. And he should know...he bought his family firm twice, once before he served as the State Secretary of Revenue and then again in 2009! He also talked about the value of listening, really listening to employees, explaining how he empowered employees and improved morale toward better performance and decreased turnover at Wolf. He also spoke to the marked efficiencies and improved ROI the Wolf Organization achieved through an investment in SAP.



For selected slides from Tom Wolf's presentation, click here.

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