web01.fireside.fm Sun, 19 Apr 2026 12:34:07 -0500 Fireside (https://fireside.fm) The Business of Family - Episodes Tagged with “Family Business” https://www.businessoffamily.net/tags/family%20business Sun, 03 Apr 2022 15:30:00 +1000 Mike Boyd interviews successful families and their advisors to learn how they steward their wealth across generations, managing succession issues to "keep it in the family". Very few family businesses do the work and even fewer make it beyond the third generation. Follow along to learn about family governance structures, family office investing, succession planning and raising happy, healthy and enterprising children of wealth. Learn more and subscribe: https://www.businessoffamily.net/ Follow Mike on Twitter: https://twitter.com/MikeBoyd en-us episodic Multigenerational wealth creation involves so much more than just capital accumulation. The most successful families cultivate and collect values, stories, knowledge and resources to pass on to the next generation. The systems and processes to do this are very intentional. Very few do the work and even fewer make it beyond the 3rd generation. Find out how with The Business of Family. Mike Boyd Mike Boyd interviews successful families and their advisors to learn how they steward their wealth across generations, managing succession issues to "keep it in the family". Very few family businesses do the work and even fewer make it beyond the third generation. Follow along to learn about family governance structures, family office investing, succession planning and raising happy, healthy and enterprising children of wealth. Learn more and subscribe: https://www.businessoffamily.net/ Follow Mike on Twitter: https://twitter.com/MikeBoyd no succession, multi-generational wealth, family office, dynasty, legacy, stewardship, next generation, business, family wealth, investing, FO, wealth, investing, inheritance, legacy, heirs, Mike Boyd podcastrss@mikeboyd.com.au Srinath Rajam - Separating the Family Conglomerate After 111 Years http://www.businessoffamily.net/srinath-rajam 4125db71-1a9c-47c5-a01b-571c8169102e Sun, 03 Apr 2022 15:30:00 +1000 Mike Boyd full 2 Mike Boyd Srinath Rajam is a Director at TVS & Sons, Chairman at Kwik Patch, and one of the four sons of the high profile TVS group of companies. The TVS Group is a long-standing family business, running for over 110 years, which has interests in everything from auto components through to finance. Now after over a century in business, the TVS group has decided to amicably separate. Srinath talks about this historical event and how by keeping it amicable, it sets the stage for the next phase of growth. 56:39 no Srinath Rajam is a Director at TVS & Sons, Chairman at Kwik Patch, and one of the four sons of the high profile TVS group of companies. The TVS Group is a long-standing family business, running for over 110 years, which has interests in everything from auto components through to finance. Now after over a century in business, the TVS group has decided to amicably separate. Srinath talks about this historical event and how by keeping it amicable, it sets the stage for the next phase of growth. Standout Quotes: * "The process of how you manage a company is not taught anywhere; the process for how you manage people is not taught anywhere so these are things you need to learn by watching" - [Srinath] * "Unless all of us are good human beings, we cannot work in a group" - [Srinath] * "If the family is not in one piece... the businesses are going to fall apart" - [Srinath] * "I don't worry about control, I worry about what's best for the business" - [Srinath] Key Takeaways: * Srinath is a 4th generation member of the TVS and Sons Family. He talks about a historic date when the family will finally be breaking up the company and separating after 111 years. Unlike many families which split with resentment and animosity, this breakup is rather amicable which sets the stage for growth in the next phase. * The seeds for the separation started in 1974, although from the onset, at a point when the Founder of the company had his influence waning as a patriarch, there was already a lot of mistrust. It was in 1974 that it became clear that there was no future for the company to continue as one large family which is now manifesting. * Over the 48 years since the first conversation was had about splitting up, the company has lost opportunities to advance in IT, however, they were able to structure the core competence of the existing companies. * The first phase was in 1927 when the company became the dealer for GM in South India. The next phase was automotive component manufacturing which continues to be the most profitable aspect of the business. The third phase is a two-wheeler operation, which is the largest and most valuable company. Most recently, the supply chain has also been racked up, which is the TVS Supply Chain. * About the two-wheeler operation: in 1972, as a young teenager, Srinath had discovered what looked like an electric bicycle which his grand-uncle was creating as a cheap way for people to move around. The engineers had said it would not be possible, but he invested energy, time, and money in it based on his conviction. By 1978, he passed on 10 days before the company was opened. The group was also into all sorts of automotive industries. * The strategy for the separation was that whoever is managing will continue to look after business till the separation, then the valuation was done in 2014, and the difference would be settled in cash. The Indian legal system encourages families to have such a business understanding, which was not initially accepted by all 64 shareholders but with persuasion, they agreed to implement it. The company also has very strict requirements regarding competence and experience to join in the business such that family members are not guaranteed an automatic seat. * Some of these requirements for joining the family business include Graduation from an Ivy League school, a minimum of 3 years of work experience outside the family business with no help getting the job. These and more only qualify members to apply, after which a competency board will assign a mentor who looks after the possible future leaders, and then they can grow from there. These new family members entering into the business start with a small responsibility like one of the smaller subsidiaries and are mandated to only report to a professional, not their parents. * Based on these requirements, most family members are only qualified to apply by their early 30s, which is beneficial for the company because emotional maturity is also critical. * Although G4 wasn't particularly groomed for management, they intend to identify those things they lacked and make them available for G5. Since the process of managing companies or people is not taught anywhere, G5 has to be properly introduced by participating as observers in top review meetings. Most of the methods and practices being implemented to groom G5 are ideas from John Ward. * Even though many families apply all sorts of family governance structures, not many are successful, meaning those structures do not guarantee anything. The question is "How do you make this work?". The first requirement is trust; without trust, none of these things can work. Next is transparency, and the third is to be Just and Fair. People working together must be good people who like being around each other. Additionally, fairness, compassion, and carrying people along, have been more efficient than any of these structures. * To address the issue of power grabbing in the 60s, a change in the business system was made such that no decision can be made without the unanimous consent of the members present. It protected the person managing the subsidiary such that they could not be fired easily but the bureaucracy at the same time restricted opportunities for risk and growth. Hence the success of the group depended on the competence and ambition of the people running each company. However, while the trust was lost and growth was delayed, the companies held on better to funds for reinvestment which promoted overall growth. This however created problems and resentment from the shareholders. * When John Ward came along, he increased the dividends to the non-working shareholders from 10 to 25%. Dividend taxes were also removed from the income. His approach was to make the family happy knowing that most of their problems could be addressed with cash. Some of the dividends were also used to take care of the educational needs of non-working shareholders. * The family has about 80 shareholders, and after the break-up, things will fragment, and there will not be the usual large family get-togethers. Nonetheless, there will still be some rearrangement because some of these small businesses will come together to work to be more efficient. The strength of emotional bonds will also determine the interaction between these subsidiaries in the future. * Unlike the previous structure of the large family where there was no exit clause, Srinath's family business will have one for the shareholders. The company will also take advantage of the newfound freedom from the bureaucracy of unanimous decisions, to take risks and opportunities to grow. * In Srinath's family enterprise now, G4 members are only allowed to pass the shares to the linear descendants. Spouses, sons-in-law, and other members cannot enter the family business. This doesn't necessarily guarantee any birthright for the G5; some G4 members have donated all their shares to charity. The G5 is guaranteed to get no more than a decent standard of living and good education. * When it comes to lineage, no differentiation is made between sons and daughters, it is simply a factor of competence. TVS has a balance between business and compassion, rather than overly tilting in any direction. * Unfortunately, the larger family has never compiled books, photographs, or formally tried to document the family history; this has been a huge disappointment. However, Srinath's uncles tell him not to worry about the past, but to focus on what he can now do in the future. * The logistics business was a brainchild of Srinath's cousin, Danesh, and started 10 years ago. The business supplies anything anywhere and unlike FedEx, they can design something and assemble it at the destination. The Rajam family only is entitled to the IPO; they are buying out the shareholding of everyone else. * One of the most important things to imbibe is to be fair and just, whether at work or in personal relationships. It goes a long way to make people trust you and builds the energy of people around you. * From Srinath to his children: Firstly, be fair and just, be a good person. Secondly, you must add value to the community; do not chase wealth, chase the creation of jobs. Be a positive person always. Episode Timeline: * [00:50] Meet today's guest, Srinath Rajam. * [02:33] What led to this amicable speciation agreement? * [05:54] What are the main pillars that have made up the conglomerate over the last 100 years? * [08:02] About the two-wheeler operation. * [13:50] How have you decided where and how to draw the lines in separating this conglomerate? * [16:42] What are the requirements for family members to join the business? * [19:56] Are there comparisons between the success or failure of G4 and that of G5? * [21:30] Where did the inspiration for this approach towards onboarding come from? * [23:30] What formal family governance structures do you have in place? * [26:32] What method hasn't worked well in keeping the family together? * [34:00] How big was the wider family assembly? * [37:50] After the split up, will you carry on the current family structures to your Family Enterprise? * [40:38] How do succession and shareholding occur in your new family enterprise? * [42:40] How do you view lineage in terms of sons and daughters? * [45:51] After the separation, how does the thread of family history and storytelling continue? * [49:22] Discussing the family logistics business. * [54:40] From Srinath to his children. For more episodes go to BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter (https://www.businessoffamily.net/newsletter) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Srinath Rajam. multi-generational wealth, family office, dynasty, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, Srinath Rajam is a Director at TVS & Sons, Chairman at Kwik Patch, and one of the four sons of the high profile TVS group of companies. The TVS Group is a long-standing family business, running for over 110 years, which has interests in everything from auto components through to finance. Now after over a century in business, the TVS group has decided to amicably separate. Srinath talks about this historical event and how by keeping it amicable, it sets the stage for the next phase of growth.

Standout Quotes:

  • "The process of how you manage a company is not taught anywhere; the process for how you manage people is not taught anywhere so these are things you need to learn by watching" - [Srinath]
  • "Unless all of us are good human beings, we cannot work in a group" - [Srinath]
  • "If the family is not in one piece... the businesses are going to fall apart" - [Srinath]
  • "I don't worry about control, I worry about what's best for the business" - [Srinath]

Key Takeaways:

  • Srinath is a 4th generation member of the TVS and Sons Family. He talks about a historic date when the family will finally be breaking up the company and separating after 111 years. Unlike many families which split with resentment and animosity, this breakup is rather amicable which sets the stage for growth in the next phase.
  • The seeds for the separation started in 1974, although from the onset, at a point when the Founder of the company had his influence waning as a patriarch, there was already a lot of mistrust. It was in 1974 that it became clear that there was no future for the company to continue as one large family which is now manifesting.
  • Over the 48 years since the first conversation was had about splitting up, the company has lost opportunities to advance in IT, however, they were able to structure the core competence of the existing companies.
  • The first phase was in 1927 when the company became the dealer for GM in South India. The next phase was automotive component manufacturing which continues to be the most profitable aspect of the business. The third phase is a two-wheeler operation, which is the largest and most valuable company. Most recently, the supply chain has also been racked up, which is the TVS Supply Chain.
  • About the two-wheeler operation: in 1972, as a young teenager, Srinath had discovered what looked like an electric bicycle which his grand-uncle was creating as a cheap way for people to move around. The engineers had said it would not be possible, but he invested energy, time, and money in it based on his conviction. By 1978, he passed on 10 days before the company was opened. The group was also into all sorts of automotive industries.
  • The strategy for the separation was that whoever is managing will continue to look after business till the separation, then the valuation was done in 2014, and the difference would be settled in cash. The Indian legal system encourages families to have such a business understanding, which was not initially accepted by all 64 shareholders but with persuasion, they agreed to implement it. The company also has very strict requirements regarding competence and experience to join in the business such that family members are not guaranteed an automatic seat.
  • Some of these requirements for joining the family business include Graduation from an Ivy League school, a minimum of 3 years of work experience outside the family business with no help getting the job. These and more only qualify members to apply, after which a competency board will assign a mentor who looks after the possible future leaders, and then they can grow from there. These new family members entering into the business start with a small responsibility like one of the smaller subsidiaries and are mandated to only report to a professional, not their parents.
  • Based on these requirements, most family members are only qualified to apply by their early 30s, which is beneficial for the company because emotional maturity is also critical.
  • Although G4 wasn't particularly groomed for management, they intend to identify those things they lacked and make them available for G5. Since the process of managing companies or people is not taught anywhere, G5 has to be properly introduced by participating as observers in top review meetings. Most of the methods and practices being implemented to groom G5 are ideas from John Ward.
  • Even though many families apply all sorts of family governance structures, not many are successful, meaning those structures do not guarantee anything. The question is "How do you make this work?". The first requirement is trust; without trust, none of these things can work. Next is transparency, and the third is to be Just and Fair. People working together must be good people who like being around each other. Additionally, fairness, compassion, and carrying people along, have been more efficient than any of these structures.
  • To address the issue of power grabbing in the 60s, a change in the business system was made such that no decision can be made without the unanimous consent of the members present. It protected the person managing the subsidiary such that they could not be fired easily but the bureaucracy at the same time restricted opportunities for risk and growth. Hence the success of the group depended on the competence and ambition of the people running each company. However, while the trust was lost and growth was delayed, the companies held on better to funds for reinvestment which promoted overall growth. This however created problems and resentment from the shareholders.
  • When John Ward came along, he increased the dividends to the non-working shareholders from 10 to 25%. Dividend taxes were also removed from the income. His approach was to make the family happy knowing that most of their problems could be addressed with cash. Some of the dividends were also used to take care of the educational needs of non-working shareholders.
  • The family has about 80 shareholders, and after the break-up, things will fragment, and there will not be the usual large family get-togethers. Nonetheless, there will still be some rearrangement because some of these small businesses will come together to work to be more efficient. The strength of emotional bonds will also determine the interaction between these subsidiaries in the future.
  • Unlike the previous structure of the large family where there was no exit clause, Srinath's family business will have one for the shareholders. The company will also take advantage of the newfound freedom from the bureaucracy of unanimous decisions, to take risks and opportunities to grow.
  • In Srinath's family enterprise now, G4 members are only allowed to pass the shares to the linear descendants. Spouses, sons-in-law, and other members cannot enter the family business. This doesn't necessarily guarantee any birthright for the G5; some G4 members have donated all their shares to charity. The G5 is guaranteed to get no more than a decent standard of living and good education.
  • When it comes to lineage, no differentiation is made between sons and daughters, it is simply a factor of competence. TVS has a balance between business and compassion, rather than overly tilting in any direction.
  • Unfortunately, the larger family has never compiled books, photographs, or formally tried to document the family history; this has been a huge disappointment. However, Srinath's uncles tell him not to worry about the past, but to focus on what he can now do in the future.
  • The logistics business was a brainchild of Srinath's cousin, Danesh, and started 10 years ago. The business supplies anything anywhere and unlike FedEx, they can design something and assemble it at the destination. The Rajam family only is entitled to the IPO; they are buying out the shareholding of everyone else.
  • One of the most important things to imbibe is to be fair and just, whether at work or in personal relationships. It goes a long way to make people trust you and builds the energy of people around you.
  • From Srinath to his children: Firstly, be fair and just, be a good person. Secondly, you must add value to the community; do not chase wealth, chase the creation of jobs. Be a positive person always.

Episode Timeline:

  • [00:50] Meet today's guest, Srinath Rajam.
  • [02:33] What led to this amicable speciation agreement?
  • [05:54] What are the main pillars that have made up the conglomerate over the last 100 years?
  • [08:02] About the two-wheeler operation.
  • [13:50] How have you decided where and how to draw the lines in separating this conglomerate?
  • [16:42] What are the requirements for family members to join the business?
  • [19:56] Are there comparisons between the success or failure of G4 and that of G5?
  • [21:30] Where did the inspiration for this approach towards onboarding come from?
  • [23:30] What formal family governance structures do you have in place?
  • [26:32] What method hasn't worked well in keeping the family together?
  • [34:00] How big was the wider family assembly?
  • [37:50] After the split up, will you carry on the current family structures to your Family Enterprise?
  • [40:38] How do succession and shareholding occur in your new family enterprise?
  • [42:40] How do you view lineage in terms of sons and daughters?
  • [45:51] After the separation, how does the thread of family history and storytelling continue?
  • [49:22] Discussing the family logistics business.
  • [54:40] From Srinath to his children.

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Srinath Rajam.

Sponsored By:

Links:

  • kwikpatch.com | India — Srinath Rajam is the Chairman and CEO of Kwik Patch (a JV with MYERS Industries, USA) and Director in TVS Mobility .
]]> Srinath Rajam is a Director at TVS & Sons, Chairman at Kwik Patch, and one of the four sons of the high profile TVS group of companies. The TVS Group is a long-standing family business, running for over 110 years, which has interests in everything from auto components through to finance. Now after over a century in business, the TVS group has decided to amicably separate. Srinath talks about this historical event and how by keeping it amicable, it sets the stage for the next phase of growth.

Standout Quotes:

  • "The process of how you manage a company is not taught anywhere; the process for how you manage people is not taught anywhere so these are things you need to learn by watching" - [Srinath]
  • "Unless all of us are good human beings, we cannot work in a group" - [Srinath]
  • "If the family is not in one piece... the businesses are going to fall apart" - [Srinath]
  • "I don't worry about control, I worry about what's best for the business" - [Srinath]

Key Takeaways:

  • Srinath is a 4th generation member of the TVS and Sons Family. He talks about a historic date when the family will finally be breaking up the company and separating after 111 years. Unlike many families which split with resentment and animosity, this breakup is rather amicable which sets the stage for growth in the next phase.
  • The seeds for the separation started in 1974, although from the onset, at a point when the Founder of the company had his influence waning as a patriarch, there was already a lot of mistrust. It was in 1974 that it became clear that there was no future for the company to continue as one large family which is now manifesting.
  • Over the 48 years since the first conversation was had about splitting up, the company has lost opportunities to advance in IT, however, they were able to structure the core competence of the existing companies.
  • The first phase was in 1927 when the company became the dealer for GM in South India. The next phase was automotive component manufacturing which continues to be the most profitable aspect of the business. The third phase is a two-wheeler operation, which is the largest and most valuable company. Most recently, the supply chain has also been racked up, which is the TVS Supply Chain.
  • About the two-wheeler operation: in 1972, as a young teenager, Srinath had discovered what looked like an electric bicycle which his grand-uncle was creating as a cheap way for people to move around. The engineers had said it would not be possible, but he invested energy, time, and money in it based on his conviction. By 1978, he passed on 10 days before the company was opened. The group was also into all sorts of automotive industries.
  • The strategy for the separation was that whoever is managing will continue to look after business till the separation, then the valuation was done in 2014, and the difference would be settled in cash. The Indian legal system encourages families to have such a business understanding, which was not initially accepted by all 64 shareholders but with persuasion, they agreed to implement it. The company also has very strict requirements regarding competence and experience to join in the business such that family members are not guaranteed an automatic seat.
  • Some of these requirements for joining the family business include Graduation from an Ivy League school, a minimum of 3 years of work experience outside the family business with no help getting the job. These and more only qualify members to apply, after which a competency board will assign a mentor who looks after the possible future leaders, and then they can grow from there. These new family members entering into the business start with a small responsibility like one of the smaller subsidiaries and are mandated to only report to a professional, not their parents.
  • Based on these requirements, most family members are only qualified to apply by their early 30s, which is beneficial for the company because emotional maturity is also critical.
  • Although G4 wasn't particularly groomed for management, they intend to identify those things they lacked and make them available for G5. Since the process of managing companies or people is not taught anywhere, G5 has to be properly introduced by participating as observers in top review meetings. Most of the methods and practices being implemented to groom G5 are ideas from John Ward.
  • Even though many families apply all sorts of family governance structures, not many are successful, meaning those structures do not guarantee anything. The question is "How do you make this work?". The first requirement is trust; without trust, none of these things can work. Next is transparency, and the third is to be Just and Fair. People working together must be good people who like being around each other. Additionally, fairness, compassion, and carrying people along, have been more efficient than any of these structures.
  • To address the issue of power grabbing in the 60s, a change in the business system was made such that no decision can be made without the unanimous consent of the members present. It protected the person managing the subsidiary such that they could not be fired easily but the bureaucracy at the same time restricted opportunities for risk and growth. Hence the success of the group depended on the competence and ambition of the people running each company. However, while the trust was lost and growth was delayed, the companies held on better to funds for reinvestment which promoted overall growth. This however created problems and resentment from the shareholders.
  • When John Ward came along, he increased the dividends to the non-working shareholders from 10 to 25%. Dividend taxes were also removed from the income. His approach was to make the family happy knowing that most of their problems could be addressed with cash. Some of the dividends were also used to take care of the educational needs of non-working shareholders.
  • The family has about 80 shareholders, and after the break-up, things will fragment, and there will not be the usual large family get-togethers. Nonetheless, there will still be some rearrangement because some of these small businesses will come together to work to be more efficient. The strength of emotional bonds will also determine the interaction between these subsidiaries in the future.
  • Unlike the previous structure of the large family where there was no exit clause, Srinath's family business will have one for the shareholders. The company will also take advantage of the newfound freedom from the bureaucracy of unanimous decisions, to take risks and opportunities to grow.
  • In Srinath's family enterprise now, G4 members are only allowed to pass the shares to the linear descendants. Spouses, sons-in-law, and other members cannot enter the family business. This doesn't necessarily guarantee any birthright for the G5; some G4 members have donated all their shares to charity. The G5 is guaranteed to get no more than a decent standard of living and good education.
  • When it comes to lineage, no differentiation is made between sons and daughters, it is simply a factor of competence. TVS has a balance between business and compassion, rather than overly tilting in any direction.
  • Unfortunately, the larger family has never compiled books, photographs, or formally tried to document the family history; this has been a huge disappointment. However, Srinath's uncles tell him not to worry about the past, but to focus on what he can now do in the future.
  • The logistics business was a brainchild of Srinath's cousin, Danesh, and started 10 years ago. The business supplies anything anywhere and unlike FedEx, they can design something and assemble it at the destination. The Rajam family only is entitled to the IPO; they are buying out the shareholding of everyone else.
  • One of the most important things to imbibe is to be fair and just, whether at work or in personal relationships. It goes a long way to make people trust you and builds the energy of people around you.
  • From Srinath to his children: Firstly, be fair and just, be a good person. Secondly, you must add value to the community; do not chase wealth, chase the creation of jobs. Be a positive person always.

Episode Timeline:

  • [00:50] Meet today's guest, Srinath Rajam.
  • [02:33] What led to this amicable speciation agreement?
  • [05:54] What are the main pillars that have made up the conglomerate over the last 100 years?
  • [08:02] About the two-wheeler operation.
  • [13:50] How have you decided where and how to draw the lines in separating this conglomerate?
  • [16:42] What are the requirements for family members to join the business?
  • [19:56] Are there comparisons between the success or failure of G4 and that of G5?
  • [21:30] Where did the inspiration for this approach towards onboarding come from?
  • [23:30] What formal family governance structures do you have in place?
  • [26:32] What method hasn't worked well in keeping the family together?
  • [34:00] How big was the wider family assembly?
  • [37:50] After the split up, will you carry on the current family structures to your Family Enterprise?
  • [40:38] How do succession and shareholding occur in your new family enterprise?
  • [42:40] How do you view lineage in terms of sons and daughters?
  • [45:51] After the separation, how does the thread of family history and storytelling continue?
  • [49:22] Discussing the family logistics business.
  • [54:40] From Srinath to his children.

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Srinath Rajam.

Sponsored By:

Links:

  • kwikpatch.com | India — Srinath Rajam is the Chairman and CEO of Kwik Patch (a JV with MYERS Industries, USA) and Director in TVS Mobility .
]]> Dave Specht - Preserving Families and Perpetuating Businesses http://www.businessoffamily.net/dave-specht a59b4116-1d94-4404-8da6-13a9105d2a05 Sun, 14 Nov 2021 17:15:00 +1000 Mike Boyd full 2 Mike Boyd Dave Specht currently serve as the Director of the Global Family Business Institute at The Drucker School of Management. He is an ambassador for the family-owned business and write, deliver keynote speeches and develop programs on topics related to family business. He is the author of, "The Family Business Whisperer" and have a consulting firm called, "Advising Generations." 54:15 no Dave Specht (https://www.linkedin.com/in/dave-specht-a881147/) is the Director of the Global Family Business Institute at The Drucker School of Management (https://www.cgu.edu/news/2021/05/drucker-school-global-family-business-institutes-new-director-aims-to-preserve-families-and-perpetuate-businesses/). Dave is the author of, "The Family Business Whisperer (https://www.amazon.com/Family-Business-Whisperer-David-Specht/dp/0996597921)." Prior to joining the Drucker School Dave helped lead a Family Dynamics team at one of the largest Private Banks in the United States where he trained over 2,500 advisors. Dave is married and he and his wife have 6 children. His personal mission is to, "Preserve Families and Perpetuate Businesses." Standout Quotes: * "The path to helping families is not in having the right answers for them, but it's about having the right questions for them" - [Dave] * "Clients know if you're genuinely curious about their lives, or you're genuinely trying to get into a transaction with them" - [Dave] * "What is your ambitious pursuit, what is it that wakes you up in the morning that you want to chase?" - [Dave] * "Ultimately if we can stay grateful, entitlement can't sneak in… gratitude and entitlements are incompatible roommates" - [Dave] * "One of the bigger challenges that families of wealth have is creating a rising generation with ownership mentality" - [Dave] * "Most of the family wealth that we see lost is due to breakdown in relationships, not poor investment planning" - [Mike] * "Fair does not mean equal" - [Mike] * "You either define what it means to be wealthy or you will be defined by your wealth by others" - [Dave] * "One of the biggest mistakes advisors make is discounting the spouse or not involving the spouse early; they're the ones that are going to nudge the process forward" - [Dave] * "Your worth is not measured in dollars and cents" - [Dave] Key Takeaways: * Dave is the Director of the Global Family Business Institute at the Drucker School of Management. He is the author of "The Family Business Whisperer". His personal mission is to preserve families and perpetuate businesses. * After selecting Family Business Management as an elective to finish his Masters, Dave realized that several nonfinancial issues were keeping families from making good decisions and this piqued his interest. * Dave worked for a few years with a broker/dealer till he decided to focus more on working with the families directly. He later worked on his own in Family business consulting while creating a Family Business Program at the University of Nebraska. * Asking Inspired Questions: What question are we going to ask that will get the person storytelling so we can learn what they care about? This idea was inspired by the effort he had put into the questions he asked his kids to understand them better. Dave describes the framework for Inspired Questions: Avoid yes/no questions; ask open-ended questions that lead people to tell a story. Secondly, don't ask questions you know the answer to. Lastly, ask questions that don't have a right or wrong answer. Having genuine curiosity is much more important than just seeing the interaction as a transaction. * Although not from a wealthy family, Dave had learned some dynamics of wealth from his family, watching and understanding their actions in regards to finances. * Dave encourages his kids to have an ownership mindset and not limit themselves, even while keeping the values of a good honest job. What is your ambitious pursuit? If we focus too much on giving the best to our children, we may only pass on valuables rather than values. * Raising children amid wealth (The 3Gs): Gratitude, Goals, and Grit are tools Dave recommends. Gratitude prevents a sense of entitlement. Having goals helps kids translate lessons learned as they grow while having a worthy pursuit more valuable than money. Grit involves knowing how to say No to your kids, when yes is always an option. How do you bail your kids out when they have trouble? * Driven by his motivation to have as large an impact as possible in the world, Dave wrote his book titled "The Family Business Whisperer", targeted at both families and their advisers. * Families often don't train the next generation to become owners because we don't want them to fail while we're watching. However, part of this training can be done by co-investing with kids to meet some of their smaller needs. Additionally, building a working shared ownership mentality among kids can be difficult but is necessary, so it helps to start with small shared decisions. * It is important to start to see wealth in the different forms it takes, from money to values and now, wellbeing. Parents need to define what it means to be wealthy, particularly understanding the different dimensions there are to wealth as it would be a mistake to simply focus on financial wealth. If we can get people to budget time and resources to develop other forms of capital in the family, it would improve the relationship with financial wealth. Half the battle is just showing up, making out the time to focus on the family, even though it is usually messy in the beginning. * Mothers of Influence: Often a patriarch is spearheading the family business, however, it is necessary to recognize those who played a support role. These groups of people are often the story keepers of the family business, and ultimately their perspective of the business determines the kind of story passed on to the kids, which affects the mindset of the kids towards the business. Advisors often make the mistake to discount the spouse; no better person is as motivated in pushing the process than the mothers that are fully invested in their kids. * Determining the role of spouses in inheriting a family business can be very tricky, however, it helps to put in perspective what the goal is, regarding the spouses. * Families should first identify their hopes and goals concerning the family assets, after which the technical expertise can be invited to achieve those goals. Unfortunately, most families always start by inviting technical expertise to manage the asset before realizing the goals of the family members vary significantly. * The first step to successfully managing multigenerational wealth is to find someone that will ask the tough questions to identify the hopes and fears of family members. * Dave's goal at the Drucker school is also to have a global impact, using principles attached to management that align with the methods already employed by the school. It also provides a noncommercial environment to bring families together to be vulnerable and learn together; particularly the rising generation of family business leaders. * From Dave to his kids: Your worth is not measured in dollars and cents. Happiness is found in ambitiously pursuing worthwhile goals, and that has nothing to do with money either. Episode Timeline: * [00:50] About today's guest, Dave Specht. * [01:40] Dave shares his backstory. * [08:15] Asking Inspired Questions. * [15:13] How has your understanding of family dynamics played out in your family? * [18:21] How to appropriately raise children amidst wealth. * [22:42] The inspiration for Dave's book, 'The Family Business Whisperer'. * [24:55] Ownership vs Stewardship * [34:42] Did you introduce this idea of passing down different forms of wealth asides from money? * [39:18] Mothers of Influence. * [43:10] Discussing identity as it relates to multigenerational family business and wealth. * [48:00] How can a family new to substantial wealth start working towards multigenerational success? * [50:00] What do you hope to achieve at the Drucker School? * [52:00] Dave's message to his kids. For more episodes go to BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter (https://www.businessoffamily.net/newsletter) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Dave Specht. multi-generational wealth, family office, dynasty, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, Dave Specht is the Director of the Global Family Business Institute at The Drucker School of Management. Dave is the author of, "The Family Business Whisperer." Prior to joining the Drucker School Dave helped lead a Family Dynamics team at one of the largest Private Banks in the United States where he trained over 2,500 advisors. Dave is married and he and his wife have 6 children. His personal mission is to, "Preserve Families and Perpetuate Businesses."

Standout Quotes:

  • "The path to helping families is not in having the right answers for them, but it's about having the right questions for them" - [Dave]
  • "Clients know if you're genuinely curious about their lives, or you're genuinely trying to get into a transaction with them" - [Dave]
  • "What is your ambitious pursuit, what is it that wakes you up in the morning that you want to chase?" - [Dave]
  • "Ultimately if we can stay grateful, entitlement can't sneak in… gratitude and entitlements are incompatible roommates" - [Dave]
  • "One of the bigger challenges that families of wealth have is creating a rising generation with ownership mentality" - [Dave]
  • "Most of the family wealth that we see lost is due to breakdown in relationships, not poor investment planning" - [Mike]
  • "Fair does not mean equal" - [Mike]
  • "You either define what it means to be wealthy or you will be defined by your wealth by others" - [Dave]
  • "One of the biggest mistakes advisors make is discounting the spouse or not involving the spouse early; they're the ones that are going to nudge the process forward" - [Dave]
  • "Your worth is not measured in dollars and cents" - [Dave]

Key Takeaways:

  • Dave is the Director of the Global Family Business Institute at the Drucker School of Management. He is the author of "The Family Business Whisperer". His personal mission is to preserve families and perpetuate businesses.
  • After selecting Family Business Management as an elective to finish his Masters, Dave realized that several nonfinancial issues were keeping families from making good decisions and this piqued his interest.
  • Dave worked for a few years with a broker/dealer till he decided to focus more on working with the families directly. He later worked on his own in Family business consulting while creating a Family Business Program at the University of Nebraska.
  • Asking Inspired Questions: What question are we going to ask that will get the person storytelling so we can learn what they care about? This idea was inspired by the effort he had put into the questions he asked his kids to understand them better. Dave describes the framework for Inspired Questions: Avoid yes/no questions; ask open-ended questions that lead people to tell a story. Secondly, don't ask questions you know the answer to. Lastly, ask questions that don't have a right or wrong answer. Having genuine curiosity is much more important than just seeing the interaction as a transaction.
  • Although not from a wealthy family, Dave had learned some dynamics of wealth from his family, watching and understanding their actions in regards to finances.
  • Dave encourages his kids to have an ownership mindset and not limit themselves, even while keeping the values of a good honest job. What is your ambitious pursuit? If we focus too much on giving the best to our children, we may only pass on valuables rather than values.
  • Raising children amid wealth (The 3Gs): Gratitude, Goals, and Grit are tools Dave recommends. Gratitude prevents a sense of entitlement. Having goals helps kids translate lessons learned as they grow while having a worthy pursuit more valuable than money. Grit involves knowing how to say No to your kids, when yes is always an option. How do you bail your kids out when they have trouble?
  • Driven by his motivation to have as large an impact as possible in the world, Dave wrote his book titled "The Family Business Whisperer", targeted at both families and their advisers.
  • Families often don't train the next generation to become owners because we don't want them to fail while we're watching. However, part of this training can be done by co-investing with kids to meet some of their smaller needs. Additionally, building a working shared ownership mentality among kids can be difficult but is necessary, so it helps to start with small shared decisions.
  • It is important to start to see wealth in the different forms it takes, from money to values and now, wellbeing. Parents need to define what it means to be wealthy, particularly understanding the different dimensions there are to wealth as it would be a mistake to simply focus on financial wealth. If we can get people to budget time and resources to develop other forms of capital in the family, it would improve the relationship with financial wealth. Half the battle is just showing up, making out the time to focus on the family, even though it is usually messy in the beginning.
  • Mothers of Influence: Often a patriarch is spearheading the family business, however, it is necessary to recognize those who played a support role. These groups of people are often the story keepers of the family business, and ultimately their perspective of the business determines the kind of story passed on to the kids, which affects the mindset of the kids towards the business. Advisors often make the mistake to discount the spouse; no better person is as motivated in pushing the process than the mothers that are fully invested in their kids.
  • Determining the role of spouses in inheriting a family business can be very tricky, however, it helps to put in perspective what the goal is, regarding the spouses.
  • Families should first identify their hopes and goals concerning the family assets, after which the technical expertise can be invited to achieve those goals. Unfortunately, most families always start by inviting technical expertise to manage the asset before realizing the goals of the family members vary significantly.
  • The first step to successfully managing multigenerational wealth is to find someone that will ask the tough questions to identify the hopes and fears of family members.
  • Dave's goal at the Drucker school is also to have a global impact, using principles attached to management that align with the methods already employed by the school. It also provides a noncommercial environment to bring families together to be vulnerable and learn together; particularly the rising generation of family business leaders.
  • From Dave to his kids: Your worth is not measured in dollars and cents. Happiness is found in ambitiously pursuing worthwhile goals, and that has nothing to do with money either.

Episode Timeline:

  • [00:50] About today's guest, Dave Specht.
  • [01:40] Dave shares his backstory.
  • [08:15] Asking Inspired Questions.
  • [15:13] How has your understanding of family dynamics played out in your family?
  • [18:21] How to appropriately raise children amidst wealth.
  • [22:42] The inspiration for Dave's book, 'The Family Business Whisperer'.
  • [24:55] Ownership vs Stewardship
  • [34:42] Did you introduce this idea of passing down different forms of wealth asides from money?
  • [39:18] Mothers of Influence.
  • [43:10] Discussing identity as it relates to multigenerational family business and wealth.
  • [48:00] How can a family new to substantial wealth start working towards multigenerational success?
  • [50:00] What do you hope to achieve at the Drucker School?
  • [52:00] Dave's message to his kids.

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Dave Specht.

Sponsored By:

Links:

  • The Family Business Whisperer — Dave is the author of, "The Family Business Whisperer." Prior to joining the Drucker School Dave helped lead a Family Dynamics team at one of the largest Private Banks in the United States where he trained over 2,500 advisors.
  • Drucker School Global Family Business Institute — Dave Specht is the Director of the Global Family Business Institute at The Drucker School of Management.
  • Dave Specht — Dave Specht currently serve as the Director of the Global Family Business Institute at The Drucker School of Management. He is an ambassador for the family-owned business and write, deliver keynote speeches and develop programs on topics related to family business. He is the author of, "The Family Business Whisperer" and have a consulting firm called, "Advising Generations."
]]> Dave Specht is the Director of the Global Family Business Institute at The Drucker School of Management. Dave is the author of, "The Family Business Whisperer." Prior to joining the Drucker School Dave helped lead a Family Dynamics team at one of the largest Private Banks in the United States where he trained over 2,500 advisors. Dave is married and he and his wife have 6 children. His personal mission is to, "Preserve Families and Perpetuate Businesses."

Standout Quotes:

  • "The path to helping families is not in having the right answers for them, but it's about having the right questions for them" - [Dave]
  • "Clients know if you're genuinely curious about their lives, or you're genuinely trying to get into a transaction with them" - [Dave]
  • "What is your ambitious pursuit, what is it that wakes you up in the morning that you want to chase?" - [Dave]
  • "Ultimately if we can stay grateful, entitlement can't sneak in… gratitude and entitlements are incompatible roommates" - [Dave]
  • "One of the bigger challenges that families of wealth have is creating a rising generation with ownership mentality" - [Dave]
  • "Most of the family wealth that we see lost is due to breakdown in relationships, not poor investment planning" - [Mike]
  • "Fair does not mean equal" - [Mike]
  • "You either define what it means to be wealthy or you will be defined by your wealth by others" - [Dave]
  • "One of the biggest mistakes advisors make is discounting the spouse or not involving the spouse early; they're the ones that are going to nudge the process forward" - [Dave]
  • "Your worth is not measured in dollars and cents" - [Dave]

Key Takeaways:

  • Dave is the Director of the Global Family Business Institute at the Drucker School of Management. He is the author of "The Family Business Whisperer". His personal mission is to preserve families and perpetuate businesses.
  • After selecting Family Business Management as an elective to finish his Masters, Dave realized that several nonfinancial issues were keeping families from making good decisions and this piqued his interest.
  • Dave worked for a few years with a broker/dealer till he decided to focus more on working with the families directly. He later worked on his own in Family business consulting while creating a Family Business Program at the University of Nebraska.
  • Asking Inspired Questions: What question are we going to ask that will get the person storytelling so we can learn what they care about? This idea was inspired by the effort he had put into the questions he asked his kids to understand them better. Dave describes the framework for Inspired Questions: Avoid yes/no questions; ask open-ended questions that lead people to tell a story. Secondly, don't ask questions you know the answer to. Lastly, ask questions that don't have a right or wrong answer. Having genuine curiosity is much more important than just seeing the interaction as a transaction.
  • Although not from a wealthy family, Dave had learned some dynamics of wealth from his family, watching and understanding their actions in regards to finances.
  • Dave encourages his kids to have an ownership mindset and not limit themselves, even while keeping the values of a good honest job. What is your ambitious pursuit? If we focus too much on giving the best to our children, we may only pass on valuables rather than values.
  • Raising children amid wealth (The 3Gs): Gratitude, Goals, and Grit are tools Dave recommends. Gratitude prevents a sense of entitlement. Having goals helps kids translate lessons learned as they grow while having a worthy pursuit more valuable than money. Grit involves knowing how to say No to your kids, when yes is always an option. How do you bail your kids out when they have trouble?
  • Driven by his motivation to have as large an impact as possible in the world, Dave wrote his book titled "The Family Business Whisperer", targeted at both families and their advisers.
  • Families often don't train the next generation to become owners because we don't want them to fail while we're watching. However, part of this training can be done by co-investing with kids to meet some of their smaller needs. Additionally, building a working shared ownership mentality among kids can be difficult but is necessary, so it helps to start with small shared decisions.
  • It is important to start to see wealth in the different forms it takes, from money to values and now, wellbeing. Parents need to define what it means to be wealthy, particularly understanding the different dimensions there are to wealth as it would be a mistake to simply focus on financial wealth. If we can get people to budget time and resources to develop other forms of capital in the family, it would improve the relationship with financial wealth. Half the battle is just showing up, making out the time to focus on the family, even though it is usually messy in the beginning.
  • Mothers of Influence: Often a patriarch is spearheading the family business, however, it is necessary to recognize those who played a support role. These groups of people are often the story keepers of the family business, and ultimately their perspective of the business determines the kind of story passed on to the kids, which affects the mindset of the kids towards the business. Advisors often make the mistake to discount the spouse; no better person is as motivated in pushing the process than the mothers that are fully invested in their kids.
  • Determining the role of spouses in inheriting a family business can be very tricky, however, it helps to put in perspective what the goal is, regarding the spouses.
  • Families should first identify their hopes and goals concerning the family assets, after which the technical expertise can be invited to achieve those goals. Unfortunately, most families always start by inviting technical expertise to manage the asset before realizing the goals of the family members vary significantly.
  • The first step to successfully managing multigenerational wealth is to find someone that will ask the tough questions to identify the hopes and fears of family members.
  • Dave's goal at the Drucker school is also to have a global impact, using principles attached to management that align with the methods already employed by the school. It also provides a noncommercial environment to bring families together to be vulnerable and learn together; particularly the rising generation of family business leaders.
  • From Dave to his kids: Your worth is not measured in dollars and cents. Happiness is found in ambitiously pursuing worthwhile goals, and that has nothing to do with money either.

Episode Timeline:

  • [00:50] About today's guest, Dave Specht.
  • [01:40] Dave shares his backstory.
  • [08:15] Asking Inspired Questions.
  • [15:13] How has your understanding of family dynamics played out in your family?
  • [18:21] How to appropriately raise children amidst wealth.
  • [22:42] The inspiration for Dave's book, 'The Family Business Whisperer'.
  • [24:55] Ownership vs Stewardship
  • [34:42] Did you introduce this idea of passing down different forms of wealth asides from money?
  • [39:18] Mothers of Influence.
  • [43:10] Discussing identity as it relates to multigenerational family business and wealth.
  • [48:00] How can a family new to substantial wealth start working towards multigenerational success?
  • [50:00] What do you hope to achieve at the Drucker School?
  • [52:00] Dave's message to his kids.

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Dave Specht.

Sponsored By:

Links:

  • The Family Business Whisperer — Dave is the author of, "The Family Business Whisperer." Prior to joining the Drucker School Dave helped lead a Family Dynamics team at one of the largest Private Banks in the United States where he trained over 2,500 advisors.
  • Drucker School Global Family Business Institute — Dave Specht is the Director of the Global Family Business Institute at The Drucker School of Management.
  • Dave Specht — Dave Specht currently serve as the Director of the Global Family Business Institute at The Drucker School of Management. He is an ambassador for the family-owned business and write, deliver keynote speeches and develop programs on topics related to family business. He is the author of, "The Family Business Whisperer" and have a consulting firm called, "Advising Generations."
]]> Sean Lang & Jeff Watters - Appointing a Non-Family CEO & Selling a 5th Generation Business http://www.businessoffamily.net/lang-watters ae82db1f-604c-4078-abf2-a025dc4a284f Sun, 19 Sep 2021 15:00:00 +1000 Mike Boyd full 2 Mike Boyd The Lang family recruited Jeff Watters as the first outside CEO to lead Ainsworth Pet Nutrition in it's 5 generations. Sean Lang and Jeff Watters worked together, partnering with a private equity firm to scale the $100m per year business into a $2 billion dollar exit over the space of a decade. 1:09:15 no The Lang family recruited Jeff Watters as the first outside CEO to lead Ainsworth Pet Nutrition in it's 5 generations. Sean Lang and Jeff Watters worked together, partnering with a private equity firm to scale the $100m per year business into a $2 billion dollar exit over the space of a decade. This story covers not only leadership succession within a family business but also ownership succession and how the family have stayed together and united around a family office in the absence of an operating company. Standout Quotes: * "What's gotten us here, isn't going to necessarily get us there" - [Sean] * "As a family, we realized that we would have to make a pretty major change in the journey... And we made the choice to start that journey from family-owned and family-run, to family-owned and professionally-run" - [Sean] * "I think in any family business, there's a certain level of distraction or disruption that comes from the family, and if you can move that into the family council and outside of the board room, it seems to be better for everybody" - [Jeff] * "The family office is being driven by a stewardship theme; Leave it better than you found it" - [Sean] Key Takeaways: * Sean Lang and the Lang family represent a 5th generation business family who owned Ainsworth Pet Nutrition, while Jeff Watters is the first outside professional CEO recruited by the family to lead the business till it was finally sold. * The business started small, with deliveries made to "mom and pop" stores, expanded over the years, and all interested family members worked in the factory. After school, Sean started as a sales manager and worked his way up to be president. * The family realized that there was a need to make a major change to move with the competition and this would require great talent, moving from family-owned and family-run, to family-owned and professionally-run * Although Jeff was in a place where he wanted more in his life personally and professionally, his relationship with Sean was initially not a professional one. Following further interaction, Jeff realized the family was committed to the business, and they were authentic and intentional about their growth. * The average tenure of a Public Company CEO is about 4 years, and a Family Business CEO is about 6years, even if you think you're going to be there longer than that, you have to plan according to the statistics. * The introduction of professional leadership after 5 generations took some time, however, this had been tried previously and even though it failed, the family had started to get used to the idea. The goal had become to keep the family culture but adopt the benefit of big company thinking and growth capabilities. * The notion of an organic, natural but very transparent onboarding process is extremely helpful for professionals outside looking to join a family business. * Jeff also encourages professionals considering entry into a family business. You just have to bet on yourself to a certain extent. Once you're satisfied that the other party has high integrity and will deliver on their promises, have the conviction that you're going to deliver on yours, and if it doesn't work out, it doesn't work out. There will be other opportunities. * While Jeff's transition into the business had its hiccups, there was a lot of intentional effort from all sides to communicate effectively and create ways to tackle arising issues. This was made easier by the family culture of transitioning where the older generation completely let go of the business which allowed Sean to give Jeff the space needed. * Working with a Private Equity Company was pivotal in driving the rapid growth of the company moving from a 200 million-dollar company to a 2 billion-dollar company in 4 years. * Jeff describes that the main factor that drove growth while working with the PE Company, was a deep cultural alignment * Between the family and the company. It was all about a long strategic view of the business. * The family council was started by Sean's father, and one of the policies laid down was that incoming family members needed to work somewhere else for 2 years or until their first promotion whichever came later, before joining the business. * In the absence of an operating company, Jeff wanted to still have a family enterprise that could act as glue for the family, and help be a driver for education for the rising generation. This would also foster the creation of mechanisms to share the family history and culture with coming generations. * It's not always easy to leave it better than you found it, given the mathematical fact that families almost grow faster than businesses and assets, that means each family member needs to be self-sustaining and look at any help from the family later in life as icing on the cake, not the cake itself. * Sean shares he now has more time for family and personal relaxation, while also finding businesses to invest in. Jeff also tries to have fun, works with his wife on philanthropic projects, and serves on a number of boards. * Jeff's letter to his kids: Jeff tells them to be bold in the pursuit of what they love, hopefully, it will be something that allows them to leave this place a better place. He encourages them to take a leap of faith, the financial fortune is an opportunity for them to invest in their future in a way that can be fulfilling for them and differentiating for their community. * Sean's letter to his kids: The family business cocktail of money, love, and power is trouble. It can rip families apart easily and needs to be proactively managed within the family with the help of professionals. Episode Timeline: * [00:52] Introducing today's guests, Sean Lang and Jeff Watters. * [02:30] Sean shares the history of the family business. * [08:00] What was the reason for bringing in outside leadership? * [10:00] How Jeff got involved with the business. * [15:18] Were there any surprises while bringing in the idea of getting professional leadership after 5 generations? * [20:21] Jeff describes his transition into the role of CEO. * [29:30] Discussing the growth of the business, involvement of a Private Equity, and the decision to exit rather than transition to a 6th generation. * [42:02] When did the Family Council begin? * [52:25] What was the transition like after the final decision to sell the company? * [01:00:22] Before the company was sold, there were plans to continue the Family Council? * [01:03:51] What Next? * [01:06:00] In a letter to your children, what is one lesson or idea you don't think many parents would mention but you consider important to understand? For more episodes go to BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter (https://www.businessoffamily.net/newsletter) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guests: Jeff Watters and Sean Lang. multi-generational wealth, family office, private equity, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, sale The Lang family recruited Jeff Watters as the first outside CEO to lead Ainsworth Pet Nutrition in it's 5 generations. Sean Lang and Jeff Watters worked together, partnering with a private equity firm to scale the $100m per year business into a $2 billion dollar exit over the space of a decade.

This story covers not only leadership succession within a family business but also ownership succession and how the family have stayed together and united around a family office in the absence of an operating company.

Standout Quotes:

  • "What's gotten us here, isn't going to necessarily get us there" - [Sean]
  • "As a family, we realized that we would have to make a pretty major change in the journey... And we made the choice to start that journey from family-owned and family-run, to family-owned and professionally-run" - [Sean]
  • "I think in any family business, there's a certain level of distraction or disruption that comes from the family, and if you can move that into the family council and outside of the board room, it seems to be better for everybody" - [Jeff]
  • "The family office is being driven by a stewardship theme; Leave it better than you found it" - [Sean]

Key Takeaways:

  • Sean Lang and the Lang family represent a 5th generation business family who owned Ainsworth Pet Nutrition, while Jeff Watters is the first outside professional CEO recruited by the family to lead the business till it was finally sold.
  • The business started small, with deliveries made to "mom and pop" stores, expanded over the years, and all interested family members worked in the factory. After school, Sean started as a sales manager and worked his way up to be president.
  • The family realized that there was a need to make a major change to move with the competition and this would require great talent, moving from family-owned and family-run, to family-owned and professionally-run
  • Although Jeff was in a place where he wanted more in his life personally and professionally, his relationship with Sean was initially not a professional one. Following further interaction, Jeff realized the family was committed to the business, and they were authentic and intentional about their growth.
  • The average tenure of a Public Company CEO is about 4 years, and a Family Business CEO is about 6years, even if you think you're going to be there longer than that, you have to plan according to the statistics.
  • The introduction of professional leadership after 5 generations took some time, however, this had been tried previously and even though it failed, the family had started to get used to the idea. The goal had become to keep the family culture but adopt the benefit of big company thinking and growth capabilities.
  • The notion of an organic, natural but very transparent onboarding process is extremely helpful for professionals outside looking to join a family business.
  • Jeff also encourages professionals considering entry into a family business. You just have to bet on yourself to a certain extent. Once you're satisfied that the other party has high integrity and will deliver on their promises, have the conviction that you're going to deliver on yours, and if it doesn't work out, it doesn't work out. There will be other opportunities.
  • While Jeff's transition into the business had its hiccups, there was a lot of intentional effort from all sides to communicate effectively and create ways to tackle arising issues. This was made easier by the family culture of transitioning where the older generation completely let go of the business which allowed Sean to give Jeff the space needed.
  • Working with a Private Equity Company was pivotal in driving the rapid growth of the company moving from a 200 million-dollar company to a 2 billion-dollar company in 4 years.
  • Jeff describes that the main factor that drove growth while working with the PE Company, was a deep cultural alignment
  • Between the family and the company. It was all about a long strategic view of the business.
  • The family council was started by Sean's father, and one of the policies laid down was that incoming family members needed to work somewhere else for 2 years or until their first promotion whichever came later, before joining the business.
  • In the absence of an operating company, Jeff wanted to still have a family enterprise that could act as glue for the family, and help be a driver for education for the rising generation. This would also foster the creation of mechanisms to share the family history and culture with coming generations.
  • It's not always easy to leave it better than you found it, given the mathematical fact that families almost grow faster than businesses and assets, that means each family member needs to be self-sustaining and look at any help from the family later in life as icing on the cake, not the cake itself.
  • Sean shares he now has more time for family and personal relaxation, while also finding businesses to invest in. Jeff also tries to have fun, works with his wife on philanthropic projects, and serves on a number of boards.
  • Jeff's letter to his kids: Jeff tells them to be bold in the pursuit of what they love, hopefully, it will be something that allows them to leave this place a better place. He encourages them to take a leap of faith, the financial fortune is an opportunity for them to invest in their future in a way that can be fulfilling for them and differentiating for their community.
  • Sean's letter to his kids: The family business cocktail of money, love, and power is trouble. It can rip families apart easily and needs to be proactively managed within the family with the help of professionals.

Episode Timeline:

  • [00:52] Introducing today's guests, Sean Lang and Jeff Watters.
  • [02:30] Sean shares the history of the family business.
  • [08:00] What was the reason for bringing in outside leadership?
  • [10:00] How Jeff got involved with the business.
  • [15:18] Were there any surprises while bringing in the idea of getting professional leadership after 5 generations?
  • [20:21] Jeff describes his transition into the role of CEO.
  • [29:30] Discussing the growth of the business, involvement of a Private Equity, and the decision to exit rather than transition to a 6th generation.
  • [42:02] When did the Family Council begin?
  • [52:25] What was the transition like after the final decision to sell the company?
  • [01:00:22] Before the company was sold, there were plans to continue the Family Council?
  • [01:03:51] What Next?
  • [01:06:00] In a letter to your children, what is one lesson or idea you don't think many parents would mention but you consider important to understand?

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guests: Jeff Watters and Sean Lang.

Sponsored By:

Links:

]]> The Lang family recruited Jeff Watters as the first outside CEO to lead Ainsworth Pet Nutrition in it's 5 generations. Sean Lang and Jeff Watters worked together, partnering with a private equity firm to scale the $100m per year business into a $2 billion dollar exit over the space of a decade.

This story covers not only leadership succession within a family business but also ownership succession and how the family have stayed together and united around a family office in the absence of an operating company.

Standout Quotes:

  • "What's gotten us here, isn't going to necessarily get us there" - [Sean]
  • "As a family, we realized that we would have to make a pretty major change in the journey... And we made the choice to start that journey from family-owned and family-run, to family-owned and professionally-run" - [Sean]
  • "I think in any family business, there's a certain level of distraction or disruption that comes from the family, and if you can move that into the family council and outside of the board room, it seems to be better for everybody" - [Jeff]
  • "The family office is being driven by a stewardship theme; Leave it better than you found it" - [Sean]

Key Takeaways:

  • Sean Lang and the Lang family represent a 5th generation business family who owned Ainsworth Pet Nutrition, while Jeff Watters is the first outside professional CEO recruited by the family to lead the business till it was finally sold.
  • The business started small, with deliveries made to "mom and pop" stores, expanded over the years, and all interested family members worked in the factory. After school, Sean started as a sales manager and worked his way up to be president.
  • The family realized that there was a need to make a major change to move with the competition and this would require great talent, moving from family-owned and family-run, to family-owned and professionally-run
  • Although Jeff was in a place where he wanted more in his life personally and professionally, his relationship with Sean was initially not a professional one. Following further interaction, Jeff realized the family was committed to the business, and they were authentic and intentional about their growth.
  • The average tenure of a Public Company CEO is about 4 years, and a Family Business CEO is about 6years, even if you think you're going to be there longer than that, you have to plan according to the statistics.
  • The introduction of professional leadership after 5 generations took some time, however, this had been tried previously and even though it failed, the family had started to get used to the idea. The goal had become to keep the family culture but adopt the benefit of big company thinking and growth capabilities.
  • The notion of an organic, natural but very transparent onboarding process is extremely helpful for professionals outside looking to join a family business.
  • Jeff also encourages professionals considering entry into a family business. You just have to bet on yourself to a certain extent. Once you're satisfied that the other party has high integrity and will deliver on their promises, have the conviction that you're going to deliver on yours, and if it doesn't work out, it doesn't work out. There will be other opportunities.
  • While Jeff's transition into the business had its hiccups, there was a lot of intentional effort from all sides to communicate effectively and create ways to tackle arising issues. This was made easier by the family culture of transitioning where the older generation completely let go of the business which allowed Sean to give Jeff the space needed.
  • Working with a Private Equity Company was pivotal in driving the rapid growth of the company moving from a 200 million-dollar company to a 2 billion-dollar company in 4 years.
  • Jeff describes that the main factor that drove growth while working with the PE Company, was a deep cultural alignment
  • Between the family and the company. It was all about a long strategic view of the business.
  • The family council was started by Sean's father, and one of the policies laid down was that incoming family members needed to work somewhere else for 2 years or until their first promotion whichever came later, before joining the business.
  • In the absence of an operating company, Jeff wanted to still have a family enterprise that could act as glue for the family, and help be a driver for education for the rising generation. This would also foster the creation of mechanisms to share the family history and culture with coming generations.
  • It's not always easy to leave it better than you found it, given the mathematical fact that families almost grow faster than businesses and assets, that means each family member needs to be self-sustaining and look at any help from the family later in life as icing on the cake, not the cake itself.
  • Sean shares he now has more time for family and personal relaxation, while also finding businesses to invest in. Jeff also tries to have fun, works with his wife on philanthropic projects, and serves on a number of boards.
  • Jeff's letter to his kids: Jeff tells them to be bold in the pursuit of what they love, hopefully, it will be something that allows them to leave this place a better place. He encourages them to take a leap of faith, the financial fortune is an opportunity for them to invest in their future in a way that can be fulfilling for them and differentiating for their community.
  • Sean's letter to his kids: The family business cocktail of money, love, and power is trouble. It can rip families apart easily and needs to be proactively managed within the family with the help of professionals.

Episode Timeline:

  • [00:52] Introducing today's guests, Sean Lang and Jeff Watters.
  • [02:30] Sean shares the history of the family business.
  • [08:00] What was the reason for bringing in outside leadership?
  • [10:00] How Jeff got involved with the business.
  • [15:18] Were there any surprises while bringing in the idea of getting professional leadership after 5 generations?
  • [20:21] Jeff describes his transition into the role of CEO.
  • [29:30] Discussing the growth of the business, involvement of a Private Equity, and the decision to exit rather than transition to a 6th generation.
  • [42:02] When did the Family Council begin?
  • [52:25] What was the transition like after the final decision to sell the company?
  • [01:00:22] Before the company was sold, there were plans to continue the Family Council?
  • [01:03:51] What Next?
  • [01:06:00] In a letter to your children, what is one lesson or idea you don't think many parents would mention but you consider important to understand?

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guests: Jeff Watters and Sean Lang.

Sponsored By:

Links:

]]> Ben Grossman - Co-President Siblings Stewarding a 111 Year Old Family Business http://www.businessoffamily.net/ben-grossman 8b2ebbb8-3f23-47a0-8a2e-1fab944f4bbd Mon, 12 Apr 2021 19:00:00 +1000 Mike Boyd full 1 Mike Boyd Ben Grossman is the co-leader of his family’s 4th-generation family business, Grossman Marketing Group, where he enjoys focusing on acquisitions and sustainability projects, among other things. 111 years since its founding, Ben Grossman, along with his brother, David, are the 4th generation of family leadership. Today, the company is a full-service resource helping clients with a broad range of traditional and digital marketing needs. 50:43 no Grossman Marketing Group (https://grossmanmarketing.com/) was founded as Massachusetts Envelope Company in 1910 by Maxwell Grossman (https://www.bengrossman.info/), whose lifelong dream was to own his own business. Now, 111 years since its founding, Ben Grossman, along with his brother, David, are the 4th generation of family leadership. Today, the company is a full-service resource helping clients with a broad range of traditional and digital marketing needs. Ben Grossman holds a BA from Princeton University and an MBA from Columbia Business School. Prior to Columbia, Ben worked as a strategy consultant to Fortune 500 clients, as well as started and sold a sportswear and marketing firm. Ben is also deeply involved in sustainability and how it relates to business, and writes and speaks frequently on the topic. Standout Quotes: * "Our prices make friends and our service keeps them" - [Ben] * "What he was really saying was that life is made up 3 things; Family, Career, and Community, and education has always been of critical importance to our family" - [Ben] * "Find a way to generate revenue as soon as possible because numbers speak for themselves and no one will ever question your existence at the organization if you generate sales and gross profit" - [Ben] * "Learn the business, understand exactly what's going on in the business, so when you speak up you know what you're talking about, and you're right!" - [Ben] * "What our grandfather and our father tried to impart in us is that although business is incredibly important, nothing in business is important enough to ever risk jeopardizing your family relationships" - [Ben] * "That sort of value of just 'try and treat people the way you'd want your family to be treated' has been passed down from generation to generation" - [Ben] * "Regardless of how successful you are, or your family's been over the years, you need to recognize that markets can change and you must always remain responsive to customers' needs" - [Ben] * "Ultimately, we have to be willing to evolve because if we don't evolve, we will get left behind" - [Ben] * "Always do right, this will gratify some people and astonish the rest" - [Ben] Key Takeaways: * The company has always had a service-driven culture and this has kept the business going for over 110 years. * Ben explains that the company had initially started as an envelope company and had also bought up different companies during its growth, with the investment in promotional products being the most notable that boosted growth. * Following his education, Ben had decided to step out and gain some experience although he was passionate about finally going back to join the family business. * Ben explains that based on lessons from his great grandfather, Life is made up of 3 things, Family, Career, and Community. Education has always been of critical importance to the family. * The "Start, Stop, Continue" Review Method: Ben had asked workers to review the company's methods to identify processes that needed to be implemented, stopped, or continued for better productivity. * Ben shares that following political engagements, his father moved on from the family business and is fully engaged in public service. He adds that working harmoniously with his brother is aided by the understanding that every win is for the company and not the individual, and also their roles tend to be complementary to each other. * Understanding that it was necessary to establish credibility by generating profits immediately after joining the family business, Ben reached out to some prospects and started to achieve his goal within a month. * One of the critical values imparted by their grandfather was the understanding that business should never jeopardize family relationships. * Another key value learned was the importance of treating colleagues the way family would be treated in a workplace. * You need to be willing to adapt to ever-changing business environments and conditions. Ben remembers how the family had always focused on the customer, and that what differentiated their company was the incredible customer service. * Highlighting the involvements of different family members in service to the community, Ben explains that service to the community is one of the values that have been passed down each generation beginning from the Founder. * Considering the future, the most meaningful investment made in recent times has been expanding into e-commerce. * Ben shares he would give his children the same advice he got from his grandparents regarding joining the business, and this is to do what their heart wants to do, follow their career path, and not be constrained to join the business based on the financial implications. * From Ben to his kids: Always do right, this will gratify some people and astonish the rest Episode Timeline: * [00:49] Introducing today's guest Ben Grossman, and Grossman Marketing Group, the Massachusetts envelope company. * [01:40] The history of the Grossman family business. * [07:05] Ben narrates how he and his brother joined the business. * [11:52] As brothers, how do you get along and what roles do you each play today in the business? * [21:54] A listening tour: Using the "Start, Stop, Continue" Review Method. * [25:36] Do you have any apparent failures that have set you up for later success? * [32:15] Ben describes the family history of service to the community. * [37:58] Has the family been intentional about documenting its history? * [39:30] How do you pivot and evolve a marketing group like yours into the 21st century and beyond? * [43:43] Are you nurturing your children to be the 5th generation of the business or leaving it to them to find their path? * [48:35] A letter to Ben's Kids. For more episodes go to BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter (https://www.businessoffamily.net/newsletter) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Ben Grossman. multi-generational wealth, family office, dynasty, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, Grossman Marketing Group was founded as Massachusetts Envelope Company in 1910 by Maxwell Grossman, whose lifelong dream was to own his own business.

Now, 111 years since its founding, Ben Grossman, along with his brother, David, are the 4th generation of family leadership. Today, the company is a full-service resource helping clients with a broad range of traditional and digital marketing needs.

Ben Grossman holds a BA from Princeton University and an MBA from Columbia Business School. Prior to Columbia, Ben worked as a strategy consultant to Fortune 500 clients, as well as started and sold a sportswear and marketing firm.

Ben is also deeply involved in sustainability and how it relates to business, and writes and speaks frequently on the topic.

Standout Quotes:

  • "Our prices make friends and our service keeps them" - [Ben]
  • "What he was really saying was that life is made up 3 things; Family, Career, and Community, and education has always been of critical importance to our family" - [Ben]
  • "Find a way to generate revenue as soon as possible because numbers speak for themselves and no one will ever question your existence at the organization if you generate sales and gross profit" - [Ben]
  • "Learn the business, understand exactly what's going on in the business, so when you speak up you know what you're talking about, and you're right!" - [Ben]
  • "What our grandfather and our father tried to impart in us is that although business is incredibly important, nothing in business is important enough to ever risk jeopardizing your family relationships" - [Ben]
  • "That sort of value of just 'try and treat people the way you'd want your family to be treated' has been passed down from generation to generation" - [Ben]
  • "Regardless of how successful you are, or your family's been over the years, you need to recognize that markets can change and you must always remain responsive to customers' needs" - [Ben]
  • "Ultimately, we have to be willing to evolve because if we don't evolve, we will get left behind" - [Ben]
  • "Always do right, this will gratify some people and astonish the rest" - [Ben]

Key Takeaways:

  • The company has always had a service-driven culture and this has kept the business going for over 110 years.
  • Ben explains that the company had initially started as an envelope company and had also bought up different companies during its growth, with the investment in promotional products being the most notable that boosted growth.
  • Following his education, Ben had decided to step out and gain some experience although he was passionate about finally going back to join the family business.
  • Ben explains that based on lessons from his great grandfather, Life is made up of 3 things, Family, Career, and Community. Education has always been of critical importance to the family.
  • The "Start, Stop, Continue" Review Method: Ben had asked workers to review the company's methods to identify processes that needed to be implemented, stopped, or continued for better productivity.
  • Ben shares that following political engagements, his father moved on from the family business and is fully engaged in public service. He adds that working harmoniously with his brother is aided by the understanding that every win is for the company and not the individual, and also their roles tend to be complementary to each other.
  • Understanding that it was necessary to establish credibility by generating profits immediately after joining the family business, Ben reached out to some prospects and started to achieve his goal within a month.
  • One of the critical values imparted by their grandfather was the understanding that business should never jeopardize family relationships.
  • Another key value learned was the importance of treating colleagues the way family would be treated in a workplace.
  • You need to be willing to adapt to ever-changing business environments and conditions. Ben remembers how the family had always focused on the customer, and that what differentiated their company was the incredible customer service.
  • Highlighting the involvements of different family members in service to the community, Ben explains that service to the community is one of the values that have been passed down each generation beginning from the Founder.
  • Considering the future, the most meaningful investment made in recent times has been expanding into e-commerce.
  • Ben shares he would give his children the same advice he got from his grandparents regarding joining the business, and this is to do what their heart wants to do, follow their career path, and not be constrained to join the business based on the financial implications.
  • From Ben to his kids: Always do right, this will gratify some people and astonish the rest

Episode Timeline:

  • [00:49] Introducing today's guest Ben Grossman, and Grossman Marketing Group, the Massachusetts envelope company.
  • [01:40] The history of the Grossman family business.
  • [07:05] Ben narrates how he and his brother joined the business.
  • [11:52] As brothers, how do you get along and what roles do you each play today in the business?
  • [21:54] A listening tour: Using the "Start, Stop, Continue" Review Method.
  • [25:36] Do you have any apparent failures that have set you up for later success?
  • [32:15] Ben describes the family history of service to the community.
  • [37:58] Has the family been intentional about documenting its history?
  • [39:30] How do you pivot and evolve a marketing group like yours into the 21st century and beyond?
  • [43:43] Are you nurturing your children to be the 5th generation of the business or leaving it to them to find their path?
  • [48:35] A letter to Ben's Kids.

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Ben Grossman.

Sponsored By:

Links:

]]> Grossman Marketing Group was founded as Massachusetts Envelope Company in 1910 by Maxwell Grossman, whose lifelong dream was to own his own business.

Now, 111 years since its founding, Ben Grossman, along with his brother, David, are the 4th generation of family leadership. Today, the company is a full-service resource helping clients with a broad range of traditional and digital marketing needs.

Ben Grossman holds a BA from Princeton University and an MBA from Columbia Business School. Prior to Columbia, Ben worked as a strategy consultant to Fortune 500 clients, as well as started and sold a sportswear and marketing firm.

Ben is also deeply involved in sustainability and how it relates to business, and writes and speaks frequently on the topic.

Standout Quotes:

  • "Our prices make friends and our service keeps them" - [Ben]
  • "What he was really saying was that life is made up 3 things; Family, Career, and Community, and education has always been of critical importance to our family" - [Ben]
  • "Find a way to generate revenue as soon as possible because numbers speak for themselves and no one will ever question your existence at the organization if you generate sales and gross profit" - [Ben]
  • "Learn the business, understand exactly what's going on in the business, so when you speak up you know what you're talking about, and you're right!" - [Ben]
  • "What our grandfather and our father tried to impart in us is that although business is incredibly important, nothing in business is important enough to ever risk jeopardizing your family relationships" - [Ben]
  • "That sort of value of just 'try and treat people the way you'd want your family to be treated' has been passed down from generation to generation" - [Ben]
  • "Regardless of how successful you are, or your family's been over the years, you need to recognize that markets can change and you must always remain responsive to customers' needs" - [Ben]
  • "Ultimately, we have to be willing to evolve because if we don't evolve, we will get left behind" - [Ben]
  • "Always do right, this will gratify some people and astonish the rest" - [Ben]

Key Takeaways:

  • The company has always had a service-driven culture and this has kept the business going for over 110 years.
  • Ben explains that the company had initially started as an envelope company and had also bought up different companies during its growth, with the investment in promotional products being the most notable that boosted growth.
  • Following his education, Ben had decided to step out and gain some experience although he was passionate about finally going back to join the family business.
  • Ben explains that based on lessons from his great grandfather, Life is made up of 3 things, Family, Career, and Community. Education has always been of critical importance to the family.
  • The "Start, Stop, Continue" Review Method: Ben had asked workers to review the company's methods to identify processes that needed to be implemented, stopped, or continued for better productivity.
  • Ben shares that following political engagements, his father moved on from the family business and is fully engaged in public service. He adds that working harmoniously with his brother is aided by the understanding that every win is for the company and not the individual, and also their roles tend to be complementary to each other.
  • Understanding that it was necessary to establish credibility by generating profits immediately after joining the family business, Ben reached out to some prospects and started to achieve his goal within a month.
  • One of the critical values imparted by their grandfather was the understanding that business should never jeopardize family relationships.
  • Another key value learned was the importance of treating colleagues the way family would be treated in a workplace.
  • You need to be willing to adapt to ever-changing business environments and conditions. Ben remembers how the family had always focused on the customer, and that what differentiated their company was the incredible customer service.
  • Highlighting the involvements of different family members in service to the community, Ben explains that service to the community is one of the values that have been passed down each generation beginning from the Founder.
  • Considering the future, the most meaningful investment made in recent times has been expanding into e-commerce.
  • Ben shares he would give his children the same advice he got from his grandparents regarding joining the business, and this is to do what their heart wants to do, follow their career path, and not be constrained to join the business based on the financial implications.
  • From Ben to his kids: Always do right, this will gratify some people and astonish the rest

Episode Timeline:

  • [00:49] Introducing today's guest Ben Grossman, and Grossman Marketing Group, the Massachusetts envelope company.
  • [01:40] The history of the Grossman family business.
  • [07:05] Ben narrates how he and his brother joined the business.
  • [11:52] As brothers, how do you get along and what roles do you each play today in the business?
  • [21:54] A listening tour: Using the "Start, Stop, Continue" Review Method.
  • [25:36] Do you have any apparent failures that have set you up for later success?
  • [32:15] Ben describes the family history of service to the community.
  • [37:58] Has the family been intentional about documenting its history?
  • [39:30] How do you pivot and evolve a marketing group like yours into the 21st century and beyond?
  • [43:43] Are you nurturing your children to be the 5th generation of the business or leaving it to them to find their path?
  • [48:35] A letter to Ben's Kids.

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Ben Grossman.

Sponsored By:

Links:

]]> Aaron Chin - My Ceiling is Your Floor - 2nd Gen Leader of Canadian Health Business [The Business of Family] http://www.businessoffamily.net/aaron-chin e242c464-7f2d-4f6e-883d-03636ec022af Mon, 15 Feb 2021 19:00:00 +1000 Mike Boyd full 1 Mike Boyd Aaron Chin is a second-generation business leader and CEO of Organika, a family-led Canadian company dedicated to providing innovative, premium health products to help inspire people to live healthier lives. 45:22 no Aaron Chin is a second-generation business leader and CEO of Organika (https://organika.com/), a family-led Canadian company dedicated to providing innovative, premium health products to help inspire people to live healthier lives. Growing up in the business motivated Aaron to build on what his father started 30 years ago. Since assuming leadership of Organika, in partnership with his brother Jordan, they have increased business seven-fold and have grown the company into an award-winning, globally recognized brand, focusing on innovation and a vibrant company culture. Standout Quotes: * "You start with the mission of the company and that'll help drive your decisions after". - [Aaron] * "If you can tweak one little thing in your process that could save you 30minutes...do it". - [Aaron] * "You are going to determine yourself, how well you do". - [Aaron] * "I really do believe there's nothing like good old hard work". - [Aaron] * "My relationship with my brother is bigger than the business... I think I can pass that down to my kids" - [Aaron] Key Takeaways: * Aaron's dad had the dream when he moved from Malaysia to Canada to give his kids a chance to get ice cream whenever they wanted. * Following the treatment of his kidney stones using natural products, he started the business with a vision to make healthcare accessible for all. * Despite the rejection, his father persistently put himself and his products out there, till the business took off. * Aaron shares he always had an interest in the family business although his father never tried to impose any expectations to join. * Aaron narrates a simple experience where he noticed the boss employed by his father to manage the business got to the office one morning, and deleted all his office voicemails without listening to any one, inciting Aaron's suspicion of the poor management inherent in the business. * Realizing the diet differences between the newer and older generation, the company pivoted from mostly vitamin pills to be more involved in superfoods, powders, drink mixes. * The surprising eventuality of Aaron becoming CEO in an Asian family where he is the younger brother and always at odds with his older brother, was partly made possible by the family dynamic which started to work out following certain events that strengthened the bond between them. * Aaron shares his vision for the company: I want to see us in every single home in Canada. * Explaining that his dad wasn't overprotective but rather allowed them to make mistakes, and these mistakes helped them learn how to make fast and efficient decisions. * The question: What are you doing about it? * If you teach children what wealth means, it's rather thoughtful to leave wealth for them, but if not then it's just an expectation, and things could go wrong. * To Aaron's kids: Know the importance of Family because it is more important than even the business Episode Timeline: * [00:49] Meet today's guest "Aaron Chin". * [01:25] Where did the family business begin, and how do you become involved in this story? * [07:40] About Aaron's entry into the business: Was it always an expectation or some other circumstance? * [16:09] Describing the business today. * [19:55] How did the leadership transition come about? * [24:40] Being the younger brother in an Asian family, how did you arrive at the CEO role? * [27:15] What sort of investment process did you go through, and how did you formalize the business? * [33:33] Would you say the company culture remains unchanged or has it morphed as a result of the impact of Private Equity coming in? * [37:45] Aaron shares major lessons learned by trying things and making mistakes at the beginning * [38:50] Is there a multi-generational plan to continue the legacy that your father started? * [41:03] How do you feel about children inheriting wealth? * [42:39] Aaron's letter to his kids. For more episodes go to BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter (https://www.businessoffamily.net/newsletter) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Aaron Chin. multi-generational wealth, family office, dynasty, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, Aaron Chin is a second-generation business leader and CEO of Organika, a family-led Canadian company dedicated to providing innovative, premium health products to help inspire people to live healthier lives.

Growing up in the business motivated Aaron to build on what his father started 30 years ago. Since assuming leadership of Organika, in partnership with his brother Jordan, they have increased business seven-fold and have grown the company into an award-winning, globally recognized brand, focusing on innovation and a vibrant company culture.

Standout Quotes:

  • "You start with the mission of the company and that'll help drive your decisions after". - [Aaron]
  • "If you can tweak one little thing in your process that could save you 30minutes...do it". - [Aaron]
  • "You are going to determine yourself, how well you do". - [Aaron]
  • "I really do believe there's nothing like good old hard work". - [Aaron]
  • "My relationship with my brother is bigger than the business... I think I can pass that down to my kids" - [Aaron]

Key Takeaways:

  • Aaron's dad had the dream when he moved from Malaysia to Canada to give his kids a chance to get ice cream whenever they wanted.
  • Following the treatment of his kidney stones using natural products, he started the business with a vision to make healthcare accessible for all.
  • Despite the rejection, his father persistently put himself and his products out there, till the business took off.
  • Aaron shares he always had an interest in the family business although his father never tried to impose any expectations to join.
  • Aaron narrates a simple experience where he noticed the boss employed by his father to manage the business got to the office one morning, and deleted all his office voicemails without listening to any one, inciting Aaron's suspicion of the poor management inherent in the business.
  • Realizing the diet differences between the newer and older generation, the company pivoted from mostly vitamin pills to be more involved in superfoods, powders, drink mixes.
  • The surprising eventuality of Aaron becoming CEO in an Asian family where he is the younger brother and always at odds with his older brother, was partly made possible by the family dynamic which started to work out following certain events that strengthened the bond between them.
  • Aaron shares his vision for the company: I want to see us in every single home in Canada.
  • Explaining that his dad wasn't overprotective but rather allowed them to make mistakes, and these mistakes helped them learn how to make fast and efficient decisions.
  • The question: What are you doing about it?
  • If you teach children what wealth means, it's rather thoughtful to leave wealth for them, but if not then it's just an expectation, and things could go wrong.
  • To Aaron's kids: Know the importance of Family because it is more important than even the business

Episode Timeline:

  • [00:49] Meet today's guest "Aaron Chin".
  • [01:25] Where did the family business begin, and how do you become involved in this story?
  • [07:40] About Aaron's entry into the business: Was it always an expectation or some other circumstance?
  • [16:09] Describing the business today.
  • [19:55] How did the leadership transition come about?
  • [24:40] Being the younger brother in an Asian family, how did you arrive at the CEO role?
  • [27:15] What sort of investment process did you go through, and how did you formalize the business?
  • [33:33] Would you say the company culture remains unchanged or has it morphed as a result of the impact of Private Equity coming in?
  • [37:45] Aaron shares major lessons learned by trying things and making mistakes at the beginning
  • [38:50] Is there a multi-generational plan to continue the legacy that your father started?
  • [41:03] How do you feel about children inheriting wealth?
  • [42:39] Aaron's letter to his kids.

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Aaron Chin.

Sponsored By:

Links:

  • Organika — Aaron Chin is a second-generation business leader and CEO of Organika which is a family-led Canadian company dedicated to providing innovative, premium health products to help inspire people to live healthier lives.
  • Aaron Chin (@organikaaron) Instagram
]]> Aaron Chin is a second-generation business leader and CEO of Organika, a family-led Canadian company dedicated to providing innovative, premium health products to help inspire people to live healthier lives.

Growing up in the business motivated Aaron to build on what his father started 30 years ago. Since assuming leadership of Organika, in partnership with his brother Jordan, they have increased business seven-fold and have grown the company into an award-winning, globally recognized brand, focusing on innovation and a vibrant company culture.

Standout Quotes:

  • "You start with the mission of the company and that'll help drive your decisions after". - [Aaron]
  • "If you can tweak one little thing in your process that could save you 30minutes...do it". - [Aaron]
  • "You are going to determine yourself, how well you do". - [Aaron]
  • "I really do believe there's nothing like good old hard work". - [Aaron]
  • "My relationship with my brother is bigger than the business... I think I can pass that down to my kids" - [Aaron]

Key Takeaways:

  • Aaron's dad had the dream when he moved from Malaysia to Canada to give his kids a chance to get ice cream whenever they wanted.
  • Following the treatment of his kidney stones using natural products, he started the business with a vision to make healthcare accessible for all.
  • Despite the rejection, his father persistently put himself and his products out there, till the business took off.
  • Aaron shares he always had an interest in the family business although his father never tried to impose any expectations to join.
  • Aaron narrates a simple experience where he noticed the boss employed by his father to manage the business got to the office one morning, and deleted all his office voicemails without listening to any one, inciting Aaron's suspicion of the poor management inherent in the business.
  • Realizing the diet differences between the newer and older generation, the company pivoted from mostly vitamin pills to be more involved in superfoods, powders, drink mixes.
  • The surprising eventuality of Aaron becoming CEO in an Asian family where he is the younger brother and always at odds with his older brother, was partly made possible by the family dynamic which started to work out following certain events that strengthened the bond between them.
  • Aaron shares his vision for the company: I want to see us in every single home in Canada.
  • Explaining that his dad wasn't overprotective but rather allowed them to make mistakes, and these mistakes helped them learn how to make fast and efficient decisions.
  • The question: What are you doing about it?
  • If you teach children what wealth means, it's rather thoughtful to leave wealth for them, but if not then it's just an expectation, and things could go wrong.
  • To Aaron's kids: Know the importance of Family because it is more important than even the business

Episode Timeline:

  • [00:49] Meet today's guest "Aaron Chin".
  • [01:25] Where did the family business begin, and how do you become involved in this story?
  • [07:40] About Aaron's entry into the business: Was it always an expectation or some other circumstance?
  • [16:09] Describing the business today.
  • [19:55] How did the leadership transition come about?
  • [24:40] Being the younger brother in an Asian family, how did you arrive at the CEO role?
  • [27:15] What sort of investment process did you go through, and how did you formalize the business?
  • [33:33] Would you say the company culture remains unchanged or has it morphed as a result of the impact of Private Equity coming in?
  • [37:45] Aaron shares major lessons learned by trying things and making mistakes at the beginning
  • [38:50] Is there a multi-generational plan to continue the legacy that your father started?
  • [41:03] How do you feel about children inheriting wealth?
  • [42:39] Aaron's letter to his kids.

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Aaron Chin.

Sponsored By:

Links:

  • Organika — Aaron Chin is a second-generation business leader and CEO of Organika which is a family-led Canadian company dedicated to providing innovative, premium health products to help inspire people to live healthier lives.
  • Aaron Chin (@organikaaron) Instagram
]]> Mitzi Perdue - Matriarch of the Sheraton Hotels and Perdue Chicken Families [The Business of Family] http://www.businessoffamily.net/mitzi-perdue c195caae-2f13-4c68-9be2-61ed24a3d45e Mon, 01 Feb 2021 19:00:00 +1000 Mike Boyd full 1 Mike Boyd Mitzi Perdue is the daughter of one family business titan (her father founded the Sheraton Hotel Chain) and the widow of another, (her late husband was the family business poultry magnate, Frank Perdue), and she is also a businesswoman in her own right. She started the family wine grape business, now one of the larger suppliers of wine grapes in California. 1:02:06 no Mitzi Perdue (https://mitziperdue.com/) is the daughter of one family business titan (her father founded the Sheraton Hotel Chain (https://sheraton.marriott.com/)) and the widow of another, (her late husband was the family business poultry magnate (https://www.perdue.com/), Frank Perdue), and she is also a businesswoman in her own right. She started the family wine grape business, now one of the larger suppliers of wine grapes in California. Mitzi likes nothing better than to share insider tips for successful family businesses. Her family of origin (the one that started the Sheraton Hotels) began with the family business, Henderson Estate Company, in 1840, and her Perdue family started in 1920 in the poultry business. These two families have a combined tradition of 276 years of staying together as a family. Family Business Books by Mitzi Perdue https://files.fireside.fm/file/fireside-uploads/images/0/07b96f5a-1bdc-4b5f-b51a-e29fa46426fb/0Fakuy9e.jpg (https://amzn.to/36plkIh) Standout Quotes: * "The odds of a family business lasting 100 years are 1 in 1000" - [Mitzi] * "The families who put a lot of effort into designing their cultures are the ones that survive, the ones that let things happen as they may, that rarely supports keeping the family business together over the generations" - [Mitzi] * "70% of family businesses won't make it to the next generation, so if you want your family to last, put a lot of intentionality into letting the family members know from the youngest age that they're part of something bigger than themselves" - [Mitzi] * "The biggest reason families don't last is family quarrels" - [Mitzi] * "So a big piece of advice I'd have for every family is, deal with the problems, get them out, come to a resolution but don't go the press, don't go to adversarial lawyers" - [Mitzi] * "We're measured by what you can give, not what you can get" - [Mitzi] * "I don't think you can be happy if you're not part of something bigger than yourself... * If you want to be happy, think what you can do for somebody else, if you really want to be miserable, think what's owed to you" - [Mitzi] * "In general, your family will be better functioning the more it knows its stories" - [Mitzi] * "If your children turn out right, nothing else matters, if your children turn out wrong, nothing else matters" - [Mitzi] Key Takeaways: * Mitzi is a part of two multi-generational business families, each of which has lasted for over 100years and over 5 generations. * Mitzi explains that a lot of conscious effort was put into strengthening the families over the years, noting in particular one of the strategies being the "Service to the Family" award. * Every single family that exists has a culture, but is it a culture that came about by accident or by design? * It is critical to be intentional about designing and maintaining family culture as it plays a major role in the success of a family business over generations, rather than just allowing things to happen as they may. * People need a lot of guidance to be steered away from selfishness, and that takes intentionality. * Separating Ownership and Control helps create a perspective of the family as an entity bigger than any one person, and consequently gives a better understanding of the role of stewardship. * Mitzi explains her innovative idea to inculcate the family values in family members, right from childhood. * Noting the importance of knowing how to handle family quarrels, Mitzi strongly emphasizes avoiding the press or lawyers but rather encourages outspokenness within the family. * Three ways that a family can intentionally stay together: Family Newsletters, Family Reunions, and Philanthropy. * Mitzi highlights the positive effects of connecting with both present and past members of the family on the well-being, physically and mentally, of the family. * As a personal preference, Mitzi would rather use books as a means to archive family history compared to other forms of technology, as it may be difficult to access the archive in the future if the technology used to archive it is outdated by that time. * Mitzi recommends entering a new family with humility, observing them, noting what gains you points and what doesn't, also pointing out that while the two families had very different values, the values were very compatible. * Mitzi's letter to her kids: Be generous, be kind, be honest, work hard but be a good steward. Episode Timeline: * [00:49] Introducing Mitzi Perdue, to discuss actionable advice on how her family has maintained their businesses and family dynamics for generations. * [02:28] Mitzi shares the origin stories of both business families she is a part of. * [04:46] What generation are you in each of these families and what generation are these families up to? * [10:08] Every family has a culture. * [13:22] About the family values and how they are inculcated with other members of the family. * [25:53]How big was the business when it went from family control to external control? * [34:02] How has the endowment grown to keep up with the growing size of the family? * [35:34] The 'What It Means To Be Us' book. * [38:35] Do you have a process or value system around how you keep records for the family? * [52:50] How was the process of assimilating two different value systems upon joining another family and what differences did you observe? * [57:15] Is there a constitution for the family? * [01:00:43] A letter from Mitzi to her children. For more episodes go to BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter (https://www.businessoffamily.net/newsletter) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Mitzi Perdue. multi-generational wealth, family office, dynasty, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, Mitzi Perdue is the daughter of one family business titan (her father founded the Sheraton Hotel Chain) and the widow of another, (her late husband was the family business poultry magnate, Frank Perdue), and she is also a businesswoman in her own right. She started the family wine grape business, now one of the larger suppliers of wine grapes in California.

Mitzi likes nothing better than to share insider tips for successful family businesses. Her family of origin (the one that started the Sheraton Hotels) began with the family business, Henderson Estate Company, in 1840, and her Perdue family started in 1920 in the poultry business. These two families have a combined tradition of 276 years of staying together as a family.

Family Business Books by Mitzi Perdue

Standout Quotes:

  • "The odds of a family business lasting 100 years are 1 in 1000" - [Mitzi]
  • "The families who put a lot of effort into designing their cultures are the ones that survive, the ones that let things happen as they may, that rarely supports keeping the family business together over the generations" - [Mitzi]
  • "70% of family businesses won't make it to the next generation, so if you want your family to last, put a lot of intentionality into letting the family members know from the youngest age that they're part of something bigger than themselves" - [Mitzi]
  • "The biggest reason families don't last is family quarrels" - [Mitzi]
  • "So a big piece of advice I'd have for every family is, deal with the problems, get them out, come to a resolution but don't go the press, don't go to adversarial lawyers" - [Mitzi]
  • "We're measured by what you can give, not what you can get" - [Mitzi]
  • "I don't think you can be happy if you're not part of something bigger than yourself...
  • If you want to be happy, think what you can do for somebody else, if you really want to be miserable, think what's owed to you" - [Mitzi]
  • "In general, your family will be better functioning the more it knows its stories" - [Mitzi]
  • "If your children turn out right, nothing else matters, if your children turn out wrong, nothing else matters" - [Mitzi]

Key Takeaways:

  • Mitzi is a part of two multi-generational business families, each of which has lasted for over 100years and over 5 generations.
  • Mitzi explains that a lot of conscious effort was put into strengthening the families over the years, noting in particular one of the strategies being the "Service to the Family" award.
  • Every single family that exists has a culture, but is it a culture that came about by accident or by design?
  • It is critical to be intentional about designing and maintaining family culture as it plays a major role in the success of a family business over generations, rather than just allowing things to happen as they may.
  • People need a lot of guidance to be steered away from selfishness, and that takes intentionality.
  • Separating Ownership and Control helps create a perspective of the family as an entity bigger than any one person, and consequently gives a better understanding of the role of stewardship.
  • Mitzi explains her innovative idea to inculcate the family values in family members, right from childhood.
  • Noting the importance of knowing how to handle family quarrels, Mitzi strongly emphasizes avoiding the press or lawyers but rather encourages outspokenness within the family.
  • Three ways that a family can intentionally stay together: Family Newsletters, Family Reunions, and Philanthropy.
  • Mitzi highlights the positive effects of connecting with both present and past members of the family on the well-being, physically and mentally, of the family.
  • As a personal preference, Mitzi would rather use books as a means to archive family history compared to other forms of technology, as it may be difficult to access the archive in the future if the technology used to archive it is outdated by that time.
  • Mitzi recommends entering a new family with humility, observing them, noting what gains you points and what doesn't, also pointing out that while the two families had very different values, the values were very compatible.
  • Mitzi's letter to her kids: Be generous, be kind, be honest, work hard but be a good steward.

Episode Timeline:

  • [00:49] Introducing Mitzi Perdue, to discuss actionable advice on how her family has maintained their businesses and family dynamics for generations.
  • [02:28] Mitzi shares the origin stories of both business families she is a part of.
  • [04:46] What generation are you in each of these families and what generation are these families up to?
  • [10:08] Every family has a culture.
  • [13:22] About the family values and how they are inculcated with other members of the family.
  • [25:53]How big was the business when it went from family control to external control?
  • [34:02] How has the endowment grown to keep up with the growing size of the family?
  • [35:34] The 'What It Means To Be Us' book.
  • [38:35] Do you have a process or value system around how you keep records for the family?
  • [52:50] How was the process of assimilating two different value systems upon joining another family and what differences did you observe?
  • [57:15] Is there a constitution for the family?
  • [01:00:43] A letter from Mitzi to her children.

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Mitzi Perdue.

Sponsored By:

Links:

]]> Mitzi Perdue is the daughter of one family business titan (her father founded the Sheraton Hotel Chain) and the widow of another, (her late husband was the family business poultry magnate, Frank Perdue), and she is also a businesswoman in her own right. She started the family wine grape business, now one of the larger suppliers of wine grapes in California.

Mitzi likes nothing better than to share insider tips for successful family businesses. Her family of origin (the one that started the Sheraton Hotels) began with the family business, Henderson Estate Company, in 1840, and her Perdue family started in 1920 in the poultry business. These two families have a combined tradition of 276 years of staying together as a family.

Family Business Books by Mitzi Perdue

Standout Quotes:

  • "The odds of a family business lasting 100 years are 1 in 1000" - [Mitzi]
  • "The families who put a lot of effort into designing their cultures are the ones that survive, the ones that let things happen as they may, that rarely supports keeping the family business together over the generations" - [Mitzi]
  • "70% of family businesses won't make it to the next generation, so if you want your family to last, put a lot of intentionality into letting the family members know from the youngest age that they're part of something bigger than themselves" - [Mitzi]
  • "The biggest reason families don't last is family quarrels" - [Mitzi]
  • "So a big piece of advice I'd have for every family is, deal with the problems, get them out, come to a resolution but don't go the press, don't go to adversarial lawyers" - [Mitzi]
  • "We're measured by what you can give, not what you can get" - [Mitzi]
  • "I don't think you can be happy if you're not part of something bigger than yourself...
  • If you want to be happy, think what you can do for somebody else, if you really want to be miserable, think what's owed to you" - [Mitzi]
  • "In general, your family will be better functioning the more it knows its stories" - [Mitzi]
  • "If your children turn out right, nothing else matters, if your children turn out wrong, nothing else matters" - [Mitzi]

Key Takeaways:

  • Mitzi is a part of two multi-generational business families, each of which has lasted for over 100years and over 5 generations.
  • Mitzi explains that a lot of conscious effort was put into strengthening the families over the years, noting in particular one of the strategies being the "Service to the Family" award.
  • Every single family that exists has a culture, but is it a culture that came about by accident or by design?
  • It is critical to be intentional about designing and maintaining family culture as it plays a major role in the success of a family business over generations, rather than just allowing things to happen as they may.
  • People need a lot of guidance to be steered away from selfishness, and that takes intentionality.
  • Separating Ownership and Control helps create a perspective of the family as an entity bigger than any one person, and consequently gives a better understanding of the role of stewardship.
  • Mitzi explains her innovative idea to inculcate the family values in family members, right from childhood.
  • Noting the importance of knowing how to handle family quarrels, Mitzi strongly emphasizes avoiding the press or lawyers but rather encourages outspokenness within the family.
  • Three ways that a family can intentionally stay together: Family Newsletters, Family Reunions, and Philanthropy.
  • Mitzi highlights the positive effects of connecting with both present and past members of the family on the well-being, physically and mentally, of the family.
  • As a personal preference, Mitzi would rather use books as a means to archive family history compared to other forms of technology, as it may be difficult to access the archive in the future if the technology used to archive it is outdated by that time.
  • Mitzi recommends entering a new family with humility, observing them, noting what gains you points and what doesn't, also pointing out that while the two families had very different values, the values were very compatible.
  • Mitzi's letter to her kids: Be generous, be kind, be honest, work hard but be a good steward.

Episode Timeline:

  • [00:49] Introducing Mitzi Perdue, to discuss actionable advice on how her family has maintained their businesses and family dynamics for generations.
  • [02:28] Mitzi shares the origin stories of both business families she is a part of.
  • [04:46] What generation are you in each of these families and what generation are these families up to?
  • [10:08] Every family has a culture.
  • [13:22] About the family values and how they are inculcated with other members of the family.
  • [25:53]How big was the business when it went from family control to external control?
  • [34:02] How has the endowment grown to keep up with the growing size of the family?
  • [35:34] The 'What It Means To Be Us' book.
  • [38:35] Do you have a process or value system around how you keep records for the family?
  • [52:50] How was the process of assimilating two different value systems upon joining another family and what differences did you observe?
  • [57:15] Is there a constitution for the family?
  • [01:00:43] A letter from Mitzi to her children.

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Mitzi Perdue.

Sponsored By:

Links:

]]> Khalid Muhmood - Using the Family Holding Company to invest in Education [The Business of Family] http://www.businessoffamily.net/khalid-muhmood 17e24436-29b3-4bd7-9903-21b436c0c979 Mon, 18 Jan 2021 19:00:00 +1000 Mike Boyd full 1 Mike Boyd Khalid is from the UK and through the family business holding company Dragonfly Education Group, is an operational investor in education. He has been active in the business of education since 1994 50:04 no Khalid Muhmood (https://www.khalidmuhmood.com/) is from the UK and through the family business holding company Dragonfly Education Group (https://www.dragonflyeducationgroup.com/), is an operational investor in education. He has been active in the business of education since 1994 when he and his wife, Arabella Peters, co-founded Apollo English (https://apollo.edu.vn/) and then the British University Vietnam. Since then they have invested in a number of businesses all focused on education. Khalid and Arabella see themselves as the founding generation of their family enterprise and intend to never sell their Dragonfly Education hold co. They’re actively involving their young children in business conversations and laying the foundation for generational wealth, legacy and impact. Standout Quotes: * "What's your biggest headache?" * "Learning from successful family businesses; so many of them do not load up on debt" - [Khalid] * "The future of education is blended, that means you've got to incorporate online with offline" - [Khalid] * "Sophisticated multi-generational families.. have taken generations to figure out that they need to separate the Governance from the Operations, and that the family needs to be excellent stewards and owners first before they can consider playing an active role in Operations" - [Mike] * "A well-run family business is difficult to beat, especially during downtimes" - [Khalid] * "Why trade anything in, when we've found purpose?" - [Khalid] * "If you’re building any business, I'd say that 'Focus' is the thing that's often lacking, especially if the entrepreneur at the beginning thinks they have to say yes to everything" - [Khalid] * "Look for the good in life... because it really helps you enjoy the journey" - [Khalid] Key Takeaways: * If you want to be truly in control of your journey in a business, you need to be the owner, not the manager. * At the very beginning, the vision was simply to get the business to survive. * It's only when you move from surviving to thriving that you can ask, "what do you want to do?" * When asked "what is your biggest headache?" at an event, many of the entrepreneurs answered "My father". * If you're not happy with 60000 pounds per year, then any more money might not change anything. * Khalid describes the challenges of Covid-19 as a learning period for the business as a whole. * Finding a way to create balance and incorporate online with offline learning is pivotal, that will be the future for the family business. * Khalid and his wife, Arabella involve their kids as much as possible in the family business even at the early ages of 8 and 10, with some tests to determine their level of interest and perception of the business as a whole. * In the future, the key role for the kids is going to be "Good Owners" * The stewardship role is critical * One of the tips to help foster togetherness among children is that if one of them does something wrong, punish them all. * Other points to note is to never elevate one sibling above the other and to always leave them to sort out their arguments without being the judge. * Khalid shares that the preferred investments taken by DragonFly are those in which a controlling stake can be bought. * A major mistake that was made at some point was accepting an offer from Nokia when it should have been turned down because it was distracting from the core competency of the business. * Khalid shares that his source of knowledge includes mentors, peer to peer learning, and mistakes. * From Khalid to his kids: Look for the good in life because it really helps you enjoy the journey. Episode Timeline: * [00:49] About Khalid Muhmood and the inspiration for starting the business of education * [06:01] Khalid explains some of the reasons behind the choice of Vietnam as a location for starting the business * [08:59] What was the vision at the time of starting the business * [15:03] The new vision for Dragonfly Education Group * [19:41] How did the business hold up in this period of Covid19, do you have an interest in online learning? * [24:34] Is there a vision of bringing your kids into the business if they're interested? * [31:20] Do you have any other family structures aside from stewarding Dragonfly as the main asset? * [32:53] Khalid shares some of the values, principles, and parenting approaches to raise well-rounded children amidst wealth. * [36:37] Where does this family business DNA come from? * [41:17] Where do you think you'll make the next operational or financial investment? * [43:01] One of the major mistakes made in running the business: Losing focus * [47:50] A letter from Khalid to his kids For more episodes go to BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter (https://www.businessoffamily.net/newsletter) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Khalid Muhmood. multi-generational wealth, family office, dynasty, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, Khalid Muhmood is from the UK and through the family business holding company Dragonfly Education Group, is an operational investor in education.

He has been active in the business of education since 1994 when he and his wife, Arabella Peters, co-founded Apollo English and then the British University Vietnam. Since then they have invested in a number of businesses all focused on education.

Khalid and Arabella see themselves as the founding generation of their family enterprise and intend to never sell their Dragonfly Education hold co. They’re actively involving their young children in business conversations and laying the foundation for generational wealth, legacy and impact.

Standout Quotes:

  • "What's your biggest headache?"
  • "Learning from successful family businesses; so many of them do not load up on debt" - [Khalid]
  • "The future of education is blended, that means you've got to incorporate online with offline" - [Khalid]
  • "Sophisticated multi-generational families.. have taken generations to figure out that they need to separate the Governance from the Operations, and that the family needs to be excellent stewards and owners first before they can consider playing an active role in Operations" - [Mike]
  • "A well-run family business is difficult to beat, especially during downtimes" - [Khalid]
  • "Why trade anything in, when we've found purpose?" - [Khalid]
  • "If you’re building any business, I'd say that 'Focus' is the thing that's often lacking, especially if the entrepreneur at the beginning thinks they have to say yes to everything" - [Khalid]
  • "Look for the good in life... because it really helps you enjoy the journey" - [Khalid]

Key Takeaways:

  • If you want to be truly in control of your journey in a business, you need to be the owner, not the manager.
  • At the very beginning, the vision was simply to get the business to survive.
  • It's only when you move from surviving to thriving that you can ask, "what do you want to do?"
  • When asked "what is your biggest headache?" at an event, many of the entrepreneurs answered "My father".
  • If you're not happy with 60000 pounds per year, then any more money might not change anything.
  • Khalid describes the challenges of Covid-19 as a learning period for the business as a whole.
  • Finding a way to create balance and incorporate online with offline learning is pivotal, that will be the future for the family business.
  • Khalid and his wife, Arabella involve their kids as much as possible in the family business even at the early ages of 8 and 10, with some tests to determine their level of interest and perception of the business as a whole.
  • In the future, the key role for the kids is going to be "Good Owners"
  • The stewardship role is critical
  • One of the tips to help foster togetherness among children is that if one of them does something wrong, punish them all.
  • Other points to note is to never elevate one sibling above the other and to always leave them to sort out their arguments without being the judge.
  • Khalid shares that the preferred investments taken by DragonFly are those in which a controlling stake can be bought.
  • A major mistake that was made at some point was accepting an offer from Nokia when it should have been turned down because it was distracting from the core competency of the business.
  • Khalid shares that his source of knowledge includes mentors, peer to peer learning, and mistakes.
  • From Khalid to his kids: Look for the good in life because it really helps you enjoy the journey.

Episode Timeline:

  • [00:49] About Khalid Muhmood and the inspiration for starting the business of education
  • [06:01] Khalid explains some of the reasons behind the choice of Vietnam as a location for starting the business
  • [08:59] What was the vision at the time of starting the business
  • [15:03] The new vision for Dragonfly Education Group
  • [19:41] How did the business hold up in this period of Covid19, do you have an interest in online learning?
  • [24:34] Is there a vision of bringing your kids into the business if they're interested?
  • [31:20] Do you have any other family structures aside from stewarding Dragonfly as the main asset?
  • [32:53] Khalid shares some of the values, principles, and parenting approaches to raise well-rounded children amidst wealth.
  • [36:37] Where does this family business DNA come from?
  • [41:17] Where do you think you'll make the next operational or financial investment?
  • [43:01] One of the major mistakes made in running the business: Losing focus
  • [47:50] A letter from Khalid to his kids

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Khalid Muhmood.

Sponsored By:

Links:

]]> Khalid Muhmood is from the UK and through the family business holding company Dragonfly Education Group, is an operational investor in education.

He has been active in the business of education since 1994 when he and his wife, Arabella Peters, co-founded Apollo English and then the British University Vietnam. Since then they have invested in a number of businesses all focused on education.

Khalid and Arabella see themselves as the founding generation of their family enterprise and intend to never sell their Dragonfly Education hold co. They’re actively involving their young children in business conversations and laying the foundation for generational wealth, legacy and impact.

Standout Quotes:

  • "What's your biggest headache?"
  • "Learning from successful family businesses; so many of them do not load up on debt" - [Khalid]
  • "The future of education is blended, that means you've got to incorporate online with offline" - [Khalid]
  • "Sophisticated multi-generational families.. have taken generations to figure out that they need to separate the Governance from the Operations, and that the family needs to be excellent stewards and owners first before they can consider playing an active role in Operations" - [Mike]
  • "A well-run family business is difficult to beat, especially during downtimes" - [Khalid]
  • "Why trade anything in, when we've found purpose?" - [Khalid]
  • "If you’re building any business, I'd say that 'Focus' is the thing that's often lacking, especially if the entrepreneur at the beginning thinks they have to say yes to everything" - [Khalid]
  • "Look for the good in life... because it really helps you enjoy the journey" - [Khalid]

Key Takeaways:

  • If you want to be truly in control of your journey in a business, you need to be the owner, not the manager.
  • At the very beginning, the vision was simply to get the business to survive.
  • It's only when you move from surviving to thriving that you can ask, "what do you want to do?"
  • When asked "what is your biggest headache?" at an event, many of the entrepreneurs answered "My father".
  • If you're not happy with 60000 pounds per year, then any more money might not change anything.
  • Khalid describes the challenges of Covid-19 as a learning period for the business as a whole.
  • Finding a way to create balance and incorporate online with offline learning is pivotal, that will be the future for the family business.
  • Khalid and his wife, Arabella involve their kids as much as possible in the family business even at the early ages of 8 and 10, with some tests to determine their level of interest and perception of the business as a whole.
  • In the future, the key role for the kids is going to be "Good Owners"
  • The stewardship role is critical
  • One of the tips to help foster togetherness among children is that if one of them does something wrong, punish them all.
  • Other points to note is to never elevate one sibling above the other and to always leave them to sort out their arguments without being the judge.
  • Khalid shares that the preferred investments taken by DragonFly are those in which a controlling stake can be bought.
  • A major mistake that was made at some point was accepting an offer from Nokia when it should have been turned down because it was distracting from the core competency of the business.
  • Khalid shares that his source of knowledge includes mentors, peer to peer learning, and mistakes.
  • From Khalid to his kids: Look for the good in life because it really helps you enjoy the journey.

Episode Timeline:

  • [00:49] About Khalid Muhmood and the inspiration for starting the business of education
  • [06:01] Khalid explains some of the reasons behind the choice of Vietnam as a location for starting the business
  • [08:59] What was the vision at the time of starting the business
  • [15:03] The new vision for Dragonfly Education Group
  • [19:41] How did the business hold up in this period of Covid19, do you have an interest in online learning?
  • [24:34] Is there a vision of bringing your kids into the business if they're interested?
  • [31:20] Do you have any other family structures aside from stewarding Dragonfly as the main asset?
  • [32:53] Khalid shares some of the values, principles, and parenting approaches to raise well-rounded children amidst wealth.
  • [36:37] Where does this family business DNA come from?
  • [41:17] Where do you think you'll make the next operational or financial investment?
  • [43:01] One of the major mistakes made in running the business: Losing focus
  • [47:50] A letter from Khalid to his kids

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Khalid Muhmood.

Sponsored By:

Links:

]]> Ashok Melwani - Negotiating an Exit From the 4th Generation Family Business [The Business of Family] http://www.businessoffamily.net/ashok-melwani 1b2595c4-4a42-4198-a868-12dc8e32f597 Mon, 11 Jan 2021 19:00:00 +1000 Mike Boyd full 1 Mike Boyd In 1982, he joined the business full-time, working his way up from brand manager to an executive director of the 4th generation Indian family business. He's a seasoned entrepreneur with decades of experience in retail, food & beverage and distribution, and now an executive coach. Ashok is a guide to the road less travelled. His story is a facinating journey of a struggle to leave the family business and ultimately forge his own path. 50:59 no Ashok Melwani started his career as a teenager, working in his family’s fashion retail stores during the school holidays. In 1982, he joined the business full-time, working his way up from brand manager to an executive director of the 4th generation Indian family business. He's a seasoned entrepreneur with decades of experience in retail, food & beverage and distribution, and now an executive coach. Ashok is a guide to the road less travelled. His story is a fascinating journey of a struggle to leave the family business and ultimately forge his own path. Standout Quotes: * "My most disliked few words, 'You should know what to do'." - [Ashok] * "If the CEO of a business is not passionate about a business, he has no business to be the CEO" - [Ashok] * "If the family business is the only thing on your resume, it's not very worthwhile" - [Ashok] * "Crowd brings crowd to a restaurant" - [Ashok] * "Two things I and my wife can never give you as parents, we cannot give you resilience, it only comes from hardship... We cannot give you self esteem, it comes only from achieving your own goals and making a name for yourself" - [Ashok] * "Everybody has a price at which they might do something which is borderline unethical, and the price depends a lot on your socio-emotional background" - [Ashok] * "When one door closes, another door opens.. in order for that to be true, you have to do your part which is don't hang around too long when the door closes" - [Ashok] Key Takeaways: * Ashok shares that although he wasn't particularly excited to work in the family business, the incentives and knowledge gained made it a perfect introduction to the retail business. * If the family business is the only thing on your resume, it's not very worthwhile, even if you were the MD. * Ashok discloses that following the impact of the Asian financial crisis on his transition out of the family business, he had fallen into depression for close to a year. * If you leave a family business, you don't want to have some small share in the business and start second-guessing whoever is left behind. * Although he had a clean exit, there were effects on the family dynamics at the time, as some family members didn't understand why. * Despite the many setbacks, looking back, there is no doubt that leaving the family business was the right step to take for Ashok. * I have no respect for trust fund kids. * You have a life outside and beyond the business, a lot of entrepreneurs are consumed by their business even when they should be spending time with family. * Ashok admits that based on his experience with his family business, he was not encouraged to start another one involving his children * After interacting with younger family business executive owners, a common notable point was that they were given time to work outside the family business before coming back. * From Ashok to his kids: when one door closes, another door opens, don't wait around too long afterward. Episode Timeline: * [00:49] Introducing "Ashok Melwani" * [01:56] Ashok narrates how he joined the family business * [02:50] What sort of products was the business offering? * [13:03] Your career with the family business, where did it reach, and what happened next? * [31:32] Ashok explains he had a clean exit from the family business. * [34:00] Would you say that leaving the family was the right decision for you? * [35:04] How is the family business going today? * [36:31] Did you ever try and nurture your children to work with you and create another family business? * [38:28] Ashok's opinion on children inheriting wealth * [40:39] A notable experience that helped shape his journey. * [44:00] What advice would you give to a driven entrepreneur who aspires to be the founding generation of a multi-generational family business? * [44:57] What's your take on generational businesses? * [46:46] My next stage in life involves venturing into Leadership Coaching * [47:35] Ashok's letter to his children For more episodes go to BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter (https://www.businessoffamily.net/newsletter) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Ashok Melwani. multi-generational wealth, family office, dynasty, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, Ashok Melwani started his career as a teenager, working in his family’s fashion retail stores during the school holidays. In 1982, he joined the business full-time, working his way up from brand manager to an executive director of the 4th generation Indian family business. He's a seasoned entrepreneur with decades of experience in retail, food & beverage and distribution, and now an executive coach.

Ashok is a guide to the road less travelled. His story is a fascinating journey of a struggle to leave the family business and ultimately forge his own path.

Standout Quotes:

  • "My most disliked few words, 'You should know what to do'." - [Ashok]
  • "If the CEO of a business is not passionate about a business, he has no business to be the CEO" - [Ashok]
  • "If the family business is the only thing on your resume, it's not very worthwhile" - [Ashok]
  • "Crowd brings crowd to a restaurant" - [Ashok]
  • "Two things I and my wife can never give you as parents, we cannot give you resilience, it only comes from hardship... We cannot give you self esteem, it comes only from achieving your own goals and making a name for yourself" - [Ashok]
  • "Everybody has a price at which they might do something which is borderline unethical, and the price depends a lot on your socio-emotional background" - [Ashok]
  • "When one door closes, another door opens.. in order for that to be true, you have to do your part which is don't hang around too long when the door closes" - [Ashok]

Key Takeaways:

  • Ashok shares that although he wasn't particularly excited to work in the family business, the incentives and knowledge gained made it a perfect introduction to the retail business.
  • If the family business is the only thing on your resume, it's not very worthwhile, even if you were the MD.
  • Ashok discloses that following the impact of the Asian financial crisis on his transition out of the family business, he had fallen into depression for close to a year.
  • If you leave a family business, you don't want to have some small share in the business and start second-guessing whoever is left behind.
  • Although he had a clean exit, there were effects on the family dynamics at the time, as some family members didn't understand why.
  • Despite the many setbacks, looking back, there is no doubt that leaving the family business was the right step to take for Ashok.
  • I have no respect for trust fund kids.
  • You have a life outside and beyond the business, a lot of entrepreneurs are consumed by their business even when they should be spending time with family.
  • Ashok admits that based on his experience with his family business, he was not encouraged to start another one involving his children
  • After interacting with younger family business executive owners, a common notable point was that they were given time to work outside the family business before coming back.
  • From Ashok to his kids: when one door closes, another door opens, don't wait around too long afterward.

Episode Timeline:

  • [00:49] Introducing "Ashok Melwani"
  • [01:56] Ashok narrates how he joined the family business
  • [02:50] What sort of products was the business offering?
  • [13:03] Your career with the family business, where did it reach, and what happened next?
  • [31:32] Ashok explains he had a clean exit from the family business.
  • [34:00] Would you say that leaving the family was the right decision for you?
  • [35:04] How is the family business going today?
  • [36:31] Did you ever try and nurture your children to work with you and create another family business?
  • [38:28] Ashok's opinion on children inheriting wealth
  • [40:39] A notable experience that helped shape his journey.
  • [44:00] What advice would you give to a driven entrepreneur who aspires to be the founding generation of a multi-generational family business?
  • [44:57] What's your take on generational businesses?
  • [46:46] My next stage in life involves venturing into Leadership Coaching
  • [47:35] Ashok's letter to his children

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Ashok Melwani.

Sponsored By:

Links:

]]> Ashok Melwani started his career as a teenager, working in his family’s fashion retail stores during the school holidays. In 1982, he joined the business full-time, working his way up from brand manager to an executive director of the 4th generation Indian family business. He's a seasoned entrepreneur with decades of experience in retail, food & beverage and distribution, and now an executive coach.

Ashok is a guide to the road less travelled. His story is a fascinating journey of a struggle to leave the family business and ultimately forge his own path.

Standout Quotes:

  • "My most disliked few words, 'You should know what to do'." - [Ashok]
  • "If the CEO of a business is not passionate about a business, he has no business to be the CEO" - [Ashok]
  • "If the family business is the only thing on your resume, it's not very worthwhile" - [Ashok]
  • "Crowd brings crowd to a restaurant" - [Ashok]
  • "Two things I and my wife can never give you as parents, we cannot give you resilience, it only comes from hardship... We cannot give you self esteem, it comes only from achieving your own goals and making a name for yourself" - [Ashok]
  • "Everybody has a price at which they might do something which is borderline unethical, and the price depends a lot on your socio-emotional background" - [Ashok]
  • "When one door closes, another door opens.. in order for that to be true, you have to do your part which is don't hang around too long when the door closes" - [Ashok]

Key Takeaways:

  • Ashok shares that although he wasn't particularly excited to work in the family business, the incentives and knowledge gained made it a perfect introduction to the retail business.
  • If the family business is the only thing on your resume, it's not very worthwhile, even if you were the MD.
  • Ashok discloses that following the impact of the Asian financial crisis on his transition out of the family business, he had fallen into depression for close to a year.
  • If you leave a family business, you don't want to have some small share in the business and start second-guessing whoever is left behind.
  • Although he had a clean exit, there were effects on the family dynamics at the time, as some family members didn't understand why.
  • Despite the many setbacks, looking back, there is no doubt that leaving the family business was the right step to take for Ashok.
  • I have no respect for trust fund kids.
  • You have a life outside and beyond the business, a lot of entrepreneurs are consumed by their business even when they should be spending time with family.
  • Ashok admits that based on his experience with his family business, he was not encouraged to start another one involving his children
  • After interacting with younger family business executive owners, a common notable point was that they were given time to work outside the family business before coming back.
  • From Ashok to his kids: when one door closes, another door opens, don't wait around too long afterward.

Episode Timeline:

  • [00:49] Introducing "Ashok Melwani"
  • [01:56] Ashok narrates how he joined the family business
  • [02:50] What sort of products was the business offering?
  • [13:03] Your career with the family business, where did it reach, and what happened next?
  • [31:32] Ashok explains he had a clean exit from the family business.
  • [34:00] Would you say that leaving the family was the right decision for you?
  • [35:04] How is the family business going today?
  • [36:31] Did you ever try and nurture your children to work with you and create another family business?
  • [38:28] Ashok's opinion on children inheriting wealth
  • [40:39] A notable experience that helped shape his journey.
  • [44:00] What advice would you give to a driven entrepreneur who aspires to be the founding generation of a multi-generational family business?
  • [44:57] What's your take on generational businesses?
  • [46:46] My next stage in life involves venturing into Leadership Coaching
  • [47:35] Ashok's letter to his children

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Ashok Melwani.

Sponsored By:

Links:

]]> George Isaac - Family Business Consultant, Board Advisor & Prior CEO of Isaac Family Businesses [The Business of Family] http://www.businessoffamily.net/george-isaac ebead95c-21c0-497d-9b57-91a326119cc0 Mon, 04 Jan 2021 19:00:00 +1000 Mike Boyd full 1 Mike Boyd George Isaac is the founder of GAI Capital Ltd., a specialty family business consulting practice focusing on business value creation and longevity, succession planning, governance, family dynamics, and wealth management and transfer. Isaac has held roles as a family business CEO, shareholder, director, private equity investor, Deloitte management consulting partner and member of Young Presidents’ Organization (YPO) Family Business and Family Office networks. 46:56 no George Isaac’s grandfather founded the first Isaac family businesses in 1899 in Bryan, Ohio, beginning a long history of serial entrepreneurship and the subsequent creation of several successful enterprises. A lot has changed since then, but the Isaac Group continues to thrive, now under board oversight and management by its third and fourth generation. George grew up as a child of family business owners and has run several Isaac multigenerational family businesses as a CEO and board member. More recently, he is the founder and president of GAI Capital Ltd. (https://www.georgeisaac.com/), a family business consulting firm and the author of a newly released book titled Your Business, Your Family, Your Legacy: Building a Multigenerational Family Business That Lasts (https://amzn.to/357aKVz) Your Business Your Family Your Legacy - George A Isaac https://files.fireside.fm/file/fireside-uploads/images/0/07b96f5a-1bdc-4b5f-b51a-e29fa46426fb/MOXrjd85.jpg (https://amzn.to/357aKVz) Standout Quotes: * "I realized that some of the things I did in running our family business and what a lot of people are doing today are not best practices" * "I used to think that the goal was to get everybody in the family to stay in the family business and figure out a way to make them live happily ever after... My goal now is to understand the real needs of each family member and see if they fit within what the family business is going to be about" * "The majority can rule and figure out what they want to do but you need to deal with the minority issues... so that you can satisfy their needs" * "The most important to me of the whole thing is just being certain that your ownership group is aligned" * "There are times when you should sell your family business" * "Shareholder returns are much different than business returns... Figuring out how you provide real-life shareholder returns is an important step that many of us don't recognize" * "Money is not everything by any means" Key Takeaways: * Although George had gotten involved in the family business at a very early age and had planned to join fully after school, he decided to go out and get outside experience first. * George notes that the Authoritarian leadership style of his father, although a good leader, made for a rather weak management team generally. * The 2 conceptual parts to George's 9-step succession planning roadmap: Family Transition Planning and Business Transition Planning. * George explains that formerly his goal would be to make everyone stay in the family business and be happy, but now he tries to understand the individual needs of each family member, to see if they fit into the family business as a whole. * It is necessary to revisit the topic of people's needs and be sure the business is aligned with taking care of these needs because those needs change over time. * The 2 Basic components of selling the family business: the financial side and the personal side. * Headwinds that perpetuate a multi-generational family wealth: FIST ( Family units, Inflation, Spending rate, Taxes) * George shares some insight from the book "Everybody matters", describing how attention to the little things can go a long way in making workers satisfied * Think about what you want your legacy to be; are you aligning yourself with that legacy? * Be Curious and Have Empathy Episode Timeline: * [00:49] A short overview of George's background and the Isaac family business * [05:12] George is the 3rd generation of the family business * [05:28] What sort of product lines is the business in? * [06:22] How did your story evolve into the family advisory work? * [09:44] About the A 9-step succession planning roadmap from George's book * [17:16] George highlights implications to consider in selling a family business * [23:37] The Family Business Wealth Evaporation Trap * [33:05] F.I.S.T * [36:51] Is it possible to maintain wealth at a reasonable level even though the family grows at a compound rate as the generations go on? * [39:47] George shares his opinion about children inheriting wealth. * [41:51] George recommends the book "Everybody Matters" by Bob Chapman * [44:31] From George to his kids *For more episodes go to * BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter (https://www.businessoffamily.net/newsletter) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: George Isaac. multi-generational wealth, family office, dynasty, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, George Isaac’s grandfather founded the first Isaac family businesses in 1899 in Bryan, Ohio, beginning a long history of serial entrepreneurship and the subsequent creation of several successful enterprises. A lot has changed since then, but the Isaac Group continues to thrive, now under board oversight and management by its third and fourth generation.

George grew up as a child of family business owners and has run several Isaac multigenerational family businesses as a CEO and board member. More recently, he is the founder and president of GAI Capital Ltd., a family business consulting firm and the author of a newly released book titled Your Business, Your Family, Your Legacy: Building a Multigenerational Family Business That Lasts

Your Business Your Family Your Legacy - George A Isaac

Standout Quotes:

  • "I realized that some of the things I did in running our family business and what a lot of people are doing today are not best practices"
  • "I used to think that the goal was to get everybody in the family to stay in the family business and figure out a way to make them live happily ever after... My goal now is to understand the real needs of each family member and see if they fit within what the family business is going to be about"
  • "The majority can rule and figure out what they want to do but you need to deal with the minority issues... so that you can satisfy their needs"
  • "The most important to me of the whole thing is just being certain that your ownership group is aligned"
  • "There are times when you should sell your family business"
  • "Shareholder returns are much different than business returns... Figuring out how you provide real-life shareholder returns is an important step that many of us don't recognize"
  • "Money is not everything by any means"

Key Takeaways:

  • Although George had gotten involved in the family business at a very early age and had planned to join fully after school, he decided to go out and get outside experience first.
  • George notes that the Authoritarian leadership style of his father, although a good leader, made for a rather weak management team generally.
  • The 2 conceptual parts to George's 9-step succession planning roadmap: Family Transition Planning and Business Transition Planning.
  • George explains that formerly his goal would be to make everyone stay in the family business and be happy, but now he tries to understand the individual needs of each family member, to see if they fit into the family business as a whole.
  • It is necessary to revisit the topic of people's needs and be sure the business is aligned with taking care of these needs because those needs change over time.
  • The 2 Basic components of selling the family business: the financial side and the personal side.
  • Headwinds that perpetuate a multi-generational family wealth: FIST ( Family units, Inflation, Spending rate, Taxes)
  • George shares some insight from the book "Everybody matters", describing how attention to the little things can go a long way in making workers satisfied
  • Think about what you want your legacy to be; are you aligning yourself with that legacy?
  • Be Curious and Have Empathy

Episode Timeline:

  • [00:49] A short overview of George's background and the Isaac family business
  • [05:12] George is the 3rd generation of the family business
  • [05:28] What sort of product lines is the business in?
  • [06:22] How did your story evolve into the family advisory work?
  • [09:44] About the A 9-step succession planning roadmap from George's book
  • [17:16] George highlights implications to consider in selling a family business
  • [23:37] The Family Business Wealth Evaporation Trap
  • [33:05] F.I.S.T
  • [36:51] Is it possible to maintain wealth at a reasonable level even though the family grows at a compound rate as the generations go on?
  • [39:47] George shares his opinion about children inheriting wealth.
  • [41:51] George recommends the book "Everybody Matters" by Bob Chapman
  • [44:31] From George to his kids

*For more episodes go to *
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: George Isaac.

Sponsored By:

Links:

]]> George Isaac’s grandfather founded the first Isaac family businesses in 1899 in Bryan, Ohio, beginning a long history of serial entrepreneurship and the subsequent creation of several successful enterprises. A lot has changed since then, but the Isaac Group continues to thrive, now under board oversight and management by its third and fourth generation.

George grew up as a child of family business owners and has run several Isaac multigenerational family businesses as a CEO and board member. More recently, he is the founder and president of GAI Capital Ltd., a family business consulting firm and the author of a newly released book titled Your Business, Your Family, Your Legacy: Building a Multigenerational Family Business That Lasts

Your Business Your Family Your Legacy - George A Isaac

Standout Quotes:

  • "I realized that some of the things I did in running our family business and what a lot of people are doing today are not best practices"
  • "I used to think that the goal was to get everybody in the family to stay in the family business and figure out a way to make them live happily ever after... My goal now is to understand the real needs of each family member and see if they fit within what the family business is going to be about"
  • "The majority can rule and figure out what they want to do but you need to deal with the minority issues... so that you can satisfy their needs"
  • "The most important to me of the whole thing is just being certain that your ownership group is aligned"
  • "There are times when you should sell your family business"
  • "Shareholder returns are much different than business returns... Figuring out how you provide real-life shareholder returns is an important step that many of us don't recognize"
  • "Money is not everything by any means"

Key Takeaways:

  • Although George had gotten involved in the family business at a very early age and had planned to join fully after school, he decided to go out and get outside experience first.
  • George notes that the Authoritarian leadership style of his father, although a good leader, made for a rather weak management team generally.
  • The 2 conceptual parts to George's 9-step succession planning roadmap: Family Transition Planning and Business Transition Planning.
  • George explains that formerly his goal would be to make everyone stay in the family business and be happy, but now he tries to understand the individual needs of each family member, to see if they fit into the family business as a whole.
  • It is necessary to revisit the topic of people's needs and be sure the business is aligned with taking care of these needs because those needs change over time.
  • The 2 Basic components of selling the family business: the financial side and the personal side.
  • Headwinds that perpetuate a multi-generational family wealth: FIST ( Family units, Inflation, Spending rate, Taxes)
  • George shares some insight from the book "Everybody matters", describing how attention to the little things can go a long way in making workers satisfied
  • Think about what you want your legacy to be; are you aligning yourself with that legacy?
  • Be Curious and Have Empathy

Episode Timeline:

  • [00:49] A short overview of George's background and the Isaac family business
  • [05:12] George is the 3rd generation of the family business
  • [05:28] What sort of product lines is the business in?
  • [06:22] How did your story evolve into the family advisory work?
  • [09:44] About the A 9-step succession planning roadmap from George's book
  • [17:16] George highlights implications to consider in selling a family business
  • [23:37] The Family Business Wealth Evaporation Trap
  • [33:05] F.I.S.T
  • [36:51] Is it possible to maintain wealth at a reasonable level even though the family grows at a compound rate as the generations go on?
  • [39:47] George shares his opinion about children inheriting wealth.
  • [41:51] George recommends the book "Everybody Matters" by Bob Chapman
  • [44:31] From George to his kids

*For more episodes go to *
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: George Isaac.

Sponsored By:

Links:

]]> Val & Annie Hollingsworth - 7th Gen Hollingsworth & Vose - Manufacturing Innovation Since 1728 [The Business of Family] http://www.businessoffamily.net/hollingsworth-vose 4ac19b5a-ba1a-4f5a-b0c1-50572662e138 Mon, 21 Dec 2020 19:00:00 +1000 Mike Boyd full 1 Mike Boyd Val Hollingsworth has served as President of Hollingsworth & Vose Companysince January 1997, and added the title of Chief Executive Officer in January 1998. Annie was elected to the H&V Board of Directors in 1997. She currently serves on the Nominating & Governance and the Executive Compensation committees of the Board. 1:02:56 no It's not often we get to hear from a 7th generation American manufacturing family with a company that dates back to 1728 and in their family since 1793. The Hollingsworth & Vose Company (https://www.hollingsworth-vose.com/en/Company/Company-History/) is a technical manufacturer with a rich history of R&D and innovation. Here to share their story with us are Val & Annie Hollingsworth, first cousins and both members of the 6th generation, stewarding this incredible and impactful company to the next generation. Val Hollingsworth has served as President of Hollingsworth & Vose Company (https://www.hollingsworth-vose.com/) since January 1997, and added the title of Chief Executive Officer in January 1998. He began in operations, working as a Shift Supervisor and as a Production Manager, then held a series of manufacturing, sales, and marketing positions. He served as Mill Manager of our West Groton Mill and General Manager of the Battery Separator Business Unit. While the majority of his career has been at H&V, he also spent two years in the Investment Banking Division at Lehman Brothers in New York. Val earned a BA from the University of Pennsylvania, and an MBA from Dartmouth's Tuck School of Business. Annie Hollingsworth was elected to the H&V Board of Directors (https://www.hollingsworth-vose.com/) in 1997. She currently serves on the Nominating & Governance and the Executive Compensation committees of the Board. Prior to joining the Board, Annie worked at H&V starting in 1984. She held several positions in Sales and Marketing including Product Manager, Battery Separator and Marketing Manager, Nonwovens. She was instrumental in getting H&V into the battery separator business. Annie’s father, Mark was the CEO of H&V from 1963 – 1983. Standout Quotes: * "Our company's history has been one of finding new and more technically oriented products in order to replace products that are maturing and obsolescing… Because the family had so much invested in this, we couldn't take the risk of being obsolete" - [Val Hollingsworth] * "If you're trying to optimize profitability, which we all are, how do you start to invest in things that may cannibalize an already existing product?" - [Val Hollingsworth] * "If we could be a good company.... that would attract good people, those good people would do good work" - [Val Hollingsworth] * "Ultimately, you have to trust other people to become the real experts and get in-depth, so it's more a matter of helping find and develop the right people and giving them what they need" - [Val Hollingsworth] * "There has always been an unwritten ethic of having to go the extra mile if you're from the family and you're in the business" - [Val Hollingsworth] * "If the family can contribute in helping set the right tone, and helping nurture the sense of purpose and values that are relevant, both for the family and ultimately for the company… that's invaluable in creating the atmosphere and dynamic that attracts good people" - [Val Hollingsworth] * "Be a good steward, Don't take it for granted" - [Val Hollingsworth] Key Takeaways: * Annie highlights that the company's resilience over the decades comes from a strong focus on customer relationships as well as Research and Development. * Val notes a conscious intent in the company from the beginning to continually reinvest, describing some of the intricate planning involved in the company's production line. * The business tries to keep up with a mantra of having the best product in the market, a better one in customer evaluation, and an even better one in the labs. * Val also describes the role of the workers in building the company's resilience, stressing the importance of having and keeping good people. * Trusting the employees plays a vital role in creating a balance for Annie and Val, between having knowledge of the technical expertise required in the family business and the job of stewardship. * Unlike Annie's Father who had to step up to the needs of the company without having much of a choice, Val and Annie were not under any pressure and joined purely out of interest. * The challenge for the older generation (6th generation) is to be open to change, to understand the important things that can make the company relevant to the next generation, and to know how to communicate with them. * Annie shares that she would encourage her kids to pursue their passion, as there are many ways to be a good family member or stockholder, but to ensure they continue to honor the company. * Val points out that with good stewardship, the family business could give meaningful contribution to the world. Episode Timeline: * [00:49] Meet Val and Annie Hollingsworth, as they share the early origins of their family business dating back to the late 1700s * [07:17] What is it about this company that has allowed it to remain so resilient for so many years? * [14:55] Val points out that the business also has multiple generations of employees * [16:42] Can you share some of the more notable products that the company is known for manufacturing today? * [22:14] Annie and Val each highlight events leading up to their entrance into the company and the journey so far. * [29:35] How do you balance understanding the depth of the technical expertise in the business with your stewardship role as a family member? * [33:33] Some of the strategies employed in keeping all the various stakeholders up to date with happenings in the business * [39:04] The business has an associate development program that exposes workers to the different areas of the business so that they can make a good match. * [43:38] Val describes the role of non-family members in the success of the overall business. * [46:30] How does the governance side of the family business work? * [54:24] Does the family do anything to ensure that the business's history is documented over time? * [55:50] The future of Hollingsworth and Vose. * [59:44] Annie's letter to her children * [01:00:40] Val's letter to his children For more episodes go to BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter (https://www.businessoffamily.net/newsletter) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guests: Annie Hollingsworth and Val Hollingsworth. multi-generational wealth, family office, dynasty, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, It's not often we get to hear from a 7th generation American manufacturing family with a company that dates back to 1728 and in their family since 1793. The Hollingsworth & Vose Company is a technical manufacturer with a rich history of R&D and innovation.

Here to share their story with us are Val & Annie Hollingsworth, first cousins and both members of the 6th generation, stewarding this incredible and impactful company to the next generation.

Val Hollingsworth has served as President of Hollingsworth & Vose Company since January 1997, and added the title of Chief Executive Officer in January 1998. He began in operations, working as a Shift Supervisor and as a Production Manager, then held a series of manufacturing, sales, and marketing positions. He served as Mill Manager of our West Groton Mill and General Manager of the Battery Separator Business Unit. While the majority of his career has been at H&V, he also spent two years in the Investment Banking Division at Lehman Brothers in New York. Val earned a BA from the University of Pennsylvania, and an MBA from Dartmouth's Tuck School of Business.

Annie Hollingsworth was elected to the H&V Board of Directors in 1997. She currently serves on the Nominating & Governance and the Executive Compensation committees of the Board. Prior to joining the Board, Annie worked at H&V starting in 1984. She held several positions in Sales and Marketing including Product Manager, Battery Separator and Marketing Manager, Nonwovens. She was instrumental in getting H&V into the battery separator business. Annie’s father, Mark was the CEO of H&V from 1963 – 1983.

Standout Quotes:

  • "Our company's history has been one of finding new and more technically oriented products in order to replace products that are maturing and obsolescing… Because the family had so much invested in this, we couldn't take the risk of being obsolete" - [Val Hollingsworth]
  • "If you're trying to optimize profitability, which we all are, how do you start to invest in things that may cannibalize an already existing product?" - [Val Hollingsworth]
  • "If we could be a good company.... that would attract good people, those good people would do good work" - [Val Hollingsworth]
  • "Ultimately, you have to trust other people to become the real experts and get in-depth, so it's more a matter of helping find and develop the right people and giving them what they need" - [Val Hollingsworth]
  • "There has always been an unwritten ethic of having to go the extra mile if you're from the family and you're in the business" - [Val Hollingsworth]
  • "If the family can contribute in helping set the right tone, and helping nurture the sense of purpose and values that are relevant, both for the family and ultimately for the company… that's invaluable in creating the atmosphere and dynamic that attracts good people" - [Val Hollingsworth]
  • "Be a good steward, Don't take it for granted" - [Val Hollingsworth]

Key Takeaways:

  • Annie highlights that the company's resilience over the decades comes from a strong focus on customer relationships as well as Research and Development.
  • Val notes a conscious intent in the company from the beginning to continually reinvest, describing some of the intricate planning involved in the company's production line.
  • The business tries to keep up with a mantra of having the best product in the market, a better one in customer evaluation, and an even better one in the labs.
  • Val also describes the role of the workers in building the company's resilience, stressing the importance of having and keeping good people.
  • Trusting the employees plays a vital role in creating a balance for Annie and Val, between having knowledge of the technical expertise required in the family business and the job of stewardship.
  • Unlike Annie's Father who had to step up to the needs of the company without having much of a choice, Val and Annie were not under any pressure and joined purely out of interest.
  • The challenge for the older generation (6th generation) is to be open to change, to understand the important things that can make the company relevant to the next generation, and to know how to communicate with them.
  • Annie shares that she would encourage her kids to pursue their passion, as there are many ways to be a good family member or stockholder, but to ensure they continue to honor the company.
  • Val points out that with good stewardship, the family business could give meaningful contribution to the world.

Episode Timeline:

  • [00:49] Meet Val and Annie Hollingsworth, as they share the early origins of their family business dating back to the late 1700s
  • [07:17] What is it about this company that has allowed it to remain so resilient for so many years?
  • [14:55] Val points out that the business also has multiple generations of employees
  • [16:42] Can you share some of the more notable products that the company is known for manufacturing today?
  • [22:14] Annie and Val each highlight events leading up to their entrance into the company and the journey so far.
  • [29:35] How do you balance understanding the depth of the technical expertise in the business with your stewardship role as a family member?
  • [33:33] Some of the strategies employed in keeping all the various stakeholders up to date with happenings in the business
  • [39:04] The business has an associate development program that exposes workers to the different areas of the business so that they can make a good match.
  • [43:38] Val describes the role of non-family members in the success of the overall business.
  • [46:30] How does the governance side of the family business work?
  • [54:24] Does the family do anything to ensure that the business's history is documented over time?
  • [55:50] The future of Hollingsworth and Vose.
  • [59:44] Annie's letter to her children
  • [01:00:40] Val's letter to his children

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guests: Annie Hollingsworth and Val Hollingsworth.

Sponsored By:

Links:

  • H&V - Hollingsworth & Vose — Hollingsworth & Vose Company (H&V) is a global manufacturer of nonwoven materials and engineered papers used in filtration, energy, and industrial applications. The firm is a privately held business founded in 1843; its headquarters are in East Walpole, Massachusetts, USA.
]]> It's not often we get to hear from a 7th generation American manufacturing family with a company that dates back to 1728 and in their family since 1793. The Hollingsworth & Vose Company is a technical manufacturer with a rich history of R&D and innovation.

Here to share their story with us are Val & Annie Hollingsworth, first cousins and both members of the 6th generation, stewarding this incredible and impactful company to the next generation.

Val Hollingsworth has served as President of Hollingsworth & Vose Company since January 1997, and added the title of Chief Executive Officer in January 1998. He began in operations, working as a Shift Supervisor and as a Production Manager, then held a series of manufacturing, sales, and marketing positions. He served as Mill Manager of our West Groton Mill and General Manager of the Battery Separator Business Unit. While the majority of his career has been at H&V, he also spent two years in the Investment Banking Division at Lehman Brothers in New York. Val earned a BA from the University of Pennsylvania, and an MBA from Dartmouth's Tuck School of Business.

Annie Hollingsworth was elected to the H&V Board of Directors in 1997. She currently serves on the Nominating & Governance and the Executive Compensation committees of the Board. Prior to joining the Board, Annie worked at H&V starting in 1984. She held several positions in Sales and Marketing including Product Manager, Battery Separator and Marketing Manager, Nonwovens. She was instrumental in getting H&V into the battery separator business. Annie’s father, Mark was the CEO of H&V from 1963 – 1983.

Standout Quotes:

  • "Our company's history has been one of finding new and more technically oriented products in order to replace products that are maturing and obsolescing… Because the family had so much invested in this, we couldn't take the risk of being obsolete" - [Val Hollingsworth]
  • "If you're trying to optimize profitability, which we all are, how do you start to invest in things that may cannibalize an already existing product?" - [Val Hollingsworth]
  • "If we could be a good company.... that would attract good people, those good people would do good work" - [Val Hollingsworth]
  • "Ultimately, you have to trust other people to become the real experts and get in-depth, so it's more a matter of helping find and develop the right people and giving them what they need" - [Val Hollingsworth]
  • "There has always been an unwritten ethic of having to go the extra mile if you're from the family and you're in the business" - [Val Hollingsworth]
  • "If the family can contribute in helping set the right tone, and helping nurture the sense of purpose and values that are relevant, both for the family and ultimately for the company… that's invaluable in creating the atmosphere and dynamic that attracts good people" - [Val Hollingsworth]
  • "Be a good steward, Don't take it for granted" - [Val Hollingsworth]

Key Takeaways:

  • Annie highlights that the company's resilience over the decades comes from a strong focus on customer relationships as well as Research and Development.
  • Val notes a conscious intent in the company from the beginning to continually reinvest, describing some of the intricate planning involved in the company's production line.
  • The business tries to keep up with a mantra of having the best product in the market, a better one in customer evaluation, and an even better one in the labs.
  • Val also describes the role of the workers in building the company's resilience, stressing the importance of having and keeping good people.
  • Trusting the employees plays a vital role in creating a balance for Annie and Val, between having knowledge of the technical expertise required in the family business and the job of stewardship.
  • Unlike Annie's Father who had to step up to the needs of the company without having much of a choice, Val and Annie were not under any pressure and joined purely out of interest.
  • The challenge for the older generation (6th generation) is to be open to change, to understand the important things that can make the company relevant to the next generation, and to know how to communicate with them.
  • Annie shares that she would encourage her kids to pursue their passion, as there are many ways to be a good family member or stockholder, but to ensure they continue to honor the company.
  • Val points out that with good stewardship, the family business could give meaningful contribution to the world.

Episode Timeline:

  • [00:49] Meet Val and Annie Hollingsworth, as they share the early origins of their family business dating back to the late 1700s
  • [07:17] What is it about this company that has allowed it to remain so resilient for so many years?
  • [14:55] Val points out that the business also has multiple generations of employees
  • [16:42] Can you share some of the more notable products that the company is known for manufacturing today?
  • [22:14] Annie and Val each highlight events leading up to their entrance into the company and the journey so far.
  • [29:35] How do you balance understanding the depth of the technical expertise in the business with your stewardship role as a family member?
  • [33:33] Some of the strategies employed in keeping all the various stakeholders up to date with happenings in the business
  • [39:04] The business has an associate development program that exposes workers to the different areas of the business so that they can make a good match.
  • [43:38] Val describes the role of non-family members in the success of the overall business.
  • [46:30] How does the governance side of the family business work?
  • [54:24] Does the family do anything to ensure that the business's history is documented over time?
  • [55:50] The future of Hollingsworth and Vose.
  • [59:44] Annie's letter to her children
  • [01:00:40] Val's letter to his children

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guests: Annie Hollingsworth and Val Hollingsworth.

Sponsored By:

Links:

  • H&V - Hollingsworth & Vose — Hollingsworth & Vose Company (H&V) is a global manufacturer of nonwoven materials and engineered papers used in filtration, energy, and industrial applications. The firm is a privately held business founded in 1843; its headquarters are in East Walpole, Massachusetts, USA.
]]> Jonathan Goldhill - 4th Generation Inheritor, Coach & Author of Disruptive Successor [The Business of Family] http://www.businessoffamily.net/jonathan-goldhill 6f85f884-9908-4ede-b350-e37209f07070 Mon, 30 Nov 2020 19:00:00 +1000 Mike Boyd full 1 Mike Boyd Jonathan Goldhill is an Experienced Coach to Entrepreneurs and Family-Owned Businesses. He states that the dwindling chances of multigenerational success are due in large part to the issues unique to family businesses that are often wrapped up in a tightly woven knot of unspoken plans. 50:52 no Jonathan Goldhill is an Experienced Coach to Entrepreneurs and Family-Owned Businesses. He states that the dwindling chances of multigenerational success are due in large part to the issues unique to family businesses that are often wrapped up in a tightly woven knot of unspoken plans. In his new book DISRUPTIVE SUCCESSOR (https://www.disruptivesuccessor.com/), Jonathan offers a proven framework and playbook for unwinding this knot, scaling up your business or planning your exit. Standout Quotes: * "Perhaps all multi-generational businesses should have a family constitution, while we're naming secretaries and treasurers... why not name a historian?" – [Jonathan Goldhill] * "There's no evil to money... it's the absence of instilling good values as to what the significance of that money means" – [Jonathan Goldhill] * "There's a requirement of the older generation that if they're going to leave money to a younger generation that they provide some guardrails around it" – [Jonathan Goldhill] * 96% of all business in the US are under a million dollars in revenue, and 64% of the GDP in the US is coming from family businesses. – [Jonathan Goldhill] * "It takes time for one generation to let go and release and enjoy what they've built, and trust the next generation to grow it bigger and do it safely" – [Jonathan Goldhill] * "I'm not in the business of family coaching, I'm in the families doing business coaching" – [Jonathan Goldhill] * The hardest part I think of running businesses is managing the people and getting the right people in your company. – [Jonathan Goldhill] * "There's a time for family, a time for business, and then there's time for the family business or the business of family where they overlap in between" – [Mike Boyd] * "Life is hard work and if you're not working on yourself then nobody else is going to" – [Jonathan Goldhill] Key Takeaways: * One of the downsides of being wealthy is that wealthy people can be very busy at the expense of spending time with children * Jonathan emphasizes the importance of a family business archive as he explains he does not know exactly how his grandfather's family business was shut down. * The blessing and curse of setting up a trust fund: there's lots of misinterpretation of younger generations when they inherit that wealth * There's a requirement of the older generation that if they're going to leave money to a younger generation that they provide some guardrails around it. * Jonathan explains that there is a generational gap with unspoken conversations between generations, and the families he knows had the best transitions communicated as peers. * Business coaching is not about hitting a mass number of people, it's about the business of the family. * If you're not having important conversations, then you're not building a healthy business. * Hard work isn't always in the form of just long hours and physical toil, it comes from commitment and dedication to improve oneself and be better. Episode Timeline: * [00:48] Introducing Jonathan Goldhill who shares some history of his grandfather's family business. * [08:09] How exactly did the business end? * [11:57] Jonathan describes one of his attempts at starting a new business and the challenges that effectively impeded the success of the business * [16:08] The impact of wealth on Jonathan growing up * [21:40] How did you take this formative experience from your own family to help other business families through their situations? * [32:50] Who typically engages you; is it more of the successor generation or the boomers who have built the family business and are looking to hand over? * [34:55] About Jonathan's book: "The Disruptive Successor" * [41:10] The role of the different cultures in the family business * [44:50] Defining "Family" * [48:00] A letter from Jonathan to his kids *For more episodes go to * BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter (https://www.businessoffamily.net/newsletter) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Jonathan Goldhill. multi-generational wealth, family office, dynasty, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, Jonathan Goldhill is an Experienced Coach to Entrepreneurs and Family-Owned Businesses. He states that the dwindling chances of multigenerational success are due in large part to the issues unique to family businesses that are often wrapped up in a tightly woven knot of unspoken plans.

In his new book DISRUPTIVE SUCCESSOR, Jonathan offers a proven framework and playbook for unwinding this knot, scaling up your business or planning your exit.

Standout Quotes:

  • "Perhaps all multi-generational businesses should have a family constitution, while we're naming secretaries and treasurers... why not name a historian?" – [Jonathan Goldhill]
  • "There's no evil to money... it's the absence of instilling good values as to what the significance of that money means" – [Jonathan Goldhill]
  • "There's a requirement of the older generation that if they're going to leave money to a younger generation that they provide some guardrails around it" – [Jonathan Goldhill]
  • 96% of all business in the US are under a million dollars in revenue, and 64% of the GDP in the US is coming from family businesses. – [Jonathan Goldhill]
  • "It takes time for one generation to let go and release and enjoy what they've built, and trust the next generation to grow it bigger and do it safely" – [Jonathan Goldhill]
  • "I'm not in the business of family coaching, I'm in the families doing business coaching" – [Jonathan Goldhill]
  • The hardest part I think of running businesses is managing the people and getting the right people in your company. – [Jonathan Goldhill]
  • "There's a time for family, a time for business, and then there's time for the family business or the business of family where they overlap in between" – [Mike Boyd]
  • "Life is hard work and if you're not working on yourself then nobody else is going to" – [Jonathan Goldhill]

Key Takeaways:

  • One of the downsides of being wealthy is that wealthy people can be very busy at the expense of spending time with children
  • Jonathan emphasizes the importance of a family business archive as he explains he does not know exactly how his grandfather's family business was shut down.
  • The blessing and curse of setting up a trust fund: there's lots of misinterpretation of younger generations when they inherit that wealth
  • There's a requirement of the older generation that if they're going to leave money to a younger generation that they provide some guardrails around it.
  • Jonathan explains that there is a generational gap with unspoken conversations between generations, and the families he knows had the best transitions communicated as peers.
  • Business coaching is not about hitting a mass number of people, it's about the business of the family.
  • If you're not having important conversations, then you're not building a healthy business.
  • Hard work isn't always in the form of just long hours and physical toil, it comes from commitment and dedication to improve oneself and be better.

Episode Timeline:

  • [00:48] Introducing Jonathan Goldhill who shares some history of his grandfather's family business.
  • [08:09] How exactly did the business end?
  • [11:57] Jonathan describes one of his attempts at starting a new business and the challenges that effectively impeded the success of the business
  • [16:08] The impact of wealth on Jonathan growing up
  • [21:40] How did you take this formative experience from your own family to help other business families through their situations?
  • [32:50] Who typically engages you; is it more of the successor generation or the boomers who have built the family business and are looking to hand over?
  • [34:55] About Jonathan's book: "The Disruptive Successor"
  • [41:10] The role of the different cultures in the family business
  • [44:50] Defining "Family"
  • [48:00] A letter from Jonathan to his kids

*For more episodes go to *
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Jonathan Goldhill.

Sponsored By:

Links:

]]> Jonathan Goldhill is an Experienced Coach to Entrepreneurs and Family-Owned Businesses. He states that the dwindling chances of multigenerational success are due in large part to the issues unique to family businesses that are often wrapped up in a tightly woven knot of unspoken plans.

In his new book DISRUPTIVE SUCCESSOR, Jonathan offers a proven framework and playbook for unwinding this knot, scaling up your business or planning your exit.

Standout Quotes:

  • "Perhaps all multi-generational businesses should have a family constitution, while we're naming secretaries and treasurers... why not name a historian?" – [Jonathan Goldhill]
  • "There's no evil to money... it's the absence of instilling good values as to what the significance of that money means" – [Jonathan Goldhill]
  • "There's a requirement of the older generation that if they're going to leave money to a younger generation that they provide some guardrails around it" – [Jonathan Goldhill]
  • 96% of all business in the US are under a million dollars in revenue, and 64% of the GDP in the US is coming from family businesses. – [Jonathan Goldhill]
  • "It takes time for one generation to let go and release and enjoy what they've built, and trust the next generation to grow it bigger and do it safely" – [Jonathan Goldhill]
  • "I'm not in the business of family coaching, I'm in the families doing business coaching" – [Jonathan Goldhill]
  • The hardest part I think of running businesses is managing the people and getting the right people in your company. – [Jonathan Goldhill]
  • "There's a time for family, a time for business, and then there's time for the family business or the business of family where they overlap in between" – [Mike Boyd]
  • "Life is hard work and if you're not working on yourself then nobody else is going to" – [Jonathan Goldhill]

Key Takeaways:

  • One of the downsides of being wealthy is that wealthy people can be very busy at the expense of spending time with children
  • Jonathan emphasizes the importance of a family business archive as he explains he does not know exactly how his grandfather's family business was shut down.
  • The blessing and curse of setting up a trust fund: there's lots of misinterpretation of younger generations when they inherit that wealth
  • There's a requirement of the older generation that if they're going to leave money to a younger generation that they provide some guardrails around it.
  • Jonathan explains that there is a generational gap with unspoken conversations between generations, and the families he knows had the best transitions communicated as peers.
  • Business coaching is not about hitting a mass number of people, it's about the business of the family.
  • If you're not having important conversations, then you're not building a healthy business.
  • Hard work isn't always in the form of just long hours and physical toil, it comes from commitment and dedication to improve oneself and be better.

Episode Timeline:

  • [00:48] Introducing Jonathan Goldhill who shares some history of his grandfather's family business.
  • [08:09] How exactly did the business end?
  • [11:57] Jonathan describes one of his attempts at starting a new business and the challenges that effectively impeded the success of the business
  • [16:08] The impact of wealth on Jonathan growing up
  • [21:40] How did you take this formative experience from your own family to help other business families through their situations?
  • [32:50] Who typically engages you; is it more of the successor generation or the boomers who have built the family business and are looking to hand over?
  • [34:55] About Jonathan's book: "The Disruptive Successor"
  • [41:10] The role of the different cultures in the family business
  • [44:50] Defining "Family"
  • [48:00] A letter from Jonathan to his kids

*For more episodes go to *
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Jonathan Goldhill.

Sponsored By:

Links:

]]> Dato’ Loy Teik Ngan - From Billionaire's Son to Losing it All and Starting Over [The Business of Family] http://www.businessoffamily.net/dato-loy-teik-ngan 6d1bcdb5-aba3-4260-8a97-374c101dac0b Mon, 23 Nov 2020 19:00:00 +1000 Mike Boyd full 1 Mike Boyd Dato’ Loy Teik Ngan is the eldest son of a well-known entrepreneur who built one of the largest business conglomerates in Malaysia, Teik Ngan took over the rein of his family company upon his father’s demise. Within a year, the sprawling business empire that took 35 years to build, collapsed under the weight of huge debts amidst the 1998 Asian financial crisis. 46:16 no Dato’ Loy Teik Ngan, the eldest son of a well-known entrepreneur who built one of the largest business conglomerates in Malaysia, Teik Ngan took over the rein of his family company upon his father’s demise. Within a year, the sprawling business empire that took 35 years to build, collapsed under the weight of huge debts amidst the 1998 Asian financial crisis. 14 years passed before all personal liabilities of his family from the days of the financial crisis were eventually settled. In the process, he built a new family business, in education. The Taylor’s Education Group (https://www.taylors.edu.my/index.html) is today the largest private education group in Malaysia. Focused on premium education, Taylor’s K-12 schools & higher education institutions are widely recognised as the top education institutions in their respective categories. Taylor’s institutions operate in Malaysia, Singapore & Vietnam. The struggles during the tough financial period of his life shaped Teik Ngan’s stewardship views for family business. Appreciating unity, his family has introduced concepts and activities that promote collaborative conversations & strengthen relationships. He is dedicated to the development & transition of his family’s next generation of 13. Teik Ngan’s family are active members of the Family Business Network Asia (https://fbnasia.org/en/loy-teik-ngan/) & he is the current President of the Board. Standout Quotes: * "We had to learn how to live together; we had to form a Living Together Committee" * "One thing that normally goes wrong when families end up in dispute is lack of proper communication" * "The family unit is important and sometimes we are subservient to the larger family" * "We try to always emphasize that the family comes before the business, the business allows us the blessing to be able to have the lifestyle that we have, but we have to work together as a family first" * "Do you want to be Rich or do you want to be King?" * "I would encourage my kids to understand the context in why they do what they do... What is it all for? Wealth is fleeting; wealth is something that we cannot take with us when we die" Key Takeaways: * Dato’ informed the bank he was indebted to, that they could either push him into bankruptcy or loan him more money to rebuild and pay back the company debts. * A living together committee had to be formed to help the large family live in one compound. * Knowing that lack of communication was a common cause of family disputes prompted the introduction of Forums to build positive communication. * Dato’ shares that the most important thing that has been done as leader of the family business in recent times is Annual Vacations. * The difference between "Family Business" and "Business family" is that in 'Family Business', the family comes before the business. * Guided by the shared family values, one of which is "Achievement and Learning", Dato’ explains how the next generation is encouraged to follow their passion even when it may be outside the family business. * The concept of a "Personal Portfolio" in creating an education plan for the family * The difference between being rich and being a king is that a king has ultimate authority, loyal subjects and lots he has to look after but being rich is just going for performance, the best point is somewhere between both * Dato’ explains the concept of the "Deathwalk", an exercise involving walking into our death, looking back at our current age, and giving ourselves the advice we would. Episode Timeline: * [00:49] Introducing Dato’ Loy and 'The Taylor's Education group' * [01:59] Dato’ narrates the events surrounding his transition into his father's company, which was is debt before the overwhelming challenges brought about by the Asian financial crisis * [07:02] Dato’ admits he was ill-prepared for the scale of complexity involved in the business, worsened by the lack of adequate resources to surmount the crisis at the time. * [08:43] From a collapsed family business to a thriving one * [13:45] Dato’ describes in detail the current size and scale of the family business * [14:50] How did these experiences shape your views towards stewardship of the family business? * [20:50] The living together committee * [23:28] Dato’ explains the different strategies employed to keep the family harmony * [29:25] Differentiating between "Family Business" and "Business family" * [33:35] Are you actively planning and anticipating succession with the next generation? * [35:16] The concept of a "Personal Portfolio" in creating an education plan for the family * [40:53] In the last 5 years, what new belief, behavior, or habit has most improved your family business? * [43:26] Dato's letter to his kids: 'the Deathwalk' *For more episodes go to * BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter (https://www.businessoffamily.net/newsletter) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Dato’ Loy Teik Ngan. multi-generational wealth, family office, dynasty, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, Dato’ Loy Teik Ngan, the eldest son of a well-known entrepreneur who built one of the largest business conglomerates in Malaysia, Teik Ngan took over the rein of his family company upon his father’s demise. Within a year, the sprawling business empire that took 35 years to build, collapsed under the weight of huge debts amidst the 1998 Asian financial crisis.

14 years passed before all personal liabilities of his family from the days of the financial crisis were eventually settled. In the process, he built a new family business, in education. The Taylor’s Education Group is today the largest private education group in Malaysia. Focused on premium education, Taylor’s K-12 schools & higher education institutions are widely recognised as the top education institutions in their respective categories. Taylor’s institutions operate in Malaysia, Singapore & Vietnam.

The struggles during the tough financial period of his life shaped Teik Ngan’s stewardship views for family business. Appreciating unity, his family has introduced concepts and activities that promote collaborative conversations & strengthen relationships. He is dedicated to the development & transition of his family’s next generation of 13.

Teik Ngan’s family are active members of the Family Business Network Asia & he is the current President of the Board.

Standout Quotes:

  • "We had to learn how to live together; we had to form a Living Together Committee"
  • "One thing that normally goes wrong when families end up in dispute is lack of proper communication"
  • "The family unit is important and sometimes we are subservient to the larger family"
  • "We try to always emphasize that the family comes before the business, the business allows us the blessing to be able to have the lifestyle that we have, but we have to work together as a family first"
  • "Do you want to be Rich or do you want to be King?"
  • "I would encourage my kids to understand the context in why they do what they do... What is it all for? Wealth is fleeting; wealth is something that we cannot take with us when we die"

Key Takeaways:

  • Dato’ informed the bank he was indebted to, that they could either push him into bankruptcy or loan him more money to rebuild and pay back the company debts.
  • A living together committee had to be formed to help the large family live in one compound.
  • Knowing that lack of communication was a common cause of family disputes prompted the introduction of Forums to build positive communication.
  • Dato’ shares that the most important thing that has been done as leader of the family business in recent times is Annual Vacations.
  • The difference between "Family Business" and "Business family" is that in 'Family Business', the family comes before the business.
  • Guided by the shared family values, one of which is "Achievement and Learning", Dato’ explains how the next generation is encouraged to follow their passion even when it may be outside the family business.
  • The concept of a "Personal Portfolio" in creating an education plan for the family
  • The difference between being rich and being a king is that a king has ultimate authority, loyal subjects and lots he has to look after but being rich is just going for performance, the best point is somewhere between both
  • Dato’ explains the concept of the "Deathwalk", an exercise involving walking into our death, looking back at our current age, and giving ourselves the advice we would.

Episode Timeline:

  • [00:49] Introducing Dato’ Loy and 'The Taylor's Education group'
  • [01:59] Dato’ narrates the events surrounding his transition into his father's company, which was is debt before the overwhelming challenges brought about by the Asian financial crisis
  • [07:02] Dato’ admits he was ill-prepared for the scale of complexity involved in the business, worsened by the lack of adequate resources to surmount the crisis at the time.
  • [08:43] From a collapsed family business to a thriving one
  • [13:45] Dato’ describes in detail the current size and scale of the family business
  • [14:50] How did these experiences shape your views towards stewardship of the family business?
  • [20:50] The living together committee
  • [23:28] Dato’ explains the different strategies employed to keep the family harmony
  • [29:25] Differentiating between "Family Business" and "Business family"
  • [33:35] Are you actively planning and anticipating succession with the next generation?
  • [35:16] The concept of a "Personal Portfolio" in creating an education plan for the family
  • [40:53] In the last 5 years, what new belief, behavior, or habit has most improved your family business?
  • [43:26] Dato's letter to his kids: 'the Deathwalk'

*For more episodes go to *
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Dato’ Loy Teik Ngan.

Sponsored By:

Links:

]]> Dato’ Loy Teik Ngan, the eldest son of a well-known entrepreneur who built one of the largest business conglomerates in Malaysia, Teik Ngan took over the rein of his family company upon his father’s demise. Within a year, the sprawling business empire that took 35 years to build, collapsed under the weight of huge debts amidst the 1998 Asian financial crisis.

14 years passed before all personal liabilities of his family from the days of the financial crisis were eventually settled. In the process, he built a new family business, in education. The Taylor’s Education Group is today the largest private education group in Malaysia. Focused on premium education, Taylor’s K-12 schools & higher education institutions are widely recognised as the top education institutions in their respective categories. Taylor’s institutions operate in Malaysia, Singapore & Vietnam.

The struggles during the tough financial period of his life shaped Teik Ngan’s stewardship views for family business. Appreciating unity, his family has introduced concepts and activities that promote collaborative conversations & strengthen relationships. He is dedicated to the development & transition of his family’s next generation of 13.

Teik Ngan’s family are active members of the Family Business Network Asia & he is the current President of the Board.

Standout Quotes:

  • "We had to learn how to live together; we had to form a Living Together Committee"
  • "One thing that normally goes wrong when families end up in dispute is lack of proper communication"
  • "The family unit is important and sometimes we are subservient to the larger family"
  • "We try to always emphasize that the family comes before the business, the business allows us the blessing to be able to have the lifestyle that we have, but we have to work together as a family first"
  • "Do you want to be Rich or do you want to be King?"
  • "I would encourage my kids to understand the context in why they do what they do... What is it all for? Wealth is fleeting; wealth is something that we cannot take with us when we die"

Key Takeaways:

  • Dato’ informed the bank he was indebted to, that they could either push him into bankruptcy or loan him more money to rebuild and pay back the company debts.
  • A living together committee had to be formed to help the large family live in one compound.
  • Knowing that lack of communication was a common cause of family disputes prompted the introduction of Forums to build positive communication.
  • Dato’ shares that the most important thing that has been done as leader of the family business in recent times is Annual Vacations.
  • The difference between "Family Business" and "Business family" is that in 'Family Business', the family comes before the business.
  • Guided by the shared family values, one of which is "Achievement and Learning", Dato’ explains how the next generation is encouraged to follow their passion even when it may be outside the family business.
  • The concept of a "Personal Portfolio" in creating an education plan for the family
  • The difference between being rich and being a king is that a king has ultimate authority, loyal subjects and lots he has to look after but being rich is just going for performance, the best point is somewhere between both
  • Dato’ explains the concept of the "Deathwalk", an exercise involving walking into our death, looking back at our current age, and giving ourselves the advice we would.

Episode Timeline:

  • [00:49] Introducing Dato’ Loy and 'The Taylor's Education group'
  • [01:59] Dato’ narrates the events surrounding his transition into his father's company, which was is debt before the overwhelming challenges brought about by the Asian financial crisis
  • [07:02] Dato’ admits he was ill-prepared for the scale of complexity involved in the business, worsened by the lack of adequate resources to surmount the crisis at the time.
  • [08:43] From a collapsed family business to a thriving one
  • [13:45] Dato’ describes in detail the current size and scale of the family business
  • [14:50] How did these experiences shape your views towards stewardship of the family business?
  • [20:50] The living together committee
  • [23:28] Dato’ explains the different strategies employed to keep the family harmony
  • [29:25] Differentiating between "Family Business" and "Business family"
  • [33:35] Are you actively planning and anticipating succession with the next generation?
  • [35:16] The concept of a "Personal Portfolio" in creating an education plan for the family
  • [40:53] In the last 5 years, what new belief, behavior, or habit has most improved your family business?
  • [43:26] Dato's letter to his kids: 'the Deathwalk'

*For more episodes go to *
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Dato’ Loy Teik Ngan.

Sponsored By:

Links:

]]> Chris Herschend - Third-Generation Owner of Theme Parks, Attractions & The Harlem Globetrotters [The Business of Family] http://www.businessoffamily.net/chris-herschend 0cd15a0f-296f-4c46-8db6-933c81544c3f Mon, 26 Oct 2020 19:00:00 +1000 Mike Boyd full 1 Mike Boyd Chris Herschend is a third-generation shareholder and Chairman of Herschend Enterprises. HFE properties span 26 locations and 10 states, employing over 10,000 people who collectively host over 13 million guests annually at properties including Silver Dollar City, Dollywood and the world-famous Harlem Globetrotters. 1:02:52 no Chris Herschend is a third-generation shareholder and Chairman of Missouri-based Herschend Enterprises (https://herschendenterprises.com/), the largest family (https://www.hfecorp.com/)-owned themed attractions company in the US. HFE properties span 26 locations and 10 states, employing over 10,000 people who collectively host over 13 million guests annually at properties including Silver Dollar City, Dollywood and the world-famous Harlem Globetrotters (https://www.harlemglobetrotters.com/). Standout Quotes: * "That's not your board members' primary role; to be experts on your business, they're really there to be a resource for you, a check for you..they also provide a level of protection" – Chris Herschend * "I hear a lot of family businesses that do not have shareholder agreements in place, and that's a mandatory first step, you've got to have a shareholder agreement before you do anything else" – Chris Herschend * "You can't trust somebody if you don't know them; you can't know them if you never see them" – Chris Herschend * "You'd be amazed at what millionaires would do for a $250 plane ticket" – Chris Herschend * "It's not about you and you are not your own" – Chris Herschend Key Takeaways: * Humility and Accountability define the principle behind the business model of a majority independent board for their family-owned company. * The primary role of your board members is not to be experts in your business, they are there to be a resource, a check, and for protection * Humility of an owner who wants a true board is so attractive to high-quality board members and business thinkers that they want to be a part of that * You need to know where you are in the generational business cycle * The primary role of the board is to be truth-tellers * One of the hardest things you have to do as a larger family is to define 'Family' * The simplest most important thing done in their family business is "Gathering" * Chris emphasizes to his kids that their job is to steward the family business Episode Timeline: * [00:49] An Introduction to Chris Herschend * [01:26] The mission of Herschend Enterprises is to create memories worth repeating; Chris shares the history of the company * [07:26] The day to day operations of the business as a theme park * [10:10] Chris gives a detailed description of the governing structure of the family business * [13:30] Reasons behind the business model of a majority independent board for a family-owned company. * [21:33] The family is constantly around the business but rarely in the business. * [26:03] Chris describes his role in the family business * [35:40] The different phases or eras in handling the wealth of the family business * [48:50] Are there any key resources that your family has invested in to get to where you are today? * [56:27] A letter from Chris to his kids *For more episodes go to * BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter (https://www.businessoffamily.net/newsletter) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Chris Herschend. multi-generational wealth, family office, dynasty, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, Chris Herschend is a third-generation shareholder and Chairman of Missouri-based Herschend Enterprises, the largest family-owned themed attractions company in the US. HFE properties span 26 locations and 10 states, employing over 10,000 people who collectively host over 13 million guests annually at properties including Silver Dollar City, Dollywood and the world-famous Harlem Globetrotters.

Standout Quotes:

  • "That's not your board members' primary role; to be experts on your business, they're really there to be a resource for you, a check for you..they also provide a level of protection" – Chris Herschend
  • "I hear a lot of family businesses that do not have shareholder agreements in place, and that's a mandatory first step, you've got to have a shareholder agreement before you do anything else" – Chris Herschend
  • "You can't trust somebody if you don't know them; you can't know them if you never see them" – Chris Herschend
  • "You'd be amazed at what millionaires would do for a $250 plane ticket" – Chris Herschend
  • "It's not about you and you are not your own" – Chris Herschend

Key Takeaways:

  • Humility and Accountability define the principle behind the business model of a majority independent board for their family-owned company.
  • The primary role of your board members is not to be experts in your business, they are there to be a resource, a check, and for protection
  • Humility of an owner who wants a true board is so attractive to high-quality board members and business thinkers that they want to be a part of that
  • You need to know where you are in the generational business cycle
  • The primary role of the board is to be truth-tellers
  • One of the hardest things you have to do as a larger family is to define 'Family'
  • The simplest most important thing done in their family business is "Gathering"
  • Chris emphasizes to his kids that their job is to steward the family business

Episode Timeline:

  • [00:49] An Introduction to Chris Herschend
  • [01:26] The mission of Herschend Enterprises is to create memories worth repeating; Chris shares the history of the company
  • [07:26] The day to day operations of the business as a theme park
  • [10:10] Chris gives a detailed description of the governing structure of the family business
  • [13:30] Reasons behind the business model of a majority independent board for a family-owned company.
  • [21:33] The family is constantly around the business but rarely in the business.
  • [26:03] Chris describes his role in the family business
  • [35:40] The different phases or eras in handling the wealth of the family business
  • [48:50] Are there any key resources that your family has invested in to get to where you are today?
  • [56:27] A letter from Chris to his kids

*For more episodes go to *
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Chris Herschend.

Sponsored By:

Links:

  • Herschend Enterprises — Herschend Enterprises is a family of companies who focus on family entertainment. For nearly six decades, Herschend Enterprises has operated with the purpose to bring families closer together by Creating Memories Worth Repeating®.
  • Harlem Globetrotters — The Harlem Globetrotters are worldwide icons, synonymous with family entertainment and great basketball skills. The Globetrotters represent 90-plus years of breaking down barriers, acts of goodwill and a commitment to fans that goes beyond the game.
  • Herschend Family Entertainment – America's Largest Family-Owned Themed Attractions Corporation — Herschend Family works daily to create wholesome, immersive entertainment experiences with soul and depth. Experiences for every generation of our family. Sometimes thrilling. Sometimes lighthearted. Always distinctive. Their award-winning theme parks, entertainment and attractions aim to inspire happiness and family bonding.
]]> Chris Herschend is a third-generation shareholder and Chairman of Missouri-based Herschend Enterprises, the largest family-owned themed attractions company in the US. HFE properties span 26 locations and 10 states, employing over 10,000 people who collectively host over 13 million guests annually at properties including Silver Dollar City, Dollywood and the world-famous Harlem Globetrotters.

Standout Quotes:

  • "That's not your board members' primary role; to be experts on your business, they're really there to be a resource for you, a check for you..they also provide a level of protection" – Chris Herschend
  • "I hear a lot of family businesses that do not have shareholder agreements in place, and that's a mandatory first step, you've got to have a shareholder agreement before you do anything else" – Chris Herschend
  • "You can't trust somebody if you don't know them; you can't know them if you never see them" – Chris Herschend
  • "You'd be amazed at what millionaires would do for a $250 plane ticket" – Chris Herschend
  • "It's not about you and you are not your own" – Chris Herschend

Key Takeaways:

  • Humility and Accountability define the principle behind the business model of a majority independent board for their family-owned company.
  • The primary role of your board members is not to be experts in your business, they are there to be a resource, a check, and for protection
  • Humility of an owner who wants a true board is so attractive to high-quality board members and business thinkers that they want to be a part of that
  • You need to know where you are in the generational business cycle
  • The primary role of the board is to be truth-tellers
  • One of the hardest things you have to do as a larger family is to define 'Family'
  • The simplest most important thing done in their family business is "Gathering"
  • Chris emphasizes to his kids that their job is to steward the family business

Episode Timeline:

  • [00:49] An Introduction to Chris Herschend
  • [01:26] The mission of Herschend Enterprises is to create memories worth repeating; Chris shares the history of the company
  • [07:26] The day to day operations of the business as a theme park
  • [10:10] Chris gives a detailed description of the governing structure of the family business
  • [13:30] Reasons behind the business model of a majority independent board for a family-owned company.
  • [21:33] The family is constantly around the business but rarely in the business.
  • [26:03] Chris describes his role in the family business
  • [35:40] The different phases or eras in handling the wealth of the family business
  • [48:50] Are there any key resources that your family has invested in to get to where you are today?
  • [56:27] A letter from Chris to his kids

*For more episodes go to *
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Chris Herschend.

Sponsored By:

Links:

  • Herschend Enterprises — Herschend Enterprises is a family of companies who focus on family entertainment. For nearly six decades, Herschend Enterprises has operated with the purpose to bring families closer together by Creating Memories Worth Repeating®.
  • Harlem Globetrotters — The Harlem Globetrotters are worldwide icons, synonymous with family entertainment and great basketball skills. The Globetrotters represent 90-plus years of breaking down barriers, acts of goodwill and a commitment to fans that goes beyond the game.
  • Herschend Family Entertainment – America's Largest Family-Owned Themed Attractions Corporation — Herschend Family works daily to create wholesome, immersive entertainment experiences with soul and depth. Experiences for every generation of our family. Sometimes thrilling. Sometimes lighthearted. Always distinctive. Their award-winning theme parks, entertainment and attractions aim to inspire happiness and family bonding.
]]> Spencer Burke - The St Louis Trust Company Multi-Family Office [The Business of Family] http://www.businessoffamily.net/spencer-burke 09b44027-41d8-4888-a90e-f72641099963 Mon, 12 Oct 2020 19:00:00 +1000 Mike Boyd full 1 Mike Boyd Spencer is a Principal with The St. Louis Trust Company, a multi-family office for over 50 families in the United States managing in excess of US $10 billion, where he heads the Family Business Advisory Practice. Spencer is also an Adjunct Lecturer in Family Business at the Olin Business School at Washington University in St. Louis. 55:59 no Spencer is a Principal with The St. Louis Trust Company (https://www.stlouistrust.com/), a multi-family office for 50 families in the United States managing in excess of US $10 billion, where he heads the Family Business Advisory Practice. Spencer is also an Adjunct Lecturer in Family Business at the Olin Business School (https://olin.wustl.edu/EN-US/Pages/default.aspx) at Washington University in St. Louis. Standout Quotes: * “Multi-family businesses are acts of inadvertence in the initial years or the initial generation, they're usually a force of necessity, and then it becomes more opportunistic as the family gets bigger, and by the time you get to the 3rd generation it's more process-driven and ultimately becomes strategic” – Spencer Burke * “At the end of the day, it's not about having a board and all that, it's about the quality of the people, the vision, the culture and purpose of the organization; that's what creates great companies of all kinds and family business is just a large subset of great companies in the world” – Spencer Burke * "In the United States, you can own 100% of the votes and not own any of the economics of a company" – Spencer Burke * "I don't think there's anything better to own than your own company and the ability to compound earnings" – Spencer Burke * “When it is time to sell the business that's great, that's not a failure” – Spencer Burke * “The key to happiness is, don't let other people be the measure of your success; If you're not happy doing what you're doing, go do something else” – Spencer Burke Key Takeaways: * Some families walk away from a wealth of knowledge because they don't know what they're getting; although they need the advice, they just have the wrong person giving it to them * Multi-generational family businesses are acts of inadvertence in the initial years or the initial generation, but get more opportunistic as the family gets bigger, and by the third generation, ultimately becomes strategic and process-driven. * “Hygiene" refers to some cost-free measures that can be set up in the beginning to increase your chances of getting beyond the 2nd and 3rd generation, however, if not taken care of, you have no chance of success * The key characteristic shared by enduring companies whether family business or not is "Total Control by One Person” * In most families where there are issues, how the socio-emotional wealth is getting shared is just as prominent as how the money is being shared. * To succeed over long periods (100 years), successful families have extracted a great deal of wealth out of the business so they have the resources to protect the business when necessary. * The 3 fundamental factors that may impede the success of a family business; the Family tree is the first because it tends to grow faster than most business * One of the number 1 keys to family business success is "Set the policies for the future when there are no names attached to them". * The matriarch of the family is usually the keeper of family harmony, the patriarch of the family is usually the keeper of running the great business, but the patriarch more often than not, does not have the power in that family. * The three interest groups represented in a family business; the people in the business, the people that own the business, and the people that are just in the family neither as owners nor in the business. * The key to happiness is ‘don't let other people be the measure of your success; If you're not happy doing what you're doing, go do something else’ Episode Timeline: * [01:28] A concise overview of Spencer's professional background * [07:55] Spencer's thesis on starting a multi-generational family business * [10:50] Instead of a Family Business Course, Spencer calls his course Ownership Insights * [11:36] Common characteristics shared by enduring companies whether family business or not * [14:19] The concept of Spoils of Ownership * [16:35] The 'tyranny of the internal rate of return' versus 'creation of real wealth' * [20:41] The 3-circle diagram (http://newsletter.mikeboyd.com.au/issues/three-circle-model-of-the-family-business-system-282619) in family business education depicts Family, Business, and Ownership, with how they interact. * [22:32] The 3 fundamental undertows that affect a family business * [28:57] The continuum of behaviors; a Business Family and a Family business. * [35:20] The tradeoff between running a great business and maintaining family harmony * [38:00] How is family harmony maintained as businesses progress through multiple generations? * [53:40] A letter from Spencer to his kids. For more episodes go to BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter (https://www.businessoffamily.net/newsletter) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Spencer Burke. multi-generational wealth, family office, dynasty, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, Spencer is a Principal with The St. Louis Trust Company, a multi-family office for 50 families in the United States managing in excess of US $10 billion, where he heads the Family Business Advisory Practice. Spencer is also an Adjunct Lecturer in Family Business at the Olin Business School at Washington University in St. Louis.

Standout Quotes:

  • “Multi-family businesses are acts of inadvertence in the initial years or the initial generation, they're usually a force of necessity, and then it becomes more opportunistic as the family gets bigger, and by the time you get to the 3rd generation it's more process-driven and ultimately becomes strategic” – Spencer Burke
  • “At the end of the day, it's not about having a board and all that, it's about the quality of the people, the vision, the culture and purpose of the organization; that's what creates great companies of all kinds and family business is just a large subset of great companies in the world” – Spencer Burke
  • "In the United States, you can own 100% of the votes and not own any of the economics of a company" – Spencer Burke
  • "I don't think there's anything better to own than your own company and the ability to compound earnings" – Spencer Burke
  • “When it is time to sell the business that's great, that's not a failure” – Spencer Burke
  • “The key to happiness is, don't let other people be the measure of your success; If you're not happy doing what you're doing, go do something else” – Spencer Burke

Key Takeaways:

  • Some families walk away from a wealth of knowledge because they don't know what they're getting; although they need the advice, they just have the wrong person giving it to them
  • Multi-generational family businesses are acts of inadvertence in the initial years or the initial generation, but get more opportunistic as the family gets bigger, and by the third generation, ultimately becomes strategic and process-driven.
  • “Hygiene" refers to some cost-free measures that can be set up in the beginning to increase your chances of getting beyond the 2nd and 3rd generation, however, if not taken care of, you have no chance of success
  • The key characteristic shared by enduring companies whether family business or not is "Total Control by One Person”
  • In most families where there are issues, how the socio-emotional wealth is getting shared is just as prominent as how the money is being shared.
  • To succeed over long periods (100 years), successful families have extracted a great deal of wealth out of the business so they have the resources to protect the business when necessary.
  • The 3 fundamental factors that may impede the success of a family business; the Family tree is the first because it tends to grow faster than most business
  • One of the number 1 keys to family business success is "Set the policies for the future when there are no names attached to them".
  • The matriarch of the family is usually the keeper of family harmony, the patriarch of the family is usually the keeper of running the great business, but the patriarch more often than not, does not have the power in that family.
  • The three interest groups represented in a family business; the people in the business, the people that own the business, and the people that are just in the family neither as owners nor in the business.
  • The key to happiness is ‘don't let other people be the measure of your success; If you're not happy doing what you're doing, go do something else’

Episode Timeline:

  • [01:28] A concise overview of Spencer's professional background
  • [07:55] Spencer's thesis on starting a multi-generational family business
  • [10:50] Instead of a Family Business Course, Spencer calls his course Ownership Insights
  • [11:36] Common characteristics shared by enduring companies whether family business or not
  • [14:19] The concept of Spoils of Ownership
  • [16:35] The 'tyranny of the internal rate of return' versus 'creation of real wealth'
  • [20:41] The 3-circle diagram in family business education depicts Family, Business, and Ownership, with how they interact.
  • [22:32] The 3 fundamental undertows that affect a family business
  • [28:57] The continuum of behaviors; a Business Family and a Family business.
  • [35:20] The tradeoff between running a great business and maintaining family harmony
  • [38:00] How is family harmony maintained as businesses progress through multiple generations?
  • [53:40] A letter from Spencer to his kids.

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Spencer Burke.

Sponsored By:

Links:

]]> Spencer is a Principal with The St. Louis Trust Company, a multi-family office for 50 families in the United States managing in excess of US $10 billion, where he heads the Family Business Advisory Practice. Spencer is also an Adjunct Lecturer in Family Business at the Olin Business School at Washington University in St. Louis.

Standout Quotes:

  • “Multi-family businesses are acts of inadvertence in the initial years or the initial generation, they're usually a force of necessity, and then it becomes more opportunistic as the family gets bigger, and by the time you get to the 3rd generation it's more process-driven and ultimately becomes strategic” – Spencer Burke
  • “At the end of the day, it's not about having a board and all that, it's about the quality of the people, the vision, the culture and purpose of the organization; that's what creates great companies of all kinds and family business is just a large subset of great companies in the world” – Spencer Burke
  • "In the United States, you can own 100% of the votes and not own any of the economics of a company" – Spencer Burke
  • "I don't think there's anything better to own than your own company and the ability to compound earnings" – Spencer Burke
  • “When it is time to sell the business that's great, that's not a failure” – Spencer Burke
  • “The key to happiness is, don't let other people be the measure of your success; If you're not happy doing what you're doing, go do something else” – Spencer Burke

Key Takeaways:

  • Some families walk away from a wealth of knowledge because they don't know what they're getting; although they need the advice, they just have the wrong person giving it to them
  • Multi-generational family businesses are acts of inadvertence in the initial years or the initial generation, but get more opportunistic as the family gets bigger, and by the third generation, ultimately becomes strategic and process-driven.
  • “Hygiene" refers to some cost-free measures that can be set up in the beginning to increase your chances of getting beyond the 2nd and 3rd generation, however, if not taken care of, you have no chance of success
  • The key characteristic shared by enduring companies whether family business or not is "Total Control by One Person”
  • In most families where there are issues, how the socio-emotional wealth is getting shared is just as prominent as how the money is being shared.
  • To succeed over long periods (100 years), successful families have extracted a great deal of wealth out of the business so they have the resources to protect the business when necessary.
  • The 3 fundamental factors that may impede the success of a family business; the Family tree is the first because it tends to grow faster than most business
  • One of the number 1 keys to family business success is "Set the policies for the future when there are no names attached to them".
  • The matriarch of the family is usually the keeper of family harmony, the patriarch of the family is usually the keeper of running the great business, but the patriarch more often than not, does not have the power in that family.
  • The three interest groups represented in a family business; the people in the business, the people that own the business, and the people that are just in the family neither as owners nor in the business.
  • The key to happiness is ‘don't let other people be the measure of your success; If you're not happy doing what you're doing, go do something else’

Episode Timeline:

  • [01:28] A concise overview of Spencer's professional background
  • [07:55] Spencer's thesis on starting a multi-generational family business
  • [10:50] Instead of a Family Business Course, Spencer calls his course Ownership Insights
  • [11:36] Common characteristics shared by enduring companies whether family business or not
  • [14:19] The concept of Spoils of Ownership
  • [16:35] The 'tyranny of the internal rate of return' versus 'creation of real wealth'
  • [20:41] The 3-circle diagram in family business education depicts Family, Business, and Ownership, with how they interact.
  • [22:32] The 3 fundamental undertows that affect a family business
  • [28:57] The continuum of behaviors; a Business Family and a Family business.
  • [35:20] The tradeoff between running a great business and maintaining family harmony
  • [38:00] How is family harmony maintained as businesses progress through multiple generations?
  • [53:40] A letter from Spencer to his kids.

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Spencer Burke.

Sponsored By:

Links:

]]> Fred Mouawad - Billionaire Diamond Owner & 4th Generation Co-Guardian [The Business of Family] http://www.businessoffamily.net/fred-mouawad b2977a73-9c42-4e96-8e8c-9ad1272903e9 Mon, 31 Aug 2020 19:00:00 +1000 Mike Boyd full 1 Mike Boyd A global citizen, portfolio entrepreneur, and fourth-generation co-guardian of the Mouawad family jewelry business, Fred Mouawad’s story is as incredible as it is impactful. Listen in to learn how he brings a new and enterprising perspective to his family’s multi-generational success. 1:01:27 no A global citizen, portfolio entrepreneur, and fourth-generation co-guardian of the Mouawad (https://www.mouawad.com/) family jewelry business, Fred Mouawad (http://fredmouawad.com/)’s story is as incredible as it is impactful. Listen in to learn how he brings a new and enterprising perspective to his family’s multi-generational success. Fred Mouawad is described often in the media as a billionaire diamond owner but has also accomplished countless entrepreneurial ventures outside of the family business and offers some key advice on stewarding the next generation. Standout Quotes * “We have the inventory; we have the expertise. If we create masterpieces and truly craft extraordinary and position the brand at the very top, then we would be able to build a very niche business. That would stand in the marketplace and have a very clear image.” – Fred Mouawad [12:29] * “It was interesting to see how we had to reinvent our business and reposition it based on where we thought the world was moving towards. It was an exercise of not necessarily innovation but adaptation and being able to forecast how the markets are going to change over the long run and how us ourselves should prepare for that change.” - Fred Mouawad [14:29] * “Our responsibility was to guard that heritage. That’s why we call it co-guardians to look after it and start thinking long-term because our job is to look after it for only a certain period of time. It’s a transition from generation to generation.” - Fred Mouawad [24:14] * “All of the day-to-day is done by professionals. We have a CO for the group, he’s a general manager, for the entire operation. Why did we come up with that model? We came up with this model because we did not want to start blaming each other for executional problems.” - Fred Mouawad [27:16] * “I think it’s all about preparing the next generation to be the right stewards for the organization and how do you get there? You get there by exposing them to the business, by having them get richer with experience. By exposing them to different elements in the business and outside the business.” - Fred Mouawad [36:26] * “The best investment I have ever made was investing in myself, investing in my education, and having the courage to gain new experiences. Always being an avid learner. This is what I find the most satisfying, gratifying, and what enables me to do what I do. It’s investing in knowledge and experience and trying to share that with your team.” - Fred Mouawad [50:11] * “The most important thing that I would want my children to understand is that life is a journey and life requires that they take responsibility. They should keep on stretching themselves by learning, having the courage to try new things, by figuring out how to make the lives of other people better. How can they make a positive impact and how can they always behave based on core values that meet high ethical standards.” - Fred Mouawad [58:43] Key Takeaways * The incredible and impactful story of the Mouawad family business * How standardizing a brand image benefits the scalability of a business * Mouawad’s mission to craft the extraordinary * How to prepare the next generation of a successful multi-generational business * What co-guardianship can mean for a family and the business they run * Why building relationships with capable people leads to scalable businesses * How your best investment may be investing in yourself * Instilling in the future generation the skills to make a positive impact and maintain high ethical standards Episode Timeline [1:58] The background of Mouawad’s generational success [8:01] Modern day Mouawad jewelry business and what it represents [17:38] High-end masterpieces and being recognized for Guinness World Records [20:58] The value in business of natural vs synthetic diamonds [22:39] Preparing the fifth generation of the Mouawad family business [25:20] The idea of co-guardianship when running a multi-generational business [29:25] Shaping the next generation for business success [35:43] Teaching the skills to have another successful generation of Mouawad [39:26] Formation of family guidelines as family business becomes a family enterprise [42:27] Fred Mouawad’s entrepreneurial successes [49:58] What Fred’s best investment was [51:11] What it means to be a self-described global citizen [52:47] How to effectively raise motivated children in wealth [55:35] The transition from full control to family business co-guardianship [58:24] Fred’s focus on allowing his children to have a positive impact in their life’s journey For more episodes go to BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter (https://www.businessoffamily.net/newsletter) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Fred Mouawad. multi-generational wealth, family office, dynasty, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, A global citizen, portfolio entrepreneur, and fourth-generation co-guardian of the Mouawad family jewelry business, Fred Mouawad’s story is as incredible as it is impactful. Listen in to learn how he brings a new and enterprising perspective to his family’s multi-generational success.

Fred Mouawad is described often in the media as a billionaire diamond owner but has also accomplished countless entrepreneurial ventures outside of the family business and offers some key advice on stewarding the next generation.

Standout Quotes

  • “We have the inventory; we have the expertise. If we create masterpieces and truly craft extraordinary and position the brand at the very top, then we would be able to build a very niche business. That would stand in the marketplace and have a very clear image.” – Fred Mouawad [12:29]
  • “It was interesting to see how we had to reinvent our business and reposition it based on where we thought the world was moving towards. It was an exercise of not necessarily innovation but adaptation and being able to forecast how the markets are going to change over the long run and how us ourselves should prepare for that change.” - Fred Mouawad [14:29]
  • “Our responsibility was to guard that heritage. That’s why we call it co-guardians to look after it and start thinking long-term because our job is to look after it for only a certain period of time. It’s a transition from generation to generation.” - Fred Mouawad [24:14]
  • “All of the day-to-day is done by professionals. We have a CO for the group, he’s a general manager, for the entire operation. Why did we come up with that model? We came up with this model because we did not want to start blaming each other for executional problems.” - Fred Mouawad [27:16]
  • “I think it’s all about preparing the next generation to be the right stewards for the organization and how do you get there? You get there by exposing them to the business, by having them get richer with experience. By exposing them to different elements in the business and outside the business.” - Fred Mouawad [36:26]
  • “The best investment I have ever made was investing in myself, investing in my education, and having the courage to gain new experiences. Always being an avid learner. This is what I find the most satisfying, gratifying, and what enables me to do what I do. It’s investing in knowledge and experience and trying to share that with your team.” - Fred Mouawad [50:11]
  • “The most important thing that I would want my children to understand is that life is a journey and life requires that they take responsibility. They should keep on stretching themselves by learning, having the courage to try new things, by figuring out how to make the lives of other people better. How can they make a positive impact and how can they always behave based on core values that meet high ethical standards.” - Fred Mouawad [58:43]

Key Takeaways

  • The incredible and impactful story of the Mouawad family business
  • How standardizing a brand image benefits the scalability of a business
  • Mouawad’s mission to craft the extraordinary
  • How to prepare the next generation of a successful multi-generational business
  • What co-guardianship can mean for a family and the business they run
  • Why building relationships with capable people leads to scalable businesses
  • How your best investment may be investing in yourself
  • Instilling in the future generation the skills to make a positive impact and maintain high ethical standards

Episode Timeline

[1:58] The background of Mouawad’s generational success
[8:01] Modern day Mouawad jewelry business and what it represents
[17:38] High-end masterpieces and being recognized for Guinness World Records
[20:58] The value in business of natural vs synthetic diamonds
[22:39] Preparing the fifth generation of the Mouawad family business
[25:20] The idea of co-guardianship when running a multi-generational business
[29:25] Shaping the next generation for business success
[35:43] Teaching the skills to have another successful generation of Mouawad
[39:26] Formation of family guidelines as family business becomes a family enterprise
[42:27] Fred Mouawad’s entrepreneurial successes
[49:58] What Fred’s best investment was
[51:11] What it means to be a self-described global citizen
[52:47] How to effectively raise motivated children in wealth
[55:35] The transition from full control to family business co-guardianship
[58:24] Fred’s focus on allowing his children to have a positive impact in their life’s journey

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Fred Mouawad.

Sponsored By:

Links:

]]> A global citizen, portfolio entrepreneur, and fourth-generation co-guardian of the Mouawad family jewelry business, Fred Mouawad’s story is as incredible as it is impactful. Listen in to learn how he brings a new and enterprising perspective to his family’s multi-generational success.

Fred Mouawad is described often in the media as a billionaire diamond owner but has also accomplished countless entrepreneurial ventures outside of the family business and offers some key advice on stewarding the next generation.

Standout Quotes

  • “We have the inventory; we have the expertise. If we create masterpieces and truly craft extraordinary and position the brand at the very top, then we would be able to build a very niche business. That would stand in the marketplace and have a very clear image.” – Fred Mouawad [12:29]
  • “It was interesting to see how we had to reinvent our business and reposition it based on where we thought the world was moving towards. It was an exercise of not necessarily innovation but adaptation and being able to forecast how the markets are going to change over the long run and how us ourselves should prepare for that change.” - Fred Mouawad [14:29]
  • “Our responsibility was to guard that heritage. That’s why we call it co-guardians to look after it and start thinking long-term because our job is to look after it for only a certain period of time. It’s a transition from generation to generation.” - Fred Mouawad [24:14]
  • “All of the day-to-day is done by professionals. We have a CO for the group, he’s a general manager, for the entire operation. Why did we come up with that model? We came up with this model because we did not want to start blaming each other for executional problems.” - Fred Mouawad [27:16]
  • “I think it’s all about preparing the next generation to be the right stewards for the organization and how do you get there? You get there by exposing them to the business, by having them get richer with experience. By exposing them to different elements in the business and outside the business.” - Fred Mouawad [36:26]
  • “The best investment I have ever made was investing in myself, investing in my education, and having the courage to gain new experiences. Always being an avid learner. This is what I find the most satisfying, gratifying, and what enables me to do what I do. It’s investing in knowledge and experience and trying to share that with your team.” - Fred Mouawad [50:11]
  • “The most important thing that I would want my children to understand is that life is a journey and life requires that they take responsibility. They should keep on stretching themselves by learning, having the courage to try new things, by figuring out how to make the lives of other people better. How can they make a positive impact and how can they always behave based on core values that meet high ethical standards.” - Fred Mouawad [58:43]

Key Takeaways

  • The incredible and impactful story of the Mouawad family business
  • How standardizing a brand image benefits the scalability of a business
  • Mouawad’s mission to craft the extraordinary
  • How to prepare the next generation of a successful multi-generational business
  • What co-guardianship can mean for a family and the business they run
  • Why building relationships with capable people leads to scalable businesses
  • How your best investment may be investing in yourself
  • Instilling in the future generation the skills to make a positive impact and maintain high ethical standards

Episode Timeline

[1:58] The background of Mouawad’s generational success
[8:01] Modern day Mouawad jewelry business and what it represents
[17:38] High-end masterpieces and being recognized for Guinness World Records
[20:58] The value in business of natural vs synthetic diamonds
[22:39] Preparing the fifth generation of the Mouawad family business
[25:20] The idea of co-guardianship when running a multi-generational business
[29:25] Shaping the next generation for business success
[35:43] Teaching the skills to have another successful generation of Mouawad
[39:26] Formation of family guidelines as family business becomes a family enterprise
[42:27] Fred Mouawad’s entrepreneurial successes
[49:58] What Fred’s best investment was
[51:11] What it means to be a self-described global citizen
[52:47] How to effectively raise motivated children in wealth
[55:35] The transition from full control to family business co-guardianship
[58:24] Fred’s focus on allowing his children to have a positive impact in their life’s journey

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Fred Mouawad.

Sponsored By:

Links:

]]> Vicki TenHaken - Lessons from Century Club Companies [The Business of Family] http://www.businessoffamily.net/tenhaken c8e76fb1-0dd4-43a1-ab46-0bdb09c2249b Mon, 17 Aug 2020 19:00:00 +1000 Mike Boyd full 1 Mike Boyd Vicki TenHaken a researcher of corporate longevity, discovers what it takes for "Century Club" companies to endure for at least 100 years. In this episode we dive deeper into the research that she first highlighted in her excellent book; Lessons from Century Club Companies: Managing for Long-Term Success. 49:40 no This week's guest is Professor Vicki TenHakan, a college professor in management at Hope College in Holland, Michigan, a former business executive at Herman Miller and GE, a researcher of corporate longevity and the author of the excellent book; Lessons from Century Club Companies: Managing for Long-Term Success (http://www.amazon.com/exec/obidos/ASIN/0984898603/88088026-20), a captivating book that details the lessons learned from companies that have endured for at least 100 years. Key Takeaways The similarities and differences in culture and corporate longevity in American and Japanese century club companies The 5 major management practices in both the United States and Japan’s old companies Why it is important to take time to honor the past of the company while also embracing changes that are needed to prosper The prevalence of family-owned businesses in century club companies Understanding the role that strength in relationships play in stewarding businesses for over a century Learning that growth isn’t everything in company longevity Why storytelling is key in century club companies and the development of the next generation leaders Standout Quotes “What I hoped to achieve was to uncover some management practices…that I would be able to not only share with my students to not only help them be more successful in their future careers but also for business leaders to be able to use.” - Vicki Tenhaken [3:35] “I saw what the lack of business success did to a community. I was really hoping that the future business leaders or current leaders would be able to benefit from some knowledge on these old companies on how they were able to survive and thrive through many economic disasters and other crisis over the decades and even the century.” - Vicki Tenhaken [4:08] “There’s no formula for it. The one thing that I did find out when talking to many of these old companies is that they knew when they needed to change. They kept on top of what was going on in the external environment… They made sure everyone in their company had a role in staying in touch with customers, suppliers, or other business leaders in the community.” - Vicki Tenhaken [11:26] "The strength of relationships is what almost every century club company said helped them make it through the tough times. They all had stories of crisis that they went through and it was relationships whether with employees, business partners, or community that they said really made the difference in terms of how they were able to not just survive the various crisis but actually prosper in the long run." .” - Vicki Tenhaken [19:11] "In business as in life, relationships are what matter most." - Vicki Tenhaken [46:51] Episode Timeline [1:14] How Vicki became interested in corporate longevity [3:25] What Vicki hoped to achieve when embarking into research and what surprised her [6:12] The common management practices seen in old companies in both United States and Japan [10:26] What Vicki believes contributes to century club companies surviving for so long [13:41] Family-owned businesses role in companies that are over a hundred years old [17:41] The vital role that relationships play when stewarding a business for over one hundred years [21:09] Similarities in Japanese and American century club companies [24:04] Why some companies choose to not grow just for growth’s sake [29:41] Storytelling and the development of the next generation leaders [37:20] How century club companies survive crisis [43:51] The accessibility of Vicki’s database [46:07] Vicki’s belief that relationships are what matter not only in business but in life itself For more episodes go to BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter (https://www.businessoffamily.net/newsletter) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Vicki TenHaken. multi-generational wealth, family office, dynasty, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, This week's guest is Professor Vicki TenHakan, a college professor in management at Hope College in Holland, Michigan, a former business executive at Herman Miller and GE, a researcher of corporate longevity and the author of the excellent book; Lessons from Century Club Companies: Managing for Long-Term Success, a captivating book that details the lessons learned from companies that have endured for at least 100 years.

Key Takeaways

  • The similarities and differences in culture and corporate longevity in American and Japanese century club companies
  • The 5 major management practices in both the United States and Japan’s old companies
  • Why it is important to take time to honor the past of the company while also embracing changes that are needed to prosper
  • The prevalence of family-owned businesses in century club companies
  • Understanding the role that strength in relationships play in stewarding businesses for over a century
  • Learning that growth isn’t everything in company longevity
  • Why storytelling is key in century club companies and the development of the next generation leaders

Standout Quotes

  • “What I hoped to achieve was to uncover some management practices…that I would be able to not only share with my students to not only help them be more successful in their future careers but also for business leaders to be able to use.” - Vicki Tenhaken [3:35]
  • “I saw what the lack of business success did to a community. I was really hoping that the future business leaders or current leaders would be able to benefit from some knowledge on these old companies on how they were able to survive and thrive through many economic disasters and other crisis over the decades and even the century.” - Vicki Tenhaken [4:08]
  • “There’s no formula for it. The one thing that I did find out when talking to many of these old companies is that they knew when they needed to change. They kept on top of what was going on in the external environment… They made sure everyone in their company had a role in staying in touch with customers, suppliers, or other business leaders in the community.” - Vicki Tenhaken [11:26]
  • "The strength of relationships is what almost every century club company said helped them make it through the tough times. They all had stories of crisis that they went through and it was relationships whether with employees, business partners, or community that they said really made the difference in terms of how they were able to not just survive the various crisis but actually prosper in the long run." .” - Vicki Tenhaken [19:11]
  • "In business as in life, relationships are what matter most." - Vicki Tenhaken [46:51]

Episode Timeline

  • [1:14] How Vicki became interested in corporate longevity
  • [3:25] What Vicki hoped to achieve when embarking into research and what surprised her
  • [6:12] The common management practices seen in old companies in both United States and Japan
  • [10:26] What Vicki believes contributes to century club companies surviving for so long
  • [13:41] Family-owned businesses role in companies that are over a hundred years old
  • [17:41] The vital role that relationships play when stewarding a business for over one hundred years
  • [21:09] Similarities in Japanese and American century club companies
  • [24:04] Why some companies choose to not grow just for growth’s sake
  • [29:41] Storytelling and the development of the next generation leaders
  • [37:20] How century club companies survive crisis
  • [43:51] The accessibility of Vicki’s database
  • [46:07] Vicki’s belief that relationships are what matter not only in business but in life itself

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Vicki TenHaken.

Sponsored By:

Links:

]]> This week's guest is Professor Vicki TenHakan, a college professor in management at Hope College in Holland, Michigan, a former business executive at Herman Miller and GE, a researcher of corporate longevity and the author of the excellent book; Lessons from Century Club Companies: Managing for Long-Term Success, a captivating book that details the lessons learned from companies that have endured for at least 100 years.

Key Takeaways

  • The similarities and differences in culture and corporate longevity in American and Japanese century club companies
  • The 5 major management practices in both the United States and Japan’s old companies
  • Why it is important to take time to honor the past of the company while also embracing changes that are needed to prosper
  • The prevalence of family-owned businesses in century club companies
  • Understanding the role that strength in relationships play in stewarding businesses for over a century
  • Learning that growth isn’t everything in company longevity
  • Why storytelling is key in century club companies and the development of the next generation leaders

Standout Quotes

  • “What I hoped to achieve was to uncover some management practices…that I would be able to not only share with my students to not only help them be more successful in their future careers but also for business leaders to be able to use.” - Vicki Tenhaken [3:35]
  • “I saw what the lack of business success did to a community. I was really hoping that the future business leaders or current leaders would be able to benefit from some knowledge on these old companies on how they were able to survive and thrive through many economic disasters and other crisis over the decades and even the century.” - Vicki Tenhaken [4:08]
  • “There’s no formula for it. The one thing that I did find out when talking to many of these old companies is that they knew when they needed to change. They kept on top of what was going on in the external environment… They made sure everyone in their company had a role in staying in touch with customers, suppliers, or other business leaders in the community.” - Vicki Tenhaken [11:26]
  • "The strength of relationships is what almost every century club company said helped them make it through the tough times. They all had stories of crisis that they went through and it was relationships whether with employees, business partners, or community that they said really made the difference in terms of how they were able to not just survive the various crisis but actually prosper in the long run." .” - Vicki Tenhaken [19:11]
  • "In business as in life, relationships are what matter most." - Vicki Tenhaken [46:51]

Episode Timeline

  • [1:14] How Vicki became interested in corporate longevity
  • [3:25] What Vicki hoped to achieve when embarking into research and what surprised her
  • [6:12] The common management practices seen in old companies in both United States and Japan
  • [10:26] What Vicki believes contributes to century club companies surviving for so long
  • [13:41] Family-owned businesses role in companies that are over a hundred years old
  • [17:41] The vital role that relationships play when stewarding a business for over one hundred years
  • [21:09] Similarities in Japanese and American century club companies
  • [24:04] Why some companies choose to not grow just for growth’s sake
  • [29:41] Storytelling and the development of the next generation leaders
  • [37:20] How century club companies survive crisis
  • [43:51] The accessibility of Vicki’s database
  • [46:07] Vicki’s belief that relationships are what matter not only in business but in life itself

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Vicki TenHaken.

Sponsored By:

Links:

]]> Tim Cosulich – 6th Generation CEO of Italian Family Business [The Business of Family] http://www.businessoffamily.net/tim-cosulich e16afea3-b77b-424d-bce7-c258453eefe8 Sat, 01 Aug 2020 10:15:00 +1000 Mike Boyd full 1 Mike Boyd Tim is the sixth generation CEO of Fratelli Cosulich an Italian shipping group established in 1857. Across more than 160 years, the Cosulich family have utilised a unique system of family governance to ensure the business survives and prospers from generation to generation. 46:19 no Fratelli Cosulich utilises a unique system of family governance to ensure the business survives and prospers from generation to generation. It’s not often we get to hear from a 6th generation family business so I am so excited to share this conversation with the audience today. Implementing family governance rules that “protect the business from the family” has worked out well for Fratelli Cosulich who have successfully transitioned and prospered for six generations. In this episode, we welcome Tim Cosulich, Tim is the sixth generation CEO of Fratelli Cosulich (https://www.cosulich.com/), an Italian shipping group established in 1857. Across more than 160 years, the Cosulich family has seen numerous changes and weathered many challenges. The Group is involved in most aspects of the shipping industry, has a global footprint across 18 countries, more than 1,000 employees and an annual turnover of 1.8bn USD. Tim explains why the performance of his family business during World War I and World War II cannot be compared with the current pandemic due to the differences in management and time. He talks about the importance of having family values that are translated into the leadership of the family business while still protecting it. Listen in to learn the process of hiring family members to be part of a generational family business without promoting conflicts of interest. You will also learn the non-meritocratic governance strategy that is good for the overall success of a family business even with its shortcomings. Key Takeaways: * Factors that contribute to the success of a family business * How to keep a valuable relationship between a family business and the founding family * How to remove the conflict of interest when hiring family members to become part of the business * The advantage of building an effective leadership style that ensures all family leaders operate as a team * How to come up with a structure that helps “protect the business from the family” Standout Quotes: * “When we select the next generations, it is important that we focus on those who are motivated by similar things and not necessarily by money.”- Tim Cosulich [14:43] * “I don’t think the business must be run by family members; I think the business must be run by the best people.”- Tim Cosulich [29:13] * “If you invest in the wrong businesses, you can destroy your business.”- Tim Cosulich [38:22] * “If I think about my own life and when and where did I really grow and learn things, it’s mostly in my failures, not my successes.”- Tim Cosulich [44:11] Episode Timeline: * [0:04] Intro * [2:10] Tim narrates the resilient history of his family company that has overcome many challenges. * [5:38] The impact of the Coronavirus on the shipping business and how they’re handling it. * [7:24] Why leading by example in a family company is a powerful message as opposed to written values. * [9:11] He explains why his company’s style of governance ensures the company is protected. * [11:47] How Fratelli Cosulich keeps its principles and relationship with the family. * [15:59] He explains the process they use in hiring family members and how they were able to eliminate unnecessary rules. * [19:13] The unique leadership structure that helps the business run smoothly. * [25:30] The strengths and weaknesses of a non-meritocratic system of leadership that is exercised at Fratelli Cosulich. * [28:37] Tim paints a possible scenario that would occur if future generations don’t want any involvement with the family business. * [30:44] Why Fratelli Cosulich has two sets of founders- the ones who founded the physical business and the ones who founded a structure to protect the company. * [36:16] He explains the advantages and disadvantages of the company’s culture of reinvesting with caution. * [38:40] Why they do not talk about business at home. * [43:52] Why Tim wishes minor failures and the spirit of learning for his children in the future. Relevant Links: * Fratelli Cosulich (https://www.cosulich.com/) For more episodes go to BusinessOfFamily.net (https://www.businessoffamily.net/) Sign up for The Business of Family Newsletter at newsletter.mikeboyd.com.au (http://newsletter.mikeboyd.com.au/) Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd) If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Tim Cosulich. multi-generational wealth, family office, dynasty, legacy, succession, stewardship, next generation, business, family wealth, investing, FO, global citizen, nomad, taxation, wealth, portfolio manager, trader, real estate investor, multi-family, multifamily office, investor, inheritance, heirs, Fratelli Cosulich utilises a unique system of family governance to ensure the business survives and prospers from generation to generation. It’s not often we get to hear from a 6th generation family business so I am so excited to share this conversation with the audience today.

Implementing family governance rules that “protect the business from the family” has worked out well for Fratelli Cosulich who have successfully transitioned and prospered for six generations.

In this episode, we welcome Tim Cosulich, Tim is the sixth generation CEO of Fratelli Cosulich, an Italian shipping group established in 1857. Across more than 160 years, the Cosulich family has seen numerous changes and weathered many challenges. The Group is involved in most aspects of the shipping industry, has a global footprint across 18 countries, more than 1,000 employees and an annual turnover of 1.8bn USD.

Tim explains why the performance of his family business during World War I and World War II cannot be compared with the current pandemic due to the differences in management and time. He talks about the importance of having family values that are translated into the leadership of the family business while still protecting it.

Listen in to learn the process of hiring family members to be part of a generational family business without promoting conflicts of interest. You will also learn the non-meritocratic governance strategy that is good for the overall success of a family business even with its shortcomings.

Key Takeaways:

  • Factors that contribute to the success of a family business
  • How to keep a valuable relationship between a family business and the founding family
  • How to remove the conflict of interest when hiring family members to become part of the business
  • The advantage of building an effective leadership style that ensures all family leaders operate as a team
  • How to come up with a structure that helps “protect the business from the family”

Standout Quotes:

  • “When we select the next generations, it is important that we focus on those who are motivated by similar things and not necessarily by money.”- Tim Cosulich [14:43]
  • “I don’t think the business must be run by family members; I think the business must be run by the best people.”- Tim Cosulich [29:13]
  • “If you invest in the wrong businesses, you can destroy your business.”- Tim Cosulich [38:22]
  • “If I think about my own life and when and where did I really grow and learn things, it’s mostly in my failures, not my successes.”- Tim Cosulich [44:11]

Episode Timeline:

  • [0:04] Intro
  • [2:10] Tim narrates the resilient history of his family company that has overcome many challenges.
  • [5:38] The impact of the Coronavirus on the shipping business and how they’re handling it.
  • [7:24] Why leading by example in a family company is a powerful message as opposed to written values.
  • [9:11] He explains why his company’s style of governance ensures the company is protected.
  • [11:47] How Fratelli Cosulich keeps its principles and relationship with the family.
  • [15:59] He explains the process they use in hiring family members and how they were able to eliminate unnecessary rules.
  • [19:13] The unique leadership structure that helps the business run smoothly.
  • [25:30] The strengths and weaknesses of a non-meritocratic system of leadership that is exercised at Fratelli Cosulich.
  • [28:37] Tim paints a possible scenario that would occur if future generations don’t want any involvement with the family business.
  • [30:44] Why Fratelli Cosulich has two sets of founders- the ones who founded the physical business and the ones who founded a structure to protect the company.
  • [36:16] He explains the advantages and disadvantages of the company’s culture of reinvesting with caution.
  • [38:40] Why they do not talk about business at home.
  • [43:52] Why Tim wishes minor failures and the spirit of learning for his children in the future.

Relevant Links:

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at newsletter.mikeboyd.com.au

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Tim Cosulich.

Sponsored By:

]]> Fratelli Cosulich utilises a unique system of family governance to ensure the business survives and prospers from generation to generation. It’s not often we get to hear from a 6th generation family business so I am so excited to share this conversation with the audience today.

Implementing family governance rules that “protect the business from the family” has worked out well for Fratelli Cosulich who have successfully transitioned and prospered for six generations.

In this episode, we welcome Tim Cosulich, Tim is the sixth generation CEO of Fratelli Cosulich, an Italian shipping group established in 1857. Across more than 160 years, the Cosulich family has seen numerous changes and weathered many challenges. The Group is involved in most aspects of the shipping industry, has a global footprint across 18 countries, more than 1,000 employees and an annual turnover of 1.8bn USD.

Tim explains why the performance of his family business during World War I and World War II cannot be compared with the current pandemic due to the differences in management and time. He talks about the importance of having family values that are translated into the leadership of the family business while still protecting it.

Listen in to learn the process of hiring family members to be part of a generational family business without promoting conflicts of interest. You will also learn the non-meritocratic governance strategy that is good for the overall success of a family business even with its shortcomings.

Key Takeaways:

  • Factors that contribute to the success of a family business
  • How to keep a valuable relationship between a family business and the founding family
  • How to remove the conflict of interest when hiring family members to become part of the business
  • The advantage of building an effective leadership style that ensures all family leaders operate as a team
  • How to come up with a structure that helps “protect the business from the family”

Standout Quotes:

  • “When we select the next generations, it is important that we focus on those who are motivated by similar things and not necessarily by money.”- Tim Cosulich [14:43]
  • “I don’t think the business must be run by family members; I think the business must be run by the best people.”- Tim Cosulich [29:13]
  • “If you invest in the wrong businesses, you can destroy your business.”- Tim Cosulich [38:22]
  • “If I think about my own life and when and where did I really grow and learn things, it’s mostly in my failures, not my successes.”- Tim Cosulich [44:11]

Episode Timeline:

  • [0:04] Intro
  • [2:10] Tim narrates the resilient history of his family company that has overcome many challenges.
  • [5:38] The impact of the Coronavirus on the shipping business and how they’re handling it.
  • [7:24] Why leading by example in a family company is a powerful message as opposed to written values.
  • [9:11] He explains why his company’s style of governance ensures the company is protected.
  • [11:47] How Fratelli Cosulich keeps its principles and relationship with the family.
  • [15:59] He explains the process they use in hiring family members and how they were able to eliminate unnecessary rules.
  • [19:13] The unique leadership structure that helps the business run smoothly.
  • [25:30] The strengths and weaknesses of a non-meritocratic system of leadership that is exercised at Fratelli Cosulich.
  • [28:37] Tim paints a possible scenario that would occur if future generations don’t want any involvement with the family business.
  • [30:44] Why Fratelli Cosulich has two sets of founders- the ones who founded the physical business and the ones who founded a structure to protect the company.
  • [36:16] He explains the advantages and disadvantages of the company’s culture of reinvesting with caution.
  • [38:40] Why they do not talk about business at home.
  • [43:52] Why Tim wishes minor failures and the spirit of learning for his children in the future.

Relevant Links:

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at newsletter.mikeboyd.com.au

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Tim Cosulich.

Sponsored By:

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