The Business of Family - Episodes Tagged with “Third Generation”

Berry Liberman - Using Financial Capital as Force For Good in the World

Mike Boyd — Mon, 05 Apr 2021 19:00:00 +1000

With one of the most recognisable family names in Australian business circles Berry Liberman is using her financial capital to make a positive impact in the world. Her family office, Small Giants, is 100% invested in Impact ventures - challenging the traditional notion of "do anything to make it and then give it all away" philanthropy.

Berry Liberman is the co-founder and Creative Director of Small Giants and the Publisher and Editor of Dumbo Feather magazine.

Small Giants was founded in 2007 to create, support, nurture and empower businesses that are contributing to the world in a meaningful way. Dumbo Feather is a labour of love. Designed, edited and printed in Melbourne, Australia, it is a quarterly journal highlighting the stories of extraordinary people, living lives of passion and commitment to changing the world we live in.

"We spent our first decade growing a collective of businesses committed to positive change, including Impact Investment Group, The Sociable Weaver, Dumbo Feather and The School of Life. Our focus has been moving capital from the old economy to the next. We’ve sought to prove that a business can be profitable while remaining purpose driven and ensuring value for all stakeholders, including the environment. Likewise, we’ve found time and time again that value can be created without investing in extractive industries."

Standout Quotes:

"Family was Business, and Business was family, it was one thing" - [Berry]
"Both my parents in a way saw work as service, you contributed to the society that you were lucky enough to live in" - [Berry]
"When you go to your grave, you go with only one thing, and that's your name" - [Berry]
"If you know your shadow self, there isn't anything that can take you by surprise " - [Berry]
"I wanted to do big work, and I didn't want to be afraid, and I knew that the thing that scared me most was everything that was happening on the inside of me" - [Berry]
"One of the things about family businesses is they're often a massive spaghetti ball, and all of the spaghetti is interwoven into all the other spaghetti and it's very hard to separate" - [Berry]
"Business and Financial capital can be a force for good in the world" - [Berry]
"We didn't have the language for it at the time but we had the intuition, that growth at any cost, that the extraction economy, was coming to an end" - [Berry]
"Money in families is complicated, and Family Business is complicated, and it's never about the money, it's about the people and the relationships and the emotional maturity of those people" - [Berry]
"We are the custodians, not of financial capital that is our entitlement, but the financial capital that is handed from one generation to the next, much like fresh air and fresh water, we are custodians" - [Berry]
"Impact investing is a paradigm shift, it's not an asset class, and once you make that shift in your mind, you can't do anything but invest that way" - [Berry]
"You are the company you keep" - [Berry]
"I would tell them not to hate anyone, ever, and to love hard, I don't think you lose anything when you love" - [Berry]

Key Takeaways:

In a true 'rags to riches' story of how the family clothing business began, Berry describes how her grandfather alongside the family, used to recycle the unsellable silk stockings discarded by a company, and eventually caused a shift in demand in his favor.
Berry shares that she was raised perceiving business as fun, and something that involved the whole family. Unfortunately following the crash in 1991, the impact weighed equally upon the family.
She narrates how she was able to forge her path outside the norm, because there was very little attention on her, especially following the passing of her father and ensuing family changes.
As for her psychotherapy, It became clear there was a need to answer pertinent questions about herself and sort through unresolved issues personally. "I wanted to do big work, and I didn't want to be afraid, and I knew that the thing that scared me most was everything that was happening on the inside of me". She also disclosed that ultimately she wanted to be her own person but she didn't want to do it at the expense of family harmony.
By the time Berry stepped in to join the family business, seeing how it was being run, she knew she wanted to do things differently.
Narrating the events surrounding the inception of the company "Small Giants", Berry highlights the deep concern that was born following her knowledge of very critical climate issues, and this ignited a passion to create a better world for her kids to live in.
It's an intergenerational project and the main goal is to become a good ancestor if you're a person of privilege and you have the resources.
Much like with the financial capital that is handed from one generation to another in family businesses, we are also custodians of the fresh air and water handed down to us.
Mike shares that the phrase "Stewardship" comes from environmental sustainability and so aptly applies in the context of this conversation.
Berry explains that Philanthropy means "love of humankind" and in her view should be a whole portfolio vision; love of humankind with everything you have.
"The Doughnut Economy" by Kate Raworth: This book describes a metaphor that likens the outer part of a doughnut to the bounds of the environment, and the inner part to society. Kate suggests living in the sweet spot between the bounds of ecology and human flourishing, such that you can engage in business but with more accountability built-in.
The pillars of investments by Small Giants include Food and agriculture, Energy, Finance, and the Built environment.
While Berry admits that little effort has been put into planning for the future as regards her kids being involved in the family office, she notes that doesn't want them to do Small Giants necessarily. She would rather they had the same freedom she had, to go on their journey, with full support to become themselves fully.
Berry emphasizes the importance of talking to her children; "No topic is out of bounds, and I will let myself be challenged by my children because they've got a pretty good compass"
Recent research shows that Kids that know where they come from, and particularly the trials and tribulations of prior generations, are usually resilient as a result.
From Berry to her kids: "I would tell them not to hate anyone, ever, and to love hard, I don't think you lose anything when you love"

Episode Timeline:

[00:54] About today's guest, Berry Liberman.
[02:30] Berry describes her family origins.
[09:07] What were the key building blocks along the path to the growth of the business empire?
[15:00] Could you tell us where you started, and what you wanted to do with your wealth as regards the impact you wanted to have on the world?
[25:37] Berry describes the structure at the family table when she stepped in.
[38:58] What are some of the impact investments you have made?
[41:55] How do we ensure there is a return so that we can keep on doing good?
[47:36] Small Giants' Pillars of Investment
[51:22] Do you anticipate your kids getting involved in the Small Giants family office?
[56:50] Has the documentation of your family history been intentional so far?
[59:50] A letter from Berry to her kids.

For more episodes go to
BusinessOfFamily.net

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: Berry Liberman.

Juan Carlos Salame - Scaling a Third Generation Ecuadorian Retailer & Credit Provider

Mike Boyd — Mon, 08 Mar 2021 19:00:00 +1000

Juan Carlos Salame’s family business began in Guayaquil in 1944. Domingo Salame, his grandfather, began selling at the local market prepaid vouchers so his customers could buy products at different local stores and, then, pay Mr. Salame in installments.

A revolutionary idea that many decades later evolved to what we know today as credit cards. He later put in place a retail shop to sell the products himself. This business was transitioned to his son in the late 70s. A couple of stores have grown into a corporation with over 70 stores in Ecuador and a strong ecommerce presence.

The business model focuses on financing products to a population, many of whom, do not have a credit history yet. Juan Carlos and his brother have taken over the business in the last few years putting in place top technological systems and curating an innovative culture.

Standout Quotes:

"Be respectful of everyone regardless of their position, their role, or what they do with their lives" - [Juan]
"Be very low profile...with your life, with your business, Humility in that sense" - [Juan]
"I would seriously encourage anyone to look for a mentor in the early stage who will help guide them through the different opportunities that they would face in their lives" - [Juan]
"I would encourage anyone in their twenties or early thirties to form their own business, especially if they want to be like a CEO... they have to quickly learn and fail on a smaller scale" - [Juan]
"Founding your own business is like 3 MBAs in one" - [Juan]

Key Takeaways:

Juan describes the original business model which is still in play today. His grandfather had started selling coupons which allowed customers to buy products from other stores now and pay back in installments to him. He later opened his store to sell those products, in effect, he was a credit provider.
The business model is targeted at customers who don't get credit from their banks or lack a credit history to support them getting it.
The biggest aspect of the business is now e-commerce, especially following the lockdown in the pandemic
Describing that he was not forced into the family business, there was always some level of expectation that he would join the business, and he had already started getting involved at an early age. However he had left to get an MBA in the US, and decided to start his business rather than return to the family business, but after a few years, his father called him back. He stayed for a while and quitted since his working relationship with his father was poor.
Juan shares that he finally went back to the family business with conditions given; the first was to have a board member to sort out rifts when they come up, the second was not reporting directly to his father.
The most challenging aspect of the business they had to change, upon joining the family again, was the culture of the company in order to attract new talent. Some managers also had to leave, as there was a need to work with people who were more aligned with the goals of the company.
Discussing his process of implementing change, Juan shares that his first step is to work with the people already in the company, if this fails, he then persuades the workers to make the necessary changes, and if that also fails, he would find someone else who can work with him.
History did repeat itself as Juan's father also had issues with his father regarding joining in and transitioning into the family business.
A key source of his knowledge was starting his own business, and also putting in the effort to be exposed to different industries by participating on their boards.
Investing in time with the kids has become a top priority on the list of worthwhile investments?
The family decided to assemble a book 2 years ago, which would tell the story of the family business and the family as well as the future of the business.
Key lessons from Juan's journey: Be very strategic in how you go about implementing change. Being intentional about communication in the workplace and within the family is also very necessary as part of a family business.
From Juan to his kids: Look for something that you want to do in life, something you enjoy, and something that adds value to the world. Juan would also encourage his kid to put the best effort into anything worth doing, find a mentor, and within the early twenties start a business because the knowledge gained is like 3 MBAs in one.

Episode Timeline:

[00:49] About today's guest "Juan Carlos Salame"
[02:00] Juan narrates the origin of the family business.
[08:30] How did you come to join the Family business?
[18:36] What changes have you been able to implement since you and your brother joined in?
[21:40] Juan shares his approach to making drastic changes in a company.
[27:56] Is there a multi-generational family plan in place for your children?
[30:15] Have there been any transition issues since the business started?
[31:45] How have you learned and grown on your journey?
[35:12] What is the most worthwhile investment you have ever made?
[36:13] Highlighting Values instilled in Juan which he passes on to his children.
[37:09] Does your family invest in anything intentionally to try and document its history?
[38:28] Juan shares lessons from his growth process
[41:45] What would you say is your legacy?
[43:05] Juan's letter to his kids

For more episodes go to
BusinessOfFamily.net

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: Juan Carlos Salame.

Chris Herschend - Third-Generation Owner of Theme Parks, Attractions & The Harlem Globetrotters [The Business of Family]

Mike Boyd — Mon, 26 Oct 2020 19:00:00 +1000

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

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.

Emily Griffiths-Hamilton - Building Your Family Bank to Owning an NBA & NHL Team [The Business of Family]

Mike Boyd — Mon, 05 Oct 2020 19:00:00 +1000

Emily Griffiths-Hamilton brings three generations of experience to the subject of wealth and family-business transition planning.

Her maternal grandfather, veterinarian Dr. William Ballard, was one of North America’s greatest dynamic wealth creators. Her father, Frank A. Griffiths, FCA, built a highly successful sports and media empire. Emily herself, along with her brother Arthur and their partners, has been the co-owner of a National Hockey League (NHL) team, the Vancouver Canucks; a National Basketball Association (NBA) franchise, the Vancouver Grizzlies; and a state-of-the-art-arena.

Emily’s professional training, expertise and unique first-hand experience have given her a deep understanding of the benefits of clear, considered wealth and family-business transition planning.

Today, she is passionate about providing guidance to individuals and families for the effective multigenerational management of family wealth and family businesses.

Emily is the author of two excellent books, Build Your Family Bank and Your Business, Your Family, Their Future, which look closely at the core causes of wealth erosion and failed transition plans and offers a set of strategies for building successful wealth transition plans that will benefit many generations.

Standout Quotes:

"A legacy lifestyle to me is really anything where anyone is enjoying an affluent life based on someone else's earnings"
"Earning a voice at the table is critically important as the families get larger because not everybody is necessarily around the table making decisions for the family bank but the family council may be elected members to represent different parts of the families"
"Life is the reflection of the Choices that you make between your Birth and your Death (life is the C between the B and the D)"
"The choices that you make are going to be a reflection of the decisions that you make, and if you really want to make the best decisions, think about swapping judgment for curiosity"
“Curiosity can open your eyes to a world of unlimited imagination and infinite possibilities”

Key Takeaways:

The process of creating the family wealth was infused into the family DNA added in each generation.
The issue in a legacy lifestyle is enjoying a lifestyle that someone else is earning the funds to afford you, the cautionary note is to watch for the creep of entitlement issues.
The traditional approach to wealth transition planning including tax deferment and trust funds fail 70% of the time.
As long as your human and intellectual components are still strong, the Family bank will keep standing.
Reasons why 70% of families at each generation fail at wealth transition include a breakdown of communication and trust (60%), the unpreparedness of heirs (25%), lack of shared vision (12%), and failure of professionals (3%).
Earning a voice at the table is critically important as the families get larger.
Family bank is not a legal term, it's a philosophical term; it's whatever the family defines it to be.
5 reasons to put a Trust in place in Canada: Control, Creditor Protection, Privacy, Probate and Tax.
Research shows that within 7 years lottery winnings are usually gone which is the same with inheritances.
If you want to make the best decisions, swap judgment for curiosity

Episode Timeline:

[00:49] An overview of some of Emily's work.
[02:20] How the initial family wealth was created and sustained through the different generations as part of the family DNA.
[05:20] Emily explains the clear distinction between Ownership and Management.
[05:31] Her contribution to the Family DNA of wealth creation is the Role of Stewardship.
[08:26] The event leading up to the ownership of the Hockey team reflected a sense of commitment to the community.
[10:30] Emily narrates the experiences that inspired her career choice of a Family Enterprise Adviser.
[15:35] The legacy lifestyle defined, with examples from Emily's childhood.
[19:26] The value of work and its role in Family wealth creation.
[21:11] The concept of a Family Bank is most appropriate for anyone doing succession or wealth transition planning.
[22:05] The Foundation and Components of the Family bank approach.
[27:04] Reasons why 70% of families at each generation fail at wealth transitions.
[39:00] The value and role of tools like trust structures and tax mitigation strategies in the managing multi-generational wealth.
[45:07] The similarities between inheritances and lottery wins.
[53:52] Re-Formatting is a change of investment choice and a Redistribution of wealth to philanthropy are not considered a failure of to transition.
[55:29] A few surprises from her sons influencing the family bank.
[01:01:14] Emily's letter to her children.

For more episodes go to
BusinessOfFamily.net

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: Emily Griffiths-Hamilton.