From 2000 to 2018, Scott was a professor of Law at the University of Chicago where he focused on Bargaining, Dispute Resolution, Translational Law, and the complexities of multigenerational family enterprises. Scott speaks regularly on Family Offices, Private Trust companies as well as Intergenerational Leadership while also maintaining an active website.

Scott is a G2 family member. He is Sam Zell's son-in-law, having married Sam's eldest daughter.

Standout Quotes:

• "Business works on short wavelengths and family works on very long wavelengths" - [Peter Evans, Scott]
• "What does it mean to try and help family members really develop and really take ownership, so they can figure out how to deploy what they have?" - [Scott]
• "There are many different kinds of wealth… you probably aren't put on the earth to grow the financial capital, there's lots of professionals who can help you do that" - [Scott]
• "Too often, the implicit message sent to family members is 'this system is really here to steward the money" - [Scott]
• “Families rarely fail for taking too much risk, they fail for taking too little risk” - [Scott]
• "My goal is to create a family-focused office, not a family office, and a trusted company, not a Trust company" - [Scott]
• "If you want to succeed you have to have a family that understands what you're doing" - [Scott]

Key Takeaways:

• Scott is the President of Chai Trust Company, LLC, the private trust company that serves as the family office for Sam Zell and his family. Equity Group Investments, a division of Chai trust, provides investment management services on its behalf. From 2000 to 2018, Scott was a professor of Law at the University of Chicago where he focused on Bargaining, Dispute Resolution, Translational Law, and the complexities of multigenerational family enterprises. He speaks on Family Offices, Private Trust companies as well as Intergenerational Leadership while also maintaining his active website. Scott is a G2 family member, as he is Sam Zell's son-in-law.
• Scott got married to Sam's older daughter 20 years ago while he was already teaching as a Law professor. Since then he got increasingly curious about family enterprises till he fully transitioned into working in the family enterprise. After a few months of knowing each other, they started dating but Scott had no idea about her family wealth till she opened up about it.
• About Sam Zell: Sam is a serial entrepreneur, who first built a business in Real Estate, following which he turned to distressed Corporate Investing in the 80s, and then in the 90s, he created some of the largest REITs in the US today. He has continued to work on REITs and corporate investing since then. He has done several businesses over the years. Sam is also known for his straight talk, always making his stand clear in any discussion. He is also very astute and broad in his thinking.
• As a Law professor, Scott worked on conflict intervention with corporations all over the world. When he started having kids, he got curious about how the family wealth could be managed productively for the family, especially for the kids. Sam encouraged him to work on it. Some authors that stood out in Scott's study were Jay Hughes and John Davis.
• Scott describes the family structure; at the time Scott joined the family, Sam was 59 years, his 3 children were in their 30s, and as of now, there are 9 grandchildren. There was a form of governance structure, a board with his 3 children which wasn't functional as Sam made most decisions. However, now there has been a need to rebuild the structure as the company has evolved and this has been a huge part of Scott's focus since he moved full-time into the family enterprise. He has had to put in a lot of work to fully understand how the family enterprise functions; to make things change in a family system that often moves very slowly, you have to know where you're going. It involves a combination of urgency and patience, while thinking long-term, steps need to be taken early and consistently. Most of the family members are not employees, some of them are on the board. There is one board with both independent and family directors.
• The business continues to be eclectic, investing across all kinds of sectors, especially with the benefit of permanent long-term capital. At the same time, complex actions and decisions can be taken quickly. Also, family learning and development are being built as the kids grow to become adults.
• In the inflationary period currently, the business finds smaller companies that need capital and expertise to grow to the next level; companies that would rather grow their equity than sell to a PE company. These companies are great partners for the business since their interests are already aligned to grow the equity.
• While most families would rather have more joy over more money, the reality is that many family members Scott has met around the world don't have that much joy or self-possessed ability to do things in the world. They often feel enmeshed in a family structure they have little control over. This is not good for the family or the external world that could be benefitting from the good such families could accomplish.
• Laying the foundation for the next generation practically, Scott uses some rules. The first is based on the 5 Capitals; Not everyone is supposed to grow financial capital but they can add to the overall well-being of the family by building on the other forms of capital. Unfortunately, the experience in most families is that stewarding the money is the main goal, which is an implicit frame that must be dissolved. The second one is that each family member should participate meaningfully in every learning experience. Doing this means creating activities or agendas that are not solely about financial capital or the enterprise, although as the kids get older they get interested in the business itself.
• To assess how well you're building human capital, score how often you were talking about money over the last few years in your family meeting. Most times it forms a huge percentage of those meetings, but in a setting where money isn't the focus, there is a push to find other topics that can help people open up. Scott's family has started experimenting with these kinds of meetings interspersed with other activities.
• These kinds of meetings expose several overlapping purposes, help family members connect, offer a chance for content transfer, and contribute to self-development and self-growth. Different topics are often discussed and it becomes obvious how they are related. Listeners are encouraged to check Scott's curriculum diagram on his website.
• There is often a dichotomy between responsible stewards and lazy inheritors, however, managing inherited wealth can be complicated. The general goal is to cultivate engaged owners and integrate financial capital into their lives productively, but there is no concrete formula on how to do it.
• Most family offices should just be Money offices because all their time is focused on financial capital and legal risk such that the family itself is secondary. On the other hand, a family-focused office is there to grow the family's human capital as much as the financial capital.
• Trust companies around the world have become ubiquitous in wealthy families although they often don't have much life in them. However, a trusted company is a part of the family ecosystem which goes beyond managing money to a level of trust-building with the family. That forms the basis of how Scott decides on whether or not progress is being made; 'what is the level of trust in the system?'. Not to downplay the role of financial investment, but there has to be synergy within the system.
• Over the long term, families rarely fail for taking too much risk, they fail for taking too little risk. They focus so much on preservation because they are afraid of taking risks, and they wither in the end. Sam Zell still takes as much risk as he used to, not as a gamble but with a critical assessment of each situation. It is important to preserve the investment company with its risk-taking culture, and at the same time grow a family that can continue such activity over time.
• The family enterprise avoids governing by committee, especially on the investment side, so as to move quickly. Having family members behind an entity is not a bad idea but there's no point in having many family members making every investment decision. In Scott's family enterprise, this bureaucracy is avoided by ensuring decisions are narrowed down to the exact professionals. Other bigger family questions can be discussed by the family as a whole. Mike's family employs Adhocracy which encourages a culture to challenge the slow slide into bureaucracy.
• The team behind the family enterprises consists of about 85 people and functions as one entity that is the trust company, the family office, and the investment management company. There are investment professionals, lawyers, a family office and operations group, and accountants. All of these are interdependent. The company is mostly focused in the US but there are also real estate investments in other countries.
• As an outsider joining the family, it is easy to simply be a critic which will result in pushback from the family. From the onset, Scott acted from a place of love for the family and was concerned with how to continue to build productivity within the family. He intentionally took time to study the family business all the while continuing his profession as a Law professor. He advises inlaws to keep their jobs for as long as possible till they are sure they can add value to the family enterprise. He also understands that being an inlaw comes with restrictions from certain roles, but rather than get overly perturbed about it, he focuses on the ways to be helpful in the family.
• Scott has a background in communication, mediation, and negotiation which has been pivotal in building consensus in the family business. Ultimately, there is no playbook to navigate the complexities in a family enterprise.
• A typical day in Scott's life involves some time spent on investments, working with boards or committees, family learning and development, as well as time spent on management. He has come to understand that his job is to get a grasp of the system as a whole; Sam explained to him that it will change from obligation to opportunity.
• There are a few family heirlooms and the family has also documented some of its history like the story of Sam's family leaving Poland for the US. They do this mostly by putting together short films. It also serves as a way to communicate family values; Sam has always used art to communicate.
• Scott's letter to his kids: We have the capacity as humans to grow into something greater, more awake, and more alive than we are now, into a different kind of existence. This is the uniqueness of being human; the constant evolution makes life wonderful.

Episode Timeline:
[00:50] Meet today's guest, Scott Peppet.
[02:00] Scott's relationship with Sam Zell.
[04:54] How would you describe Sam Zell?
[09:18] Did you develop an interest in how family enterprises function before or after meeting the Zell family?
[12:35] How complex was the family when you joined?
[16:44] Did you have to contend with people with multiple hats in the family business?
[19:04] What does the office look like today?
[21:40] Is there any particular industry that has growing potential now as regards investment?
[24:40] How do you plan to raise the next generation in the family enterprise?
[35:17] Going beyond stewards' first inheritors.
[37:35] Creating a family-focused office and a trusted Company.
[42:10] How do you manage risk in the family ecosystem?
[44:37] How do you fight bureaucracy as the office gets bigger?
[49:05] How big is the family enterprise team?
[51:50] What was it like joining the family and navigating the complexities of a family enterprise?
[55:20] How helpful was your career in Law and conflict resolution in the family business?
[56:55] A day in the life of the President of Chai Trust.
[01:00:50] Is the family intentional about keeping things for historical sake?
[01:05:02] Scott's letter to his kids

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Special Guest: Scott Peppet.

Sponsored By:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

Links:

• Scott Peppet's website — Shifting from Obligation to Opportunity - Helping family members integrate and deploy their resources for their own and the world’s benefit.
• Sam Zell - Personal Website
• EGI - Equity Group Investments
• Forbes - Sam Zell

Peter is also part of a legacy family himself; he is a 5th generation member of a 7th generation American enterprise established in 1885. Peter married into this family and was astounded by the welcoming and inclusive nature of his wife's large family. The family enterprise is now a holding company with over 500 shareholders, all of whom are family members. Of particular interest are the Family Summits held annually, which are designed to re-engage family members, partake in family traditions and rituals, discuss philanthropy and reset for the year ahead.

Peter shares his experience of what it was like to join a well-established legacy family and how he has used this unique experience to pivot his career and help other legacy families flourish.

Standout Quotes:

• "We can't really plan significantly for longer than 5-10 years, you just learn that along the way, things change; the world changes" - [Peter]
• "I'm really interested in making sure that the family's values are aligned with their actions" - [Peter]
• "To have some sort of formal way of telling stories, I think, is critical" - [Peter]
• "The most important thing you'll do are these rituals" - [Peter]
• "If we have the privilege of having wealth and means, we have an obligation to give back" - [Peter]

Key Takeaways:

• Peter is the 5th generation member of a 7th generation American enterprise established in 1885. He is an adviser, consultant, and speaker to legacy families, family offices, and multigenerational enterprises globally. He became a part of the family when he married his wife and was included.
• The company began as a group of lumber companies started by two brothers who liquidated everything after 45 years to invest with their partner, Friedrich Weyerhäuser in 1901. Peter's family had continued to be involved with the business as it expanded, although there were no male heirs in the second generation, till the 3rd generation. The family later started a private trust company in 1964, at which point they became the 3rd largest retailer of building materials in the US.
• Today with diversification, they are now a holding company with over 500 shareholders, all of whom are family members. Peter's children are already involved with the family business actively and eagerly look forward to partaking in the annual family meetings.
• The Family Summit: This annual family meeting usually runs over 3-5 days, on the same weekend every year, with activities like the coming-of-age ritual and elders’ ritual, Olympic games, business meetings, philanthropy group meetings, and talks by guest speakers. The goal is to make it so interesting that people want to come back.
• Planning Never Stops; the family forms a long-range planning committee every 5 years to have a clean slate to think through everything. A pattern of liquidating a significant resource once every 20 years was also observed; this 'Generational Harvest' would provide liquidity to each shareholder, giving them the freedom to make their own investments.
• The family investments today are largely in Real Estate, like residence halls or low-income housing units, all intentionally inclined towards 'doing well by doing good' which is a value the family holds.
• Peter left his role as president of the family enterprise in 2003 and has since then helped other family enterprises manage their multigenerational interests. He believes families with vast amounts of capital can make decisions that affect millions of lives and works to ensure that these families act in accordance with their values. "I can hold a mirror up to you so that you can begin to see yourself, your family system, and your footprint in the world; the other thing I can do is open the window so that you can look out into the world and see how other families made choices during different transitions"
• Peter's most satisfying work is sitting with family members and watching the interactions; his work is focused on helping build bridges in communication and relationships. His role is a position between being a business consultant, priest, and therapist all of which require a deep level of trust and respect. At its core, his work is about relationships.
• Peter’s role as a 'Personne de confiance': This is a confidential advisor based on their trust, respect, and honesty. The way to get into that role is to come into the family that needs help, taking time to build trust and confidence. Very often Peter has to model a way of doing things like chairing a meeting, inclusion, and effective decision-making while keeping in mind that the goal is to pass on the mantle of leadership. Most of the time, the G2 generation is the one that reaches out to him, however, in some cases when the patriarchs are comfortable giving up authority, this spurs the G2 to take up the mantle and learn how to hand over to G3. Sometimes, the G2 has even already made the transition in their lifetime, adapting to the values and culture while the G3 grows up having a completely different experience.
• Storytelling is critical in documenting family history. Peter uses this both in his family enterprise and while working with others. His family works with a full-time archivist who helps research the lives of people such that detailed questions can be asked and stories can be told more deeply. It also offers an opportunity to share lessons from the failures, trials, and tribulations of family members.
• While still active in his family he was always open to learning from other families and when he left his role, he wanted to be involved in creating the consciousness in families that they can impact the world. Based on Peter's background, he has the experience which gets him into those family spaces after which he starts work.
• From Peter's experience, when it comes to cultural mindsets like having female leaders, and diversity, there is a lot more openness in the US than in most other places. Although he tries to encourage such views, some cultures are just not ready for it. However, families of significant or multigenerational wealth are naturally global these days, hence it is becoming increasingly difficult to avoid influence from other cultures.
• Family Rituals are the most important way to bring the family together continuously over the years because they help young people feel acknowledged. Peter's family has a children's program packed with several activities that keep them eager to return. After the age of 14, they can start going to business meetings. These activities help the family familiarize themselves with teenagers and create a more welcoming environment in the business meetings.
• It is necessary to identify who is family and the kinds of roles available to different members. Each family does this differently, but Peter's family has selected the option of Inclusion.
• Building Family Governance starts with having a reliable cadence of meetings quarterly, as well as major annual gatherings; this goes hand and hand with excellent communication. The next step would be to memorialize family values and have a direction and then this can be the foundation of a constitution. The constitution is a living document and should be examined and changed as required.
• Peter also uses the concept of the "5 Capitals" within his family and the families he works with.
• Philanthropy is another tool Peter has been familiar with. It is fun to watch families come together to figure out ways to give back based on their different interests and drives.
• Very often, families look at their business as heirlooms which begs the question "Is the business an heirloom or an investment?" Sometimes it is hard to sell a business because it's been our identity for years; thus, selling is easy if the business is only an investment but if it functions as an heirloom then it may not be advisable. In some situations, the business is on the spectrum in-between, which means only certain objects or aspects may be more valued as an heirloom. Mike's family takes pictures yearly on the same spot on a piece of land which over time has taken up the role of an heirloom too.
• From Peter to his children: "This is your life, do what you love and do it often. If you don't like something, change it; if you don't like your job, move on. If you don't have enough time, stop watching TV. If you're looking for the love of your life, stop, they'll be waiting for you when you start doing the things you love. Stop overanalyzing; life is simple. All emotions are beautiful, when you eat, appreciate every last bite. Open your mind, arms, and heart to new things and people; we are united in our differences. Ask the next person you see what their passion is, and share your inspiring dream with them. Travel often; getting lost will help you find yourself. Some opportunities only come once so seize them. Life is about the people you meet and the things you create with them, so go out and start creating. Life is short, live your dream and share your passion."

Episode Timeline:

• [00:52] About today's guest, Peter Evans.
• [02:44] Peter shares his family history.
• [07:10] What makes your annual family meetings appealing to the younger generation?
• [12:28] Does a value system guide the investment making decisions?
• [14:00] Peter's work helping other family enterprises.
• [18:40] Peters role as a 'Personne de confiance'.
• [24:22] Family Storytelling as a tool in Peter's work with family enterprises.
• [29:08] Was it your experience with your own family that led you to work with other families?
• [31:39] What are some of the differences in culture that showed up during your work with different families across the world?
• [34:50] How important is it to have traditions that bring the family together?
• [38:41] Who is a Family member?
• [39:17] Building blocks of Family Governance.
• [44:10] Philanthropy in the family enterprise.
• [46:16] How shared experiences come into family meetings.
• [48:14] What is the role of Heirlooms in the family enterprise?
• [50:47] Peter's letter to his kids.

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Special Guest: Peter Evans.

Sponsored By:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

Links:

• Laird Norton Company — Laird Norton Company is a family-owned enterprise that provides long-term capital and resources to empower companies to thrive—and we’ve been doing it for seven generations.
• Peter Evans | LinkedIn

As his career has evolved, he has developed a true passion for governance and operations. One of his current focuses is the codification and institutionalization of the key elements that differentiate his family’s enterprise. At its core, this speaks to their desire to remain a purpose driven enterprise focused on the preservation of their servant heart culture for generations to come. This spans the continuum of the impact that they have on their associates, their clients, and the communities that they serve overlayed by a holistic approach which incorporates environmental, social, and governance considerations.

In addition, his passion for governance and operations has evolved beyond that of traditional corporate. For the better part of the last decade, he has led their family’s formalized family governance efforts. As they continue the transition from the 4th to the 5th generation, it was paramount to Anthony, and his generation, that they build the requisite operational and governance structures to ensure success in succession not just for their generation but for generations to come. With the collective support of the 4th and 5th generations, He has allocated a considerable amount of my time establishing their family office and formalized governance structure and framework.

Although he feels blessed to be able to serve his family and family enterprise in a variety of roles, the role he is most proud of is that of a devoted husband and loving father. He is married to his best friend and soulmate, Melissa Contrucci (nee Schrage) and has been blessed with two loving children.

Standout Quotes:

• "I really believe our success as a family kind of exists at the crossroad of this desire to be civically involved" - [Anthony]
• "That formula of putting people before profit is how you build long term sustainable value that transcends generations" - [Anthony]
• "In order to be successful in succession, you have to be intentional and you have to be strategic" - [Anthony]
• "If you think about the destination, you'll never start the journey" - [Anthony]
• "If you're trying to solve a problem that you can solve during your lifetime, you're thinking too small" - [Anthony]
• "Success requires action" - [Anthony]
• "You can't appreciate something if you don't know how hard it was to have or you didn't have to work for it" - [Anthony]
• "During times of dislocation, there's always opportunity" - [Anthony]
• "The most important investment I've ever made is my time in my children" - [Anthony]
• "Never try to replace your net worth for your self-worth" - [Anthony]

Key Takeaways:

• Anthony is a 5th generation member of the Schrage family currently serving in the role of President and Board Director of First Bank Shares, a bank holding company with a primary operating asset "Centier Bank" which was founded in 1895. They are now the largest private family-owned bank in the state of Indiana.
• The Schrage family came over from Germany into the US in the 1800s, and over time the family has always been passionate about the community. This alongside the risk tolerance accounted for the success of the family because being involved with the community helped identify needs and create solutions. The name "Centier" Bank was coined intentionally to represent a century of service, the founding of the bank on Center Street, and that the bank strives to be the premier provider of financial services for the communities. The headquarter is in Merriville Indiana.
• Despite the pandemic, banking is a good business to be in right now. Data from the bank shows that Centier Bank tends to outperform during times of market dislocation or pain. Clients are put even before the shareholders in the business, and this is how long-term sustainable value is built over generations. 2020 has been the best year financially in the history of the bank.
• This success was achieved by consciously and emphatically considering the safety of clients and workers physically while also keeping them confident about their finances. They set out to help communities through different programs, mortgages, credits, and low-interest loans.
• Anthony met his wife and her family at the age of 20 and she was his best friend before becoming his wife. Anthony had no intention of working in the family business but wanted to chart his course in life. He had always been in the financial sector, including commercial banking and investment. Later he started with wealth management in the family business, and then the investment services division. After a while strategic intentional steps were taken to ensure an impact in the community. Currently, Anthony spends time in the financial holding company level, family governance, and the family office.
• Although the family has grown since the first generation, there are 27 family members and 16 shareholders. There is a family assembly every year, and also a family governance structure.
• The goal of the family assembly is both business and to bring the family members closer together. One of the main reasons for starting the family assembly was communication flow. Success and succession in a family business is literally the equivalent of fighting gravity; only about a third of family businesses make it from generation to generation.
• As a broader family, the family meets monthly with specific agendas and occasionally invites subject matter experts. There is also a family business consultant and a family psychologist as well as other subcommittees. There are G5 monthly check-ins with no formal agenda.
• About the Family Portal: While trying to organize family documents that have piled up over many years and made work inefficient, Anthony came up with the idea of the Family Portal. This has been a great tool for increasing efficiency and improving workflow.
• When it comes to starting Family Governance, "you've got to go slow to go fast". Even it is a small start, it's about building the behavior; for Anthony's family, the starting point was about Mission, Vision, and Values. This is where to start to build a foundation with simple things like a code of conduct or attendance policy. It gives some wins and then these goals can be dialed up to more complicated plans.
• The Emergency Transition Planning (ETP): This refers to very detailed planning done such that in the event of the demise of a leader, things can be set in motion to instill confidence in multiple audiences across multiple mediums. It's a succession plan on steroids.
• The family psychologist has been very valuable especially in helping family members communicate effectively. This also includes constructive conflict, which is the most important thing in communication and trust-building. Additionally, having a facilitator around when the family constitution was created was very helpful. However, the values or by-products of this exercise are less important than the journey. Families are encouraged to start this process and take their time.
• After attending a family business conference where he was introduced to the concept of a Family Book, Anthony applied it in documenting the family history to ensure that future generations would understand how hard the journey was. While collating different materials to create the family book, an enormous collection was accumulated and Anthony had the idea to get a corporate historian to manage the collection. This brought the next idea to have a "Centier Museum" for these family artifacts.
• Using the idea of cohesion dynamics which include the family aspect, as well as the business, financial and emotional aspects, Anthony understood that it was paramount to use the family history to keep family members emotionally tethered to the family business. This determines the filter they would use in making decisions regarding the family business because rather than simply thinking like investors, they would think like stewards if they felt emotionally tethered to the family enterprise.
• The 6th generation is currently between the ages of 8-18years. For a long time, the family legacy was the bank, but now there's so much more opportunity for the G6 to get involved with the family enterprise and create an impact.
• Advice for someone looking to lay the foundation for a Family Enterprise: Slow down; "you have to be patient and focus". The other thing is to save; "live below your means and always have reserves because having that additional financial capacity allows you to be opportunistic".
  
• There has had to be a shift from being a family that operates a business to a family that has an enterprise. "We had the belief for so long that the legacy was the bank but now I believe that the legacy is the culture that fuels the enterprise" Thinking about it this way gives the motivation to lean into Family Governance and Family Office. It also shifts the mindset from being competitive to being more collaborative. All of this takes curiosity, communication, working through conflict, and never being afraid to fail, knowing that growth comes from failure.
• Anthony's letter to his kids: Happiness comes from the important things in life; love, health, the time spent, and experiences created with loved ones. True fulfillment comes from finding something you're extremely passionate about, that is meaningful but extremely hard; if you don't grind, demonstrate grit, fail, and pick yourself up, you will never find fulfillment and self-actualize. If you always lean into what's important in life and push yourself, you'll find that fulfillment.

Episode Timeline:

• [00:50] Introducing today's guest, Anthony R Contrucci.
• [02:05] The history of Anthony's family business.
• [08:20] How is the banking industry right now?
• [12:16] Anthony's entrance into the family and the family business.
• [17:40] The structure of the family enterprise.
• [29:28] How has your governance structure taken shape since its implementation?
• [37:55] Where did you start in terms of Family Governance?
• [41:34] The Emergency Transition Planning (ETP).
• [45:00] Discussing the role of the family psychologist.
• [48:30] How did the family constitution come to be?
• [51:14] About the Family structures put in place to guard the family history.
• [57:54] With regards to the 6th generation, how do you look to the future of the family enterprise?
• [01:00:21] What advice would you give to someone looking to lay the early foundation of a Family Enterprise?
• [01:05:08] Is there a new habit you've adopted that was meaningful to your journey?
• [01:09:16] Anthony's letter to his kids.

For more episodes go to
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Special Guest: Anthony R Contrucci.

Sponsored By:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

Links:

• Centier Bank - A Family-Owned Indiana Bank Since 1895. — Michael E. Schrage, CEO and Chairman of Centier Bank
• How Centier Bank celebrated its 125th anniversary

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?

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Special Guests: Jeff Watters and Sean Lang.

Sponsored By:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

Links:

• L Catterton and the Lang Family to Sell Ainsworth Pet Nutrition to The J.M. Smucker Company
• The J. M. Smucker Company to Acquire Ainsworth Pet Nutrition, LLC, Maker of Rachael Ray™ Nutrish® Pet Food; Company to Explore Strategic Options for U.S. Baking 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
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Special Guest: Ben Grossman.

Sponsored By:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

Links:

• Business isn’t just about profit – reflections from four generations in business - Ben Grossman
• my great grandfather’s dollar-a-year check from the US Government
• Letter the company sent out when he left to serve FDR and my grandfather left to serve in the Army
• Letter my brother and I sent out when our father left the company to serve as Treasurer of Massachusetts 70 years after our great grandfather left for public service
• Grossman Marketing – a century of excellence — Grossman Marketing Group was founded as Massachusetts Envelope Company in 1910 by Maxwell Grossman
• Ben Grossman — 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
• SwagCycle: — SwagCycle is a startup focused on responsibly managing the lifecycle of branded merchandise. When companies rebrand or get acquired, many often dispose of their obsolete branded merchandise. Leveraging SwagCycle proprietary network of partners, SwagCycle make this problem go away by helping companies repurpose and recycle unwanted branded items in a responsible, ethical, and affordable way.

A serial social enterprise entrepreneur, co-owner of the WNBA Seattle Storm, and a writer, Ginny continues to look for ways to expand the footprint of women's professional sports in the U.S.

Standout Quotes:

• "The way that people really become good at something and grow wealth is by concentration" - [Ginny]
• "There are gifts hidden in tough times" - [Ginny]
• "You should keep doing something only as long as you're learning and growing" - [Ginny]
• "For any family that's lucky enough to have financial wealth you've got to think about whether you are going to insist that people get along, and at what price" - [Ginny]
• "The biggest thing that's probably shifted is recognizing what we really want, which is adult relationships with our adult children" - [Ginny]
• "If you want to see change in the world, well, you've got to invest, cos nothing's going to happen if you're not going to invest" - [Ginny]
• "What's really most important to most people is Human Connection... and if you really want to be connected, you've got to deal with the stuff that's the toughest" - [Ginny]

Key Takeaways:

• After making many mistakes starting a nonprofit, Ginny set up a business that helps start-up nonprofits avoid similar mistakes and achieve their goals.
• Early in her career, she had goals that were not related to working in the family business.
• Having a financial cushion had benefits, like the freedom to work without being tied to a focus on amassing wealth, although it came with less attention from their father.
• When the time came for a transition of the family business, she knew she had to step up to the responsibility placed on her despite her lack of knowledge or passion in the family business.
• There has to be a lot of very direct conversations if you want to be in business with your siblings.
• Ginny clearly explains that she has no passion for the investment business, but got involved, for the love of family, the financial security, and the business relationships that come with it.
• Having an investment office rather than a family office with bells and whistles was geared at equipping her kids to be independent, self-sufficient, and capable human beings.
• Honesty has been hugely instrumental in navigating the family dynamics in Ginny's family, she also had to understand the importance of having adult relationships with her adult children.
• When things go wrong, that's when you have to figure it out and it's also when you find out the relationships that are solid.
• The importance of dealing with difficult family relationships: it's so easy when life is good to think everything is fine but as soon as life gets hard if you haven't dealt with challenges and learned how to disagree and resolve differences, you're not going to make it through the hardest parts of life.

Episode Timeline:

• [00:49] Meet Ginny Gilder; sharing her personal and professional background.
• [01:34] Her family history and the origin of the family business
• [08:20] How Ginny got into the investment business.
• [22:50] What was your father's position when you started your nonprofit organization?
• [29:00] Ginny describes how the family dynamics affected the transition of the business to her generation.
• [30:42] What would you say that you've learned from the separation of roles between family and business?
• [33:22] What is the family business structure going forward?
• [40:05] How do you differentiate your investment office from a family office?
• [41:20] About Gilder Office for Growth
• [48:56] How do you navigate through your family dynamics in the world of wealth?
• [53:15] Tell us about what you're most passionate about in terms of one of the businesses that you own today.
• [01:00:40] Ginny's letter to her kids

*For more episodes go to *
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Special Guest: Ginny Gilder.

Sponsored By:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

Links:

• Seattle Storm — Ginny Gilder is the co-owner of the WNBA Seattle Storm
• Gilder Office For Growth — Ginny Gilder is the CEO & Founder of Gilder Office for Growth

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

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

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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:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

Links:

• George Isaac - Management Consulting, Family Business Consulting, Corporate Board Membership — George Isaac is the founder and president of GAI Capital Ltd.
• Book: Your Business, Your Family, Your Legacy: Building a Multigenerational Family Business That Lasts - George A. Isaac — **5-star "Amazon's #1 New Release" Rated Book** Whether you are an experienced family business or family office executive, board member, owner, or next-generation family member, George Isaac has written the definitive handbook on the challenges of managing a multi-generational family enterprise.
• Ten Critical Initiatives for Family Business Longevity - Tharawat Magazine — Your family business is your best vehicle for generating income, preserving wealth and serving the needs of your stakeholders. Yet, sustaining family enterprises for the next generation is a continuous challenge, with the majority not surviving.
• Family Business Pandemic Cash Flow Survival Strategies - Family Business Magazine

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:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

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.

Standout Quotes:

• "Like most forms of financial planning, the sooner you plan ahead, the much easier it is to implement and follow through" - [Mike Boyd]
• "Even if the family is risk-averse, I think it is really critical for them to understand that the risk of doing nothing may still be higher than the risk of doing something if they plan to keep the assets" – [Jeff Gould]
• "I think many families need to stay nimble in the future and really adjust for change" – [Jeff Gould]
• "Wealth and wealth transfer doesn't always lead to happiness, in fact in many cases it leads to conflict and challenges and strife among family members, so we want to try to shift that conversation, and that takes effort and planning" – [Jeff Gould]
• "Life is generally empty and meaningless, and we have the ability to establish positive and productive meaning in the midst of a world in constant transition" – [Jeff Gould]

Key Takeaways:

• The ideal scenario would be to involve Jeff early in planning for the transition but the reality is that he is engaged much later when things need to move quickly.
• There is a unique skill set that is needed to be a trusted adviser to help the family understand what they have in regards to Real Estate, and develop a plan with that Real Estate called a "Shared Asset Ownership plan" that considers the variables of the next generation.
• The 3 phased process includes Discovery, Planning, and Implementation.
• Addressing the issue of Deferred Maintenance; the 'Do Nothing Scenario' and the 'Do Something Scenario'
• 5 Transition Strategies in Real Estate planning: Communication and Education, Conflict Resolution and Accepting differences, Rediscovering your commercial Real Estate portfolio, Developing a mindful asset transition plan, and Implementing the plan and adjusting for change
• Jeff's advice to Real estate entrepreneurs: Creating your estate plan and developing a shared asset ownership plan that aligns with the next generation.
• Jeff explains that he helps the family understand that it is a fortunate situation to be carrying on and stewarding the transition of the assets rather than focusing on the personal value of the asset to each family member.
• Be respectful to everyone you encounter.

Episode Timeline:

• [00:49] Jeff Gould and his professional background
• [06:06] Do you usually get called in at the time of a transition event in a family or ahead of that time to plan a healthy transition?
• [08:37] Jeff gives a general picture of the different categories of clients he works with.
• [11:12] What are the particular challenges with the real estate space that create the need for Jeff's specialty, to steward assets in family transition rather than a generic accountant or financial planner?
• [16:51] Jeff describes the 3 phased process of his work with families
• [24:00] Addressing Deferred Maintenance
• [30:50] What would you say is the appetite for innovation in Real Estate?
• [35:06] 5 transition strategies in Real Estate planning
• [39:44] What advice would you give to a founding generation or Real Estate entrepreneur to best prepare themselves to have a great plan in place?
• [43:24] Do you work with any families that are multigenerational into the 3rd, 4th, or 5th generations?
• [49:38] From Jeff 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: Jeff Gould.

Sponsored By:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

Links:

• Lineage Asset Advisors — Lineage Asset Advisors was founded to help multi-generational families solve the unique issues that arise when transitioning their real estate portfolios from one generation to the next. For over thirteen years, LAA has worked directly with families and their estate planning teams to develop roadmaps for successful commercial real estate generational transitions.
• Jeff Gould — Jeff is Principal and Founder of Lineage Asset Advisors which is a consulting, asset management and transaction advisory firm based in Los Angeles. Jeff consults with multi-generational families, family offices, and developers that own and operate commercial real estate to develop customized succession plans with their properties from generation to generation.

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:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

Links:

• Goldhill Group | Certified Scaling Up Coach | Business Adviser — Connect with Jonathan
• Book: Disruptive Successor: A Guide for Driving Growth in Your Family Business — Get Jonathan's new book on Amazon
• Book Website: Disruptive Successor — If you genuinely are a Disruptive Successor, you’ll have a different vision from that of your forebears.

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:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

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.