Trust

What is it and how do I know I can trust you?

Once trust is lost or broken, it is difficult to gain or rebuild.

It takes trust to build trust: a ‘counter-intuitive’ thought.

Since the beginning of this year 2011, I have had more than a few conversations with more than a few individuals on the topic of trust. In each of these conversations the dialogue started by the individual saying, “I just am not sure I can trust …my brother; my colleague; my business partner; my employee…”

When pushed for details as to why there is not a feeling of “trust” it was difficult for each individual to really articulate their feeling, but the feeling was definitely present and as we discussed the foundation of the mistrust, there was often a sense of misaligned expectations. If we define trust as the reliance and confidence in the other individual to meet our expectations, the expectations must be communicated and understood, explicitly and implicitly. To build a solid trusting relationship requires both time and proximity.

A friend of mine, Dr. Jay Desko, developed a 4-C model of trust that provides a starting point for a conversation.

Our expectations are viewed through our lens of how we perceive the other individual’s character, concern, communication, and competency.

Does the other individual reflect the 4-Cs?

- Character: A reliance on the honesty, fairness, hard work of the other…

- Concern: An interest or the importance of others, the family, the business…

- Communication: A consistent and intentional and effective interaction for clarifying expectation, feedback, disclosing feelings, explain changes, share perceptions

- Competency: A capacity to perform the task or role at an acceptable level of proficiency

There are several ways we can begin to understand what we mean when we say, “I don’t trust…”

Developing trust requires reliably meeting the expectations of others in the 4-Cs.

How are we as a Business Family doing in cultivating trust?

Meaningful Workplaces: Reframing How and Where We Work

A recent on-line educational seminar with The Network of Family Businesses, Dr. Neal Chalofsky, (Professor with The George Washington University, my Dissertation Chair, and friend) helped the membership gain a “New Perspective” or a “Reframing” of what goes into meaningful work. The seminar was based on the book Neal recently released by the same title. His findings and beliefs culminated from over ten years of research in organizations of all shapes and sizes.

Neal examined how the nature of work has changed over the years, what it is that makes a meaningful workplace, finding purpose in work, and how the culture of the organization and Business Family can drive commitment and engagement. He was quick to add that being committed to the organization does not necessarily mean one is engaged and vice versa. A meaningful workplace seeks to provide an environment where individuals are both committed to and engaged in the organization and work.

Another fascinating model (or way to look at something) was Neal’s concept of ‘Integrated Wholeness’. Integrated Wholeness is a sense of self, the work, and a sense of life balance and integration. These three key elements are crucial for meaningful work.

As I have experienced Neal in the past, he always provides very thought provoking ideas to ponder, and put into practice. Three key takeaways for a Meaningful Workplace require us:

1. To think and view all stakeholders (described as not only family members, but employees, community, vendors, customers, etc) as extended family and strive to create a functional organization.

2. For a meaningful workplace / environment we need to look at how we treat each family member and other individuals on a day to day basis, knowing we are building culture in the nurturing of relationships. It is not what we pass on to the next generation through our estate or the ‘perks’ that build meaningful workplaces, it is the culture we create.

3. To examine ourselves. We all have a moral imperative to help provide people with a meaningful place to work. If individuals’ can find meaning in their work, it can be a ‘win-win’ and Business Families may realize an increase in productivity and / or profit.

As Neal stated, “When you go to work each day knowing what you do makes a difference, that your voice is heard, that your work is meaningful, and that you enjoy the company of your colleagues, then you are truly part of a workplace community”.

This seminar can be viewed in the archives of The Network of Family Businesses at www.netfamilybusiness.com

Thanks Neal for a terrific and thought provoking seminar.

A Juxtaposed Quote

The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands in times of challenge and controversy.

Martin Luther King Jr.

Or

People who let events and circumstances dictate their lives are living reactively. That means that they don't act on life, they only react to it.

Stedman Graham

Are you acting or reacting in the face of challenge and controversy?

Time for the Family Business to consider a check-up

A New Year Check-Up

According to the American Medical Association and my own family Physician, we as adults (at least those of us over 40) are encouraged to have an annual physical exam at which time the Doctor usually recommends additional tests to understand what is going on in my body and to be on the lookout for potential concerns.

Family owned Businesses, of any age or generation, also need to take routine assessment of the health of their business, family, and individuals in the business. To get a clear true understanding, the assessment should consider all the factors that enhance the health of the Business Family.

There are many different formal and informal ways to conduct this type of assessment and each has its’ own pro’s and con’s. From my perspective, the critical issue is to ‘just do it” as Nike says, but also do it with an open mind to really learn what is going on in the business, family, and organization and then be committed to working at improving where we can.

The best way to find out is to ask those in the organization. One tool could be The Organizational Positioning System. This tool considers 11 critical areas that impact the life and vitality of a Family Owned Business. Understanding each area and the impact of these areas taken together and separately, provide insight for focused attention to strengthen individuals, the family, and the business. The 11 areas that are evaluated are:

Leadership; Values; Change; Goal Orientation; Empowerment; Communications; Team Work; Interpersonal Relationships; Familiness; Customer Focus; and Individual Recognition.

To help you begin the check-up of your Business Family, consider the aspect of Familiness and the questions to start the check-up:

A feeling of belonging, a shared sense of values and beliefs creates a sense of ‘ownership’, participation, and family. This dimension considers the extent to which members feel there is a sense of ‘family ownership and pride’ for all members.

1. There is a deep concern for all family members: stakeholders; stockholders, employees, customers, and others.

2. There is a very real sense in which all members of our family feel like a family.

3. There is a strong sense of pride and ownership by family members.

4. Each generation is inspired by their awareness of the family history and its vision for the future.

5. There is a shared vision of what the business will be like in the future.

How would your family, employees, and customers, clients, or vendors, answer these questions in their annual check-up?

We will explore other critical areas for the annual Family Owned Business in later posts.

What are your thoughts regarding the annual check-up?

Upcoming Seminar for Creating a Meaningful Workplace In Family Businesses

Creating a Meaningful Workplace In Family Businesses

Reframing How and Where We Work

The Network of Family Businesses has scheduled an on-line educational seminar with Dr. Neal Chalofsky on Creating A Meaningful Workplace In Family Businesses for Wednesday, January 19^th at 11:00 AM EST.

In his White Paper found at www.netfamilybusiness.com Neal explains that economics requires a profit for a business to continue, but profits really are not the goal of a business enterprise. In his research Neal found people list money after values such as meaning, satisfaction, close work relationships, autonomy, work/life balance, and learning. It is not about the perks, it is about the culture. He states, “When you go to work each day knowing what you do makes a difference, that your voice is heard, that your work is meaningful, and that you enjoy the company of your colleagues, then you are truly part of a workplace community”.

Neal has been a Professor with the George Washington University Human and Organizational Learning program for over 20 years, and previously was the director of the Human Resource Development program at the Northern Virginia Graduate Center of Virginia Tech. He also has extensive background in working with many different organizations, both in governmental departments and the private sector.

In the spirit of full disclosure, Neal was my Dissertation Chair for my research at GW and has also become a friend. His recently released book titled: Meaningful Workplaces, has been portrayed on the NOFB website.

I am looking forward to working with Neal as he leads us in the exploration of this critical issue for business families seeking to build their legacy.

Registration for the On-Line Educational Seminar is available at www.netfamilybusiness.com

2011 Vision

Where there is no vision, the people perish.
Proverbs 29:18

What is the vision for your family business in 2011?

Does your family know and agree?

Email me your family's vision.

Season's Greeting

From My Family To Yours,

May God bless you and

your family this season with Peace, Joy, Hope,

and Happiness.

Best Wishes for a

Healthy and Prosperous New Year.

Steve Moyer

Tis The Season

Tis The Season:

For some families that is a dreaded phrase and for other families that brings warm memories of family gatherings. At a time of year when activities tend to outpace the number of hours in a day and the days keep running together, it is important to keep in mind that it is our families that make the season.

In this time of busy-ness, remember to take time for family.

May this season be one of peace, joy, and happiness as you intentionally seek family time.

From my family to yours,

Enjoy the blessings God has bestowed and may your family experience a prosperous 2011.

A Help In Beginning To Understand Generational Differences

In today’s on-line educational seminar with The Network of Family Businesses, Dr. Terry Cahill, (Associate Professor for the PhD Health Sciences program at Seton Hall) began to help the membership recognize the differences between the generations in the family business.

Defining who is currently in the workplace as the Traditionalists, the Boomers, Gen X, and the Millenials, Terry explained the issues that have influenced the personality and values unique to each generation. The influences of events for each generation began to clarify the why and how each generation may act or respond or think. In a clearly defined grid we were able to gain wonderful insight for business families as they consider the differences of the generations when planning succession and transition for the business.

Below is a sample of the grid Terry developed to differentiate potential clash points.

	Traditionalist	Baby Boomers	Generation X	Millenials
Career Goals	Building a legacy	Building a stellar career	Building a portable career	Building parallel careers
Reward System	Satisfaction of a job well done	Money, title, recognition, corner office	Freedom is the ultimate reward	Work that has meaning for me
Defining Balance	Support me in shifting form a life of work to retirement	Help me balance everyone else and find meaning myself	Give me balance now, not when I am sixty-five	Work isn’t everything, I need flexibility so I can balance all my activities
Feedback	No news is good news	Once a year, with lots of documentation	So, how am I doing?	…at the push of a button
Training	I learned it the hard way; you can too	Train’em too much and they’ll leave	The more they learn, the more they stay	Continuous learning is a way of life

I was excited with this insightful perspective presented by Terry and developed a few key take-aways:

1. Continue to work at understanding these generational differences and recognize into which group (s) your family members are – BUT don’t become frustrated with them - capitalize and celebrate the different viewpoints – the strength, depth, and expertise of each group – (our businesses may also be able to use the different generations of our families to help market the business).

2. As families in business implement processes for succession planning – recognize what could potentially be clash points but turn that information into opportunities to strengthen the family.

3. As business grows and families need to recruit (both family and non-family) recognize who and for what we are recruiting – be flexible in meeting the needs and expectations of each individual.

This seminar can be viewed in the archives of The Network of Family Businesses at www.netfamilybusiness.com

Understanding Generational Differences in Family Businesses - Recognizing Clash Points That May Impact Leadership Succession

The Network of Family Businesses has scheduled an on-line educational seminar with Terry Cahill, EdD, FACHE on Understanding Generational Differences In Family Businesses for Tuesday, December 14^th at 11:00 AM EST.

In a White Paper found at www.netfamilybusiness.com Cahill begins to explore clash points between three, four and sometimes five generations working together in the workplace. In the context of family businesses these differences have much more far reaching importance in respect to the critical task of leadership succession according to Cahill.

Terry specializes in management consulting, executive coaching, leadership/organizational development and strategy services. As acting Chair and Associate Professor for the PhD in the Health Sciences program at Seton Hall University, Terry teaches Leadership and Research.

Registration for the On-Line Educational Seminar is available at www.netfamilybusiness.com

Can a Business Family use Social Networking

Social Networking – a term that sent shudders up my spine.

Thoughts of random tweets about lunch specials; unwanted romance details, or worse – stupid comments on the day’s hot topics or mindless meanderings. Networks like Facebook where young college students make stupid political comments and posting of pictures that will haunt them in their employment careers; or long-lost friends who found me (except I wish they would have stayed “lost”). Sure, there are good things about these social networks – I do get to see pictures of friends who live far away and catch up on their lives. I can find out about my high school reunion, what the flavor of the day is at my local Rita’s Water Ice, and whatever else I want to know about my favorite store or tv program. But is social networking really for me?

Well – maybe there is a way to use social networking to my advantage. As with any invention or technology, there are good uses and misuses. I’ve already given several examples above of “good” uses in my personal life.

But what about in my professional life?

Bill Roberts, in an article for HR Magazine entitled ‘Developing A Social Business Network’, has identified several major organizations whose HR Departments are effectively using Social Networking. By setting up their own networking sites, they are able to communicate new initiatives in the company, allow employees in different geographical locations to “connect, communicate and collaborate”. This internal opportunity to connect, benefit both the employees and the company.

So how could social networking help a family business?

By connecting with other family businesses from around the world, families can discuss issues that are important to them and subsequently benefit from the collective knowledge of Business Families. Business Families can share with other Business Families how they navigated turbulent issues. The issues you face in your family business are probably similar to issues faced by many other families in businesses. Networking with other Businesses Families may provide answers and insights to your questions and issues.

Why not give it a try? www.netfamilybusiness.com

Establishing Core Values in the Family Business

The seminar conducted by Amy Schuman of the Family Business Consulting Group on Establishing Core Values in the Family Business provided our membership with many new insights. Though many times Business Families think Values are a soft activity, Amy stated many times families find this some of the hardest work. Quoting Jack Welch, “soft values deliver hard results”.

The results of Business Families understanding their values can be seen in the performance of individuals, performance of the business, and in personal satisfaction. As Business Families grow and expand from the Founder to Siblings to Cousins and as personal values may begin to diverge it is important to respect the differences and find the sameness to continue stewarding the business. By exploring and comparing the Value statements of several large well-known family owned businesses such as Enterprise Car Rental, S.C. Johnson Company, and The Biltmore Estate Company we were able to see how family values influence the business values. This is not to just copy what another family has discerned but rather to gain understanding.

This seminar was packed full of challenges for Business Families.

Three key take-aways for the participants were:

1. Begin the discussions to discern what the values are that motivate, guide, and impact your family and business. Every Business Family has values, you need to discern them to understand them.

2. WRITE THEM DOWN. The final version will not occur in the first setting and will most likely be an iterative process that will also include word-smithing.

3. Following the old adage “What gets measured, gets done”, develop an audit or measurement to determine if you, your family, and your business are living and practicing your values.

This very thought provoking seminar forced Business Families to look deep inside their own famlies to begin asking the difficult questions.

The seminar can be viewed by members of The Network of Family Businesses in the archive section of the website.

Collaborative Partnership Formed to Better Serve Business Families

I have known Mike McGrann, Executive Director of the S. Dale High Center for Family Business for many years and have had the privilege of working with him in service to several business families. As a visionary and educator, Mike is committed to serving family-owned businesses and I am extremely pleased to be able to serve his membership with this collaborative partnership.

The mission of The Center for Family Business is to serve and strengthen families in business through succession planning, family leadership training and legacy building. In 1995, a group of business people, family business owners, and representatives of Elizabethtown College, came together to fill a recognized need. The S. Dale High Center for Family Business has always been dedicated to bringing the best available resources to families in businesses for south central Pennsylvania and beyond. Today, the S. Dale High Center for Family Business is proud to be one of the largest and oldest centers in the country.

The Network of Family Businesses continues to grow with the collaboration of The S. Dale High Center for Family Business. All members of The S. Dale High Center for Family Business will have full membership and access to the on-line educational seminars, opportunity to dialogue on-line with other families in business, and access to the growing archive of information and articles through The Network of Family Businesses.

This is an exciting step in continuing to provide a growing network of business families access to educational resources as they strive to build their family legacy.

Establishing Core Values in the Family Business - How Business Families Can Pass On The Shared Values

The Network of Family Businesses has scheduled an on-line educational seminar with Amy Schuman, Principal, Family Business Consulting Group on Establishing Core Values in the Family Business. The on-line seminar is scheduled for Thursday, November 18th at 11:00 AM EST.

In a White Paper found at www.netfamilybusiness.com Schuman states many family business case histories demonstrate that the strongest governance systems, clearest policies and procedures, and most logical, well-documented roles will collapse if they don't rest on a foundation of shared values. Many families struggle with discerning and documenting their shared values. Families may have a list but may find that list to be a very generic statement that doesn't do a good job of reflecting their unique characteristic as a family and business.

Amy Schuman, a principal of the Family Business Consulting Group, Inc. works with family businesses on leadership development, communication skills and team building. Her experience is centered on helping family members collaboratively create systems, structures and relationships to help them function as effective stewards of their enterprise.

The Network of Family Businesses is an Exclusive Private Network with a growing community of families that have a desire to keep their finger on the pulse of industry trends while building their family legacy. Our network will support you and your family in that journey with our Elite Network of International Renowned Experts, Innovative on-line Educational Seminars, Information Hub of Relevant Articles, and most importantly Connections with Family Businesses from around the world.

Registration for the On-Line Educational Seminar is available at www.netfamilybusiness.com

Juxtaposed Quotes

Luck is a dividend of sweat. The more you sweat, the luckier you get

Ray Kroc

Vs.

Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them.

W. Edwards Deming

Is repeat business just luck?

Conflict in Family Business

Many times I am asked what is the cause or source of conflict in a Family Business.

Though I do not believe there is one answer to that question for every situation or family business, I do believe based on my experience, the source of much conflict is ‘misaligned expectations’.

So what do I mean by ‘misaligned expectations’?

Each family member brings his or her own thoughts, ideas, experiences, definitions, interpretations, and perceptions to discussions, decisions, planning, and communication. These may not always be in alignment or the same as other family members. In many situations there is an assumption (we all know what it means when we assume) that others just know what we mean and we move forward acting on our own definitions or interpretations. Many family members are remarkably out of touch with each other. They fail to realize that they are not operating in isolation. These families take the greatest hits when change is necessary or a critical decision must be made. A failure to accept or hear questions posed for understanding often lead to a defensive posture. When that occurs the ability to move forward is definitely hindered and finger pointing or hostilities develop.

In these type situations it is important that family members seek first to hear and truly listen for understanding rather than thinking about what you want to say. Ask for clarification. Focus on the meaning of what is being said. Together commit to what and how you will move forward. For a family that may require revisiting and reviewing the vision the family has developed for the future and the values that will guide them in the journey.

All family members must understand and own the vision. The vision must be crafted with simplicity but with potency. The message and the means must be communicated frequently through all family members and stakeholders.

Deploying the vision means more than helping people know what the common cause is, it also means helping them get a clear idea of their own contributions to the success of the family cause. This involves helping them interpret the grand vision into a focus for action at their levels.

Countless families have great intentions and inspiring visions for themselves, but they don’t take the critical step of translating their intentions into concrete systems. Even worse, they often implement characteristics, strategies and tactics that are misaligned with their positive intentions, which in turn creates confusion and cynicism.

Don’t let ‘misaligned expectations’ derail building your family legacy.

Collaboration is the key to a successful transition of the Family Business

Transition of the family business does not need to be a fight.

Succession of a Family Business from the senior generation to the next generation must be planned for as a collaborative transition, not an event according to Steve McClure, a principal and consultant with the Family Business Consulting Group.

Traditionally business families pass the business to the next generation by ‘cold turkey’, or ‘delay and delay and delay’, or ‘here gone here gone’ which often ends up in two generations fighting for control. After 15 – 20 years the family members, employees, and customers are frustrated and the business suffers. McClure stated the model of leadership for the next generation will not work if it is modeled after the ‘way Dad did it’. As the business founder, he or she was the undisputed boss; with the next generation there may be siblings or cousins that need to learn to new processes and where there will not be one undisputed boss.

One way of determining a new model for leadership of the family business is to see what has worked for other families in similar generations and family structure. The transition must be approached as a long-term balancing act with the gradual transfer of power, roles, and responsibility. This long time frame does not mean there will not be issues, but the next generation will be able to tap the resources of the senior generation.

The secret of collaboration, according to McClure, is to determine what contribution each generation can make to build the family business and legacy. By collaborating on a period of continual adjustment and working together, the family can also focus on the fundamentals of running the business. A very positive tool for this transition is ‘invited accountability’ by way of an independent Board of Directors to help maintain role changes for family members.

According to McClure, the transition of the family business should be a time that yields gratitude and respect of the senior generation.

The Network of Family Businesses would like to thank Steve for presenting the on-line seminar titled:Two Generations Working Together to Transition the Family Business.

Developing Leaders for Family Owned Business Requires Intentionality

In a previous blog (August 8, 2010) I cited a study where it was found that approximately half of the companies surveyed plan to increase their leadership training budgets in 2011. This increase is due to the recognition of the cost effectiveness of building leadership from within as opposed to only hiring the key talent.

To continue my thinking on this critical topic, Family Owned Businesses must also intentionally help the next generation grow and develop. The potential talent pool already knows and understands the family culture. The investment is truly building the legacy and looking to the long-term as the next generation is nurtured.

Previously I recommended that each Family Owned Business leader continue to develop themselves; to carefully select learning projects tailored to the individual in the next generation; and the utilization of 360 Degree Feedback.

Here is a continuation of ideas to nurture the growth and development of the next generation:

4. Build exposure to other leaders: Broaden the opportunity of the next generation to network with seasoned leaders of other Family Owned Businesses. This often may be the opportunity through involvement in trade associations, Family Business Forums, or the local Chamber of Commerce. Either way, it must be intentional.

5. Exposure to the Strategic Agenda: Invite the next generation to sit in on the planning discussions for the next business cycle. Do it now, before they will be expected to make the decisions. Show them your thought process. I know one business family that has rotating seats on their Board of Directors for the next generation.

6. External Coaching: Sometimes our children hear things differently, more clearly, and more receptively from an ‘outsider’. The Coach must understand the issues and concerns of a Business Family, be committed to the success of the next generation and the legacy of the business, and have the ability to both push and pull the next generation along in their learning process.

I will continue to suggest additional ways to develop the next generation in future blogs, but would be interested in hearing your thoughts on these additional ideas.

What has or is your Family intentionally doing to develop the next generation?

Let me know, I would be delighted to include it in the future.

Gaining an understanding of Family Business in Bolivia

I recently had the opportunity to travel to Santa Cruz Bolivia to present several lectures at the Universidad Evangelica Boliviana. The President of the University, Dr. Timoteo Sanchez is a long-time dear friend of our family. The privilege to speak to many of the business students in this developing country was an exciting opportunity. One of the requirements for graduation is each Business Administration student must develop a practical and applicable business plan, and because of that most of the students are already involved in a micro-business. I found these students to be engaging, eager, and open to learning. It is my hope and prayer that we can continue to support these students as they move toward graduation and the business world.

In Bolivia and in Santa Cruz in particular there is not an emphasis on the trans-generational transfer of a family business or just the Business Family. The economics of this developing country of 10 million people are extremely difficult for families and businesses. Most of the micro-businesses and SME’s are focused on survival and finding enough sales to survive. Our desire is to provide additional education for Santa Cruz families in business as they build their business, economic culture, and families.

Another exciting part of this visit was the opportunity to meet with several business people, government representatives and trade representatives. These discussions were the direct result of Timoteo’s relationships as President of the University. While all these individuals are very concerned with the political process occuring in Bolivia, they are also very optimistic about the opportunities Bolivia has for the growth of business and Business Families.

If you have an interest in supporting the UEB or in learning more about the Business Families in Santa Cruz, please email me at: steve@netfamilybusiness.com

Critical Issues for Managing Succession in the Family Business

Stephen L. McClure Ph.D. is a principal of The Family Business Consulting Group, a multi-national firm based in Atlanta. Steve specializes in family communications and decision-making, succession planning and implementation, and governance & management in family firms. Steve states in a White Paper posted with The Network of Family Businesses that the tensions and conflict in families between the senior generation and the next generation need not be destructive and should be considered normal.

McClure’s White Paper states many family firms have found that they can survive much better as a family and utilize the resources of both generations if they focus on how two generations can collaborate together as opposed to one waiting for the other to leave. It is important for both generations to do the hard work of finding things to collaborate on as they move forward. What worked up to this point in time, will not work in the future.

The White Paper can be found at www.netfamilybusiness.com and an On-Line Educational Seminar on these issues and more is scheduled with McClure for October 19th at 11:00 AM EST. The On-Line Seminar is being sponsored and hosted by The Network of Family Businesses.