Addictions and Behavioral Issues Impacting Business Families

In a White Paper, found at www.netfamilybusiness.com, Dr. Karl Benzio explains in the United States 34% of US adults will suffer a behavioral health disorder this year. 61% of US adults will suffer in their lifetime and 72% of US adults will have a spouse, parent, child, or sibling suffer with an addiction in their lifetime. Alcohol is the 3rd leading cause of death in US and Heart Disease is a leading cause of death with primary factors being stress and emotion.

For Family businesses there are added pressures and stresses in that, people know each other’s baggage, insecurities, weaknesses, and shortcomings. There are extra pressures to succeed, work harder, and work longer. In the Family and the Business, at times, a lot more enabling occurs – meaning family usually ignores or “protects” the person from the natural consequences thus enabling the destructive/dysfunctional behavior to continue.

What is a Family Business to do? How should a Family Business address these critical issues?

The Network of Family Businesses has scheduled a virtual educational seminar with Karl Benzio, MD Psychiatrist to discuss Addictions and Behavioral Issues that impact the Business Families. The seminar is scheduled for Thursday, February 16th at 11:00 AM EST.

Karl Benzio, MD, Psychiatrist is an international speaker and frequent media guest expert. Karl testified for Congress and the President's Bioethics Commission, taught at pastor's conferences in Uganda and Kenya, led the first behavioral health training team into post-Sadam Iraq (at the request of the Iraqi government), taught counseling program courses, and spearheaded a unique Katrina relief effort. He has started a non-profit ministry, directed adult and adolescent programs, psychiatric ER, as well as a Christian Rehab program, using his unique cutting-edge workshop, WITHIN REACH, to help people transform their lives.

Karl attended Duke University,1981-85: BSE in Biomedical Engineering, concentration in CNS imaging (graduated with honors) UMDNJ-New Jersey Medical School, 1985-89: MD (honors in psychiatry) University of California - Irvine, 1989-93: Psychiatric Residency - Accredited by Board of Psychiatry and Neurology.

Registration to join The Network of Family Businesses and be eligible for the On-Line Educational Seminar is available at: http://www.netfamilybusiness.com

We are excited to have Dr. Benzio discuss these critical issues for Families in Business.

What is happening in the marketplace that will predict the success of your family business?

With the recent announcement of several large businesses filing for Chapter 11, others filing for Chapter 7 and the seeming rebound of several market indicators, I would suggest it is as critical a time as ever for families in business to pause and consider what direction they want their family and business to go.

As is often the case, the tyranny of the urgency takes precedence to strive for income that exceeds expenses. It takes time and commitment for a business family to learn, to discuss, to plan, and implement the building of a legacy.

Success depends on how effectively the family, the managers, and the leaders understand the marketplace. There are several key factors that the family needs to understand to compete in the marketplace.

- What are the factors of the market: the competition, the economics, the technology, substitution products or services?

- What are the capabilities of our business and family: knowledge, skills, abilities, attitudes, and commitment?

- What can we as a family do, adapt, or redesign of our product or services: take the learning ability of our team to turn expenses into value generation?

- What do we, as a family, believe the future will be: based on critical metrics, leading indicators, and our family’s objectives for the legacy of our family and business?

What do we, as a family in business, need to learn and do well to create value?

What do we, as a family in business, need to learn to build our legacy?

Let me know how you and your family address these critical factors.

Social Media and the Family Business

“In the end, without an online marketing strategy most businesses will find it more and more difficult to attract new business, maintain their current customer base, and create overall brand awareness.”

Want to get started, but not sure where to begin?

Perhaps you are intimidated by technology and uncomfortable engaging others.

The answer is simple; before people will frequent your business, they need to feel like you care, regardless of the topic.

To help learn what to do about Social Media, The Network of Family Businesses has scheduled a virtual educational seminar with Chris Durante Visco to discuss Social Media and the Family Business. The seminar is scheduled for Tuesday, January 24th at 11:00 AM EST.

Family Business Advisor Program

Over the past number of years I have had the privilege of working with Mike McGrann in the support of and nurturing of Families in Business.

Mike is the Executive Director of The S. Dale High Center for Family Business, a seasoned advisor to business families and I am privileged to call him a friend.

It is also my delight to inform you of a program Mike and I will be presenting that is designed specifically for individuals who serve as advisors to Family Businesses.

The Family Business Advisor Program.

This exciting program will be conducted at The S. Dale High Center for Family Business at Elizabethtown College and take place over two days, June 6 and June 13.

If you are an advisor to Business Families, I would encourage you to attend. If you are a family in business, I would encourage you to pass this information to your advisors. The information in this program will increase their effectiveness in the services they provide.

Below are the details of the program.

If you have any questions, please let me know. This is an exciting opportunity to support those that support Family Businesses.

The Family Business Advisor Program

REGISTER TODAY!

(and get an Early Bird Discount if you register by 3.1.2012)

Family businesses are complicated. The normal challenges of advising businesses are tough enough, but providing professional advice to a family business involves additional dynamics that can impact their competitiveness as well as your effectiveness as a family business advisor.

Besides serving as advisors to family businesses for decades, experts at the S. Dale High Center for Family Business are now offering a program to help professionals who work with family businesses to help you be more effective in as an advisor to family enterprises.

As a trusted advisor to Family Businesses you’ve probably experienced the complexities we’re talking about. We’ve been working with Family Businesses exclusively for more than 20 years and have insight and experience into their unique challenges and capabilities that we want to share with you.

This intensive two-day workshop is a truly unique professional development opportunity offering information, education, case studies, role playing, and other dynamic experiences for professionals serving family businesses.

The Family Business Advisor Program, designed expressly for you, will help you:

• Develop a deep understanding of the complexities of family enterprises and how a company’s “Familiness” can be a competitive advantage.

• Apply a new set of tools for effective management of the interactions between the family and the business.

• Strengthen your relationships with your family business clients – becoming a trusted advisor for both the senior and successor generations of family business owners.

As an attendee, you will bring a real-life case study to the workshop and obtain expert feedback from our instructors and your peers. In addition, you’ll receive individual feedback and follow-up with our highly-skilled facilitators after the event, so you can further increase your expertise with your family business clients.

Expert facilitators include Michael N. McGrann, executive director of the S. Dale High Center for Family Business and Dr. Steven K. Moyer, principal of SKM Associates LLC, a full-service family business consulting firm.

Register today for our two-day workshop:

Dates: June 6 and June 13, 2012 (both are Wednesdays)

Times: 8:00 a.m. – 6:00 p.m.

Location: The S. Dale High Center for Family Business, Hoover Center, Elizabethtown College campus

1 Alpha Drive

Elizabethtown, PA 17022

(717) 361 – 1275

Cost: $2,000.00 (includes program materials, three meals and an evening reception).

Early bird registration by March 1, 2012, is $1,750.00.

*Who should attend: Anyone providing products or services to family businesses will benefit from this program. Attendees should have 5 – 7 + years of experience and are committed to growing the family business sector of their business.

A Holiday Family Tradition

Many families have a tradition they follow around the holidays and it is often nice to share those traditions or to learn of traditions other families have.

A tradition for our family, started by Kathryn my mother-in-law, centered around the red table cloth at our Christmas dinner. When the meal was complete and the table cleared, everyone would trace their hand and sign their name. Abe, my father-in-law would include the year with his name. During the course of the following year Kathryn would embroider each hand and name, using a different color of embroidery thread each year.

So now each year we can look at those hands that were present at each meal and fondly remember the events of that particular season. Throughout the years we had many international guests visiting with us during the holiday and as we look at their hand it provides a wonderful opportunity to reflect on our friends and family around the world.

Now our daughter-in-law is continuing our family’s holiday tradition.

We would love to have you share a holiday tradition your family enjoys. Respond below or Log into The Network of Family Businesses, go to Forums in the Main Menu on the left and click on Share Holiday Traditions of your Family.

Enjoy learning of the traditions.

Holiday Wishes To All

As we approach this Christmas season it is my wish that you and your family have a very Blessed Christmas and Holiday Season.

I approach this Christmas with a new sense of awe and amazement. As I watch my granddaughter’s curiosity and amazement at all the lights and glitter and excitement, as I watch our second grandchild not really sure what all the fuss is about, I am reminded to remember to approach this season with that same sense of childlike wonderment and awe.

Recognizing that this season can bring peace to families where there had been strife, joy to families where there had been trials and hope to families where there had been hopelessness.

May your family realize the love of this season and continue through next year.

God Bless and have a wonderful New Year.

Family Business Check-Up

The Family Business Check-Up Continued: Customer Focus

Family owned Businesses, of any age or generation, 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, separately and in combination, all the factors that enhance the health of the Business Family. Critical areas that should be evaluated include: Leadership; Values; Change; Goal Orientation; Empowerment; Communications; Team Work; Interpersonal Relationships; Familiness; Customer Focus; and Individual Recognition.

The best way to find out what is actually going on in the family and business is to ask those in the family and in the business. Earlier ‘Check-Up’s examined Familiness, Family Values, and Communication. This Family Business Check-up examines Customer Focus.

All businesses must support a basic orientation to meet the needs of the customer or

client in order for the family business to maintain its’ existence. This dimension considers

the extent to which family members collectively identify with meeting the needs of those

customers and clients.

Each Family Member should address the following statements:

1. Our family’s highest priority is servicing the needs of our clients and customers.

2. Those who serve our customers and clients according to company expectations are rewarded.

3. We resolve customer and client issues to their satisfaction.

4. Client and customer suggestions rarely lead to change.

5. Input from our clients and customers is influential in our decision making process.

How would your family, employees, and customers, clients, or vendors, answer these questions about Customer Focus by your family and your family business?

We will continue to explore critical areas for the annual check-up of Family Owned Business in later posts.

What are your thoughts regarding the Business Family Check-Up?

When was the last time your Family Business had a check-up?

Enhancing Motivation Through the Stages of Change in the Family Business

It has been said the only constant in today’s environment is change. This theme of constant change is often attributed to the Greek philosopher Heraclitus and is as applicable today as the day Heraclitus coined the phrase. In order to navigate that environment of change and lead your family and your family business, it is imperative to understand the constant change. How do you recognize the change that is occurring? How should we interpret the change? How should we communicate the change? And how do we lead our family and business through the changes?

Many people have a difficult time dealing with change and often do not have an understanding of the traits of change, the stages of change, or the propensity to deal with change. Understanding and developing knowledge, skills and abilities that will help your family and family business during change will help your family and family business flourish. In a White Paper found at www.netfamilybusiness.com Melissa outlines the Stages, Specific Principles, and Motivational Elements for Families and Family Businesses in a state of Change.

The Network of Family Businesses has scheduled a virtual educational seminar with Melissa

Mitchell-Blitch to discuss Enhancing Motivation Through the Stages of Change in the Family Business. The seminar is scheduled for Tuesday, December 13th at 11:00 AM EST.

Melissa has Bachelor’s degrees in accounting and business administration, and Master’s degrees in accounting and psychology. Melissa is uniquely suited to understand the complexities of wealth management and business. Having worked with individuals and families across the spectrum of socio-economic status, she understands that we all have something that makes us unique, and this can either leave us feeling isolated and alone, or it can help us connect more authentically with others.

Melissa realizes what impacts the quality of life, relationships, and financial outcomes and understands what is required to be an agent of change

Leadership and Learning

To build a Family Business Legacy requires the training and development of the next generation.

In a MassMutual survey of family businesses they found that 55% of CEO’s over 61 years of age did not have a successor selected and 30% of family owned companies are expected to change leadership within 5 years.

"Leadership and learning are indispensable to each other."

John F. Kennedy

How are you developing the next generation of leadership in your family business?

Let us know what you have found successful and how you are preparing the next generation.

Truth

“Whoever is careless with the truth in small matters cannot be trusted with important matters.”
Albert Einstein

Truth and trust are critical in the family and the family business.

Trust - The Beginning of Everything in a Family Business

The Network of Family Businesses has scheduled a virtual educational seminar with William Alexander to discuss Trust – The Beginning of Everything in a Family Business. The seminar is scheduled for Tuesday, November 15th at 11:00 AM EST.

In a White Paper found at www.netfamilybusiness.com Bill states that nothing can be successfully accomplished without the presence of one key ingredient – TRUST! Yet many families choose to move forward with their business and family governance without taking the time to insure trust is present in the family business system. Bill defines four trust building actions to establish trust within the family business system. In his upcoming seminar Bill will define trust and how to understand and implement the building blocks.

Bill is a member of the faculty of the Wharton School of the University of Pennsylvania, where he lectures on the topic "Strategies and Practices of Family Controlled Corporations". He was a third-generation principal and CEO of a large construction entity in central Pennsylvania.

In addition, he has served on various boards, including Herr Foods, Hershey Foods Corporation, where he was also chairman of the Hershey Trust, and Highmark Blue Shield. He was formerly the managing director of the Snider Entrepreneurial Research Center at Wharton.

Mr. Alexander holds an undergraduate degree in engineering from the U.S. Military Academy at West Point and an MBA from the University of Pittsburgh.

We at The Network of Family Businesses are excited to have Bill presenting on this critical topic.

Register to join The Network of Family Businesses and be eligible for the On-Line Educational Seminar at:

www.netfamilybusiness.com

Questions

"He who asks is a fool for five minutes, but he who does not ask is a fool for ever."

(Chinese proverb)

It is interesting how quickly we tire of a child asking questions. I always know when that is happening to me. I tend to answer “because” or “I said so”. How much opportunity for developing a relationship and deeper understanding do I lose when that is my response to a curious question?

I am frequently amazed at the information I can learn by asking a few questions and then listening to the answers and responses. At times I become impatient and do not allow adequate time for the response to my question. When I do not listen, I do not learn. When I do not learn it is difficult to understand. To build a culture of inquiry and learning, we must learn to ask the probing questions and have the patience to hear and really listen to the answer.

As you reflect on the culture of your family and your family business, are you open to the difficult questions? Are you willing to listen to the answers?

How are we teaching the next generation to ask good questions?

What questions does your business family avoid?

How does your business family nurture questions for understanding?

“Judge a man by his questions, not by his answers.”
Voltaire

What are your questions?

When Does Perception Become Reality?

Perception is Reality

Perception as defined by Webster is impressions, powers of observation and interpretation.

Perceptions develop as a result of a complex combination of factors including concrete experiences, cultural beliefs, and social influences. Perceptions are often treated as “the truth” from those who hold them, even if the perception is inaccurate, therefore making them very powerful. Perceptions can be changed, although not easily, through honest dialogue and changed behaviors.

How important and critical is this for a leader, manager, and family member to understand?

By growing stronger in the areas of your proficiency and passion, you help the family and the business you are serving to be healthy and effective. Being aware of blind spots helps you to avoid costly and needless mistakes that can harm the family and the business. We all have areas in our lives where improvement is needed. Without transparency and humility on your part, and honesty and integrity on the part of others who evaluate you, your strengths are likely to fall short of their highest potential and your weaknesses will undoubtedly hinder you.

Without feedback, we never really know how we are doing and are left to make our own assessment and interpretation. Such ambiguity can create stress and often results in discouragement and pain. Some people overestimate their performances and the appropriateness of their behaviors. Others underestimate how they are doing and wonder if they are failing.

What is it we don't know or can't see? What areas of our lives are we blind to but that others can see? When such areas have the potential or seriously begin to hinder us personally or relationally, and/or have a negative impact on others, we need to consider change.

However, perceptions do have their limitations. Perceptions are simply cognitive pictures that are stored in the brain. Honest input from others can affirm a leader’s strengths and gifts and confront a leader’s weaknesses and gaps.

There is a way to gain an understanding of perceptions others have of us in our business, family, and organizations. I am excited to share with you The Leader 360.

The Leadership 360 has significant value over other types of assessment instruments because it provides the recipient with perceptions from others who have actually observed them in the context of real-life.

A Leader should reflect upon the feedback and determine if changes are appropriate. Because it is sometimes hard to make sense of conflicting feedback and because evaluators are also often blind to their own weaknesses when providing feedback, Leaders need to utilize the counsel of other wise individuals.

If you would like to learn more about the Leader 360, contact me or call my office and request a copy of Frequently Asked Questions.

Perception is Reality - Is Perception Reality in a Family Business?

I am delighted and excited for the upcoming virtual on-line seminar with a good friend, Jay Desko. This seminar is scheduled for Thursday October 20, at 11:00 AM EDT. Jay and I have worked together in an academic environment, consulting to clients, and in our church.

This seminar, ‘Perception is Reality – Is Perception Reality in a Family Business?’ takes an in-depth look at understanding how perceptions can influence our relationships, performance, and the family business. It is important to understand that perceptions develop as a result of a complex combination of factors including concrete experiences, cultural beliefs, and family and social influences. Perceptions are often treated as “the truth” from those who hold them, even if the perception is inaccurate, therefore making them very powerful. Perceptions can be changed, although not easily, through honest dialogue and changed behaviors.

“There is a way to gain an understanding of perceptions others have of us in our family, business, and organizations.”

Jay and I will explore how a 360-review system can support the development of an individual, the family, and the business. Jay is the Executive Director of the Center for Ministry Advancement and serves on the Senior Leadership Team at Calvary Church in Souderton, PA. He holds a B.S. in Bible, and M.Ed. in Instructional Systems, and a Ph.D. in Organizational Behavior and Leadership. Jay brings experience in the areas of organizational assessment, leadership coaching, decision-making, strategic improvement and board development.

For more information, please contact me at skmoyer@comcast.net

Registration for the On-Line Educational Seminar is available at:

www.netfamilybusiness.com

Boundaries and Boundary Issues in the Family Business

In the recent Network of Family Businesses seminar, Jane Adams, Ph.D. provided great insight to very tricky issues for Business Families. Jane stated it is important to understand that Boundaries are structures that separate us and attach us and are the building blocks of all human relationships. Boundaries also contribute to the Roles we play. Everyone plays multiple roles as a family member and as part of the business, thus opening many opportunities for boundary confusion, trespass, and conflict, particularly when outdated roles and unresolved conflicts from one domain seep into the other. Both entities are different, and so are most of the rules, spoken and unspoken, that guide behavior in each realm.

A skilled coach and life boundaries consultant, Jane’s expertise, advice and assistance can improve relationships with grown children, parents and other family members, friends and colleagues and help you balance your needs with those of others and your personal and professional obligations and commitments. Her book ‘Boundary Intelligence’ explains how people cope with the problems and rewards of balancing personal and professional obligations, maintain family bonds when distance and difference tug at the ties that bind, and develop emotionally and psychologically throughout their lives.

Defining the elements of Boundary Intelligence as: awareness, intention, action, and resolution, Jane stated we all have the ability to learn and grow in defining and being responsible for our boundaries. Jane emphasized that in the Family Business it is as critical to have a ‘Boundary Statement’ as it is a ‘Mission Statement’. Critical elements of a Boundary Statement include:

The balances between individual needs and business needs

Maintaining personal and interpersonal privacy

The elimination of burdensome family baggage

Avoiding domain ‘spillover’

Resolving conflicts in the appropriate domain (the family or the business)

Promoting growth, stability, and success of family business

There were several key items Jane believes families need to recognize and can start working on immediately:

1. Recognize and admit that there are boundaries. These boundaries exist in a family, in the business, and personally with individuals playing several roles depending on the context.

2. Business Families must begin talking about and exploring their boundary issues. Communicate the concerns of each individual, walk toward the conflict to address the conflict. Avoidance is not a healthy option.

3. Develop a written Boundary Statement for your family and business.

I want to thank Jane for providing insight and practical examples of boundary issues.

If I can be of service to you or your family, I would love to talk with you.

The archived seminar is available to members of The Network of Family Businesses.