What is Your Reputation

Several months ago I was talking with my son who is in the process of starting his own business. He was telling me about a project he was negotiating. One of the other individuals stated they should just commit to the item to get the project but knowingly would change the specs after the deal was done.
My son stated he was dismayed at that reaction and willingly backed out of the negotiations stating his reputation was more important to him than just getting this project. That decision, to be true to himself and his reputation cost him financially, and possibly, from a financial perspective, more than just this job.
The decision my son made, made me proud. Unfortunately it places a high financial burden on him. I am proud of the choice my son made. He really does know what is important.

That also got me to thinking about the reputation of Business Families.

How many times do we really stop to consider what our reputation is?

It is not that we don’t care, but we are frequently confused with getting the job done and our need to be effective by the world’s standards. Our reputation and the reputation of our Family’s Business is influenced by what we do, what we say, and if we can be trusted.

Our reputation is really who we are and what we will or won’t fall for.

It is people’s recognition of us, our family, and our business.

Take the time to sit down, truly assess what you want your “reputation” to be, what you want your family’s “reputation” to be and consider what you must do to establish and build that “reputation”.

What is it people are saying about us behind our back?

It might be worth your while to ask others.

Why Plan

“In preparing for battle I have always found that plans are useless, but planning is indispensable.”

Dwight D. Eisenhower

As a Business Family how much of your time is spent on the hard work of planning?

How is your Family managing the nexus of your Determined Strategy and your Emergent Strategy?

Executive Coaching for Family Businesses

The Network of Family Businesses has scheduled a virtual educational seminar with Kathi M Smith, ACC, CPC, ELI-MP to learn and discuss Executive Coaching for Family Businesses. The seminar is scheduled for Wednesday, March 21st, at 11:00 AM EST.

In a White Paper for The Network of Family Businesses, Kathi states it is easy to think of the term coaching when we think of the sports or entertainment industry. We know that the person or team being coached is not only learning the physical skills of their craft but equally important is identifying what drives them to succeed. A coaching partnership in the Family Business incorporates communication and leadership skills that may be used to increase your influence with others. Not over them but with them. Influence is leadership and communication builds confidence allowing you to grow yourself and your business.

People have limiting beliefs and habits that may prevent them from being able to utilize their best skills. What beliefs or habits do you or your teams possess which prevent the ability to move forward? Just like in sports, a personal development coaching partnership encourages, supports, and builds confidence to bring out the best in an individual or team to accomplish their purpose and established goals.

As a coach to family owned businesses, Kathi takes their entrepreneurial spirit to encourage and motivate them to move from where they are, to where they want to be. Kathi is a full time coach and is one of 80 coaches certified in the state of NJ through the International Coaching Federation. She is also a certified Energy Leadership Index – Master Practitioner, which concentrates on core values and unique energy levels we devote to the primary areas of our life each day.

Prior to her coaching career Kathi was in the financial field for 15 years as a successful Sales Account Executive at PHH/Cendant watching the firm grow from 85 employees to a corporation of over 7,000 team members. She worked as a Financial Consultant with Smith Barney and saw the challenges of family owned businesses in passing wealth. She has written the program FAITHThinking which was born through her coaching practice and personal experience as she realized that how we view our Future, our Attitude, what Inspires us, our Thoughts and Habits determine the success we will have each day.

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

Who Fills Your Tank

“Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great.”

Mark Twain

The responsibility of family leadership is to nurture the growth and development of the next generation’s knowledge, skills, and abilities.

How many opportunities has your Family missed out on by not encouraging the ambitions of the next generation, even if that may not be in the business?

Continuing in the routine Health Assessment of your Family Business

Family owned Businesses, of any age or generation, need to take routine assessments 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; Governance; 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, Communication, and Customer Focus. This Family Business Check-up examines Leadership.

The leader’s role in the organization creates the foundation upon which to build the future. Successfully influencing the activities of members and the group is enhanced when members recognize the leadership as nurturing, caring, competent, and forward thinking. This dimension considers the strength of support for the group or organizational leader.

Each Family Member should address the following statements:

1. Leadership in our family business encourages individuals to think and make decisions for themselves.

2. We display strong confidence in the integrity and ability of our family leaders.

3. We are confident our family leadership will fulfill their commitments.

4. The leadership cares about each individual in our family and business as a person.

5. There is a defined process for leadership succession in our family.

How would your family, employees, and customers, clients, or vendors, answer these questions about Leadership 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?

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