A Key Non-Family Executive in the Family Business

How does an independent Family Business Advisor transition to the role of Employee?

What issues should a business family address for key non-family executives?

Join The Network of Family Businesses for a virtual educational Webinar on Tuesday, October 16^th, 2012 at 10:00 AM EST, with Scott Heintzelman, Vice President Finance & Administration for Martin’s Famous Pastry Shoppe, Inc.

This discussion will explore the roles and responsibilities a non-family executive can fulfill and begin to explore the expectations that both family members and non-family members may have. Learn how to avoid pitfalls for the family and the non-family executive. Join us to hear Scott’s story of his transition to being a key non-family executive in a family business.

Scott Heintzelman holds a B.S. in accounting from Messiah College and is the Vice President of Finance and Administration at Martin’s Famous Pastry Shoppe, Inc. His focus at Martin’s is on management training, strategic planning, people development, and formalization of process. Before his employment at Martin’s, he was a Partner with McKonly & Asbury, LLP where he was in charge of the Family Business Group and in doing so, provided service to some of the region’s most well known businesses. A Certified Public Accountant, Scott is a member of the American and Pennsylvania Institutes of Certified Public Accountant. As a Certified Management Accountant (CMA), at McKonly & Asbury he led the firm’s forensic accounting and fraud prevention team.

While employed at McKonly & Asbury, Mr. Heintzelman wrote a blog, “The Exuberant Accountant,” which Entrepreneur Magazine recognized as one of four best accounting blogs for gaining "a better understanding of your business finances." He also is a frequent guest lecturer on the subjects of Family Business, succession planning, employee engagement, fraud prevention, and social media marketing.

Mr. Heintzelman is a member of the Board of Trustees and the Executive Committee of Messiah College. Additionally, he serves on the Central Pennsylvania Advisory Board for M&T Bank.

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

The Advantage

Recently I completed reading Patrick Lencioni’s book, 

The Advantage, and came to the conclusion with minimal word smithing, this book could be all about building The Advantage for Business Families.

Lencioni (p. 77) outlines 6 basic questions that must also be asked of every Organization. I am suggesting also of every Business Family.

1.     Why do we exist?

2.     How do we behave?

3.     What do we do?

4.     How will we succeed?

5.     What is most important right now?

6.     Who must do what?

If a Business Family could work through these questions and develop clear answers that all could agree to, understand, and continually communicate they would see the health of their family and business grow exponentially. 

Discussing these questions requires trust, commitment, communication, communication, communication, and accountability.

How is your Family processing these questions?

What needs to happen for your Family to be able to discuss these critical questions?

Your Thoughts?

How Your Family Business Can Benefit From Telling Your History

Our next Webinar is scheduled for August 21, 2012 at 3:00 PM EST, with Bonnie Hurd Smith, President and CEO of History Smiths. Bonnie desires to help Business Families achieve business results AND make a significant difference in the communities they serve.

This webinar will help Business Families learn to tell their story. Telling the story of your family business can show what makes your family unique, build an “emotional connection” with your customers, and deepen their loyalty.

No one else can tell YOUR story! And the fact is, people love a warm and fuzzy family story. No one is interested in the occasional family conflict. Instead, people want to hear stories about multiple generations working together and passing down knowledge from one generation to the next. They want to hear proud father/son stories, or mother/daughter stories, or husband/wife stories. Why? Because it’s what we all want in our own lives.

Bonnie is an experienced organizational/project manager, cultural tourism and public relations professional, event planner, and fundraiser. She is also a respected historian, the author of numerous historical books and articles, and a popular public speaker. She has served as the board president of the Sargent House Museum (a historic house museum in Gloucester, Massachusetts), as executive director of the Ipswich (MA) Historical Society, and she currently serves as a commissioner of the Essex National Heritage Commission and as a member of the Massachusetts Historical Records Council.

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

For additional information email: steve@netfamilybusiness.com

Why an Exit Strategy

Mark Lee and Karen Benz of, Business Legacy Consulting, began their discussion of “How to Ensure a Legacy for a Business Family with this quote by a famous philosopher.

            “You got to be careful if you don't know where you're going, because you might not get there.”

                                     Yogi Berra

Mark stated if you don’t put together a plan to accomplish something, there is a good chance you won’t attain what you want and need to.  That could not be more true in the area of exiting a business. Research shows that many business owners just don’t ever plan on leaving their businesses or believe that there will always be a tomorrow. 

These reasons contribute to what Mark and Karen call the “Ostrich Syndrome” or the excuses why individuals do not plan their exit.

A.   “Too early”?  --  They suggest you start planning 3 -5 years before you leave your business.

B.    “Too complex?” – Yes it is!  That’s why you need help.  Exit planners work to coordinate the work of your advisory team.

C.    “Too time consuming?  -- Yes, if you do it alone.  Again, exit planners will do the planning and coordinating of the work to be done.

An Exit Strategy includes the written goals for the succession of  business ownership and control, derived from a well-thought out and properly timed plan that considers all factors, all interested parties, and the personal goals of the owners in a manner and a time period that works best for the business, its shareholders, potential buyers, and Family.

Mark and Karen left our members with much to think about as well as these three takeaways a Business Family can begin to immediately process:

1. Every business owner will eventually leave their business.  The question is, will they leave on their   

    terms or on someone else’s?

2. The most important aspect of exit planning is going through the process of setting goals.

3. Those who are the happiest with their position in life after the transition are those who planned for it.

The majority of business owners spend an average of 80 hours developing a business plan –this at a time WHEN THE BUSINESS HAS LITTLE TO NO VALUE and yet they spend only 6 hours planning for their exit – WHEN THE BUSINESS IS WORTH SO MUCH MORE.

Plan for your transition – on your terms –and protect your Business Legacy and your family…

Mark and Karen, thank you for your insight and wisdom on the critical issue for Business Families.

They can be contacted at www.businesslegacyconsulting.com

ENSURING A LEGACY FOR BUSINESS OWNERS

Our next Webinar is scheduled for July 18, 2012 at 3:00 PM EST, with Karen Benz, MS and Mark Lee, CPA, MBA. Mark Lee and Karen Benz are founders of Business Legacy Consulting, Inc. providing exit planning and business consulting services to small to medium size business owners.

This intense webinar will explore the many risks associated with not planning in advance for leaving the business.  The issues include:  not meeting your business, family and personal goals; selling your business for less than it’s worth; family in-fighting and discord; transitioning at the wrong time; and not having a successor developed. Developing an exit strategy and exit plan can mitigate these risks significantly.

An exit strategy sets the context for the exit plan. Learn the key elements of an exit strategy and what the critical questions are, that must be considered. Answering questions such as: What do you want this transition out of your business to do for your life?  and What are your  personal/family obligations? are essential to the exit plan. 

Karen's focus is on business consulting, strategy and leadership development with an emphasis on improving individual and organizational performance. Mark has a passion for helping business owners succeed. They both bring extensive experience in business planning, evaluation of business systems and general management services.

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

For additional information email: steve@netfamilybusiness.com

Preparing the Nxt Generation for Leadership

Many ‘young’ leaders today grew up in an environment where every child received a ribbon or trophy and some schools no longer declare a Valedictorian. Yet in the business environment, there is a need for people to step forward, be recognized and lead.

In the Business Family, the process of developing savvy business leaders with the ability to unify the family, nurture the vision, maintain focus, maintain energy, maintain persistence, and see the world from others’ perspective is increasingly critical for the family to build their transgenerational legacy.

Skills necessary to build the interfamily networking skills, the ability to act and speak with power, and how to influence others and build a unified team can be learned. If the Nxt Gen leader can learn that what is good for the family and the business is good for them, the family and the business will be poised for success.

“The Diamond cannot be polished without friction, nor the man perfected without trials.”

                        Chinese Proverb

What trials, experiences and opportunities are we creating or allowing for the Nxt Gen leaders to be perfected?

I would love to hear your story

Business Succession and Estate Planning: A Team Approach

The Network of Family Businesses has scheduled a virtual educational Webinar  on June 28, 2012 at 11:00 AM EST, with Rich Locher, Financial Advisor, and Philip E. Levin, Esq. This practical and ‘how to’ discussion will help Family Business owners better understand the various disciplines needed in the planning process. Gain insight into what are the key points a Business Owner needs to consider as they approach the planning process, how Business Planning Concerns impact Estate Planning Concerns, and how one selects the correct tools and instruments for Estate Planning.

Rich brings with him 30 years experience in the investment and financial planning industry. His strengths are in helping his planning clients understand the impact their financial decisions have on their quality of life- now and in the future, especially the outcome of delaying decisions regarding family protection, estate planning or keeping investments in line with long-term goals. 



Attorney Philip Levin has over 25 years of experience working with clients, along with their financial and tax advisors, to develop and implement comprehensive and tax efficient estate plans for individuals, business owners, and corporate executives. Phil believes that the key to creating an effective estate plan is to inform clients about their options under current law and create an integrated plan designed to make sure that the right property, distributes to the right party, at the right time, either outright, or through flexible trust planning arrangements. Phil has worked with many privately owned family businesses for the purpose of developing business disposition plans to protect the rights and interests of company shareholders, partners, and their families.

Don’t miss this critical and timely ‘How To’ topic.

Remember When?

Remember the days when business was done on a handshake?  When an individual’s word was their guarantee?

For families in business, their name is on the door or the delivery truck or the website. Their word is the family’s name and they are usually committed to supporting the communities.  Studies have shown that over a third of the 5.5 million family businesses in the United States have written codes for the behavior of the family and the business and consistently talk about those values and ethics.

It is often because of the relationships that were built by the founders or previous generations that family businesses continue to trust and respect each other and still do business with each other into the 2^nd or 3^rd or 4^th generations and beyond. The trust developed between generations doesn’t just happen: it takes work, it takes learning, it takes sharing information of what works and what could be done better.

To build a Family Legacy, the same is true. By offering a special promo code (join2012), The Network of Family Businesses is providing a special promotion to help Family Businesses keep the next generation in mind in decisions they make and the plans they develop. The sharing of information through Social Media and nurturing a Network for Nxt-Gen Internships will develop new relationships just like the relationships that were built by the founders and previous generations.

Building and nurturing relationships, networking with other Families in Business, providing resources for learning and sharing is how The Network of Family Businesses supports families as they strive to grow their family, their business, and build their family legacy.

Remember when your family knew who they could turn to?  Today, family businesses can turn to The Network of Family Businesses.

Visit the The Network of Family Businesses at: http://www.netfamilybusiness.com/ -- Promo Code: join2012

How Healthy is Your Business Family Culture

An effective Business Culture is built on trust, respect, values and                                                             the proactive engagement of the leaders.

In a Business Family an effective and healthy culture is nurtured and modeled by all members of the Family. Are you as a Family in Business creating a culture of excellence, of clear performance expectations, of trust and respect or are you creating a culture of mediocrity and ‘what’s in it for me’?

To build a culture of trust we need to ‘do what we say we will do’ and fulfill our commitments, display a willingness to rely on others and trust we all have each other’s, the family’s, and the business’s long term interest at heart.

The culture of the business will be based on the values of the family. The recognition and adoption of the values, guidelines, and way of behaving that a Family has declared should be communicated often, communicated in writing and will be communicated in deed and action.

When there is strong accountability, commitment and agreement to those values both family members and employees are able to focus on the family needs, the business needs and the long-term goals.

Raising Successors to be Adults and Peers - A Family Business Dynamic

As a parent we want to do the right things correctly.

As leaders of the family business we usually want to build the family legacy and have the business thrive for generations.

In a recent Webinar, Dr. Steve Treat itemized what he believes are the three highest corollaries’ for the successful transition of a family business.

1.     Family Meetings that not only discuss the business but the family.

2.     A family business leader that steps down and turns the business over to his/her successor in a timely fashion.

3.     Peerage.

In the webinar Steve outlined very specific steps for parents (steps that apply to children of any age) to build relationships and relate to their children as peers.

            The goal of Peerage and Adulthood:

                        - Building an identity of their own

                        - Having accomplishments of their own

                        - Learning how to think on one’s own

                        - Asserting oneself respectfully

                        - A clear understanding of roles

                        - No sense of entitlement

                       

The many ideas for the basic of growth parents included: to learn to be friends with our adult children, learn how to build a peer relationship with them, learn how to build mutuality, have boundaries, and build integrity. Steve states there is every reason to believe the family and the business will thrive.

This is a must see webinar for any parent.

It is an absolute must see for Business Families striving to build their family legacy.

The webinar is available in archives of The Network of Family Businesses.

The Family Dynamic of Family Business: Raising Successors to be Adults and Peers

The Network of Family Businesses has scheduled a virtual educational Webinar with Dr. Stephen R. Treat to gain insight and practical guides for this critical family dynamic. Steve is a Senior Therapist and former Director and CEO of Council for Relationships, the nation’s oldest and largest counseling agency. Dr. Treat continues to see clients, teach at Thomas Jefferson University, and consult with family businesses. He is an in-demand speaker, consultant and media expert. He can be seen regularly on television programs such as Philadelphia’s NBC10’s 10! Show, CBS3’s Talk Philly, and numerous local news programs. He has appeared on national television shows, such as the Today Show. He’s also been featured on numerous radio programs, and is often quoted for newspaper and magazine articles.

Understanding how to relate to your adult children as peers is a difficult task for any parent. Understanding the Family Dynamic of Family Businesses to Raise your Successor truly compounds the matter. The seminar is scheduled for Wednesday, May 9th, at 11:00 AM EST.

The dynamics of a Family Business are often not recognized and often overlooked or avoided. How does one go about raising the Next Generation to be Adults and Peers in the business. We often hear phrases that seem to indicate “Children” aren’t competent successors. Yet to build a family legacy we need to prepare the Next Generation as well as ourselves. How do we help the Next Generation build their own identity, think for themselves, and understand each individual’s roles.

Don’t miss this critical and timely topic.

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

Business Family Values

Every Family has a set of Values. The Values may not be explicitly articulated, but they are present.

We may not always agree that those Values are good or bad, positive or negative, but each family has a set of Values.

In my work with Business Families it is very rewarding to nurture the dialogue as the Family struggles to articulate their Family Values. It is my belief the hard work of articulating the Family Values, specifically developing the non-negotiable Values for their Family, pays huge dividends the Family and the Business.

Roy Disney once said: “When your values are clear to you, making decisions becomes easier.”

I believe Family Values, articulated or not, are the glue that will carry a Business Family through tough times or be the wedge that will divide.

How has your Business and Family been strengthened by understanding your Family Values?

I would love to hear from you.

Collaborative Partnership Formed to Better Serve Business Families

Family businesses are the very fabric of global economies and their success is vital to any economic recovery. In the turmoil of today’s economic environment The Network of Family Businesses and Family Business United are collaborating to provide global, on-line business networks for families in business.

Family leaders frequently feel isolated as they face the issues of transferring the business to the next generation, building family unity, and growing the business. However, family business leaders are learning they need not walk this journey alone.

In an effort to support these Family Business leaders, Paul Andrews, President and Founder of Family Business United and myself state now there are collaborative platforms to nurture on-line dialogue, facilitate learning, educational resources and global networking.

Our websites www.familybusinessunited.co.uk and www.netfamilybusiness.com provide collaboration and a forum for dialoging with other families in business as well as confidential on-line forums to discuss critical questions families in business face.

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.

HUMAN RESOURCE ISSUES IN A FAMILY BUSINESS "Even With Family, It Has To Be All Business"

Join Jacqueline Shulman, Partner - Labor Relations & Employment Law Department of Obermayer Rebmann Maxwell & Hippel LLP to learn and discuss how recent Employment Law changes may impact the Family Business. The seminar is scheduled for Thursday, April 19th, at 09:00 AM EST.

Jackie states many family business owners believe their "close-knit" Family approach provides them with protections not enjoyed by the typical private employer. This wrongly held belief could be costly on two fronts. Aside from poor morale, it could lead to legal fees being expended for failure to comply with specific laws (especially discrimination lawsuits).

Several of the topics Business Families need to be aware of will be covered in this seminar. There have been some confusing Media and Press reports regarding children of business owners working in the business and what their compensation may or may not be. How should the Family Business manage a Family Member who is not performing as expected? Three individuals have been “appointed” to the Labor Board; what implications will that have for Business Families?

Social Media is exploding; what should a Family’s Social Media Policy consist of?

Does every Family Business need a handbook and what should or should not be in that Handbook?

Don’t miss this critical and timely topic.

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

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?