Emerging Leaders Discuss Family Biz Dynamics
TRSA’s Emerging Leaders group met on July 29 in Chicago to discuss how to succeed in business while managing the needs of various generations of a family enterprise. The facilitated discussion, titled “Innovation … in the F Suite” was led by Dr. Justin B. Craig, the co-director of the Kellogg Center for Family Enterprises at Northwestern University’s Kellogg School of Management.
Dr. Craig shared specific examples from family businesses that he has researched and consulted. For instance, when discussing the topic of setting up a board to oversee a family business, he shared how Dennis Family Homes, a leading home builder in Australia, set up its governance structure, through its “Dennis Family 4 Rs Matrix,” which defines the roles and responsibilities for each member of the board. He also discussed how to train future generations of the family to become business leaders, as well as how to prepare the departing generation to exit the business healthy, wealthy (both emotionally and financially) and wise.
"A great and very important take-away for an industry that is fundamentally still operating family owned companies is the concept of preparing plans and policies for succession before you need them," said David Potack, vice president of sales and marketing, Unitex Textile Rental Services. "This can determine the fate of any company as they evolve and new generations of family members join the company. Each company should have policies, qualifications and expectations of how family members are groomed for executive positons and the key is to set people up to succeed – this cannot happen without a well-rounded plan. The meeting was very thought provoking and rich with stories and theories that are applicable to any company in the industry where family members are in executive roles."
Michael Croatti, senior vice president of service, UniFirst Corp., said that, “The meeting was well done. Dr. Craig gave some interesting insight on family dynamics and how it plays in business. Having a family council pre-established and a set of ground rules that a family member must achieve before coming into the family business was intriguing. Dr. Craig said that as a family member comes into the family business, they need to have profit responsibility as part of their development. Not budget or revenue, but profits."
John Clark, regional manager, Prudential Overall Supply, said that, “Any presentation that forces you to think decades into the future, planning for the next generation, will spark a lot of ideas and possibilities that are extremely beneficial to the long-term outcome of a company.”
Following the facilitated session with Dr. Craig, the group went to the Wednesday afternoon baseball game at Wrigley Field. While watching the hometown Cubs take on the visiting Colorado Rockies, the Emerging Leaders attendees got a chance to network in a casual setting. As an added bonus, the home team won 3-2 behind a great pitching effort from Jon Lester. The meetings kicked off with a dinner the evening before in downtown Chicago, where the group was able to discuss business and personal matters over steak and sushi.
Attendees at the meeting, which took place at the Hyatt Regency Chicago, included:
- Peter Brown, Mickey’s Linen
- John Clark, Prudential Overall Supply
- Michael Croatti, UniFirst Corp.
- Steve Crow, Venus Group
- Tyler Fowler, Mountville Mills Inc.
- Jake Gurtler, Gurtler Industries Inc.
- Tony Jackson, Kannegiesser USA
- Mack Magnus, M&B Hangers
- Dave Manter, Balfurd Healthcare & Linen Rentals
- David Potack, Unitex Textile Rental Services
- Andrew Steiner, AmeriPride Services Inc.
- Gardiner Van Ness, AmeriPride Services Inc.
The group’s next meeting is slated for the morning of Sept. 10 at the TRSA Annual Conference in Isle of Palms, SC. To register for the Annual Conference, visit www.trsa.org/annualconference.