Are family businesses really more resilient, agile and adaptable than other business types? And, if so, have they been able to tackle the challenges of COVID-19 better than most and, perhaps, emerged even stronger? The shock of an unexpected global pandemic provided an opportunity for the Successful Transgenerational Entrepreneurship Practices (STEP) Project Global Consortium and KPMG Private Enterprise to come together to find the answers to these questions by taking a first hand look at how family businesses have responded to the pandemic in the Global family business survey: COVID-19 edition and report. Global survey data was collected between June and October 2020, followed by input from family business leaders, academics and family business advisers in January 2021. The experiences and insights from family businesses in the Americas, Asia, Europe and the Middle East & Africa have revealed a roadmap, not only for mastering a comeback in their businesses, but for leading a global economic recovery. Mastering A Comeback Learn how family businesses across the world are mastering a comeback in their businesses and triumphing over COVID-19, to help lead a global economic recovery. Resilience, It’s In Their DNA Family business leaders reported that the first impact of the pandemic was seen in their revenues. That was not surprising. The majority reported that they experienced revenue declines, however, as many as 17 percent whose revenues were affected by COVID-19 actually experienced a revenue boost. Predictably, this included companies that benefited directly from an increased demand for their products and services, but many others were also able to adapt quickly and rebuild their businesses to tap into new opportunities. The resilience and agility of family businesses has proven to be to their advantage once again. They have achieved positive outcomes for their businesses, families and communities by transferring their resilience into actions at the organizational, strategic and social level and did so with the characteristic inclusiveness and tenacity that are found in most transgenerational family firms. Leveraging The Unique Characteristics Of The Family Business Model Eighty-seven percent of family firms that responded to the survey are led by family CEOs, which often reflects a high level of family involvement in day-to-day decision-making. This is a unique characteristic of family businesses. During times of dramatic change and upheaval, the family is often a source of unique resources and capabilities. During the initial shock, we identified several financial and non-financial actions that families took to stabilize their businesses while simultaneously laying the foundation for their companies’ longer-term growth prospects. For some, this led to a complete transformation of their business operating models and the launch of new product offerings, often with the intent of making the business fit for purpose in a rapidly accelerating digital age. Statistics For Family Businesses Led By A Family CEO Not only were they involved in addressing the impact of COVID-19 on their businesses, but they also looked out for the welfare of their communities and expanded their horizons to integrate their business and environmental, social and governance (ESG) strategies to support broader environmental and societal goals. The Power Of Family Involvement When many family businesses started to grasp what the pandemic might mean for their companies, they realized that more involvement and input was needed from the family itself. It was important for the family to re-engage, especially when the management of the business had been entrusted to non-family executives. In some cases, senior family members have come back into the business to bring a historical context and to ensure that the family’s purpose and values remain intact for whatever decisions might need to be made. Younger generations are becoming more involved as well. Because of their knowledge and exposure to many new technologies, they are being relied upon to identify digital solutions to transform the family’s business operations and help to develop new technology products and service offerings that will pivot their business, potentially taking them into entirely new markets. Three Strategic Responses The actions taken by family businesses have revealed three core strategic responses: Strategy 1: Social Responsibility The focus is outside the family business and emphasizes the business family’s commitment to the welfare of society as a whole, and the needs of all their stakeholders including employees, customers, suppliers and local communities. It reflects the family’s values and the governance practices that are in place to support their societal and environmental responsibilities and maintain their reputation as responsible owners. Strategy 2: Business Transformation The concept of pivoting and the importance of encouraging a transgenerational entrepreneurship mindset is the focus of this strategy to pass the business successfully from generation to generation. It includes reactive actions such as streamlining operations and implementing new financial measures, proactive pivots for creating new products, exploring untapped markets and adopting new technology solutions to transform the business. Strategy 3: Exercising Patience With this strategy, some family businesses have not taken immediate action to address the impact of COVID-19. The capital invested in the family business is “patient capital”, and they are prepared to take their time to fully assess the impact on their business and the actions of others in their industry before making decisions that might have far-reaching, longer-term consequences. Making The Strategic Choice: Two Key Factors We observed a pattern in the strategies-of-choice among family businesses that reflect two key factors: the leadership of the business and the ownership composition of the company. “Is the business led by a family member or a non-family CEO?” “Are the company’s shares highly concentrated among a small number of shareholders or are they widely dispersed among multiple family (and potentially non-family) members?” Other characteristics, such as the size and age of the company and the number of family generations who are actively engaged in the business, have also influenced their actions. When we combined the family/non-family CEO and family ownership factors with these additional characteristics, we were able to cluster family businesses into four groups that share a common profile. We found that the families who are represented in each cluster have generally adopted similar strategies and actions in their response to COVID-19 and we have brought them to life in four illustrative family business personas that we have labelled: the “Family Corporation”, “Family Enterprise”, “Family Consortium” and “Family Venture”. Real-life experiences have been used in the personas to show, by example, the unique features of different family business types and how their characteristics may be influencing the decisions and actions they are taking. Lessons In Resilience The actions that family businesses have taken to respond to COVID-19 from a business, family and societal level demonstrate, once again, their extraordinary competitive advantage in being able to act and adapt quickly. They have shown their resilience in making a comeback – even in the face of the most challenging of times. More than that, they are showing family and non-family businesses alike how to leverage all of their assets – financial and non-financial – to lead their companies into the future and not look back. We hope their experiences and some of these considerations can help to position your family business at the forefront of the resurgence in the global economy: How effective have the initial financial and non-financial actions been in mitigating the impact of COVID-19 on your business? Did the company’s governance practices help to support these efforts and reduce potential risks? Are good mechanisms in place to facilitate the family’s decision-making? Should the family begin to play a larger role in the operations of the company? How relevant are the three strategies (social responsibility, business transformation and exercising patience) for the short- and long-term needs of your business? What other actions might you consider now? What is the long-term outlook for your business? Is it time to recalibrate the business model and adopt new technology solutions? Is a remote workforce a viable, long-term option? Is it important to engage younger generations of the family in contributing to the recalibration of the business? Is succession planning becoming more of a priority? Are acquisitions, strategic alliances or other opportunities available to diversify your products and provide a potential entry into new markets? Take a look at the full findings in the report, Mastering A Comeback below:

Between 30%-48% of UK adults suffer from insomnia. Are you one of them? Perhaps you find it hard to get off to sleep, have difficulty staying asleep, or wake frequently in the night and find you can’t get back to sleep. It’s a problem for me too. So, what can we do about insomnia? Dr Deborah Lee from the Dr Fox Online Pharmacy shared her ten top tips to help us all to get a better night’s sleep. 1. Get Some Sun First Thing In The Morning Our bodies are programmed to work in conjunction with our own internal biological clock – known as Circadian rhythms. At night-time, the brain recognises the darkness and produces the sleep hormone, melatonin, which is the signal for sleep. But in the mornings, it needs to recognise the daylight, so this highlights the difference between night and day. If you can go out for a walk preferably within an hour of waking, without sunglasses, this will help prime the natural sleep cycle. 2. Create A Bedtime Routine Never expect to get into bed and drop off straight away when your mind is whirling and tossing after the stress of the day. You need to wind down for sleep. Having a bedtime routine is important, as your brain knows what is coming next. Set a bedtime and stick to it. Start getting ready for bed an hour or two before this. Turn off the TV screens, the computers, and mobile phones. For start, the blue light emitted by these devices inhibits the production of melatonin. But they also just keep stimulating your busy brain. Play some soft music or listen to something interesting on the radio. Take a warm bath or shower. Do some gentle stretching exercises. Read for half an hour in bed. Avoid caffeine and alcohol at least 6 hours before bedtime. 3. Write A List Before Bedtime In a 2018 research study, those who wrote a list of plans and obligations for the following day before going to sleep fell asleep more quickly than those who wrote about what had happened during the previous day. Participants were asked to write for 5 minutes about what they planned to do the next day. Writing a ‘to do’ list is a simple way you can park your worries until the morning. 4. Keep A Gratitude Journal Other research has shown that keeping a gratitude journal can aid sleep. In a 2011 study, a group of students with anxiety and sleep problems was found to worry less and sleep better after completing a gratitude writing task. When we start to look around and take notice of all the things we are grateful for, and that we often take for granted, this helps us get things into perspective. Developing feelings of gratitude helps lower levels of anxiety and leads to more positive thought processes, which aid relaxation and sleep. 5. The Military Method You may have heard of ‘the Military Method’, a method apparently used by the Army to help them fall asleep quickly when they have the opportunity. 96% of those who do this are said to fall asleep in 2 minutes – Here’s how to do it: Start by taking a few slow deep breaths. Then consciously try to relax your face, neck, jaw, and shoulders. Continue with slow deep breaths. Imagine a warm trickling sensation passing over your whole body, passing from the heart down to the toes. Next, breathe in and out slowly and try to relax your body, arms, hands, legs, and feet. You then try imagining you are in a canoe on a calm lake looking up at the blue sky, or, that you are lying on a black velvet hammock in a room that is pitch black 6. Cool Down You might think you need to get nice and warm to go to sleep, but studies show that body temperature falls by 1-2 degrees when we sleep at night. A fall in temperature signals to the body that it is time for sleep. This is why it’s a good idea to keep your bedroom cool. Sleep with the windows open, or even use a gel pad on your pillow. Exercise heats up your body, which is one of the reasons why it’s not advisable to exercise too close to bedtime. 7. White Noise Or Pink Noise? Some people swear they can only sleep in silence – which is often impossible in today’s world. In fact, certain types of noise can be helpful for sleep. White noise is a specific sound made up of every frequency of sound that can be heard by the human ear. It creates a background noise that dampens out any loud noises like a door banging or the sound of a car exhaust. For hospital patients, a white noise machine produced a 40% improvement in the ability to fall asleep. It has also been shown to be effective in helping babies and small children sleep. Pink noise is made up of a mixture of low-frequency and high-frequency tones. This is background noise like the sound of the wind in the trees or the waves on the ocean. Pink noise has also been found to be helpful in improving the ability to fall asleep, to sleep for longer periods, and have better quality sleep. (I listen to the radio in the night, at a very low volume, so it’s really a murmuring and I have to strain to hear it, but I find it helps.) 8. Only Use Your Bed For Sleeping Experts are quite insistent that a bed should only be used for sleeping (and sex!). Now that many of us are working from home, it’s important not to work from your bed or bedroom. Your brain needs to know that when you go into the bedroom, it’s time for sleep, and not to associate your sleeping quarters with stress and work. Plus, not working in the bedroom helps you to achieve a work-life balance. It’s time to find another workspace if you want a better night’s sleep. 9. Cold Water And The Dive Reflex It may be a surprise to know that the diving reflex can aid sleep. When you submerge your face in cold water, your body thinks you are about to dive and sets off a range of natural reflexes, which aid sleep. Your heart rate slows, and your blood pressure falls, as blood is rerouted from the limbs to the brain and the heart. The process activates the parasympathetic nervous system, inducing feelings of calm and relaxation. You can try holding your face under cold water for a few minutes before bedtime, or even going for a night time swim. Final Thoughts Falling asleep does not happen easily for many of us. But as you can see, there are many easy, inexpensive, tips and tricks you can use to help yourself fall asleep faster. What changes could you make to help yourself get off to sleep more quickly? About the Author – Dr Deborah Lee is from the Dr Fox Pharmacy, a fully regulated UK online doctor and pharmacy service managed by NHS GPs. She is a doctor and freelance writer who writes about all aspects of health.

How do family businesses stay intact for the next generation? The statistics are daunting: some 70% of family-owned businesses fail or are sold before the second generation gets a chance to take over. In an increasingly competitive world, family businesses need quality advice to help maximize their chances of success. But we also need to recognise that family businesses are intrinsically bound up with the personal lives and wealth of its members. This is where family offices can step in and add value. As a single command centre, family offices can help to keep families unified in purpose through a range of services, from well-considered succession planning, to formulating family constitutions and assemblies, to helping set up family philanthropy. Providing Structure Family businesses are often the brainchild of one or two founders, sometimes growing organically for another generation or two. But the longer a family business exists, the less it can depend on the sheer force of will of its senior members. Family offices help to bring structure as a business matures. A family constitution establishing the principles of how the business is to be governed can serve as a useful reference point. This can anchor the family’s values, helping to transmit the principles of the founder to the next generation. Family offices can sit down with a founder, or other senior figures in the business, to help them formulate these principles and commit them to paper. Boards, assemblies and councils are also important in ensuring that everyone’s voice is heard. Some of these may be organised in accordance with shareholdings, but in a family business it is important to give more junior or peripheral members a seat at the top table as well. Younger family members might even be given a specially-crafted ‘junior board’ to cultivate their interest in the business. Here, family offices can help provide an organisational framework. Insiders And Outsiders Some family members want to continue in the business. Others do not. However, it doesn’t need to be quite so binary. Individuals would often like to retain some involvement, but in a specific role which interests them. Again, family offices can come to the rescue and work to fit a family member’s own interests into the company in a way that makes corporate sense. It may also not make sense to keep everything in the family. Perhaps a professional CEO is needed to run the show while family members sit on the board. Or maybe it’s a matter of hiring a few more in-house experts, such as lawyers or accountants, to offer much-needed support and counsel. An example of a large family company doing this well is the Brenninkmeijer family, of C&A fame. For a smaller firm, these first forays can be contentious – but is equally something which a family office can help to advise on, leveraging its position as a neutral arbiter. Trusts Trusts are an important weapon in the family office arsenal. This is especially because they can help to mediate disputes, which is a crucial component of family business succession planning. Unfortunately, a lot may have been left unsaid when a founder dies. Family members who put in the hours to grow a business may fear a sibling, who didn’t, gaining a substantial interest in the same company which they feel to be rightly theirs. The task of trustees is to satisfy the wishes of the settler, handling disputes which arise much in the way a referee helps to manage a game of football. Global Families When someone says “family” people think “local.” But this is hardly the case anymore. One of my clients is a family business from Milan, Italy. It used to be that everything they did was in that locality. Now, the family has production everywhere from Finland to Malaysia. This sort of globalisation opens up a new set of challenges and opportunities. Family offices can strive to ensure that diversity of jurisdictions works to everyone’s advantage – most notably in keeping things tax-efficient for all family members, and for the business itself. It also prompts some emotionally charged questions over who is closer to the business, or who gets to participate in the company’s exciting new phase of growth, about which families may welcome advice. Philanthropy For successful family businesses, philanthropy can be the glue which brings people together. Members can get involved in something meaningful together by injecting purpose into their work, offering a line of participation to those who might otherwise not want to be too involved in the business. Family offices can take the lead on this, identifying the right organisational structure. This could mean setting up a charity in and of itself, or a grant-making body which interfaces with established charities. Regardless of what model the family chooses, a family office can cut out the administrative bureaucracy and let family members focus on helping the less fortunate.

Escapism Bar Group was founded in 2004 by husband and wife team Phil and Mel Harrison. Since the opening of their first bar Mean Eyed Cat, they have gone on to open seven other unique bars which all offer something totally different in Leeds. Paul Andrews spoke to the founders to get an understanding of their journey to date and to find out what it means to start and grow their family business. What does the business do? We are a group of independent bars in Leeds. We create memorable moments, inspire our guests and create an atmosphere of happiness and togetherness. Our core business isn’t to sell drinks – it’s about the atmosphere and the experiences our guests have when they visit us. The clue is in the name – it’s all about escapism! Each bar brings something unique. They’re each based on a different cocktail genre or era of partying history – from 1920s prohibition at our speakeasy The Maven, to 1950s post-WW2 indulgence in the South Pacific beach bars at Tiki Hideaway, to Johnny Cash in the rebellious Deep South at The Mean-Eyed Cat. Another bar, Cuckoo, was founded during Brexit. We wanted to create something as far away from politics as possible. We painted the front of the building pink and had zebras running through the walls. Every part of your experience when you visit an Escapism bar is a little bit unique, whether it’s a tower of beer with a giraffe’s head on top which you can spin around and serve to your friends, drinks set alight, or a six-course cocktail tasting menu. Tell me a little about the history of the business? It started with the two of us [husband and wife Phil and Mel], aged 26, thinking ‘how hard could it be to set up a bar?’ We always wanted to have our own business – it’s about being in control of your own destiny. We’d had some rubbish jobs and some horrible bosses, and as we went out every weekend, we became inspired to do our own thing and create something great. We wanted to create somewhere where all the guests were friendly to each other, and the bar team was a close group of friends. You spend a lot of time at work, so we wanted to make it the best possible place it could be. In the beginning, we raised money by moving between houses, doing them up and getting the equity out. We didn’t have any inheritance or help from our parents – it was a lot of graft and a lot of painting! Are there any other family members working in the business? Yes – in 2014, Mel’s sister-in-law, Hayley brought her marketing expertise on board and has been heading that up ever since. Our three children are still at primary school age, so it’ll be a while before they become interested in joining. What has helped drive your success to date? Our initial drive came from putting everything on the line. We couldn’t afford to lose. We’d work hundred-hour weeks to make it happen. When you open up more venues, you’ve got to be able to trust your team to create a good culture. They need to want the business to grow too. We’ve made every mistake we could possibly make, but just when you think you’ve seen it all, something new goes wrong. That’s just the nature of the hospitality industry and of running your own business. What values are important to the family and the business? When we induct new members to the team, we tell them our back story. It’s important to us that they know where we started. Hard-working, enthusiastic, and a great attitude are all qualities we look for. We also want our team to want to continuously improve. We must, otherwise we will stand still. The number one thing we tell our team is to host the bar as if you’re hosting a house party. Look after your guests: make sure the music’s right, the drinks are flowing, everything’s clean, you’ve got loo roll in, you’re introducing guests to each other, bid them goodbye when they go and make them feel special! Do you build the family ownership into the marketing and brand narrative and if so, how? People describe the bars as a brotherly, sisterly environment. It’s safe and friendly. There’s no pretentiousness or trouble going on – instead, just as if you were with family, it’s relaxed, and you can be yourself. Anyone who works for us would tell you that it’s like a big family. We do quarterly away days and make sure everyone at all the bars really knows each other. Our team is really diverse and we hire on personality. We hugely believe in paying everyone doing the same job the same wage, regardless of their age or gender. What do you think makes working in a family business special? Trust is massively important. We’re both working towards the same goal, even if we have different ideas about how to get there and may disagree from time to time. We can build in flexibility for looking after our children, which helps us be understanding and flexible when employees have children too. Work should be as natural as play. Are there any disadvantages associated with working in a family business? It can be hard to split the person from the job role. You always need to keep in the back of your mind the job description of the actual job you’re doing. We split the work between us by keeping an awareness of each other’s strengths and weaknesses. If you can do that for yourselves, you can do that for the other job roles in the company too. If you haven’t got defined roles, there can be crossover. It’s like at home – kids will play you off against each other if there are inconsistencies. So, at work, we make sure we know who deals with each area. Have you taken any particular steps to help protect the business for the future? Covid’s an obvious one when thinking about the future. We’ve been very agile in changing how we operate. 88% of our business used to be between 10pm and 4am. So, when the curfew was introduced last summer, we had to become a daytime brunch place. People used to arrive in taxis at midnight, now they’re ordering drinks at noon! If you could talk to your younger self before you joined the business, what would you say? Just go for it! A lot of people do all the hard work and research and then don’t have the guts to take the final leap. We’ve never really regretted taking that leap. The only other thing would be to read more and learn more. All the knowledge is there, you’ve just got to find it. Personally, I’d probably learn more about the figures. I tend to go on gut instinct and day-to-day figures, rather than long-term financial planning. But sometimes the numbers right in front of your eyes are the most important ones. If you concentrate on each day, the year will work itself out! If you could sum up the family business in three words, what would they be? Togetherness, happiness and escapism!

Arco scooped two awards at the Family Business of the Year Awards (‘FBOTY’) organised by Family Business United (‘FBU’), including the ultimate accolade, Supreme Family Business of the Year 2021. FBU celebrates family owned businesses across the UK, recognising the contribution they make in terms of employment, income generation and wealth creation. In the live ‘virtual’ awards ceremony, Arco took the Yorkshire Family Business of the Year title which was promptly followed by the ultimate triumph as they were crowned Supreme Champions for 2021. For Arco, the UK’s leading supplier of safety products and services, the evening was a celebration of all that it has achieved over its 5 generations as a family owned business, as well as recognition of their core purpose: to keep people safe at work. As Doug Ryan, Wealth Management Director at Mattioli Woods, sponsors of the Supreme Champion Award explains: “Arco is a multi-generational family firm that has real purpose underpinning everything they do. Family values are firmly embodied in the business and have helped guide them successfully for over 135 years to become a world class business.” “Arco stood out as worthy overall winners this year. As we all know, people are at the heart of any business and they are the lifeblood of Arco. Their family values define their reason for being and are truly embodied within the heart of the organisation, the people in the Arco workforce. These values have been upheld during the pandemic, the business has stepped up to help communities the length and breadth of the country and over the past few years there has been continued investment to help future-proof the business for generations to come. Arco are worthy winners of this award and all the accolades it sends their way,” concludes Doug. Ben Fowler, Managing Director of Western Pension Solutions, sponsors of the Yorkshire award and judge adds: “Arco is a business that is driven by the why and not the how and if. They have made significant investment in the governance of both the family and the business and always strive to do their best with growth coming from their desire to make a positive impact on society, something they have been doing since 1884. This is an incredible family business and a great ambassador for the sector, not just in Yorkshire, but across the whole of the UK and beyond.” As Thomas Martin, Chairman of Arco adds: “At the end of the most remarkable and humbling year that I have ever had in my 35 years in business, this award just caps it off! Our fifth generation family business is driven by a single purpose, to keep people safe at work. During the last 12 months, our crew have done amazing things to help the heroes and heroines on the front line, battling to build back better and help fight against this horrendous pandemic. They have been incredible and this award recognises their efforts.” “We just strive to be the best that we can and to be a force for good wherever possible. These awards are an important reminder to those in government and in business of the importance of the family business sector and the contribution it makes. Family businesses are at the forefront of making the UK the best possible place it can be, to do business, to start a business and to thrive and these awards recognise this across the whole of the country,” adds Thomas. “As for us, I am accepting these awards on behalf of over 1600 members of the Arco crew and, of course, the family. It is a great honour and we are thrilled with the recognition. Thank you very much indeed,” he concludes. As Paul Andrews, founder of FBU and organisers of the awards concludes, “Family businesses are the engine room of the UK economy and these awards celebrate their contribution. There can only be one winner and Arco are a fantastic business, great ambassadors for the sector and deserving winners of the 2021 Supreme Champions Family Business of the Year title.”

Family enterprises form the majority of businesses large and small in every country in the world. At the same time, few are able to sustain themselves with the same level of wealth and success even into their second generation and sustaining shared family wealth after the third generation is nearly improbable. Overcoming these challenges is the subject of the book, Borrowed from Your Grandchildren: The Evolution of 100-Year Family Enterprises (Wiley, Feb. 26, 2020), by Dennis Jaffe, a leading architect of family enterprise consulting. As each generation of a family enterprise becomes larger and more complex, the book describes how the family must evolve through internal and external challenges to remain cohesive. Borrowed from Your Grandchildren presents the findings of a multiyear project in which researchers interviewed more than 100 families around the globe to understand the evolution of family enterprises that have succeeded for 100 years or more. Particularly, Jaffe shares findings in an engaging narrative that point to elements of families’ experiences and learnings that allowed them to survive for the long term. In a time when there is much concern about the concentration of wealth in the hands of ‘the 1%,’ Jaffe’s study is an important addition to the dialogue. It shows how, in many successful family enterprises, business values and culture aren’t focused solely on generation of wealth, but on using resources responsibly. In Borrowed from Your Grandchildren, Jaffe shares qualities and practices of what he calls ‘generative families,’ and addresses: What specific qualities sustain a family enterprise for successive generations How shared values and a long-term perspective inform successful family enterprises How business families develop social responsibility and resilience across generations How family businesses avoid the three-generation “curse” and improve chances for longevity How older generations effectively groom younger generations to assume responsibilities — and how younger generations often branch into new directions How forces of digitalization, globalization and rapid change make today’s environment for families fundamentally different What important differences exist between family and non-family businesses? What family dynasties — from America’s Rockefellers to Sweden’s Wallenbergs to Korea and Japan’s Kongo Gumi — serve as models for today’s families businesses? Following the evolution of multigenerational family businesses, Jaffe uncovers qualities of the first-generation entrepreneur, the second generation that grows and professionalizes the business, and the third or fourth generations when the increasing numbers of family members have to decide the nature of their engagement in the business. The author’s many examples, along with tools and activities, will prove instructive to families forming or maintaining family enterprises, along with lawyers, accountants, bankers, coaches, consultants, board members and other trusted advisors who offer resources to families to keep them on course. “As we enter a new century of global business, characterized by uncertainty, unpredictability, high risk, and dramatic technological innovation, the public company managerial model may no longer be the most adaptive form of business. All over the world, business is discovering advantages of long-term family ownership and control.” —Dennis Jaffe

William Croxson established his wholesale bottle merchant business in London in 1872. Today, nearly 150 years later, both the family name and the family business are as strong as ever. They’re very proud of this heritage, especially over the last 40 years, where there has been a huge evolution of the company. Building on the vision of chairman James Croxson, they are now well-established as an international expert in single-source, multi-choice glass packaging. And with these solid foundations in place, the next 150 years look like being even more successful. We spoke to Tim Croxson, the fifth generation of the family business to find out more. When was the business founded? The business started in 1872, so we will be celebrating 150 years in 2022. What does it do? We design and supply glass containers and closures to food, drink, beauty & cosmetic manufacturers and brand owners. For example, a lot of craft beer and gin finds a home in one of our bottles. Tell me a little about the history of the business? William Croxson, the founder, my great-great grandfather, trained as a wine cooper and went into the wine business as a broker in London. At that time, glass bottles were expensive as they lacked the manufacturing techniques we see today, so every bottle was reused. William saw an opportunity for a cradle to grave type industry, collecting used bottles, cleaning them, then filling them with wine that he purchased. What generation are you and what are your first memories of the family business? I am the fifth generation, and my first memories were of coming into the office at weekends, playing with the Telex machine. Whilst certainly not appreciating the finer details of what the business did, I think the majority of memories were more around the team of people who worked for the business, something that remains just as important to us today. Are there any other family members working in the business? My father is still involved as Chairman of the Group, with more of a focus on our international companies. How important was the business in your life as you grew up? It would be foolish to not recognise the benefit/privilege that growing up around the business gave me. It offered part-time work as a young lad but also gave an aspiration as well as demonstration of what hard-work was and the level of commitment required to run a business. What was your journey into the family business and what do you do now? I have been full-cycle – from desire to work in the business, to wanting nothing to do with it but then wanting to apply my education to the company, to help it be and do better. My first formal role was working in the warehouse, running the forklifts, and whilst still retain oversight of that area, I progressed into marketing and operational roles with secondments at two of our group business. I am now Chief Operating Officer of the Group, but, uniquely, heavily involved with the strategic direction of the business. As a multi-generational business, what has helped your firm stand the test of time? At senior level, whilst sometimes taking a little longer than we would like, we haven’t been afraid to make the tough decisions and address our own challenges and change what we are doing if it isn’t working. It would be fair to say that change is a constant. Our team are singlehandedly the most important asset we have – the sense of team in our daily collaboration and work is really vital, and whilst having naturally changed over time, was one of the things that struck me when I first started working. What values are important to the family and the business? Honesty, hard-work, fun. Do you build the family ownership into the marketing and brand narrative and if so, how? We describe ourselves as the family of packaging. Whilst a double play on our history and the full suite of packaging that we offer, we are proud of our history. We use the family business line to most effect in describing how we work as that has the most significant difference compared to a business which is either corporately owned or lacks the long-term strategy and experience. What do you think makes working in a family business special? The sense of family. We treat all of our team as family. There is a greater patience and grace shown than in other types of businesses. Are there any disadvantages associated with working in a family business? There can be massive highs with a family business, but also some massive lows – when it goes wrong … and impacts on family relationships. At its hardest, when decisions are the greater good versus family, with the fall out being, ultimately a break of relationship, that is when you wear the scars of a family business. The toll it can take on yourself and your own family can be high, emotionally, mentally and physically. Having a strong family unit or peers is vital for support and a sounding board. Have you taken any particular steps in terms of governance to help protect the business for the future? We have been blessed with an amazing board of professional directors, some outside hires, some internal promotions. This ensures a balance, and we are clear that we only want people who show integrity and a willingness to say it how it is, rather than trying to play politics. I s there a next generation in the wings? Potentially, but still of a young age. It is difficult though to not look at my children and start wondering, even evaluating… What advice would you give to anyone in the next generation considering joining their family firm? Either be prepared to start at the bottom, work really hard, study and read whilst you do, or go outside of the business and come back in your own right, with all the experiences and knowledge that comes from working in different types of business and under different leadership. If you could talk to your younger self before you joined the business, what would you say? The massive lows that might come your way will hit you for six, but you will come back stronger. There are times that it will be hard, look after yourself, know how to look after yourself both emotionally and mentally. If you could sum up the family business in a few words, what would they be? Inspirational – both design and charitable work. Fun – banter is so important! Family – value is put on the individual AND their family. Team – we work for each other, when someone is down, the team responds. Innovative – both in what we do and how we do it. Find out more about the business by visiting their website here

In the foreword to The Sustainable Development Goals Report 2020 António Guterres, Secretary-General of the United Nations, outlines the vision for the world to work together to help protect the planet and provide opportunities for all. As he explains, “The 2030 Agenda for Sustainable Development was launched in 2015 to end poverty and set the world on a path of peace, prosperity and opportunity for all on a healthy planet. The 17 Sustainable Development Goals (SDGs) demand nothing short of a transformation of the financial, economic and political systems that govern our societies today to guarantee the human rights of all. They require immense political will and ambitious action by all stakeholders. But, as Member States recognized at the SDG Summit held last September, global efforts to date have been insufficient to deliver the change we need, jeopardizing the Agenda’s promise to current and future generations.” “The Sustainable Development Goals Report 2020 brings together the latest data to show us that, before the COVID-19 pandemic, progress remained uneven and we were not on track to meet the Goals by 2030. Some gains were visible: the share of children and youth out of school had fallen; the incidence of many communicable diseases was in decline; access to safely managed drinking water had improved; and women’s representation in leadership roles was increasing. At the same time, the number of people suffering from food insecurity was on the rise, the natural environment continued to deteriorate at an alarming rate, and dramatic levels of inequality persisted in all regions.” “Change was still not happening at the speed or scale required.” “Now, due to COVID-19, an unprecedented health, economic and social crisis is threatening lives and livelihoods, making the achievement of Goals even more challenging. As of the beginning of June, the death toll had surpassed 400,000 and was continuing to climb, with almost no country spared. Health systems in many countries have been driven to the brink of collapse. The livelihood of half the global workforce has been severely affected. More than 1.6 billion students are out of school, and tens of millions of people are being pushed back into extreme poverty and hunger, erasing the modest progress made in recent years.” “Although the novel coronavirus affects every person and community, it does not do so equally. Instead, it has exposed and exacerbated existing inequalities and injustices. In advanced economies, fatality rates have been highest among marginalized groups. In developing countries, the most vulnerable – including those employed in the informal economy, older people, children, persons with disabilities, indigenous people, migrants and refugees – risk being hit even harder.” “Across the globe, young people are being disproportionately affected, particularly in the world of work. Women and girls are facing new barriers and new threats, ranging from a shadow pandemic of violence to additional burdens of unpaid care work.” “Far from undermining the case for the SDGs, the root causes and uneven impacts of COVID-19 demonstrate precisely why we need the 2030 Agenda, the Paris Agreement on climate change and the Addis Ababa Action Agenda, and underscore the urgency of their implementation. I have therefore consistently called for a coordinated and comprehensive international response and recovery effort, based on sound data and science and guided by the Sustainable Development Goals.” “Health systems must be urgently strengthened in countries that are at greatest risk, with increased capacity for testing, tracing and treatment. Universal access to treatments and vaccines, when they become available, is essential. A large-scale multilateral response is needed to ensure that developing countries have the resources they need to protect households and businesses. Recovery packages must facilitate the shift to a low-carbon, climate-resilient economy and support universal access to quality public services. And leadership and support are needed to ensure statistical organizations have the tools and resources to facilitate timely and smart decision-making.” “To guide and support these actions, the United Nations system has mobilized at all levels, leveraging the recent reforms of the United Nations development system. At the start of this Decade of Action to deliver the SDGs, I call for renewed ambition, mobilization, leadership and collective action, not just to beat COVID-19 but to recover better, together – winning the race against climate change, decisively tackling poverty and inequality, truly empowering all women and girls and creating more inclusive and equitable societies everywhere,” he concludes. Read the full 2020 report on progress and activities to date below:

James Donaldson & Sons (JDS) is a family of businesses specialising in the processing, manufacturing, merchanting and distribution of timber and associated building products. The business was founded in 1860 and celebrated its 160th Anniversary in 2020. The JDS Group comprises a range of companies including timber importer and distributor James Donaldson Timber Ltd, engineered wood product manufacturer Donaldson Timber Engineering Ltd, timber merchant MGM Timber (Scotland) Ltd, insulation specialist James Donaldson Insulation Ltd, and Nu-Style Products Ltd, a fabrication specialist. In 2020, the Group also acquired Rowan Manufacturing Ltd, and Smith & Frater Ltd. Paul Andrews spoke to Michael Donaldson, Executive Chairman and the sixth generation of the family firm to find out more. JDS has grown to become one of the UK’s leading independent processors, manufacturers, merchant and distributor of timber and related products. From one small branch originally in Fife, today JDS has over 1000 employees across 33 sites. Since 1860 JDS has grown and strengthened through acquisition, diversification and an unfaltering focus on quality and service. At present we have a portfolio of eight specialist businesses within the group which are operated by the best people in the industry. Like many who grew up in an already established multi-generational family firm, Michael has fond memories of the business. As he explains, “My first memories of the family business are driving to one of our sites with my grandfather on a Saturday morning. He would always go in to make sure everybody was OK and that operations were running smoothly." "This ethos has continued too as I think there is something to be said for the senior leaders in the business to be seen on site during the tougher shifts, and to be known throughout the business, something that really came to the fore for many family firms during the past year or so too.” He is joined in the business by his brother, Andrew Donaldson who is currently CEO and their father, Neil Donaldson retired in July 2020. As Michael explains, “I am sure that like most family business owners the business formed a huge part of our lives. There were always conversations on business topics when Andrew and I were younger, and I remember my father and grandfather having their scheduled weekly catch up meetings.” “My first job was even working in the business, on the back of a saw, when I was probably too young to have been there in the first place.” When it comes to joining JDS, Michael joined the family business in 2002 straight after qualifying with his honour’s degree from University. As he continues, “I took on a variety of roles across the group whilst gradually learning and developing my skills and knowledge in the areas which were most likely to be advantageous to me going forward.“ “In 2007, I had the honour of being the first ever student to graduate with a Timber Industry Management degree from Edinburgh Napier University. Shortly after graduating, I joined Donaldson Timber Engineering as General Manager of our Scottish Division, a role which I did until 2011. I then moved internally within the Group to join the leadership team at James Donaldson Timber from 2011 to 2015. I moved again in 2015 and joined MGM Timber as Commercial Manager, and shortly after Commercial Director in 2017,” continues Michael. “Since 2018, I have been working for JDS at Group level, firstly as Deputy Chairman, and most recently Executive Chairman, after my father retired in July last year and handed over the reins. My role as Executive Chairman involves leading our board of directors and acting as the main point of contact for all of our shareholders, both family and colleagues.” JDS dates back to 1860 and has stood the test of time when other businesses have not so what has helped them survive and thrive? “JDS has benefitted over the years from strong leadership, being guided by our values and being prepared to invest in the future by recruiting the most talented people in the industry,” explains Michael. “This has clearly helped, together with our core values that are integrated into the culture of who we are as a business. Our core values are People, Family, Customer, Integrity & Sustainability and every person working for the JDS group, no matter which business they are part of, understands the importance of our values. We test and measure ourselves against them regularly, to ensure they guide our approach and behaviour,” he adds. As Michael continues, “Family is one of our core values. Our core values genuinely are at the heart of the way we operate and guide our decision making daily. The fact that our business is still within the Donaldson family six generations later proves that family ownership is part of our brand narrative to this day. Furthermore, as a family business, we pride ourselves on using these values to behave ethically, morally and responsibly at all times. Our people, customers and suppliers recognise this and see that this adds value to their business and differentiates us from competitors.” Family business are unique in so many ways and the contribution of family firms continues to be celebrated as Scottish family firms like JDS are the engine room of the Scottish economy. In fact, the Top 100 Scottish family firms collectively generate more than £22 billion annually and employ over 111,000 people. As Michael adds, “Family firms are unique and even if you aren’t part of the Donaldson family, we try to make every employee across our businesses feel like they are part of something bigger than themselves, as one big family. We don’t just set our goals for the next quarter or year, we think in years, and even decades ahead. This gives our employees a sense of stability and they tend to stay working with us for many years.” Running a family business is a balance and for some, as well as the positives there may be downsides too. As Michael continues, “Anybody can find negatives in any business they work for, so our role as leaders of this business is to make sure that there are far more positives than there are negatives. If I had to pick one potential frustration, rather than disadvantage, of working in a family business it would be, it could be argued, that family businesses tend to err on the side of caution and as a result sometimes grow at a slower rate than other businesses might. It is debatable however whether slower more sustainable growth is better or worse than quick expansion.” Family businesses that have evolved over longer periods of time tend to add more structures and governance frameworks to help prepare and protect the business for the future. JDS is now exception and in many ways leads the way in their long term view. As Michael explains, “For many years now we have used the phrase ‘a family business, held to PLC standards’ and this has helped with the governance of the business for the last 20+ years. We have 4 non-executive and three executive directors who sit on our main board and three subcommittee’s (remuneration, audit, nominations) below the main board which all have terms of reference to work too.” “I believe that the governance structures we have in place are suitable and appropriate for a business of our scale to ensure the long-term sustainability of the group,” he adds. For long standing family firms like JDS the succession planning process is always on the mind. As Michael explains, “For us the future depends on the next generation and on their career aspirations. Andrew and I are custodians of this family business for the next 20 years or so, and of course it would be great to see our children come into the business when they are of age, but it will be up to them. G7 are all still at school, or even too young to be at school yet, so there is plenty of time before any decisions need to be made on their future aspirations.” As the sixth generation leader of the business Michael has obviously been through a journey with the family business, moving from the next generation to the now generation and leading from the front. He is a great advocate for next generation members to follow their dreams, adding that “For next gens thinking about joining their family businesses, they should not be afraid to challenge the norm and be curious. Just because things have been done a certain way in the past, does not mean it’s the best way. If you have an idea, share it. Always be learning and always be curious as there is a lot to learn outside of your family business bubble.” For Michael, it is clear that family business is all about continual learning and improvement but when looking back to the start of the journey, what advice would he give to his younger self before embarking on the journey? “Don’t be so hard on yourself, trust your instincts more and just be yourself,” he concludes. Clearly, this is a family business that has come a long way since it was founded way back in 1860. Clearly this business has a solid past and it is clear to see that a promising future lies ahead.

Tom Young MBE and daughter Karen produce beautiful glassware, creating the very best in innovative and creative concepts. Together they have supplied some of the world’s leading distillers with products used for the distilling process. The idea for the business was born out of the Legend of The Angels’ Share After watching a Film in 2012 of the same name by Ken Loach Karen & Tom designed the Whisky Angel. This is now the signature product. Paul Andrews spoke to Karen Somerville to find out more. What is your position in the business? Director & Co-Founder When was the business founded? 2013 What does it do? We are a specialist glass manufacture and producer of giftware Tell me a little about the history of the business? Formed by Dad and daughter, we used skills of glassblowing to match creativity and created an icon for scotch whisky along with innovative designs for barware and glass gifting. What generation are you and what are your first memories of the family business? First but second really – my dad has an MBE for his services to the glass industry and he has been glassblowing for over 65 years. Are there any other family members working in the business? Yes my husband is also part of our small team. How important was the business in your life as you grew up? I was immersed in my dads craft. As a young girl I watched him his every move and although I don’t glassblow myself I feel like I know exactly what needs to be done to achieve certain finishes and techniques. What was your journey into the family business and what do you do now? I set off wanting to travel and do languages and I ended up in travel retail before I helped my parents in their business when I was in my late twenties. Dad always wanted me to go and do my own thing and if that gravitated back to his business then fine. So I joined the company in 1999 and it was retired and sold on in 2005 – so I went back into retail management and operations for a local university. Then in 2013 Angels’ Share became a thing and dad was pulled from retirement. What values are important to the family and the business? Authenticity and transparency. Do you build the family ownership into the marketing and brand narrative and if so, how? Yes very much so , all our marketing is around family tradition , heritage and longevity of a craft. What do you think makes working in a family business special? TRUST Are there any disadvantages associated with working in a family business? Yes, you never stop talking about business! Is there a next generation in the wings? Possibly I have two sons and one is already very keen to get involved but he is young and like my father I will probably set him out on his own path and if he levitates back then so be it. What advice would you give to anyone in the next generation considering joining their family firm? Be aware of what has been built before. If you could talk to your younger self before you joined the business, what would you say? You should have had this idea years ago! If you could sum up the family business in three words, what would they be? Good honest work Find out more about Karen and the business here

Chris Kelly is the Managing Director of The UPAC Group in Scotland. He spoke to Paul Andrews to share his insight into this second generation family business. What does your family business do? We are the fastest growing packaging supplier in Scotland. As a collective, The UPAC Group offers the best solution for any packaging needs, with access to specialist machinery in the manufacture of corrugated boxes, solid board cartons, lithographic laminate boxes, polythene products, labels and a distribution arm to ensure unrivalled packaging services. In addition, we have a full in-house design team, specialising in the design of bespoke boxes and packaging. Our innovative ‘U-Chill Box’ has become a staple for food retailers and restaurants alike, as their businesses move online and over to a home delivery service as a result of the pandemic. When was it founded? 1970 How did you get involved? I was on gardening leave having accepted a new job in Dubai and had a 3 month window. Dad asked for help restructuring the business and the job started to grow arms and legs. I had no intention to stay but it was such a pleasure working with dad and shaping a company, as opposed to working for someone else that, to be honest, it felt like the most natural thing in the world. What did you want to be when you grew up? I wanted to work for Dad. Honest truth was, as a child, I had really bad bronchitis and was constantly at the doctors. I have fond memories of my dad taking me into the office in the mornings before my doctors appointments and I loved it. Dad seemed have a great life, he worked with his cousin Gerry and watching the two best friends working together always seemed like such great fun. What is your role in the business today? I take on all roles as the Managing Director. I sit in the middle of the open office, overseeing every aspect of the business, without micromanaging. I want to have enough of an understanding that I can offer advice and instruction without having to carry out tasks. It’s more of a guidance role. What are your first memories of the family business? Walking into the warehouse and thinking it was the greatest place in the world… 5000 sq ft, pallets everywhere, the greatest den any kid could ever have! Forklifts were buzzing about, everyone was really busy and there was my Dad, bossing everyone about in the worlds greatest den. What values are important in your family/family business? I have a responsibility to everyone that works for me, peoples livelihoods are reliant on me doing the right thing- so I have little tolerance for anyone that doesn’t respect the job because the job looks after everyone. What is the best thing about being a family business? I guess it’s the sense of family it creates. Look. You laugh, cry, but more than anything else, I know there are people in the organisation that support and understand the pressures and needs of the business. There is implicit trust. Not always agreeing, but trust on certain aspects. At UPAC, we treat everyone like family, that doesn’t just extend to direct family, but that’s what underpins this business… everyone should feel part of the greater family. My staff would walk into battle for me. The sense of community that a family business creates- familiarity breeds contentment and a closeness, and can dissolve some of the office politics that may be problematic in a more structured business. I guess I am fortunate that I’ve primarily worked in environments where collaboration was key- no idea bad. And the worst? You feel additional pressure to look after everyone. My problems are not my problems, I feel responsible for other people that goes way beyond a working obligation. What is the best thing about your working day? I really love whizzing about the office on my new electric scooter and having a laugh with my team. What is your proudest family business achievement? When the other family members came onboard. Employing my two sisters. Bottom line is I don’t require a lot, the money in this business is used to help other people and assist my own family members achieve. I’m not reckless with money but at the same time when running this family business I’m not answering to external shareholders- we are not a lifestyle business. We don’t issue dividends, money goes back into business. Is there a next generation waiting in the wings to take over? That’s dependant on the next generation. I have no ambition to hand the company over but at the same time, I don’t preclude the possibility. I always wanted to run the business and work for Dad, if other family members want to come in, the door is wide open but there’s no pressure to join. What do you see as the biggest challenge facing family businesses? Family politics. What words do you associate with family businesses? Loyalty, sacrifice, reward and transparency.

UK family businesses risk falling behind other countries in their commitment to prioritising sustainability in their strategies, according to findings from PwC’s latest Global Family Business Survey. While more than half (53%) of UK family businesses surveyed believe they have a responsibility to fight climate change and its related consequences, only a third (33%) have developed and communicated a sustainability strategy compared to the global average of 37%. The survey reveals 79% of respondents in mainland China, 78% in Japan and 49% globally report ‘putting sustainability at the heart of everything we do’ compared to 39% in the UK. Hannah Harris, PwC UK Family Business leader, said: “A commitment to a wider social purpose has always gone hand in hand with family business in the UK, but there is growing societal pressure from employees and business stakeholders to demonstrate more meaningful action around sustainability and wider ESG issues.” “Listed companies have started to respond, but our survey shows that UK family businesses have a more traditional approach to social contribution such as contributing to the local community or philanthropy. It is on family business to adapt to these expectations or they risk creating a potential business risk.” Growth With business still feeling the effects of the COVID-19 pandemic, expectations for growth within family businesses is split right down the middle. Out of the UK respondents, only 53% expect to see growth in 2021. However, the outlook for next year is much more positive with 86% expecting to see growth. Priorities Family businesses are known to be agile and embrace change, which is reflected in their key priorities for the next two years. Top of the list is improving digital capabilities (60%), followed by introducing new products and services (53%) and increasing use of new technologies (47%). Covid Impact And Succession Over the past year, UK family businesses went further in comparison to the global average when it came to providing support for staff during the Covid-19 pandemic and the sacrifices family shareholders made. Eighty-six per cent of respondents retained as many staff as possible and 72% provided emotional/mental health support for staff compared to the global average of 76% (retained staff) and 45% (provided emotional/mental health support) respectively. More than half (54%) of family shareholders took a reduction of dividends, 44% reduced their bonus and 40% reduced their salary. The majority of first generation UK family businesses expect that the next generation will become the majority shareholders within five years time. Just over a quarter (26%) say they have a robust, documented and communicated succession plan in place. Hannah Harris added: “The COVID-19 pandemic has shown UK family businesses remain resilient in the face of a crisis, underlined by the efforts they have made to retain staff, provide extra help for employees and make financial sacrifices.” “With society slowly moving towards some kind of normality, family businesses will look to build on their digital capabilities, while managing family dynamics and looking to invest in more sustainable business practices.” Download and read the full outlook report below: