Mitzi Perdue’s story is summed up in the title of her website: ‘Insider secrets from wildly successful families’. She’s the daughter of Ernest Henderson, the founder of Sheraton Hotels, and was married to the poultry magnate, Frank Perdue. Between them, the Henderson and Perdue families have 222 years of experience in managing successful businesses, and Mitzi is an impressive entrepreneur in her own right. Though back in the 1940s, when she was a girl, that looked like the last thing she was likely to become. “My father made it pretty clear that I was never going to be in the family firm – I don’t think it even crossed his mind that one of his daughters would have an interest in the business. And it wasn’t just that no-one expected me to do it, it was actively discouraged.” As it turned out, it was the moment of transition between the generations that opened up an opportunity for Mitzi – when her father died in 1968 she still didn’t get the chance to work in the hotels business, but she did inherit enough money to start up a venture of her own. “The Henderson family decided to sell Sheraton company, but it was only the men who got to have a vote – the women had just as strong views, and we were stockholders, but we didn’t get a say. Soon after that I started a business growing rice in California, and I think I must have learned a lot from my father about the importance of picking the right site, because I deliberately chose an area where I thought the land might have future development potential.” The site was indeed eventually sold for an enormous profit, but in the meantime Mitzi spent 15 years growing a really profitable rice business, and had a great deal of fun as one of only eight women out of the five thousand rice growers in the US: “the other seven inherited their firms; I made mine.” Mitzi learned the value of visibility as a woman in a male-dominated sector, and became a leading light in the industry, helping to prevent legislation that would have decimated rice growing in the area, and becoming President of American Agri-Women. Though she admits, “It was easier being a pioneer then than it is for many women today.” She puts her success down to a willingness to do her homework and work hard. Not being afraid of failure is important too, in fact she says she “failed her way to success”. This ability to take a long view is a characteristic family businesses like her late husband’s also share. Perdue Farms is one of the largest producers of organic chicken in the world, with a promise that no antibiotics are ever used. But getting to that position – and making it profitable – was a long eleven-year haul. “My husband worked out that the only way to get a better price for selling chicken was by offering a premium quality. So we had to learn how to deliver that quality and still make money. We learned about the importance of scrupulous hygiene to keep disease levels down, and how to use probiotics and herbs to keep the chickens healthier. It was a huge innovation at the time, and it’s really successful now, but if we hadn’t been a family firm I doubt we could have done it. We wouldn’t have been able to take such a long view.” But family firms have big challenges too: “I have a theory of life that one of the biggest causes of either happiness or misery in life is the family, so if you want to be happy you have to work really hard at your family. That’s even more true if you all work together.” The Henderson family have pioneered a number of really interesting ideas, as a way to keep the family united, and bridge the gap between the generations. One is the ‘service to the family award’, which is judged each year by all the previous winners. “On the Perdue side, we have regular newsletters, one of which is specifically designed for our youngest family members, with stories about the family, and what it did in the past, so they know where they come from, and feel part of something big and special. Because it is: if you’re part of a business that’s been going for four generations, that’s a big deal. And it’s very special.” This feature forms part of the PwC Global Family Business Survey 2016. It has been reproduced with permission of PwC.

From scrap metal to compostable wiping cloths: 125 years of history at Harrison Wipes In 2016, the Harrison Wipes family business celebrated its 125th anniversary. What started in Great Yarmouth in 1891 as a textile rag and scrap metal business is now one of the world’s leading suppliers of high-performance non-woven wipes. “Even a hundred years ago, we were an international business,” says Stephen Harrison, the current MD and great-grandson of the founder. “You only have to look at my great grandfather’s passport in 1925 to see that we were trading in countries as far away as Japan at that time.” Since then, the business has evolved as technology has improved, and customers’ needs have changed. “For example, we used to weave our own rags, now we are the UK partners for two of the world’s largest nonwoven producers, Chicopee ® and Sontara®, providing advanced wiping solutions to our customers including compostable cloths and pre-impregnated solvent wipes to help tackle the environmental issue of VOC emissions. Our real expertise is in developing specialist wipes for very specific uses which are used by companies such as Bentley and Jaguar. We’ve come a long way from the heavy-duty cloths we used to supply to factories in the first half of the last century.” The structure of the firm has changed as well. By the late 1990’s, the business had 13 family shareholders who were not directly involved in the business; not the ideal share structure for a forward thinking business planning a growth strategy as a non woven converter. By 2002 a deal was eventually put together to enable a full share buyback. “It was important for me to consolidate ownership with working directors so as to be in control of the business’s destiny,” says Stephen. There is now the prospect of a new generation coming through. “I’m getting to a point where I probably need to have a five to ten year plan in place, as the youngest of my 3 boys will graduate from university in 2021. I feel it is really important that all of the boys get the chance to work somewhere else before they decide if Harrison Wipes is the right place for them to have a career . This is in the best interest both for the boys and the business. They should only work here if they feel passionate about it, not because it is expected of them. So, the long-term plan needs to be flexible enough to cope with lots of different scenarios.” It’s not just about a new generation of the family: “We’ve also made the transition to a new era of employees. We used to have a big group of staff who had been here for more than 30 years, with the final employee retiring in 2016 after 47 years of service. Almost everyone who’s here now has joined since 2002. So, it is now about maintaining and passing on the values of the business to the new team to help ensure continuity in the next generations.” Those same principles apply in relation to the Board. “If you’re a long-established family business it’s really valuable to bring in outsiders to keep you challenged. It’s so easy to get consumed by the day-to-day issues, and lose sight of the bigger picture. Especially if, like me, you’re mainly focused on the sales and marketing and spend most of your time on the front line. My non-exec ensures we tick all the boxes on governance, and have a long-term strategic vision as well as a short-term operational plan. He is also great at asking difficult questions – and challenging the status quo from an impassioned perspective which is exactly what we need. Geoff Brady once told me that he was introduced to Harrison Wipes by a colleague as “the most boring business in the world”. If by ‘boring’ he meant stable, resilient and efficient…that’s just fine by me.”

The cycle of growth in India with Apollo Hospitals, one of the leading hospital chains with an international reputation and an outstanding track record in harnessing the power of new technology. Shobana Kamineni, Executive Vice Chairperson at Apollo Hospitals in India shares her thoughts. The business was founded by Dr Prathap C. Reddy in the 1980s, when he returned from working in the US and saw how far Indian healthcare was lagging behind. He galvanised a group of doctors from across India and beyond to invest in a hospital, and it opened in Chennai in 1983. His four daughters were involved from the start, and Shobana Kamineni was employee number three. She is now the Executive Vice Chairperson, and Apollo boasts 64 hospitals, 150 clinics, over 9,000 beds, almost 2,500 pharmacies, and a health insurance business. Shobana sees the evolution of the business in three phases: “In the beginning, we were a straightforward family business with all the advantages and challenges that brings. But while we had great expertise in our own field – healthcare – we needed to hire talented people to help us build a robust business. People with financial expertise, for example.” In the second phase, Apollo was listed on the stock exchange, which allowed the family to grow to three hospitals, but also brought increased demands in terms of reporting, accountability, and governance. The board was also strengthened with more independent directors, who still play a key role. The third phase was Private Equity. “We were one of the first Indian firms to get PE funding in the late ‘90s, when India first opened up to foreign direct investment. But we thought about it carefully before we did it: we sat down as a family to discuss it because we knew things were going to change radically, and we’d have to be even more accountable, and willing to adapt.” “We also knew that PE work to a very different timescale to families: PE houses are looking for a quick return on their money, and I’m glad to say that every PE investor we’ve had has achieved a good exit price. That’s why our share price is so high: we do what we promise.” Having Private Equity investors also focused the business more on short-term performance: “This is one of the biggest differences between PE and family business. Family businesses have uniquely infinite perspective – if you don’t reach your target this quarter, you can always do it next quarter. What PE taught us was quarter-to-quarter performance. That really sharpened us up. I think we’re actually unique in that we grew around 25% for 25 consecutive quarters. PE can be very active investors too: some of our PE investors have been in on a weekly basis, so they could really understand how we operate. You have to not just accept that, but welcome it, or the partnership isn’t going to work.” Looking ahead, Apollo has built a strong competitive advantage on new technology. “We have an innovation division where the employees work with innovation labs in Israel, the US and elsewhere in India. We incubate new ideas, and work hard to keep pace with new developments. We also encourage our doctors to take part in conferences and research forums across the world, and to collaborate actively with one another. We don’t let people or ideas get stuck in silos. This is one reason why we now have three dynamic new companies within the Apollo group: one doing analytics, one working on stem cell therapies and personalised medicine, and one working on digital and telemedicine. The latter has given us huge visibility, and allowed us to reach many more people. I doubt there are many businesses doing this sort of thing better than we are. That’s something we’re very proud of.” This feature was part of the PwC Global Family Business Survey 2016. It has been reproduced with permission of PwC.

Blenheim Palace, the home of the 12th Duke of Marlborough is also a business, and the business has been transformed in the last 15 years under the management of its first professional CEO, John Hoy. Blenheim Palace is one of the most spectacular buildings in the UK and a World Heritage site. It was built to celebrate the battle victory of the first Duke of Marlborough, and 300 years later is still the family home of the 12th Duke, which makes it one of the most enduring ‘family concerns’ we’ve ever profiled. But Blenheim Palace is a business too, and over the last fifteen years the family and trustees have overseen the transformation of that aspect of Blenheim’s activities under the management of its first professional CEO, John Hoy. We travelled out to his beautiful workplace to ask about the special challenges of a position at the Palace. Why did the family decide that they needed a professional CEO and when was that decision made? The Palace is actually owned by a family trust, which has family members as trustees, as well as some high-profile external advisers with expertise in areas like the law and land management. About 15 years ago, the 11th Duke decided to bring in two of the younger members of the family, who had City and business experience. That was the catalyst, because they quickly realised that Blenheim needed to modernise if it was going to fulfil its potential, and generate the money needed to keep the palace in proper repair. Part of that modernisation was about changing the business structure, and part of it was bringing in different skills. That’s when they hired me. I had land management qualifications, and experience in running a big estate at Knebworth, and major leisure attractions like Madame Tussaud’s and Warwick Castle, so it was a great fit. And for me – a fabulous opportunity. What was Blenheim like when you arrived – what did you find? It was a tourist attraction, but I wouldn’t really call it a ‘business’. There was no budget process, no proper reporting, no strategy, no long-term plan. There wasn’t even a World Heritage site management plan, and you really do need one of those if you have that status. So there was a really pressing need to professionalise the way we worked. We didn’t do marketing or PR back then either – that was a hangover from the ‘70s and ‘80s, when sites like this used to assume that if you opened the doors people would just come. And yes, it did work that way for many years, but by 2003 that wasn’t enough as there was so much competition. So there were some big challenges, but there were big opportunities too. What did you do? We did a complete review, both of what we were doing, and how we did it. And right from the start, I had huge support both from the Duke and the trustees, and more recently from the 12th Duke, since he inherited. I couldn’t have made as many changes as I have without that degree of engagement. They supported me in instituting the professional business processes you’d expect from an entity of this size, and then I started looking at what we were offering people, because the first priority was the core activity – our visitor experience. We opened up more parts of the Palace, and built a new attraction called ‘The Untold Story’. We also changed the ticket pricing structure to make it more modern and flexible, and we introduced an annual pass, which was pretty ground-breaking at the time but proved to be a great success. A place like this can struggle to get repeat visits because people think they’ve ‘done it’ if they come once. So you have to find ways to tempt them back again; the annual pass was very good at that. We also extended our open season to almost the whole year, which, again, is quite unusual in our sector but allowed us to offer special events in the winter as well. We also completely overhauled the supporting commercial activities – much better catering facilities, and a superb new shop which is probably one of the best of its kind in the country. Having done all that, our next objective was to explore how we could diversify, and bring in new sources of revenue we weren’t tapping into. We’re bang in the centre of the country, with excellent transport links, and we have 2,000 acres of some of the most glorious grounds in the UK, but we simply weren’t making the most of any of that. We hardly ran any events, for example. In the last ten years all that has changed. We have events all year round, from celebrity weddings to huge public events like BBC Countryfile Live, which attracted over 125,000 people. We have sports events, and car rallies, and fashion shows, and contemporary art installations. The Ai Weiwei show in 2014 was phenomenal. Another case of people telling us ‘you can’t do that’, and us replying ‘yes, we can’. So there’s a huge amount going on, but it is working – when I first came we had around 300,000 visits a year. This year, we may well reach the magical million across all of our activities. Have you diversified in other ways? Definitely. The film location side is really booming – we were used for Spectre and Mission Impossible 5, as well as all sorts of smaller productions. And that involves a whole lot of new skills too – you have to balance the need to protect the fabric of the building (literally, in some cases) with what a film unit need to be able to function efficiently. Our head of operations is very good at this, and her team are very experienced, and as a result we’ve got a reputation for being good to work with. That’s essential. We also look at diversification in a wider sense – not just diversifying what we do at the Palace itself, but within the much larger estate, which is another 10,000 acres. For example, we invested in an industrial estate in Witney, to ensure we have a more even balance between industrial, agricultural, and residential property. Ironically enough, that same site used to be owned by the estate until the government compulsorily purchased it before the last war. We also have our own construction firm, Blenheim Estate Contractors Limited, which is building both commercial units and market/social housing. That whole area is very complex, with a lot of tax and planning issues, and we always have to decide if a particular development is the right thing to do with land that’s been part of the estate for generations. On the other hand, it can bring in vital revenue, and we’re looking to channel some of that into a new charitable trust, which will make it easier for us to apply for lottery funding for some of our capital and restoration projects at the Palace. At any one time there’s about £40 million of work that needs to be done, and at the moment we manage about £2 million a year which implies a 20 year cycle. But it’s like the Forth Bridge: by the time you finish you have to start all over again. Another diverse venture is Blenheim Palace bottled water. That’s fabulous because it gets our name out there in the sort of restaurants and hotels that our potential visitors are likely to use. We’re now exporting the water too, with an emphasis on China and Hong Kong. North America and China are the two most important overseas markets for us, in terms of our visitor numbers. How important is digital in reaching your visitor audience? Absolutely vital. We use everything – Facebook, Instagram, Pinterest. Everything. What role do you see the Palace playing in the wider community? There are lots of answers to that. On a commercial level, I see Blenheim as a lynchpin for tourism in the Oxfordshire region. It’s imperative that we all work together to maximise the value of the visitors who come here – we’ll all do better if we don’t stand alone. That’s why I sit on the Visit England Advisory Board, and why I was part of setting up Experience Oxfordshire, as well. Looking more locally, we take our responsibilities to the neighbouring area very seriously. The social housing venture is an important part of that, and the events we run can have a big economic benefit beyond the estate walls – we did a study of the last Game Fair at Blenheim and the wider impact was around £50m for the area as a whole and new events such as Countryfile Live will also contribute strongly to the local economy. There’s also our education work, and all the efforts we’ve made to improve our environmental performance. Things like reducing our waste, and cutting our energy and water consumption – all things that you probably wouldn’t think a stately home would be doing. All of this is part of the same overall purpose – the same sense of responsibility. This estate has been here for 300 years. We don’t just own the land, we’re part of the landscape. That’s why everything we do is driven by the need to be conscientious land-owners, and careful custodians of the family’s heritage, both now and for future generations. This feature forms part of the PwC Global Family Business Survey 2016. It has been reproduced with permission of PwC.

Family Business United is once again devoting a week to celebrating the contribution of family firms to the Scottish economy. 2024 sees the return of Scottish Family Business Week which will run from September 23 to274, incorporating a number of events during the week, including the Scottish Family Business Road Trip. During the week the Scottish Family Business Road Trip will see the sponsored car visiting a number of family businesses, getting behind the scenes and showcasing what they do on a daily basis, where they do what they do too. Each year this is a real journey of discovery and we know that 2024 will be no exception. Further details will be announced in due course but if you are interested in a visit please do get in touch. We will also be hosting a networking/drinks reception in Glasgow which will see the family business community come together and a dinner in Edinburgh too. Throughout the week we will be sharing plenty of news and insights on all manner of family business topics and engaging with as many family businesses as possible too. As Paul Andrews, Founder and CEO of Family Business United explains, "We have a significant number of family business members across Scotland and it is always a pleasure to visit as many of them as possible. Family businesses are at the very heart of the Scottish economy and it is a pleasure to champion them. As an organisation we have published the only report into the oldest family firms in Scotland and also reports into the contribution of the top 100 Scottish family firms too, and with family business at the centre of all that we do, we are looking forward to getting back on the road and uncovering some more great Scottish family business stories." "Scottish Family Business Week is always inspiring as there are so many great family firms with strong narratives, a real sense of purpose and deeply rooted entrepreneurial spirit that gives a nod to the past with eyes firmly focused on the future."

It’s a long way from a town in southern Poland to the bright lights of Broadway and the catwalks of Fashion Week, but one family firm has not just gone the distance, but done it in style. Inglot Cosmetics was founded 33 years ago by Wojciech Inglot, supported by his sister Elżbieta. They were later joined by a second brother, Zbigniew. The company is at the forefront of the science of beauty, exploiting an in-depth knowledge of chemistry, physics and pigmentation to create its huge range of intense and vibrant shades, which have made it the darling of the fashion and entertainment business. There are over 1,500 different colours to choose from across eyes, lips, face and nails, and Inglot’s signature ‘Freedom System’ allows customers to pick their own special palette of tones. These days, you can find Inglot at all the glitziest show biz events, from the sets of film and TV studios to backstage on Broadway, but the company has never lost touch with its roots, and still prides itself on its Przemyśl presence. Even the huge advertising billboard they have on New York’s Times Square is actually managed from the head office in Poland. As Zbigniew says, “We belong here, and we’re a big employer here. That’s a huge responsibility. And we’re committed to making our make-up here, too – 95% of it is manufactured at our site.” The next big step at Przemyśl will be extending the R&D facility. True to its roots, Inglot devotes huge resources to the scientific development of new products, often in collaboration with universities. The state-of-the-art O2M breathable nail polish was developed by Wojciech Inglot and tested in cooperation with the AGH University of Science and Technology. The revolutionary breathable formula, which was created specifically for health reasons, has quickly become a global success and coincidentally helped the company get a foothold in to the lucrative luxury malls in the Middle East. With the second generation now joining the management team, the roles within the team continue to be clearly defined: Elżbieta focuses on operations and new product development, and after the sudden death of Wojciech in 2013, Zbigniew has taken over full responsibility for strategy, investment, and international expansion. Since the first store opened in Canada in 2006, the company has established, owned or franchised Inglot outlets in nearly 80 countries, including 650 boutiques in some of the world’s smartest locations. They’ve also opened concessions in department stores like Macy’s in the USA, Edgars in South Africa, and Falabella in Chile, Peru and Columbia. Right now, they’re opening up to two new stores a week, all over the world. “We could grow quicker, but we can’t afford mistakes. And getting each new store right takes a lot of thought – it’s not ‘one size fits all’. We actually manufacture the fittings and furniture ourselves and employees from Przemyśl go out and install them.” E-commerce isn’t as fully developed as yet, but it’s coming: “We initially thought we wouldn’t need to sell online, especially in Poland, given we have such a big retail presence, but we know now that was a mistake, and we’re catching up. We’re lucky that cosmetics is a hugely active category online, and the items are small and easily shipped.” In fact, according to PwC’s 2016 Total Retail survey, 65% of the people who buy cosmetics products bought at least some of them online in the previous twelve months. So what does the future hold? “Product-wise, we’re looking at moving into face creams, lotions – what we call ‘white cosmetics’. That could be an amazing category for us. As for the brand, my dream is to make it the most recognised Polish retail brand in the world.” Given that one beauty website calls Inglot “the makeup-lover’s ultimate dream brand”, it looks like they’re well on the way. This feature forms part of the PwC Global Family Business Survey 2016 It has been reproduced with permission of PwC.

Instituting a family council can be a significantly positive step toward managing the business in a more rational and professional manner. In the majority of privately held multi-generational family firms, the family council is the main vehicle of family business governance. Instituting a family council is a significantly positive step toward managing the business in a more rational and professional manner. The family council is more formal than a family meeting. The purpose of the council is to present and discuss the family issues of running the business. The family council is where problems, concerns, issues, and opportunities are presented and discussed, alternatives are weighed, and decisions are made. In a family council, the family usually takes a vote, and decisions are made either by a simple majority or by consensus. Some families strive for unanimity, which can tend to delay decisions but has been found to increase family unity. For the family council to be effective, all members must recognize the council is the proper time and place to present their point of view. One of the major positive attributes of the family council is that family members agree to abide by the decision of the council (even if they disagree or are on the losing end of the vote) and consent to not grumble about it outside of the meeting, but instead show support and unity for the family decision. In smaller to medium sized firms the council acts as the governing body. In larger firms, most commonly public family firms, the decisions and positions of the family are presented by a member of the council to the board of directors. The family council elects at least one person to represent the family and sit on the board of directors. The creation of a family council can be difficult to manage initially. Research has found that for the council to work well, it often needs to be facilitated by a professional. This enables the meetings to be more productive, allows every member the opportunity to present their view, prohibits one dominant family member from taking over, and also holds members accountable for following through on decisions. The institution of a family council can be a tremendous adjustment for the owner- manager, who often leads in a paternalistic manner, to relinquish decision- making power and authority to the council. Moving to a more professional and rational method of decision making has been shown to increase family business longevity. By the third generation of family ownership and control, there are a large number of family members involved in the business. There are cousins working together, and some second- generation members are still active. With more people involved, often with differing goals, decision making is more difficult and conflict is common. This creates a need for a formal decision-making process. There are several corporate governance structures similar to the family council including: the shareholders assembly, comprised solely of stockholders; and the family assembly, composed of family members by birth and marriage, ranging from owners and non-owners to family employees, and family non-employees such as spouses and in-laws. Each family is unique and each business is unique. Families in business together should be aware of the various structures used to govern family firms for increased success and continuity. Reproduced with permission from Keanon Alderson and The Press-Enterprise (www.pe.com) Keanon Alderson Ph.D. is an associate professor in the Robert K Jabs School of Business, at California Baptist University in Riverside CA. His book “Understanding the Family Business” was published in 2011. He can be reached at kalderson@calbaptist.edu

Alfred Kärcher, like Robert Bosch, Gottlieb Daimler and Graf Zeppelin, was one of the inventors and entrepreneurs that Württemberg produced in such great number since the beginning of the industrial era. With the utmost commitment, he dedicated himself to bringing his ideas to fruition. In 1924, the then 23-year-old completed his studies at the Technical University of Stuttgart and worked first of all at his father’s agency, which he developed into an engineer’s office. In 1935 he founded his own company in Bad Cannstatt, Stuttgart so that he could produce and market his own products in the field of heating technology. Alfred Kärcher designed and built the “Kärcher salt bath furnace”, among other products, for tempering steel and light metal in industry according to his own patent. In 1939, the family-owned company relocated to Winnenden, where it still has its headquarters. By this time the company was also producing heating devices for aircraft engines and cabin heating systems. Following the Second World War, the company turned its attention to products for urgent, everyday use: round stoves, small cookers, handcarts and trailers for tractors. Move into cleaning technology Alfred Kärcher made his breakthrough into the cleaning technology industry in 1950 with the development of the first European hot water high-pressure cleaner (the DS 350 steam jet). The design of the water heater proved to be so pioneering that it still forms the basis of all burners today. Like so many, Alfred Kärcher did not live to see the global success of his innovation. When he died on 17 September 1959 at the age of 58, his wife Irene took over the management of the company and steered its fortunes for three decades. Today their children Johannes Kärcher and Susanne Zimmermann von Siefart are in charge of the family-owned company in its second generation. Internationalisation In 1962, Kärcher founded its first foreign subsidiary in France, followed by Austria and Switzerland. Internationalisation continued apace. In 1975, Kärcher opened a factory in Brazil; 10 years later, the company had founded 16 sales companies in North America, Africa, Australia and elsewhere. By 2012, Kärcher was represented by subsidiaries in 57 countries and generating 85% of its sales abroad. With 40,000 customer service points in over 190 countries, Kärcher provides comprehensive support to its customers all over the world. Growth through innovation After a phase of diversification, Kärcher turned its attention to high-pressure cleaning in 1974. During this period, the colour of the machines was changed from blue to the now world-famous Kärcher yellow. In 1980, the company expanded its product range to cover basic cleaning requirements, initially in the areas of transport and buildings. Step by step, the range was expanded with the addition of wet and dry vacuum cleaners, sweeper vacuums and scrubber driers, vehicle washing bays, steam cleaners, cleaning agents and drinking water and wastewater treatment systems. Among the milestones in Kärcher’s history was the introduction in 1984 of the HD 555 profi, the first portable high-pressure cleaner, and the subsequent expansion into the consumer market. In 1993, this range was expanded to include indoor products and Kärcher has since added steam cleaners and vacuum cleaners for private households to its range. The RoboCleaner RC 3000 was launched in 2003 as the world’s first fully automatic robotic vacuum cleaner. In 2007, Kärcher moved into the completely new sector of gardening, which includes pumps for watering, water removal and service water supply in households, as well as an extensive range of accessories. In 1986, Kärcher launched its pioneering roller brush technology for scrubber driers in the professional range. Thanks to the development of a new rotary nozzle (dirt blaster) in 1995, the cleaning effect of the high-pressure cleaner was almost doubled. The dust intake of commercial wet and dry vacuum cleaners was continuously improved, and in 2007 the innovative Tact filter cleaning system was launched. New procedures were also developed in the course of worldwide cleaning projects: the 284 travertine columns on St Peter’s Square in Rome were restored using a specially developed spray process over a total area of 25,000 m². Since 2009, Kärcher has been selling ultra-high pressure cleaners, which, at up to 2,500 bar pressure, not only clean but restore facades and strip concrete. In the same year, a multipurpose municipal sweeper was released onto the market and new target groups were gained with the launch of water dispensers. Kärcher becomes a global market leader Innovation has been and continues to be the most important growth factor. In 2011 alone, Kärcher launched over 100 new products. The global market leader in cleaning technology will continue to be characterised by its ingenuity, top performance and innovative problem solving. Top performance for cleanliness and value When it comes to quality and technology, Karcher are the leading provider of cleaning systems, cleaning products and services for leisure, households, trade and industry worldwide. Their customers benefit enormously from using their effective, efficient and environmentally friendly cleaning products. Karcher make a noticeable difference in the lives of their customers by providing effective, efficient solutions for everyday cleaning and watering tasks all over the world. Kärcher have come a long way since the business was formed by Alfred Kärcher and is now a global brand. It remains family owned to this day and continues to push boundaries through innovation, evolving as a family firm all the time. Find out more at www.karcher.com

The Mane Group is a fascinating business. Founded in 1871, it’s now a billion-dollar company, operating in 32 countries, with 92% of that revenue generated outside France. And it has built its success by applying the power of technology to the time-honoured skills of using aromatic raw materials to create scents for perfume, and flavours for food. The result? Market leading positions not just in fragrances and flavourings, but state-of-the-art pharmaceutical compounds too. Jean Mane is the great-grandson of the founder, and has a deep respect for the values and sense of social responsibility which have been passed down through the generations of his family firm, and sees his mission as “reaching (at least!) the 150th anniversary of the company still independent.” But he combines this with a passion for innovation and an extremely forward-looking approach to manufacturing. In fact, it’s rather like combining two different but complementary scents: tradition on the one hand, innovation on the other. Mane invests heavily in R&D, seeing it as essential to competitive advantage: with 15% of its range becoming obsolete each year, finding new and better products is absolutely key. One way Mane does this is by having 40 different R&D centres all across the world from Singapore to Mexico, which can spot new and emerging trends, and tap into the changing tastes of local consumers. And once you’ve created a new truly innovative product, you need to protect it: Mane has been extremely effective at developing its own proprietary production processes to defend its vital Intellectual Property. It’s also organised in highly diverse project teams involving people from departments as different as R&D, manufacturing, procurement, and legal. Research suggests that this sort of cross-functional working creates a flexible and agile culture which is much more likely to be good at new ideas. Culture is crucial to Mane in other ways too. The company puts a high priority on happiness and well-being at work, and backs that up with significant investment in development. Though Jean Mane acknowledges that the risk is that his company ends up training people so well that his competitors poach them: “a family business doesn’t just have the challenge of attracting the best talent, but retaining them too. That’s why our culture is so important – the relationships we build with our employees. In our latest employee survey 50% of our people said that family governance was one of the best things about working here.” This feature forms part of the PwC Global Family Business Survey 2016. It has been reproduced with permission of PwC.

Linfox has recently celebrated its diamond anniversary, and has long been one of Australia’s most successful and high-profile family businesses, operating in the transport & logistics, property, airport and cash logistics markets Momentous milestones: 60 years of growth in Australia, so how did they do it? How did they go from owning a single truck in 1956 to over AUD$3.5 billion dollars in revenue 60 years later? We talked to Peter D Fox AM, Executive Chairman, about some of the key milestones along the way. Milestone 1: From One Truck To Two “My father was a truck driver – in fact, I think I had diesel in my blood from a very young age. The business started when my mother lent him the money to buy his first truck. But the moment he bought a second one, you could say that’s when he went from being self-employed, to running a business. That was in the late ‘50s. And he never looked back.” Milestone 2: The first professional manager “In the ‘70s, we brought in an accountant called Sandy Murdoch, who set about introducing some structured processes and some financial discipline. He became a mentor for me personally, too, and gave me the best piece of advice I ever had which was to get myself some business qualifications to add to my practical experience: ‘then you can sit at the front of the room, not at the back’. He was soon joined by a couple of other external hires, and we ended up with a really strong senior team. In 1978 we were turning over AUD$18 million, which seemed pretty amazing, back then. Now it’s nearly 200 times that.” Milestone 3: International Expansion “We started expanding into Asia in the late ‘80s and early ‘90s. First Thailand, then Malaysia, and now we’re in Indonesia, Vietnam, Hong Kong, Singapore, and India, with plans to move into the Mekong Delta, which would give us access to Burma, Myanmar, Laos and Cambodia. In fact there are more people working for Linfox today in Asia than in Australia. We saw an opportunity in Asia and moved quickly. We were one of the first in our industry to enter the Asia market, and it’s become a key competitive advantage. That’s the advantage of being a family business – when we decide to do something, we can move really fast.” Milestone 4: Stepping Up “2000 was a big year for us – we managed the supply chain and all the inventory for the Sydney Olympic Games. It was incredibly exciting and rewarding to be working on such an iconic event. It really put us on the map.” Milestone 5: A Big Acquisition “In 2003, we bought Armaguard, which marked our first decisive move into cash logistics, which has since become such an important business for us. The process of identifying, buying and then integrating businesses of that size was a real learning experience, and it turned us into a billion-dollar business almost overnight.” Milestone 6: Streamlining And Refining “The next step for us was to take a long hard look at the business we had, and decide where we wanted to take it, both in terms of sectors and markets. One result was a much leaner management structure internally, and the decision to focus on our biggest customers externally. We had 300 customers in 2008; now we have about 80. That took courage, but it was the right thing to do. For us, it’s about quality, not quantity: our strategy is ‘less is more’.” Milestone 7: Looking Ahead “If I look ahead for Linfox, I see two key challenges for us. One is for the business, and it’s all about technology. People often think about digital in terms of the information it gives you, and yes, that’s important. But I look at it in terms of all the other things digital makes possible. There are some incredibly exciting developments in our sector using technology like driverless vehicles, robotics and automation to run warehouses better, manage deliveries more efficiently, and improve productivity.” “At the moment, our IT infrastructure isn’t as good as it needs to be, but we have to be the first into these new technologies just as we were the first into Asia. The second challenge is for the family. Our third generation is just reaching the age when they’re going to have to decide if a career here is right for them, and we’re going to have to decide the right management structure for Linfox in the longer term. That’s not a decision we can make yet; it may be a member of the family, but it might not. But what I do know, is that it will be the best person for the job.” This feature forms part of the PwC Global Family Business Survey 2016. It has been reproduced with permission of PwC.

What does it take to build a successful multigenerational family business? Many of the world’s most enduring companies are family businesses. Coopers Brewery, Walmart, Samsung, and BMW all have a controlling family dynasty at their centre. But these successful family firms are a rarity; most family firms fail to survive multiple generations. The statistics are grim: only 30 per cent of family businesses survive the transition from first to second generation. Just 12 per cent reach the third generation. Why do so many successful family businesses fail after the founding generation? In my years of experience as a family business adviser, I have seen generational transitions fail for many business and family reasons, and I’ve seen several common threads connecting many failures. One major reason is a lack of financial education for children born into wealth. Heirs that are ill-prepared to manage money make poor decisions and squander their fortune. Perhaps the most famous example of dissipated wealth is that of the Vanderbilts, once one of the wealthiest families of the Gilded Age. During the mid-1800s, Cornelius Vanderbilt built the family’s fortune on railroads and shipping. At its height, his fortune totalled over $240 billion in today’s dollars, making him one of the wealthiest businessmen in history. While Cornelius was a self-made man, his descendants lived extravagantly, with little concern for preserving the family fortune. By the 1970s, there wasn’t a single Vanderbilt millionaire left. The Vanderbilts had also fallen prey to another common problem: the dispersion of wealth and control among many children, in-laws, and other relatives. This left the dynasty with too many decision-makers and not enough concentration of power to push through important decisions. Many families fail to nurture a sense of responsibility, history, and family values in the following generations, neglecting what we call the spiritual and family capital of the family business. Great wealth is a privilege and without a sense of stewardship and obligation, many rich descendants fall prey to ennui and boredom, failing to safeguard the family wealth or treat the business with respect. Many problems also happen at the intersection of family and business. One key issue that many fail to overcome is a culture of nepotism, which promotes unqualified relatives into positions of power simply because they are members of the founding family. Another issue is a lack of formal governance structures and succession plans that leave the business open to power struggles, family discord, and transition problems. A cautionary tale in this vein is that of the Anheuser-Busch company, which had been successfully run by five generations of the Busch family until it was bought in 2008 by InBev in a hostile takeover. The final years of the Busch family’s tenure were marked by family conflicts, power struggles, and financial mismanagement, dooming a 150-year-old company that had survived prohibitioners, world wars, and global competition. If you are the head of a successful family business, what can you do to ensure that your dynasty survives into the third, fourth, and fifth generations? A great deal. In my opinion, the most critical lesson is to take good care of the family side of the business and develop a long-term plan for your family’s future. Educate the next generations about wealth and responsible financial management as early as possible. Too many wealthy parents fail to teach their children how to responsibly manage their inheritance. Protect the family wealth by insisting on premarital agreements and separation of personal and family property. Cultivate a family culture around your family’s history and shared values. One way that many successful multigenerational families nurture a family legacy is by developing shared philanthropic ventures that help instil respect for family wealth and its future potential. Don’t make working in the business a requirement in the family; allow each member to find their own way in the world, within or without the business. Protect the business’ future by instituting formal governance and ownership structures that separate family control from the daily management of the business. These arrangements will make it easier for the firm to raise capital, bring in outside investors, and eventually navigate generational transitions. Professionalise the business by establishing employment standards for both family and non-family employees. Consider bringing in professional managers to run the business while retaining ownership stakes for your family. Most successful multigenerational family firms are largely run by professional non-family executives while members of the family focus on diversifying and managing their wealth. Begin planning for the eventual succession of your business. Whether you intend to train up an internal successor or bring in outside managers, proper succession planning takes years. Too many business leaders leave planning too late and put the business at risk of a sudden, unplanned transition. Family discord, power struggles, spendthrift grandchildren, and poorly qualified managers can all doom a family business. Ultimately, success requires many factors to align as well as a healthy dose of luck. Developing a successful multigenerational family business doesn’t happen overnight. It requires years of planning, careful management, and the cultivation of a family culture that prioritises stewardship and a family legacy of success.

What does it take to build a successful multigenerational family business? Many of the world’s most enduring companies are family businesses. Coopers Brewery, Walmart, Samsung, and BMW all have a controlling family dynasty at their centre. But these successful family firms are a rarity; most family firms fail to survive multiple generations. The statistics are grim: only 30 per cent of family businesses survive the transition from first to second generation. Just 12 per cent reach the third generation. Why do so many successful family businesses fail after the founding generation? In my years of experience as a family business adviser, I have seen generational transitions fail for many business and family reasons, and I’ve seen several common threads connecting many failures. One major reason is a lack of financial education for children born into wealth. Heirs that are ill-prepared to manage money make poor decisions and squander their fortune. Perhaps the most famous example of dissipated wealth is that of the Vanderbilts, once one of the wealthiest families of the Gilded Age. During the mid-1800s, Cornelius Vanderbilt built the family’s fortune on railroads and shipping. At its height, his fortune totalled over $240 billion in today’s dollars, making him one of the wealthiest businessmen in history. While Cornelius was a self-made man, his descendants lived extravagantly, with little concern for preserving the family fortune. By the 1970s, there wasn’t a single Vanderbilt millionaire left. The Vanderbilts had also fallen prey to another common problem: the dispersion of wealth and control among many children, in-laws, and other relatives. This left the dynasty with too many decision-makers and not enough concentration of power to push through important decisions. Many families fail to nurture a sense of responsibility, history, and family values in the following generations, neglecting what we call the spiritual and family capital of the family business. Great wealth is a privilege and without a sense of stewardship and obligation, many rich descendants fall prey to ennui and boredom, failing to safeguard the family wealth or treat the business with respect. Many problems also happen at the intersection of family and business. One key issue that many fail to overcome is a culture of nepotism, which promotes unqualified relatives into positions of power simply because they are members of the founding family. Another issue is a lack of formal governance structures and succession plans that leave the business open to power struggles, family discord, and transition problems. A cautionary tale in this vein is that of the Anheuser-Busch company, which had been successfully run by five generations of the Busch family until it was bought in 2008 by InBev in a hostile takeover. The final years of the Busch family’s tenure were marked by family conflicts, power struggles, and financial mismanagement, dooming a 150-year-old company that had survived prohibitioners, world wars, and global competition. If you are the head of a successful family business, what can you do to ensure that your dynasty survives into the third, fourth, and fifth generations? A great deal. In my opinion, the most critical lesson is to take good care of the family side of the business and develop a long-term plan for your family’s future. Educate the next generations about wealth and responsible financial management as early as possible. Too many wealthy parents fail to teach their children how to responsibly manage their inheritance. Protect the family wealth by insisting on premarital agreements and separation of personal and family property. Cultivate a family culture around your family’s history and shared values. One way that many successful multigenerational families nurture a family legacy is by developing shared philanthropic ventures that help instil respect for family wealth and its future potential. Don’t make working in the business a requirement in the family; allow each member to find their own way in the world, within or without the business. Protect the business’ future by instituting formal governance and ownership structures that separate family control from the daily management of the business. These arrangements will make it easier for the firm to raise capital, bring in outside investors, and eventually navigate generational transitions. Professionalise the business by establishing employment standards for both family and non-family employees. Consider bringing in professional managers to run the business while retaining ownership stakes for your family. Most successful multigenerational family firms are largely run by professional non-family executives while members of the family focus on diversifying and managing their wealth. Begin planning for the eventual succession of your business. Whether you intend to train up an internal successor or bring in outside managers, proper succession planning takes years. Too many business leaders leave planning too late and put the business at risk of a sudden, unplanned transition. Family discord, power struggles, spendthrift grandchildren, and poorly qualified managers can all doom a family business. Ultimately, success requires many factors to align as well as a healthy dose of luck. Developing a successful multigenerational family business doesn’t happen overnight. It requires years of planning, careful management, and the cultivation of a family culture that prioritises stewardship and a family legacy of success. About David Harland - A leader in the family business consulting field and Executive Chairman of FINH, co-founding the company in 1994, David is an expert consultant to families in business. David has facilitated multi-generational meetings of family business stakeholders to guide families through complex and emotional family communication challenges. His objective is to empower those families to long-reaching and sustainable communication processes across both family and family business communication models. David has worked extensively with family businesses across Australia, New Zealand and South East Asia, many of whom have transitioned into and beyond their second generations. By providing a process for the succession journey, David has assisted families to achieve measurable and specific outcomes. David holds both Australian and International Accreditation in Family Business Advising with Family Business Australia and the Family Firm Institute.