Stewardship matters for successful and enduring family businesses. Stewardship is a defining hallmark of businesses that achieve success, significance and sustainability. In crux, stewardship encapsulates the essence of responsible and meaningful value creation in a sustainable way to benefit stakeholders, as well as the larger community that they are a part of. It underscores the importance of an ownership mindset, a long-term perspective and an inclusive approach. These stewardship elements undergird and reflect the business leaders’ motivation and commitment to nurture and grow what they are entrusted with, such that it can be handed over in a better shape to successors. Stewardship is particularly pertinent to family businesses, which form a key component of economic activity around the world. This is especially relevant in Asia, where family businesses remain the mainstay of business ownership, and families continue to be influential players in the business landscape, as owners as well as managers. Successful and sustainable family businesses create wealth and growth for the family across generations. In their stewardship journey, such great and lasting family businesses leave a rich legacy, contributing significantly to the multiplier effects such as knowledge creation, economic development and capacity building of human and social capital to benefit society in the long run. Family businesses are very diverse in nature – ranging from small, medium local enterprises to huge conglomerates that operate across industries and countries. For our purpose here, we broadly define family businesses to include companies with the presence of family members as shareholders as well as board members and managers who are able to influence strategic decisions. We use the term family businesses to include family companies, family firms and organisations. Notwithstanding their diversity in scale and nature, family businesses in general face some common challenges: Responding and adapting to the vortex of disruptive changes stemming from the global and local fronts, while still maintaining the sense of purpose that propelled them to success Maintaining coherence and harmony as ownership becomes more fragmented over time Attracting, retaining and “professionalising” talents that constitute the human capital essential for family businesses to maintain their competitive edge Transitioning successfully during periods of leadership renewal, especially for firms where the influence of the founder-leaders dominate Guarding against the pitfalls of hubris and complacency on one hand, and a reluctance to adapt due to inertia to changes on the other Upholding high standards of resource management and corporate governance Faced with such challenges and an increasingly demanding business environment, stewardship has become all the more relevant and important. Well-stewarded family firms emerge over time as engaged, forward-looking and adaptable enterprises. They are able to leverage their inherent strengths and competitive advantages. Guided by their values, such family businesses remain resilient in the face of changing times and disruptions, overcoming adversity and outperforming their competitors. Stewardship is, however, always a journey. Every generation of family business faces unique circumstances, challenges and opportunities. A family business with a successful stewardship experience in one generation does not guarantee its continual success into the next. Hence, for family firms striving towards success, significance and sustainability, a resolve to continually imbibe, propagate and reinforce stewardship concepts and actions is vital, and remains relevant and timely. Download and read the full report below:

In 1997, Gael and Francesco Boglione moved their young family from central London to Richmond. Their new home, Petersham House, overlooked a local plant nursery, which had been carved out of the grounds of their Queen Anne home in the 1970’s. Francesco recalls initially not knowing what to do with the place. Inspired by his youthful travels to India, when as a self-confessed hippy, he bought and sold unusual furniture, paintings, sculptures and decorations as a means of funding his expeditions. He recalls a vision materialising. Bringing a gentle approach and an ability for drawing out beauty in the simplest of things, Gael’s natural style, elegance and attention to detail was at the heart of the transformation, evolving over the years into the strong ethos maintained today. In 2004, after extensive restoration works, the nursery re-opened, completely transformed. Furniture, gifts and antiques were found amongst the plants which adorned the greenhouses, and in the most elegant wooden teahouse, whole leaf teas and homemade cakes were offered. The nurseries became an instinctive mix of Gael’s love and enthusiasm for nature and the earth, mixed with Francesco’s desire to deliver products and services in a peaceful and beautiful setting on the river. Over the years, Gael and Francesco have steadily nurtured the space, drawing upon their travel experiences and incorporating their Italian and Australian cultures within this English garden setting. They have created a lifestyle destination, reflective of their values, love of food and personal collections within their home. The family is dedicated to positive living; where ethics meet aesthetics, philosophies which are interwoven in every aspect of the business. This is demonstrated from the way they look after their employees, to what is sold and served. In recent years, Gael and Francesco have encouraged their children, Petersham’s next generation, to step forward, forging a future for the nurseries and Petersham offshoots.

What matters most to high net worth families is giving their wealth a purpose. What does it mean to be wealthy in the 21st Century? Are successful families around the world driven by wealth generation, wealth preservation or the application of their wealth? Withers recently commissioned a research study to find some first-hand answers to these questions. Through quantitative analysis of the attitudes of 4,500 individuals with more than US$10 million in personal wealth and a further 16 in-depth interviews with multi-millionaires and billionaires around the world, we wanted to investigate the modern meaning of wealth. Equally importantly, in the course of the research we have sought to identify the valuable lessons that families have learnt from their own experience which they would wish to share with other families facing similar challenges. The research has spanned three continents – Asia, Europe and the Americas – because we wanted to find out if individuals and families from different cultures really do have a different perspective and experience of wealth and have different lessons to pass on. The results have provided a fascinating insight into the changing dynamics of family wealth between generations and between continents. What characterises wealth-owning families today is a growing recognition of the importance of purpose when it comes to the creation, control and distribution of wealth. Across all cultures and generations, the sense is that wealth matters because of what you can do with it. The research, drawing directly from interviews with high net worth international families, has revealed that generational succession in wealthy families around the world has led to a fundamental re-evaluation of the purposes of wealth and family businesses. In the words of one interviewee, as they assessed their wealth: “The most important things are how you make it and how you distribute it. If you can do that in a way that is socially acceptable and keeps your family happy, then you are winning.” Withers partner Sarah Cormack comments: “For many wealthy families, we found that simply having large amounts of money to invest is not enough to provide purpose and cohesion to the broader family group. Having come to realise this, wealthy families are responding by re-immersing themselves in active business operations or (and, in many cases, also) putting their wealth into effect to effect positive changes in their communities.” “Maintaining commonly-held reasons for working together as a family is a continual process. It is brought under intense pressure when a family sells out of active business ownership and moves to a financial/investment-based footing (or back again). When a new generation is called upon to take ownership of the family wealth, there is a similar potential for it to unravel, as the younger family members bring their own values and interests to bear. Clearly, anything that creates coherence and harmony is valuable, and these days it appears to be the social application of wealth,” says Cath Tillotson of Withers’ research partner, Scorpio Partnership. The research established five key lessons that wealthy families have learned through coping with succession and working to preserve their assets and family unity, as illustrated through the points and quotes below: Transitions Are Complicated Whether selling a business, setting up a foundation or passing control of wealth to the next generation, families should ask themselves ‘why are we doing this?’ at each transitional stage to find the common objectives that keep them and the family wealth intact. “In Asia we have three generations living side by side… the hard business stuff has become the easy stuff, and the soft family stuff has become the hard stuff.” Take Your Time As a collection of individuals, and not an organisation, family businesses require a unique leadership style which should involve listening, learning, observing, sharing and understanding. “Family members often think they are unique, with the right skills, so you have to be willing to let go. Sometimes you have to be willing to lead from behind and recognise just because you can do the job, doesn’t mean to have to.” Leading With Principle Wealth ownership means that attention is trained on you. Family business heads should lead by example and the wider community will view wealth ownership with greater respect when it is used as a force for positive social change. “Values cannot be taught. You have to inculcate them through your own actions.” Recognise Your Limits Within a family business there are many roles to play; no single person can play them all well. Once skills, strengths and motivations are accurately assessed (including one’s own), other family members and professional advisers can be effectively appointed to fill the gaps. “As a leader you have to be open-minded and accept that other people are sometimes smarter and better than you… A business family has to be multi-disciplined and that means accepting outside help sometimes.” Giving The Next Generation Just Enough Each generation should be able to think of themselves as the first generation. This means that those in the next generation are given everything they need to be successful and no more. For those in older generations, this also means recognising when to step aside. “It is better to let children find their own way… If they want to come into my family business, they can, but they will have to earn their place, just like everyone else.” Withers worked with leading wealth research agency Scorpio Partnership, basing the research on 16 in-depth interviews with multi-millionaires and billionaires from Asia, Europe and the US . The opinions and experiences described by these individuals were cross-referenced against the attitudes of 4,500 individuals with more than US$10 million in personal wealth, who answered digital surveys on a wide range of subjects over the past two years.

The Walkers story begins in 1898 when the twenty-one year old Joseph Walker opened the doors of his own bakery with a loan of £50 and the ambition to bake ‘The World’s Finest Shortbread’. In the first year of business, Joseph used every spare moment to perfect his shortbread recipe. It was time well spent. Soon, shooting parties from the local estates were making detours just to visit Joseph’s bakery. As word spread and demand for his quality shortbread increased, Joseph took the first steps to expanding the business by moving to a larger shop in the Speyside village of Aberlour and investing in a horse and cart to deliver his baking further afield. 1930-1950 / The War Years During the 30’s, the business – like Joseph’s family – was expanding. Two of his sons – James and Joseph – joined the company, bringing fresh ideas with them. By 1936 they had introduced three valuable additions to the Walkers setup: a range of cakes, a selection of confectionery and…the company’s first delivery van. Now that Walkers produce could be sold at ever-greater distances the prospects for expansion were looking promising. Then came the war. Wartime rationing and their commitment to the Home Guard meant that Joseph’s sons couldn’t develop the business or their range of products as they would have liked. Despite these adversities, however, they kept the business going and their customers happy by supplying them with the same tasty breads and oatcakes to which they had become accustomed. 1950-1970 / From Aberlour to Harrods While some manufacturers began to cut corners by using margarine instead of butter, Joseph believed that people still appreciated the care that went into making a superior product like Walkers shortbread. And he was right. That’s why, even after Joseph Walker died in 1954, his sons knew better than to alter a winningly simple recipe consisting of just four ingredients: flour, sugar, salt and that pure creamery butter. As demand grew so did the business. By 1961, all three of James’ children – Joseph, James and Marjorie – had joined the company, making the third generation of Walkers working for the family firm. The workforce was now almost one hundred, and Walkers had a fleet of 14 vans as well as shops in Grantown and Elgin. Local grocers began stocking Walkers products, and the family had to invest in bakery machinery to help them meet demand. Naturally, they baked to the same high standards, simply on a larger scale. Soon their shortbread was on the shelves of fine food stores all over Britain. By the 1970’s, Joseph’s grandchildren had begun exporting Walkers shortbread to over 60 countries around the world – all of it still baked to his original recipe, of course. 1970-1990 / Growing Success By 1975 Walkers had outgrown their extended bakery and moved to a custom built factory. This gave us the extra space and facilities needed to develop new products such as our delicious Chocolate Chip Shortbread and speciality biscuits. Many of the people who worked for Walkers during this time are still with us today; most are local folk who often come from the same family – mothers working alongside daughters, fathers and sons. Community values have always been central to life in the Scottish highlands and the same is true of our business. Now, as a hundred years ago, Walkers test every new product in Aberlour’s village shop. Though today our customers are based all over the world, our products are still given their first seal of approval by the villagers of Aberlour. That way we can ensure that each cake and biscuit offers a real taste of Scotland. 1990-2008 / Delivering Goodness Whether it’s enjoying one of our traditional varieties or new products like our luxurious almond, ginger and chocolate covered shortbread, Walkers’ reputation has continued to grow as new customers the world over discover the quality of our baking. This has been recognised by industry over the years too, with Walkers picking up numerous international accolades including five gold Mondiale medals and the Food from Britain Innovation Award. 2008 – Present Day Much has changed since Joseph Walker baked his first batch of biscuits over a century ago. But, although we’ve updated many of our methods and are constantly adding exciting products to our range, some things remain a constant; Joseph’s grandchildren and great-grandchildren have always remained true to that original ideal – to bake ‘The World’s Finest Shortbread’. In fact, when the family opened another factory at Elgin to produce their popular new range of shortbreads and biscuits, it was only on the condition that they would continue using the finest ingredients: plump fruits, aromatic spices, chunks of real chocolate and wholesome nuts. Find out more by visiting www.walkersshortbread.com

The Marinelli Pontifical Foundry is Italy’s oldest family business and among the three oldest family businesses worldwide. Campane Marinelli foundry has a very long history; the first bell was made around the year one thousand and since then their work has been a long sequence of success and honours. One of the most significant honour that the foundry can boast, is the possibility to use the Papal Arm Coast in their production; it was Pope Pio XI in 1924 to grant the privilege to the foundry. Campane Marinelli foundry, considered to be the oldest foundry in the world, is located in Agnone (Agnéune in the local dialect), a small Italian town of 5,200 inhabitants in the province of Isernia in Molise. The Marinellis have been handcrafting bells since 1000 AD, and current co-owners, operators and brothers Armando and Pasquale Marinelli are the 26th generation to run the business.

The story began in 1972 when John and Barbara Dunning, local farmers, set up Tebay Services in partnership with local bakers when the M6 cut through the Lune Gorge. It was the first and is still the only family run motorway service station on the UK road network – a small 30 seat café serving home cooked, locally sourced food. Forty years on and they are still there, still family owned, still farming and still with a fierce passion for, and a pride in, their landscape, their people, their environment and its products. In 1976 the Tebay Services Hotel opened, five minutes from the services. With its deep pitched roof reminiscent of mountain architecture, open log fires, real ale, a restaurant that serves home-cooked food and wide, sweeping views over the surroung fells, it has been welcoming weary travellers from far and wide ever since. Over the next 10 years, a Caravan Park and Truckstop joined the fold. In the year 2000, they opened a 90,000 square foot visitor attraction hidden under a grass roof on the edge of the Lake District. Today the Rheged Centre is home to a gallery, shops and cafés plus an IMAX-style cinema screen that regularly streams world-class opera, ballet, theatre and music events from around the globe. So the innovation continued. 2004 and back to Tebay where the family’s farming roots inspired the creation of two farmshops followed four years later with butcher’s counters promoting a ‘nose to tail’ approach to butchery – beef and lamb produced on the family farm, sold and butchered at their butchery units or cooked and served in their kitchens, ensuring that the use of local produce was as sustainable and accountable as possible. Ultimately, this is a family that know that if they stand still they start to move backwards. While they celebrate and are inspired by their heritage and roots, like generations of hill farmers before them, they understand that to survive and ultimately to thrive, they must continue to innovate, keep their ‘family’ and community close and always believe in what they do. Take a look at the inspirational story behind the making of the business that is all about the place, Westmorland.

The Marinelli Pontifical Foundry is Italy’s oldest family business and among the three oldest family businesses worldwide. Campane Marinelli foundry has a very long history; the first bell was made around the year one thousand and since then their work has been a long sequence of success and honours. One of the most significant honour that the foundry can boast, is the possibility to use the Papal Arm Coast in their production; it was Pope Pio XI in 1924 to grant the privilege to the foundry. Campane Marinelli foundry, considered to be the oldest foundry in the world, is located in Agnone (Agnéune in the local dialect), a small Italian town of 5,200 inhabitants in the province of Isernia in Molise. The Marinellis have been handcrafting bells since 1000 AD, and current co-owners, operators and brothers Armando and Pasquale Marinelli are the 26th generation to run the business.

For many years, partly as a result of their portrayal as ‘ma and pa’ lifestyle businesses, family firms have not been recognised for the true contribution that they make to the UK economy. In the current economic climate, family firms are being looked upon much more favourably not least because of their underlying values, plans for the future, longevity and desire to succeed. The contribution they make should not be under-estimated either with significant jobs being provided, communities being supported and the fact that family firms are truly the backbone of the British economy. So what makes working with family firms special and ‘Why do big corporates and PLC’s like doing business with private family businesses? Paul Andrews, Founder and Managing Director or Family Business United sums it up in three areas: 1 – Leadership From The Front First and foremost, family firms tend to be headed up by someone who has the family business in their blood, and as such doing business with someone who takes personal pride and ownership in their business makes them desirable to work with. Rather than simply doing business, family firms make it personal, traditional values such as honesty, integrity and personal service comes to the fore. No longer are you doing business with an organisation per se but a business that is owned and very often managed on a day-to-day basis by someone that cares about their business, and appreciates that delivering good, consistent customer service is key to driving the business forward. To that end, family firms provide a good relationship base with access to the key decision makers who are happy to engage with clients. 2 – A Sense Of History And Purpose Secondly, family firms have a history, tradition and legacy and tend to be around for the long term. Recent research done by Family Business United identified the ten oldest family firms in the UK and collectively they have been trading or over 4,200 years, no mean feat in the current climate and they have survived world wars, recessions and more besides. Family firms tend to plan for the future and are able to adapt and evolve to ensure the business survives. As the business transcends the generations there is a desire to succeed and pass a successful organisation on to future generations, and as such this can offer customers in the corporate world more security about who they are doing business with, and assurances that the business is in it for the long term. 3 – Because It Is Personal Thirdly, it is personal. Brand, name and reputation mean everything, especially when it is ‘your name above the door.’ Many family businesses have been around for generations, take the Warburtons, The Goring Hotel, Floris, JCB and Kinloch Anderson for example, and the family name is associated with everything that the business stands for. To that end, corporates know that they are dealing with a long established brand, one with values that permeate the organisation, and one with true values underpinning the work that they do rather than ‘corporate words, mission statements and meaningless charters.’ Family businesses are renowned around the world for being outward looking, in it for the long term, willing and responsive to change and sustainable and as such represent excellent business partners, many leading the way in their respective markets. Family firms represent more than 5 million firms in the UK economy, provide 12 million jobs and make up nearly half of all mid-sized businesses in the UK (£20-500 million turnover). Far from being small ‘lifestyle businesses’ families are behind some of Britain’s best known and loved brands and you may find that you are already working with some of them.

R J Balson Butcher provides great tasting West Dorset and Somerset meat from local farms less than 30 miles from their shop in Bridport. The business is over 500 years old and is currently run by the 26th generation of the family, Richard Balson, and is the oldest butcher and the oldest direct lineage family firm in the UK today, dating back to when in was founded in 1515. Paul Andrews spoke to Richard to find out more. What does your family business do? We are a retail family butcher based in Dorset and the oldest family owned butcher in the UK having traced our heritage back to 1515. How did you get involved? I was born in to the Butchery craft and I guess the outcome was inevitable really. What did you want to be when you grew up? I wanted to be a footballer but was not good enough. What are your first memories of the family business? Skinning rabbits at the age of 7 years old with my father. What values are important in your family/family business? Offering great service to the public with pleasure and pride. What is the best thing about being a family business? You are in control of your own destiny. You only get out what you are prepared to put in. And the worst? Unnecessary paper work, although this is probably the same for all businesses having to deal with the vast volume of red tape! What is the best thing about your working day? Looking forward to servicing my customers. What is your proudest family business achievement? Being recognised as not only the oldest, but being one of the best in our occupation. Is there a next generation waiting in the wings to take over? Yes, but when the time is right. What do you see as the biggest challenge facing family businesses? Staying ahead of the competition of the supermarkets. What words do you associate with family businesses? Top quality, personal service and commitment to customer’s requirements. Words of wisdom – What piece of advice would you pass on to someone thinking about joining the family business? Be prepared for long hours, plenty of hard work and you will reap and enjoy the benefits of being your own boss in control of your own destiny.

The ability to carry on a successful intergenerational transfer of ownership and leadership (succession) is one of the most important issues facing a family business. This issue is plagued with conflict, and accounts for the majority of engagements with family business consultants. Succession has often been called the final act of greatness. How ideal for a family business founder to have his or her creation live on long after they are gone. Most family businesses do not have a successful transition of ownership from the founding generation to the second generation. Studies have generally agreed that about 30 percent of businesses transfer to the second generation, while only 10 percent to 15 percent successfully transfer from the second generation to the third generation. Only four percent manage to stay in the same family in the fourth generation. The majority of family firms want to keep the business in the family and pass it on to the next generation. The American Family Business Survey in 2002 found that 85 percent of the firms surveyed wanted to continue with family ownership. A family-owned business is more likely to fail due to lack of a succession plan upon the founder’s illness or death than for reasons having to do with competition or market forces. One survey reported 77 percent of failed family businesses that declared bankruptcy did so after the death of the founder. Many family business researchers agree that the primary underlying reasons for failed successions are a lack of effective decision making and a lack of proper planning. Often the failure to plan is caused by an entrenched owner who cannot concede power or will not tolerate a reduction in personal authority, responsibilities, or control. The reasons for this scenario are numerous and can be quite complicated from a psychological perspective. Often, the previous generation simply does not want to be put out to pasture. If they are the founders of the business, they often feel the company is their “baby” and their identity is closely interrelated with the company. Others equate retirement with death and simply do not want to discuss the issue. Of the CEO respondents to a large nationwide study, nearly one in seven reported they would never retire! This causes much consternation in the family, especially among the next generation members. The next generation waiting in the wings wonders when they will ever get their chance to lead. Awareness of the life cycle stages becomes apparent when initiating conversations regarding succession. Research has shown that at certain ages, the relationship of the founder and the successor can be either rife with conflict or relatively smooth. This is especially relevant with a father-to-son generational transfer. When a founder is in his relatively young 40s and 50s, and the successor is in his 20s or early 30s, the role conflict can be at its worst — and most visible. The current familial roles of each family member in their respective life cycles present barriers to effective communication and to efficient working relationships. If a founder is in his 60s or 70s and the successor is in his 40s, the competition and conflict typically is less, resulting in a more positive working relationship. There is often significantly less conflict between a father and daughter, and transfers of leadership can be very smooth between opposite genders. Reproduced with permission from Keanon Alderson and The Press-Enterprise 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

Muntons began life back in 1921 in a small converted brewery in Bedford. Much has changed since then but much has remianed the same too! Muntons was known originally as Muntons and Baker (Bedford) Ltd. Nearly a century later, Muntons plc, as it is now called, has grown and evolved to become the company it is today. Their move in 1948 from Bedford to Stowmarket in Suffolk, was a strategic one, placing their business centrally amid one of the best malting barley growing regions in the country, thus ensuring that they would be able to keep the delivery costs of their main raw material well under control. The site they purchased, for the princely sum of £100,000, was the old British Nylon Spinners factory located on a 45-acre plot alongside the main Stowmarket railway line and bordered by the river Gipping. Converting this to a modern maltings was a challenge. After the Second World War, there was a surplus of aluminium originally destined for the manufacture of Spitfires. Some of this War surplus material was used by a local engineering company to manufacture the four drum maltings which were installed into Muntons new premises. Interestingly these original drum maltings are still used today, nearly seventy years later, to make small batches of high quality niche malts. Suffolk as a location for the business was perfect, not just because of the proximity of top quality malting barley but also the rail link into London and the growing importance of Felixstowe as a deep-sea port. As containerisation became the norm, and trade with mainland Europe grew, so traditional ports such as Liverpool and Southampton saw volumes decline in favour of the now more convenient East Coast ports. Malting is an ancient craft – an art, and its origins can be traced back around 4,000 years to ancient Mesopotamia. These days, whilst machines do the hard work gently turning the malt, making the finest malt still relies on the skill of the maltster. Muntons take the finest malting barley, from within the very heart of the region, and grow this under carefully controlled conditions. They complete the malting process by gently drying the malted grains in kilns and gently remove the tiny rootlets before storing the malt and delivering it to their customers around the world. Throughout Suffolk, the local farming community has a rich heritage, growing high quality malting barley aided by a winning combination of light soil and moderate climate. These qualities, along with the easy-to-farm flat landscape, provide perfect conditions for exceptional malting barleys to be grown. Malt is one of the key raw materials used in the production of beer and whisky, providing a source of fermentable sugars to produce alcohol and impart its distinctive flavour. Few however know the true versatility of this natural ingredient. Malt made from local barley finds its way into a vast range of foods and drinks: In breakfast cereals, and bread, confectionery and cakes and then there’s malt vinegar, great on chips and for pickling. You will even find malt in some milkshakes and cola’s. To find out more please visit www.muntons.com

The succession of a family-owned business is often on the minds of its owners. For most, the transition of a family business from one generation to the next is planned. There is significance and pride in continuing the family legacy, and successfully passing the torch; knowing that your hard work and investment will hopefully bring greater abundance for your offspring. More often than not, a son or daughter of the owner has been groomed for, or at least involved in, the business operations and is looking forward to this promotion. But one aspect that is often forgotten in the planning of succession is how to navigate the role of in-laws. Of course, the matrimonial decision of a son or daughter who will be taking over the family business will influence the family, but how should it impact the business? Typically, the “what should I do with my in-laws?” question can go one of two ways. Some families embrace in-laws as their own. The in-laws are given the same privileges and opportunities as all other family members. On the other hand, some family businesses exclude non-blood relatives from involvement in the business. Both options have merit, but when considering which way to go, it’s important to consider the pros and cons of this decision. Weighing the Pros and Cons The positive side to embracing the in-laws into the family business is that they can be a great source of support and strong ambassadors for the company. If a child is about to take over the family business, his or her spouse is someone he or she can trust and rely on. An in-law, like any new employee, also brings new insight and ideas and can provide a refreshing, and perhaps new, much-needed perspective. An in-law might also be a highly qualified asset to the business. For example, if a son or daughter-in-law is a graduate from an MBA program and has strong experience in finance and marketing, a position that allows him or her to focus on these strengths can be a remarkable asset to the family business. On the other hand, inviting the in-laws into your family business can be detrimental, and many family businesses have established a strict “no in-law” policy. Ultimately, in order for a family business to be successful, there must be a shared, consistent, and lasting set of values, as well as common business goals. Additionally, the success of a family owned and operated business requires strong communication. The culture of a family business is likely unique to that family, from the way the family communicates with one another to the customs and hierarchy within the family structure. This can make it very challenging to bring on board an in-law, even one who is qualified. One fictional but true-to-life example that comes to mind is found in the current top-hit TV series, “Empire.” The show gives viewers a glimpse of what looks to be a dysfunctional family-business dynamic with family members involved in each other’s personal business, loud and heated arguments on how to run the company, and no clear delineation of the business role of each family member. The point illustrated here is that each family business has a unique method of operation. Family-owned businesses operate on the culture or norms of that particular family. To an in-law, or any outsider, a family-owned business operation may look dysfunctional, but for that family it may work just fine. Implement a Family Work Policy and Clarify Business Goals This decision shouldn’t be taken lightly, and family business operators should consider creating a written family work policy in reaching this decision. The phrase “make sure it’s in writing” rings true. Documenting a family work policy is an excellent way to ensure transparency and avoid conflict in a family business. After a family business owner has made the decision to either include the in-laws or not, creating a family work policy that defines who can and cannot work in the business will be beneficial moving forward. When conflict arises, this is the document that can be referenced for clarification. This document should include specific rules on who can work for the family business, under what circumstances these rules can be amended, and perhaps the plan for succession of the business. For example, say a family business owner’s child gets married. The new son or daughter-in-law is interested in joining the family business. Should he or she be included? Perhaps, the family work policy will allow for his or her involvement, since he or she is the spouse of the business owner’s child, who will likely be taking over the family business. However, let’s say the son or daughter in-law’s sibling would like to join the family business. Should he or she be included? The decision to include the in-laws can get complicated. Therefore, documenting these types of details in a family work policy is crucial. Additionally, take the time to clarify the goals of the business and what is needed from the family to achieve these goals. The success of any business requires that all members are working to achieve common objectives. Create trajectories and set time aside for meetings with your family business members that allow for open discussion and dialogue. As your family expands and more members come on board, it’s important that everyone be on the same page in achieving the business goals. Family businesses that are considered to be the most successful are ones that share values, openly communicate, and are founded on trust and respect for each other. This article was first published by Davis Wright Tremaine LLP . It has been reproduced with their permission.