In the majority of cases, the biggest difference between a family business and a non-family business is the importance of legacy. The business, after all, has been created and developed with the intention of eventually being passed down through generations, and the legacy of that business, while it will involve the commercial success created, will go above and beyond purely financial issues. Legacy encompasses both the ethos and values of the business, often involving issues such as working practices (a commitment to sustainability, for example), philanthropic activity, the role played in the wider community and the reputation the business enjoys. When the time comes for the founders of a family business to step aside, the way in which the succession is handled can have a huge impact on the preservation of this legacy. In many cases, the business will be passed on to the next generation, but this is not always a viable option. There may be no family members wishing to take over control of the business, or none with the requisite skill-set, and in circumstances such as these the preservation of a family business can become more problematic. When There Is No Natural Succession Pathway For a business which isn’t family owned and has less of a focus on legacy preservation then the route of selling to a third party is clearly the simplest and quickest means of passing the business on, particularly if the current owners wish to walk away from the business entirely. In simple terms, the owners of a business being sold in these circumstances will seek to secure the best price possible, and though assurances about the future operations of the business may well be sought, once the sale has gone through the new owners will be free to run the business as they wish. For the owners of a family business keen to see the ethos of the business maintained in the future, this can mean the third-party sale option is fraught with risk. While the creation of documents such as a mission statement and governance structure for the business could help to make it clear exactly what the long term intentions of the current owners are, they will not be binding in any way on new owners, and nor is it possible to place restrictive covenants on the new owners as part of the terms of the sale. For these reasons, many owners of family businesses who find themselves unable to arrange succession directly to another family member opt, instead of selling the business, to switch to an employee ownership model. The Benefits Of Employee Ownership The main advantage of the employee ownership model is that it means the people responsible for taking over the ownership and running of the business will, as a matter of course, be instilled with the culture and ethos of the business and, in many cases, will have worked within the business for a number of years. Not only will they have an innate understanding of what the legacy of the business is – having helped to put that legacy in place – but they will also be ideally placed to pass their deep-rooted knowledge of the business on to future employees. Once the decision to opt for employee ownership has been made, the current owners have the freedom to choose a model which reflects the degree to which they wish to step away from the business or, alternatively, a wish for the family and the business to remain associated. If the owners decide on a minority employee shareholding, for example, then the family in question will still own the majority of the business. This could be a viable option for those families in which the next generation are not ready to step up to fully-fledged ownership. The employees in this arrangement will either buy shares on an individual basis or have them purchased by an employee trust which then holds the shares on behalf of multiple employees. As well as enabling the family to retain a degree of control over the business – and therefore the business legacy – this model will free up capital from within the business, and empower the workforce to feel they have a tangible stake in the future prosperity of the business. Other owners settle on retaining a minority shareholding in the business, with the rest of the shares being sold to employees. As above this could take the form of individual share purchases or the creation of an employee trust or, in many cases, a combination of the two. Families opting for this model feel they still have a stake in the business moving forward at the same time as accessing much more of the capital held within the business. There are also a couple of tax advantages to this particular employee ownership model: Owners who transfer ownership of more than 50% of their shares to an employee trust will generally not have to pay capital gains tax (CGT) on the sale The employees taking ownership of the shares will be entitled to a tax free annual bonus which, currently, could be as much as £3,600 There is also the option of full employee ownership for those families who wish to take the maximum amount of money from the business whilst handing over the direct, hands-on role in running it. The employee share ownership structures will be as outlined in the previous examples, and families who wish to continue to have an influence over the direction of the business, and therefore preserve the legacy, can ensure that this is the case in a number of ways. The simplest means of doing so is for members of the family to continue working within the business, or to take on the role of governing an employee trust, if one has been created. Further certainty can be created by ensuring that the constitution of the employee trust – the document setting out how the trust will operate – contains stipulations such as family trustees being able to veto decisions which they feel would negatively impact the legacy of the business. Decisions in this category might include things such as sale to an independent third party, a fundamental change in working practices or a relocation. Employee Ownership Trusts (EOT) The sale of shares to an employee ownership trust (EOT) generally follows an expert valuation from an impartial third party engaged by the shareholders and the trustees. This valuation will then form the basis of the share sale, which takes place in one of three ways: Shares are sold at market value or another sum, but a significant amount of the purchase price will be left unpaid as ‘deferred consideration’. This is then a debt owed by the trustees to the shareholders (in this case the family members) and the debt is paid back from the trading profits of the company in several stages. Shares are sold at market value or another sum and the amount is paid in full, by the EOT borrowing the money required from a third party. In some cases the family may opt to sell the shares to the EOT for a nominal fee, basically gifting the shares to the employees. In order to avoid liability for CGT the following criteria must be met: The business transferring shares to the EOT must be either a trading company in its own right or the principal company of a larger trading group. The EOT needs to meet a requirement known as the ‘all employee benefit’ requirement. This means that the assets held by the EOT need to be held for the benefit of all eligible employees, although the trustees of the EOT are able to vary the benefits in order to reflect factors such as the length of service of particular employees, salary differences or the number of hours worked. The EOT should not have held more than 5% of the shares in the business before the transfer took place, and must hold more than 50% - giving the EOT a controlling interest – at the end of the tax year during which the transfer takes place. The number of family members who continue to be directors or employees, and any persons connected with these directors or employees, cannot make up more than 40% of the total number of employees of the family business. Should you require support on establishing an employee ownership model or would benefit from advice on the most appropriate model to safeguard the future of your family-owned enterprise, the team at Buckles can offer impartial, experienced guidance on all aspects of ownership transferal. Contact us now to discuss the options available.

Anybody who has ever ran a business will tell you that there’s no such thing as a single blueprint for success. What there are, however, are certain key principles which can be applied across a range of businesses. Where family-owned businesses (FOB) are concerned, there are some unique challenges which arise from the combination of commercial imperatives and familial concerns. In this article we’ll look at those challenges and the steps that can be taken to maximise success for FOBs, as well as looking at some real-world examples of successful FOBs and how the approach taken to doing business when building a family legacy can yield dividends as well as throwing up challenges. Challenges The single biggest dispute within a FOB is the tension which can exist between commercial imperatives and family dynamics. In simple terms, an over-emphasis on family involvement could lead to people being employed in certain roles – up to and including key management positions – on the basis of nepotism rather than their ability to do the job. If the son or daughter of the founder of a business is automatically earmarked for a director’s role, without their credentials being properly interrogated, there is every chance they won’t be capable of delivering effectively. Another common issue is hesitancy when it comes to seeking external funding, based on a fear that relying on third party funding might dilute the degree of control which the family has over the business. The flip side of this, of course, is that relying solely on extra funding sourced from the family could inhibit growth in general, and in particular might impede the FOBs ability to respond quickly to opportunities which arise and which require extra funding. Speaking of managing or failing to take advantage of business opportunities, a FOB might find itself hampered by overstating tradition and the legacy of the founders of the business, and therefore failing to innovate in the same way as their competitors. In many cases, it is the structure of the FOB rather than it being owned by a family which is likely to cause problems. If a formal governance structure and strict decision making processes are not in place – in other words, if the FOB makes decisions on commercial matters in the discursive manner of a family choosing something like where to go on holiday – then it’s highly likely that the FOB will be plagued by decision making which is slow, inefficient and all too often compromised by a need to keep all members of the family with an interest in the business happy. While reaching a consensus is appropriate in many areas of life, in business it can all too often mean the FOB in question is unable to adapt quickly to changes in the market place or pressure from competitors. Finally, the question of succession planning could have the potential to cause problems for a FOB if it has not been handled professionally. The problems are two-fold: choosing a successor from within the family could lead to internal family conflict, thus negating many of the benefits of a tight knit FOB, while failing to look elsewhere might lead to missing out on the best possible person for the job. Maximising Growth Potential What all of these potential problems add up to is a limit on the capability for growth. Understanding the possibility of such issues arising, however, makes it more likely that a FOB will be able to guard against complacency and put in place the kind of structures which embed professionalism and efficiency, at the same time as harnessing the kind of drive and focus which helps to make some FOBs incredibly successful. First and foremost, a FOB which hopes to achieve growth needs to look outward rather than inward, maintaining an on-going analysis of market trends and seeking to align the way in which the business operates, and its wider offering, with these trends. By being keenly aware, for example, of what direct competitors are offering, it will be able to spot gaps in the market for offering a similar product/service to a higher standard (or for a lower price) than the competition. Similarly, the data that pours into a business of pretty much any size in the digital age needs to be harnessed and treated analytically for insights into what customers want more of and what they are perhaps not so happy with. Many businesses are built around a sense of tradition, and it is often this aspect which helps them to gain a foothold in the marketplace initially. The most successful, however, are those which are able to adapt these traditions to respond to what their customer base is demanding. The average FOB is smaller than the multi-national entities they might be in competition with, but this can be turned to their advantage in the form of enhanced flexibility and agility, provided the structural decision-making risks mentioned above have been avoided. When it comes to scaling up and growing, the key to success lies in applying the dynamic and demands of growth to every aspect of that business, having first set clear objectives of what it is that you are trying to achieve. Individual aspects of the FOB which need to be fine-tuned before any long term, business wide push for growth can be activated include cash flow, the expertise and experience of the team which is in place, offering training for existing employees and bringing in any required skills which are currently lacking, and the streamlining of operations through the application of automation where applicable and workflows which are robust enough to operate if and when the business does scale up. Relationships In terms of maintaining the kind of ethos and traditions which enable a business to thrive and establish itself in the first place, it is vital that a push for new customers doesn’t come at the expense of losing focus on existing ones. More than many other businesses, FOBs thrive upon having an almost personal relationship with their customers. Many operate in a manner which effectively invites people to join the larger ‘family’ of customers, and steps such as offering rewards to loyal customers and maintaining strong lines of communication and feedback will help to keep this customer base intact. Scaling-up Once the process of scaling-up operations has begun and is beginning to bear fruit, it is vital that the performance and strategy is monitored and reviewed closely on an on-going basis. Scaling-up needs to be regarded as a process rather than an event, and regular feedback from relevant stakeholders, alongside running reviews of carefully chosen metrics will mean that the strategy for growth can be tweaked and adjusted as and when needed. To demonstrate that the growth potential of FOBs is not merely theoretical, we can draw on recent research by McKinsey which indicated that, during the period 2017-2022, FOBs generated an average Total Shareholder Return (TSR) of 2.6%, as compared to 2.3% for non-FOBs, and that the average economic profit of FOBs over the same period was $77.5 million as opposed to $66.4 million for non-FOBs. As an aside, the report also points out that FOBs account for more than 70% of global GDP and generate turnover of between $60 trillion and $70 trillion annually, whilst being responsible for approximately 60% of global employment. The report is based on an analysis of 600 publicly listed FOBs and a comparison with 600 publicly listed companies which are not family owned, as well as an analysis of another 600 FOBs which are primarily private, and this analysis took place on a global scale. The reasons given for the success of FOBs relative to non-FOBs are complex and would warrant an article in their own right, but the approach taken by standard businesses was found to be crucial in achieving success in at least four vital areas: They placed a focus on purpose rather than profits, with that purpose ranging from the creation of an enduring legacy to a deep connection to the wider community and notions of social responsibility and sustainability. They worked over the long term and reinvested in the business, utilising the fact that family ownership lessens shareholder pressure and the drive for short-term profits and dividends in order to take a strategic approach to investing. They demonstrated a degree of caution regarding debt and high-risk investments, using what is their own money to invest in the parts of the business – such as sales, marketing and manufacturing – which offer clear opportunities for growth. This approach is particularly effective when a shock such as a supply chain crisis hits. They enhance decision making through flexible internal processes and, in many cases, the fact that decisions are being made not through multi-faceted processes working through many stages, but rather a single individual or several key members of the family. Should you require any advice or support on how best to structure your family business for growth, please contact the specialist family business team at Buckles  for a confidential, impartial consultation.

Macallan Food Group Limited is pleased to announce that is has acquired Malcolm Allan Limited and made a controlling investment in Macsween of Edinburgh. Both companies are long standing family- owned business with significant heritage, the ethos of which the company expects to retain. The Macallan Food Group Limited, a new, Scottish based business is headed up by Bill Hazeldean and Stewart McLelland, who are joined on the board by James Macsween. James Macsween stated "The Macsween family are delighted that the business is part of an ambitious new venture which will enable us to fulfil our strategic growth plans in the future. Both businesses have strong brands in particular sectors of the meat category and we look forward working together with the Malcolm Allan team." Gordon Allan stated, “Malcolm Allan has been our family business since it was formed by our father in 1954. Having decided to retire, we wanted to ensure that new owners would maintain the values, ethos and reputation of our family business after our departure. In particular, we want to look after our customers who have enabled us to build our business, and also maintain employment for our employees, many of them having been with us for a very long time. We believe the new owners will maintain our values, and we are confident that we are leaving the business in safe hands. We will help in the handover process, to ensure a smooth transition." Chairman of the new Group, Bill Hazeldean, added “Acquiring the Malcolm Allan business, alongside our investment in Macsween’s of Edinburgh, brings together two excellent businesses, both having product quality and customer service as their key priorities, and core values." "We are backed by a family trust, that makes long term investments, so the fundamental ethos of the business will not change. We will continue to run both businesses as separate entities, utilising synergies where appropriate, but retaining the individual identities and strengths of each organisation. It will be business as usual in the coming months, as we implement our 200 day plan, and develop our strategy for the future.”

The gender funding gap in family offices, a pressing issue in the financial world, remains a significant challenge. Despite increasing awareness and efforts toward gender equality, female entrepreneurs and investors continue to face hurdles in accessing capital. To address this gap effectively, we need to delve into its root causes, understand its implications, and explore actionable strategies that family offices can adopt to promote a more inclusive and equitable investment landscape. Understanding the Gender Funding Gap The gender funding gap refers to the disparity in financial support and investment opportunities available to men and women. Women-led businesses receive a disproportionately small share of venture capital and other forms of investment compared to their male counterparts. This gap is not just a result of overt discrimination. A complex interplay of social, cultural, and economic factors also influences it. One significant factor is the underrepresentation of women in decision-making positions within investment firms and family offices. With fewer women in senior roles, unconscious biases can influence funding decisions, leading to a preference for investments that align with male-dominated networks and perspectives. Additionally, women often need more access to the same networks and resources as men, making it harder for them to pitch their ideas and secure funding. The Implications of the Gender Funding Gap The gender funding gap has profound implications not only for women but also for the broader economy. When women are systematically excluded from investment opportunities, their innovative ideas and business ventures are stifled, leading to a loss of potential economic growth and job creation. By addressing this gap, family offices can tap into a wealth of untapped potential, fostering a culture of innovation and growth. Strategies to Address the Gender Funding Gap in Family Offices Increase Female Representation in Decision-Making Roles : Family offices should prioritise gender diversity in their leadership and investment teams. This can be achieved through targeted recruitment, mentorship programs, and promotion from within. Diverse teams are more likely to recognise and mitigate biases, leading to more equitable funding decisions. Implement Bias Training Programmes : Regular training on unconscious biases can help investment professionals recognise and counteract their biases. This can foster a more inclusive culture that values diverse perspectives and ensures fair evaluation of all investment opportunities. Establish Dedicated Funds for Women-led Ventures : Creating specific investment funds focused on women-led businesses can help bridge the funding gap. These funds can provide the necessary capital and support to help female entrepreneurs grow and scale their businesses. Enhance Networking Opportunities for Women : Family offices can facilitate networking events, mentorship programs, and workshops that connect female entrepreneurs with investors and industry experts. These initiatives can help women build the relationships and knowledge they need to succeed in the competitive investment landscape. Promote Transparent and Inclusive Investment Criteria : It is crucial to develop clear, objective criteria for investment decisions. Family offices should ensure that their evaluation processes are transparent and inclusive, allowing all applicants to be assessed equally based on their merits. This not only promotes fairness but also builds trust with potential investees and the broader community. Advocate for Policy Changes : Family offices can also advocate for broader policy changes that support gender equality in the financial sector. This could include lobbying for regulations that promote diversity in corporate boards, equal pay initiatives, and support for women-owned businesses. The Benefits to Family Offices While addressing the gender funding gap is crucial for promoting equality, it also brings significant benefits to family offices themselves. By actively working to bridge this gap, family offices can enhance their performance, reputation, and long-term sustainability. Here are some key benefits: Access to Untapped Investment Opportunities : Women-led businesses represent a largely untapped market with immense potential. By diversifying their portfolios to include more women-led ventures, family offices can capitalise on innovative ideas and unique market opportunities that traditional investors often overlook. This can lead to higher returns and a more robust investment portfolio. Enhanced Decision-Making and Risk Management : Diverse teams, including those with greater gender diversity, bring a wide range of perspectives and experiences to the table. This diversity can lead to better decision-making, as different viewpoints help to identify potential risks and opportunities that may not be apparent to a homogenous group. Improved risk management and more innovative solutions can result from this broader perspective. Improved Reputation and Social Impact : Family offices that take active steps to address the gender funding gap can enhance their reputation as leaders in promoting social responsibility and gender equality. This positive image can attract like-minded investors, partners, and clients who value inclusivity and social impact. Moreover, supporting women-led businesses can contribute to broader social and economic benefits, reinforcing the family office's commitment to positive societal change. Attracting and Retaining Talent : A commitment to gender diversity and equality can make family offices more attractive to top talent. As the financial industry becomes more inclusive, professionals increasingly seek employers who prioritise diversity and social responsibility. By fostering an inclusive work environment, family offices can attract and retain talented individuals who are passionate about making a difference. Long-Term Sustainability and Growth : Investing in women-led businesses and promoting gender diversity can drive long-term sustainability and growth for family offices. Companies with diverse leadership tend to perform better financially and are more resilient in the face of challenges. By supporting a diverse range of businesses, family offices can ensure a steady pipeline of innovative and successful ventures that contribute to sustained growth. Implementing Effective Strategies To fully realise these benefits, family offices can adopt several effective strategies: Inclusive Investment Policies : Develop and implement investment policies that explicitly support gender diversity. This includes setting targets for investing in women-led businesses and regularly reviewing progress to ensure goals are met. Partnerships and Collaborations : Partner with organisations and initiatives that focus on supporting female entrepreneurs. Collaborations with accelerators, incubators, and venture capital firms dedicated to women-led businesses can provide valuable insights and opportunities. Transparency and Accountability : Establish transparent reporting mechanisms to track progress on gender diversity initiatives. Regularly publish reports on investment activities and outcomes related to gender diversity to maintain accountability and demonstrate commitment. Continuous Education and Training : Invest in continuous education and training so that staff stay informed about best practices in promoting gender diversity and inclusion. This includes workshops, seminars, and ongoing learning opportunities to keep the team updated on the latest developments and strategies. Addressing the gender funding gap in family offices is a matter of equity and a strategic imperative that offers significant advantages. By leveraging diverse investments, enhancing decision-making, improving reputation, attracting top talent, and driving long-term growth, family offices can establish themselves as leaders in the financial industry. Implementing inclusive investment policies, fostering strategic partnerships, ensuring transparency, and investing in continuous education are critical steps in this journey. Such efforts contribute to a more inclusive and prosperous financial ecosystem, unlocking new opportunities for innovation and success. Addressing the gender funding gap requires a multifaceted approach that combines internal reforms with broader advocacy efforts. By increasing female representation in decision-making roles, implementing bias training, establishing dedicated funds for women-led ventures, enhancing networking opportunities, promoting transparent investment criteria, and advocating for supportive policy changes, family offices can help create a more inclusive and equitable investment environment. Closing the gender funding gap is not just about fairness—it is a strategic necessity that can drive economic growth and innovation. As family offices embrace these strategies, they can lead the way in fostering a financial ecosystem where everyone has the opportunity to thrive. About the Author - Kim Adele-Randall is a Business Growth Consultant helping to unlock growth, drive transformation and empower businesses to scale and succeed. Find out more here

Family businesses form a significant part of the global economy, often combining the personal values of a family with entrepreneurial spirit. Preparing the next generation for roles within family businesses is crucial to ensure continuity, growth, and the preservation of family values. This preparation involves a combination of education, practical experience, mentorship, and fostering a sense of ownership and responsibility. So what are the best strategies to equip the next generation for these vital roles? Education and Skill Development A robust educational foundation is essential for preparing the next generation for leadership in a family business. This begins with formal education, where potential successors should be encouraged to pursue relevant degrees in business administration, finance, marketing, or other pertinent fields. Additionally, specialised courses and certifications in areas such as family business management, entrepreneurship, and leadership can provide targeted knowledge and skills. Beyond formal education, practical skills are equally important. Encouraging the younger generation to engage in internships or part-time roles within the family business allows them to gain first-hand experience. This exposure helps them understand the business's operational nuances, develop problem-solving abilities, and build a strong work ethic. Mentorship and Guidance Mentorship plays a crucial role in grooming future leaders. Experienced family members or trusted senior employees can provide valuable guidance, sharing their insights, experiences, and wisdom. Structured mentorship programmes can facilitate this transfer of knowledge, ensuring that the next generation understands both the strategic vision and the day-to-day operations of the business. Regular interaction with mentors helps the successors build confidence, refine their leadership style, and develop a strategic mindset. Moreover, it fosters a sense of continuity and helps maintain the core values and culture of the family business. Fostering a Sense of Ownership and Responsibility Instilling a sense of ownership and responsibility in the next generation is vital for the long-term success of a family business. This can be achieved by involving them in decision-making processes from an early stage. Assigning them small projects or roles with significant responsibilities allows them to demonstrate their capabilities and develop a sense of accountability. Encouraging open communication and involving the younger generation in family business meetings and strategic discussions can also foster this sense of ownership. It helps them understand the business's challenges, opportunities, and long-term goals, aligning their personal ambitions with the company's vision. Encouraging External Work Experience While working within the family business is beneficial, gaining external work experience is equally important. Exposure to different organisational cultures, management styles, and business practices can provide the next generation with a broader perspective. This experience can be invaluable when they return to the family business, bringing fresh ideas and innovative approaches. External work experience also helps build credibility and confidence. When the younger generation has proven themselves outside the family business, their leadership and decisions are more likely to be respected within the family enterprise. Succession Planning A well-structured succession plan is critical for a smooth transition of leadership in a family business. This plan should outline clear criteria for selecting successors, detailing the skills, qualifications, and experiences required. It should also include a timeline for the transition, ensuring that the next generation is adequately prepared before assuming leadership roles. Succession planning should be a collaborative process, involving both the current leaders and potential successors. This collaboration ensures that the plan aligns with the business's strategic goals and the aspirations of the next generation. Promoting a Balanced Work-Life Environment Maintaining a healthy work-life balance is essential to prevent burnout and ensure sustained engagement from the next generation. Family businesses should promote a culture that values personal time and well-being, recognising that a well-rounded individual is more likely to contribute effectively to the business. Encouraging hobbies, interests, and personal development outside of work can help the next generation develop a holistic perspective. This balance not only enhances their productivity and creativity but also contributes to their overall satisfaction and commitment to the family business. Preparing the next generation for roles within a family business is a multifaceted process that requires careful planning, education, mentorship, and experiential learning. By fostering a sense of ownership, encouraging external experiences, and promoting a balanced work-life environment, family businesses can ensure a smooth transition and continued success across generations. Effective succession planning and ongoing support are key to equipping future leaders with the skills, confidence, and vision needed to sustain and grow the family business.

Bechtel recently celebrated the official groundbreaking of the Natrium Demonstration Project. Bechtel is TerraPower's engineering, procurement, and construction partner on this first-of-a-kind project in Kemmerer, Wyoming. The project is part of the U.S. Department of Energy’s Advanced Reactor Demonstration Program. Natrium is an advanced nuclear reactor that uses a sodium-based technology to cool the reactor instead of water. This unique technology developed by TerraPower can provide clean, baseload operation at 345 megawatts with the capability to flex as high as 500 megawatts, generating enough energy to power 400,000 homes. Reflecting on the significance of today’s milestone, Craig Albert, Bechtel President and COO, shared the following: “The Natrium reactor’s innovative design will launch a new approach to nuclear plant construction that is designed to be safer, cleaner, faster, and more efficient than many energy source alternatives.” “Working together, the combination of advanced technology and streamlined constructability has the potential to diversify the U.S. power generation industry. The option of deploying smaller advanced nuclear plants that can work in concert with other clean energy sources will help speed our progress toward net-zero emissions.” Albert commended TerraPower on their approach and the significance of our partnership: “TerraPower extended their visionary approach to the building of the plant itself. Their involvement of Bechtel from the very beginning means the entire project lifecycle, including construction, has been optimized at every stage, making the entire process cost-effective, fast, and repeatable.” “Natrium will be the first nuclear project where the execution of those plans will benefit from Bechtel’s suite of digital tools and systems, which have been proven to deliver exceptional results on other large energy facilities.” As the nexus of TerraPower and GE Hitachi technology, the Natrium design represents a leap forward in clean, sustainable power generation. The project will bring a commercial, advanced nuclear reactor online that will deliver carbon-free, reliable power to the electrical grid and provide jobs in Wyoming for decades to come. For 70 years, Bechtel has helped customers deliver clean energy through nuclear. In that time, Bechtel has designed, built, or provided construction services on 150 nuclear plants worldwide, bringing more than 76,000 megawatts of new nuclear generation capacity to the world. Bechtel is proud to bring this trusted expertise to the Natrium Demonstration Project.

Family firms, often known for their deep-rooted values and long-term vision, possess unique advantages that can be harnessed to foster a culture of growth and innovation. However, leveraging these strengths requires deliberate strategies that align with both tradition and modern business imperatives. Embrace the Long-Term Vision One of the greatest strengths of family firms is their commitment to long-term goals. Unlike publicly traded companies focused on quarterly results, family businesses can afford to invest in innovation that may take years to bear fruit. This long-term perspective should be paired with robust succession planning to ensure continuity and stability, allowing innovative projects to thrive across generations. Leverage Family Values and Legacy The core values and legacy of a family firm are not just historical artefacts but powerful tools for driving innovation. These values—trust, loyalty, a strong work ethic—can be the bedrock upon which a culture of innovation is built. A compelling brand story, rooted in the family’s history, can inspire both employees and customers, creating an environment where new ideas are celebrated and nurtured. Encourage Entrepreneurial Spirit Fostering an entrepreneurial spirit within the firm is crucial. Family firms should encourage family members and employees to pursue new ideas through formal intrapreneurship programs. A culture that embraces calculated risks and views failures as learning opportunities can unlock significant innovation potential, taking advantage of the firm's unique flexibility in decision-making. Invest in Talent and Leadership Development Continuous investment in the development of employees is essential. Providing learning opportunities ensures that the workforce remains abreast of industry trends and innovative practices. Bringing in external expertise can also introduce new perspectives, further enhancing the firm’s innovative capacity. Foster a Collaborative Environment Innovation thrives in collaborative environments. Creating cross-functional teams that bring together diverse skills and perspectives can lead to ground-breaking ideas. Open communication channels across all levels of the organization ensure that ideas and feedback flow freely, fostering a culture of shared innovation. Embrace Technology and Digital Transformation In today’s digital age, technology is a key driver of innovation. Family firms should not shy away from investing in the latest technologies to enhance operational efficiencies and open new avenues for growth. Developing a digital-first culture where technology is seen as an enabler is critical to staying competitive. Strategic Partnerships and Networks Forming strategic partnerships can provide family firms with access to new ideas and technologies. Collaborations with other businesses, academic institutions, and innovation hubs can be instrumental in driving innovation. Active participation in industry networks and forums keeps the firm informed about market trends and emerging opportunities. Align Innovation with Business Strategy For innovation to be effective, it must be aligned with the overall business strategy. Family firms should set clear, measurable goals for their innovation initiatives and regularly track progress. This ensures that innovative efforts are not just random acts but are strategic moves that support the firm’s long-term objectives. Preserve Agility and Flexibility Maintaining a lean organizational structure allows family firms to make quick decisions and implement innovative ideas rapidly. Processes should be designed to adapt to changing market conditions and new opportunities, preserving the agility that often gives family businesses a competitive edge. Encourage a Customer-Centric Approach Finally, innovation should always be customer-centric. Regularly gathering and analysing customer feedback helps identify unmet needs and opportunities for innovation. Involving customers in the innovation process through co-creation initiatives and beta testing can lead to products and services that truly resonate with the market. By embracing these strategies, family firms can create a dynamic environment that supports continuous growth and innovation while maintaining their unique cultural and value-based strengths. This holistic approach ensures that family businesses not only survive but thrive in today’s competitive landscape.

VIVO Defence Services and its tier one supply chain partner Henry Brothers Construction have staged a topping out ceremony on a £6m scheme at Gamecock Barracks near Nuneaton. A key point has been reached in the construction of the new facility for an Explosive Ordnance Disposal (EOD) Troop which is relocating from Chetwynd Barracks, Nottingham, to the Warwickshire base. The project is being delivered under the Defence Estate Optimisation (DEO) Army Programme by the Defence Infrastructure Organisation (DIO). The building will feature space for offices, garages and stores, and is being built at Gamecock Barracks ready for the Troop’s move next year. Now, as it reaches a significant point in construction, a topping out ceremony has been held, attended by representatives from VIVO, Midlands-based construction company Henry Brothers Construction, the DEO Army Programme, DIO, Gamecock Barracks and construction partner William Gough. Major General Richard Clements CBE, Director of Basing and Infrastructure, said: “We are continuing to deliver significant investment across the Defence estate to support military capability and provide modern, high quality working facilities for Army personnel." “I am delighted to see the steady pace of progress on the new infrastructure at Gamecock Barracks, and I look forward to completion of the project next year when the EOD Troop are due to relocate and take full advantage of their new building.” Warren Webster, Programme Director for DIO Major Projects (Army) said: “This is another demonstration of our commitment to increase the pace, quality and volume of Defence infrastructure delivery, by doing things differently." “We are working closely with our colleagues in DIO Regional Delivery and their long-term partner VIVO and its suppliers, to build this important capability. Collaboration remains at the heart of our delivery intent, and when completed, Gamecock Barracks will provide first class Explosive Ordinance Disposal facilities for the central region.” Jerry Moloney, Managing Director of VIVO Defence Services, added: “As one of the UK’s largest providers of estate services to the MOD, we at VIVO are involved in a huge array of innovative and important design and build projects for the military." “I am really pleased that we have reached such a key stage in the building of this excellent new facility for the Troop when they relocate and would like to thank our teams across VIVO and our supply chains for all their hard work.” Managing Director of Henry Brothers Construction, Ian Taylor, said: “We were honoured to be appointed to build this new purpose-built facility for EOD Troop and very pleased to have now reached the topping out stage." “Henry Brothers has worked on numerous projects at MOD sites across the UK and we are proud to see how this latest project is progressing.” The scheme for EOD Troop at Gamecock Barracks is due to be completed in early 2025.

In the world of family businesses, lineage often dictates leadership succession. As the torch passes from one generation to the next, the challenge arises in nurturing the next-gen leaders who will steer the company into the future. The dynamics of family firms bring forth a unique set of opportunities and obstacles, making the process of grooming successors a delicate art. Let's explore the importance of nurturing next-gen leaders in family firms and delve into strategies that pave the way for a successful transition. Understanding The Essence Of Succession In Family Firms Succession planning in family businesses is not merely a passing of the baton; it is a strategic move that shapes the future of the company. The transition from one generation to the next involves more than just skill transfer; it encapsulates the values, vision, and legacy of the founding members. To ensure continuity and growth, it is imperative to groom the next-gen leaders from an early stage. Embracing Change And Innovation One key aspect of nurturing next-gen leaders is fostering an environment that encourages innovation and adaptation. As the business landscape evolves, so must the leaders at the helm. Embracing change and instilling a culture of innovation prepares the successors to navigate challenges and seize new opportunities. By empowering them to think creatively and embrace technological advancements, family firms can stay ahead of the curve. Balancing Tradition And Modernity Family businesses often have deep-rooted traditions and values that have contributed to their success over the years. While preserving these traditions is essential, it is equally crucial to strike a balance with modern practices. Next-gen leaders should be equipped to respect the legacy of the company while embracing contemporary business strategies. By harmonising tradition with modernity, family firms can evolve without compromising their core identity. Mentorship And Guidance Mentorship plays a pivotal role in the development of future leaders. Pairing next-gen leaders with experienced mentors within the family or externally can provide invaluable insight and guidance. Through mentorship programmes, emerging leaders can learn from the wisdom and experience of their predecessors, gaining a deeper understanding of the business nuances and honing their leadership skills. Encouraging Professional Development Investing in the professional development of next-gen leaders is crucial for their growth and the long-term sustainability of the business. Providing opportunities for training, leadership programs, and exposure to different facets of the business can broaden their skill set and perspective. By encouraging continuous learning and skill enhancement, family firms nurture leaders who are well-equipped to face the complexities of the modern business world. Building A Strong Governance Structure Establishing a robust governance structure is essential in ensuring a smooth leadership transition. Clearly defined roles, responsibilities, and decision-making processes help streamline operations and mitigate conflicts within the family. By implementing transparent governance practices, family firms can foster trust and cohesion among family members and stakeholders, setting a solid foundation for the next-gen leaders to lead effectively. Nurturing next-gen leaders in family firms is a multifaceted endeavour that requires a blend of tradition, innovation, mentorship, and structured governance. By instilling a sense of purpose, equipping them with the necessary skills, and providing a conducive environment for growth, family businesses can pave the way for a successful leadership transition. Embracing the duality of preserving legacy while embracing change is key to ensuring continuity and prosperity for generations to come. As family firms embark on the journey of grooming their future leaders, the delicate balance between tradition and modernity, mentorship and professional development, and governance structure will be the guiding compass that leads them towards a sustainable and prosperous future. Remember, the legacy we leave behind is not just in what we build, but in whom we build to carry it forward.

Employees who share the same goals as their manager are more likely to contribute ideas because of a similar motivation for achievement with their managers according to new research by Durham University Business School. The researchers also found that if an employee is well-aligned with their manager, they are more likely to feel a connection to the organisation and its identity. These findings come from research by Dr Janey Zheng, Professor of Leadership at Durham University Business School, alongside her colleagues, Michele Williams from the University of Iowa, and Christina Wang and Jian Liang, both from Tongji University. The researchers wanted to examine how an employee and their manager being aligned on achievement goals and working standards on how likely employees were to speak up to management when they had ideas, feedback or concerns. In order to do so, the researchers conducted two separate studies, which was a collective sample of over 800 employee-supervisor pairs in Chinese firms. The participants were asked about their own personal goals in their role, as well as how likely they were to voice their ideas, concerns and feedback to their own supervisor. By matching employee’s answers with their leaders, the researchers were able to identify that if an employee has similar goals and working standards to their supervisor then they are much more likely to speak up. Interestingly, the researchers did find that the motivation for achievement and to excel did not have to be high for workers to speak up. In fact, employees would share their thoughts even if they did not want to be the best at work, as long as their supervisor was on the same page. However, if an employee had high motivation for achievement, and a leader did not – or vice versa – then employees were less likely to speak up. “Employee’s feeling as though they have a voice is highly important to an organisation”, says Dr Zheng. “Not only does it mean new perspectives, ideas and insight for the wider team, which can improve the organisation, but also employees who feel they can share feedback safely are more likely to be happy in their roles." "Therefore, aligning the motivations of managers and workers should be a key goal for any organisation.” The researchers say that an employee can only be aligned to their manager’s goals if they are made aware of what these are of course, therefore organisations should look to pair supervisors with employee’s who share similar goals to ensure the whole team has a collective voice. Another approach, the researchers say, could be ensuring that from the outset managers share their own vision with employee’s so they are on board. Whilst if this is not possible, organisations should look to host team-building programs, motivational speakers, and other activities in an attempt to align the team’s goals. Employee’s feeling as though they have a voice is highly important to top managers because it generates innovative solutions to complex issues and enhances organisational effectiveness. Therefore, organisations should stress the importance of managers aligning their goals, for the good of the wider organisation.

Family businesses have been the backbone of economies worldwide, blending personal relationships with professional pursuits. However, as these enterprises grow and evolve, there comes a pivotal moment when the focus shifts from being a family business to becoming a business family. This transition, although challenging, is essential for the longevity and prosperity of both the business and the family. The are certain key aspects of making this transition, including governance, succession planning, professionalisation, and maintaining family harmony. Understanding The Concepts A family business is typically characterised by the active involvement of family members in the day-to-day operations, with a strong emotional attachment to the enterprise. Decisions are often influenced by family dynamics, and the business culture is deeply intertwined with the family's values and traditions. On the other hand, a business family is one where the family maintains significant ownership and influence but adopts a more structured and professional approach to management. The emphasis is on governance, strategic planning, and ensuring that the business can sustain itself beyond the immediate family members. Governance & Structure The first step in transitioning to a business family is establishing robust governance structures. This involves creating a formal board of directors that includes non-family members with relevant expertise. The board's role is to provide strategic direction, oversight, and ensure accountability, which helps in making unbiased decisions that are in the best interest of the business. Family governance structures, such as family councils and constitutions, are also crucial. A family council acts as a forum for discussing family-related issues, ensuring that they do not spill over into the business. A family constitution outlines the family's values, vision, and rules for involvement in the business, serving as a guiding document for future generations. Succession Planning Succession planning is another critical element in the transition. In many family businesses, succession is often an informal and emotionally charged process, leading to conflicts and uncertainties. To move towards a business family model, it is essential to develop a formal succession plan that identifies potential leaders early on and prepares them for their future roles through training and mentorship. A clear succession plan should also address the transfer of ownership, ensuring that the process is transparent and equitable. This may involve setting up trusts or family holding companies to manage the distribution of shares and protect the interests of all family members. Professionalisation Professionalising the business is vital for its growth and sustainability. This involves hiring skilled non-family professionals for key management roles and establishing merit-based systems for recruitment and promotion. Family members who wish to join the business should meet the same standards and qualifications as external candidates to ensure competency and maintain morale among the workforce. Implementing standardised policies and procedures, adopting modern management practices, and investing in technology are all part of this professionalisation process. It ensures that the business can compete effectively in the market and adapt to changing economic conditions. Maintaining Family Harmony While the focus shifts towards business sustainability, it is crucial to maintain family harmony. Regular communication, transparency, and conflict resolution mechanisms are essential in this regard. Family retreats and meetings can help in fostering a sense of unity and keeping the family aligned with the business goals. Education plays a significant role in maintaining family harmony. Educating family members about their roles, responsibilities, and the importance of separating family and business issues helps in reducing conflicts and ensuring that everyone is on the same page. Transitioning from a family business to a business family is a complex and multifaceted process that requires careful planning and execution. By establishing robust governance structures, developing formal succession plans, professionalising the business, and maintaining family harmony, families can ensure the longevity and success of their enterprises across generations. This transition not only secures the business’s future but also strengthens family bonds, creating a legacy that can withstand the test of time.

For family businesses to be successful and long-lasting, stewardship is crucial. It is a key characteristic of businesses that attain success, importance, and continuity. In essence, stewardship embodies the concept of creating value responsibly and meaningfully in a sustainable manner to benefit stakeholders and the broader community they are part of. It emphasises the importance of adopting an ownership mindset, maintaining a long-term perspective, and embracing an inclusive approach. These principles of stewardship form the foundation of business leaders' dedication and commitment to nurture and enhance what they have been entrusted with, ensuring its improvement for future successors. Stewardship holds particular significance for family businesses, which play a crucial role in the global economy, where family businesses dominate national economies making significant contribution to GDP, employment and wealth creation with families wielding significant influence in the business sphere as owners and managers. Successful and sustainable family enterprises generate wealth and growth for multiple generations, leaving behind a valuable legacy that contributes to knowledge creation, economic progress, and the development of human and social capital for the benefit of society in the long term. Family businesses vary greatly in size and scope, ranging from small local enterprises to large conglomerates operating across various industries and countries. For the purpose at hand, family businesses are broadly defined as companies where family members serve as shareholders, board members, and managers with the ability to influence strategic decisions. Despite their diversity, family businesses commonly encounter shared challenges: Adapting to disruptive changes on both global and local fronts while preserving their core purpose Maintaining unity and coherence as ownership becomes more dispersed over time Attracting, retaining, and professionalising talent crucial for sustaining their competitive edge Successfully navigating leadership transitions, particularly in firms dominated by founder-leaders Safeguarding against complacency and resistance to change Upholding high standards of resource management and corporate governance Given these challenges and the evolving business landscape, stewardship has become increasingly essential. Well-managed family enterprises evolve into engaged, forward-thinking, and adaptable entities, leveraging their strengths and competitive advantages. Driven by their values, such family businesses demonstrate resilience in the face of change and disruptions, overcoming adversity and surpassing competitors. However, stewardship is an ongoing journey. Each generation of a family business encounters unique circumstances, obstacles, and opportunities. Past success in stewardship does not guarantee continued prosperity in the future. Therefore, for family firms aspiring to achieve success, significance, and sustainability, a commitment to embracing, promoting, and reinforcing stewardship principles and actions is crucial, remaining relevant and timely.