Our family business friends in Northern Ireland at Environmental Street Furniture (‘ESF’) have released a corporate video, showcasing their products and proudly shouting about being a family business too. As Alan Lowry, Managing Director at ESF explains, “Over lockdown we have taken the opportunity to rebrand the company to really highlight all that we do. As part of this process we have produced our first corporate video, showcasing the amazing projects we have been delivering both locally and globally.” “It has been a real challenge with travel restrictions and Covid regulations, but it is completed and we are delighted to share it with you today. We hope you will enjoy watching this video and learning more about ESF.”

Family businesses are recognised the world over as a force for good and whilst they are not always the first to shout about their activities, many such as the Matthew Good Foundation (‘MGF’) continue to be active and quietly do some good and make a real difference. Paul Andrews spoke to Tim Good and Michelle Taft to find out more. So how did it all come about? As Tim explained, “My Dad sat down with Matt who was Managing Director at the time and I and explained that we were going to inherit the business in due course and asked us what our plans were for the future. Matt wanted to continue to grow the business for future generations and I wanted to explore the creation of a foundation, funded by the family business.” Plans were well underway to create the foundation, originally as the John Good Foundation, ready for launch later in 2011. As Tim continues, “Sadly and very unexpectedly Matt died whilst running a marathon for charity. He was the 6th generation to work in our family company John Good Group, which has been in business for over 185 years and is still family owned.” “This had a real impact on all of us. It was obvious that the name had to change and subsequently The Matthew Good Foundation was created and launched.” The initial plans involved money being put into the Foundation which was added to by staff members raising funds and then it was down to the employees to determine where the funds would be used. The underlying principles of the Foundation were to support causes and charities on behalf of our members, staff in the business, the trustees of the foundation and the shareholders. In preparing for the new Foundation Tim undertook a course at the Institute of Philanthropy and this lead to the creation of, at the time, some innovative approaches that the Foundation would take. These core tenets of the Foundation have evolved and today are represented by: 1. Grants for Good – their first fund that invites charities, community interest companies and social entrepreneurs to apply to the Foundation directly for funding. 2. Double Match – members and their immediate family members can apply for up to £2,000 in double match funding when they raise funds for charity. 3. Donation Matching – for members that choose to donate their own money to charity, they match their charitable donations up to a maximum value of £2,000. 4. Championing – members can nominate small charities or local initiatives to receive a Championing Grant up to £500; or £1,000 if they volunteer for the cause. 5. Grass Roots Funding – a grassroots application allows members to directly support an issue, cause or project that they are passionate about by starting their own project. The structure of the Foundation is simply and effectively managed too with one member of staff in each of their regional offices responsible for championing the Foundation and engaging with employees, reviewing and approving applications and uploading them to a central management platform. Over the years the Foundation has grown and funds donated by a share of profits from the family business. In 2019, Michelle, who had already been working with the core family business in a marketing and communications role, was recruited to develop and grow the Foundation. Clearly, already appreciating the underlying values of the family firm, she made an impact straight away. As she explains, “This is a great opportunity because there is such a lot going on. As a Foundation we predominantly work in the UK with small local charities and good causes. However, we are also involved in a number of international projects including the Philippines, Honduras, India and Africa.” “This family business recognises it has a responsibility to both society and to the environment in which it works and philanthropy is an integral part of our family values & purpose too.” For Tim, the role of the Foundation is important in a number of ways. As he explains, “The Matthew Good Foundation is important me for Matt, in terms of his legacy for sure, but also as it was something that we were working on together before he passed away. It was important to see it through and today it is great to see the impact that it is already having too.” “There is also a tangible edge to the Foundation too. As good corporate citizens of a family firm that employs 350 staff and has been in operation for over 188 years, we have a duty to run the business properly and Corporate Social Responsibility, Governance and Philanthropy all have a role to play in doing so. Having the Foundation is another dimension as this is not a formal requirement but something that we want to do and have actually set out as a plan to undertake,” continues Tim. “Over time, our long-term intentions are to build up the Foundation and create an endowment that would enable it to become entirely financially sustainable, forever, and continue the work that has already been started. It would then become a real force for good in its own right, irrespective of what the future holds for the family business,” he adds. At the time of the conversation with his Dad when the concept was just an idea, Tim had a vision to go off and run his own business and an ambition to move into the philanthropic world and as time has gone by, this dream has certainly become a reality. The Foundation was created to support John Good Group employees in making a difference to good causes close to their hearts. Since 2011, they have made a major impact supporting good causes in the UK and abroad. £470,000 donated since 2011 £85,000 donated in 2020 Staff engaged 300 causes supported This is a Foundation that has quietly over the years made a difference to the causes and charities that have been supported and for Tim and Michelle there have been a number of key projects that have really resonated with the values and aims underlying its creation. As Tim explains, “For me, being involved in the project that helped to create the International Institute of Race Medicine was a key milestone. Matt passed away whilst running a marathon and this organisation, supported by the leading marathon races across the world, has created a book of best practice to help all race organisers take steps to help preventable deaths during races. It makes a massive difference by collaborating and sharing best practice and will be a key part of Matt’s legacy too.” As Michelle adds, “We also got involved with a project in India that involved visiting and creating a film about the impact of the innovative work that they were doing. It made a major impact in terms of establishing their credibility as an organisation, showcasing what they do, and as well as raising their profile and endeavours to make a difference, they have already benefitted with significant donations too.” Tim agrees and adds, “It is not just about the major projects or key milestones as we need to recognise the broader impact. We have opened up the world of philanthropy to people that would never have thought they could be involved – a number of our staff have become philanthropists and continue to make an impact on society through their engagement with the Foundation and that is great to see. And what about the future? Family firms are genuinely interested in their stakeholders and the communities in which they operate and many have been supporting projects and causes for many years. Many quietly go about just doing their bit. Through the work of the Foundation Tim appreciates that there are opportunities for them to share what they have learned with others and there is now a real desire to move things up a level. As Tim explains, “We have the knowledge that others can benefit from and we are considering a number of projects to pool resources, collaborate with other foundations and to share best practice, helping others to get involved more and to learn from others. There is plenty of scope for us to help smaller charities and causes through marketing and communication too. We have lots of ideas and really do want to help others where we can.” We look forward to seeing the continuing impact of the Mathew Good Foundation and their plans for the future. They have created a fantastic legacy for Matt and a Foundation that continues to build on their collective plans back when it was just an idea. This is one enterprising charitable trust funded by a British family business making an impact at home and abroad. It is great to see family firms embracing their role in society and making a real difference and this is one legacy that really does look set to continue long into the future. www.matthewgoodfoundation.org

In this article, Daniel Ugur of Forsters takes a look at a practical checklist for the post-Covid world and the need for structures to be ‘digital ready.’ The Covid-19 pandemic has had two major implications for family governance structures: Short-term : travel restrictions and health risks have prevented ‘business as normal’ for the foreseeable future. Long-term : in some cases the increasing use of digital communication by families and their professional advisors is causing disruption to governance structures. Digital forms of communication (such as video conferencing) are here to stay. Families therefore need to adopt appropriate policies and incorporate them into their governance structures. Accordingly, families need short-term fixes to their structures, but should also ensure their structures are ‘digital ready’ to ensure they work over the long-term. Without these fixes, structures could face paralysis with disastrous effects for family businesses and private assets. The considerations in this note apply equally to new and existing structures. Checklist Here are the points that family councils now need to consider with their legal advisers. Formulate digital policies : families need to formulate policies on digital communication. Is the family prepared to embrace (or tolerate) digital communication, or does it frustrate the family ethos? Identify immediate defects : families and their lawyers need to identify defects which require immediate changes. For example, what if board or protector meetings are premised on physical meetings, which cannot currently take place? Some structures may already be in breach, or be unable to function. Detailed re-drafting : core rules on voting and meetings should be reconsidered. The sorts of questions now arising include: In what circumstances can/should governance be conducted digitally? Prohibition on digital? Should some families prohibit virtual meetings altogether? If so, what should happen in Covid-like situations? Do the rules allow for decisions to be made virtually and what are the digital voting procedures? Should certain decisions be reserved for physical meetings? For instance, the types of decision which require detailed discussion. Should certain decisions be digital? For example, should virtual meetings be encouraged for certain business decisions which require quick action? Psychology and family interactions. Families need to consider how they can successfully interact digitally and how board members can “read the room” in the absence of body language. Facial expressions become the only means of gauging reactions, which itself is contingent on a reliable internet connection. Should these factors shape decision-making processes? It may depend on the nature and size of the family. Original documents. Access to the trust documents themselves may be critical: are they always accessible? Tax : how to mitigate the risk of bringing structures onshore when dealing digitally (especially if trustees are grounded onshore in crisis situations). Re-evaluating core provisions : the current crisis highlights the ongoing importance of reviewing several core provisions. Exit strategies – the current situation may put strain on families who cannot meet, particularly if unresolved issues are allowed to “fester”. Equally, it will put strain on asset values, if family businesses and private assets lose value in the current market. This reinforces the importance of exit provisions for those families that permit exits. If family members wish to exit, there must be rules to govern how (and whether) this can be done. Capacity issues – the pandemic is a reminder to check structures have thorough provisions for incapacity, whether temporary or permanent. Importance of board appointments – the boards of many family entities are now dealing with the economic fallout from the pandemic. In some cases, survival will depend on the actions of board members. This underlines the importance of making the right board appointments and ensuring there are effective successor appointment provisions. Investment advisors and protectors : similarly, the current challenges show the importance of effective provisions for investment advisors/committees and protectors. Flee clauses : flee clauses automatically trigger certain actions (such as transfers of trusteeship) upon crisis situations. Should flee clauses be activated in the event of a future pandemic or similar emergency, to ensure effective governance? If so, how would the new jurisdiction be determined? Equally, how are “trigger events” defined and would a pandemic unwittingly activate a flee clause? Regulation : economic substance rules require physical presence in the jurisdiction where the structure is incorporated. Structures need to ensure compliance when operating digitally. Confidential information : trustees and other fiduciaries owe duties of confidentiality under statute and common law. Measures are needed to ensure compliance when, for example, conducting video conferences and arranging electronic signatures. In many cases, patriarchs and matriarchs will strongly advocate the status quo on matters such as physical meetings, and for most families this should remain the default option. However, it can no longer be assumed that structures can always run on the traditional basis. Structures therefore need to be reviewed to ensure they are ‘digital ready.’ You can download and print a pdf copy of this article below:

2020 highlighted the need for digital transformation around the world and in every sector with family businesses that had invested in IT infrastructure being able to keep working when their countries went into lockdown. Companies that hadn’t were left scrambling. Mandatory remote work has proven that digital transformation has very real business benefits. It isn’t a load of buzzwords and IT fads. Companies that hadn’t invested in it in the past are almost certainly doing so right now. However, the latest research from Vistage found that despite seeing the need for digital transformation, leaders aren’t always confident they can make it happen: 32% said they don’t feel confident about their ability to lead digital transformation projects, compared to 21% that said they do 38% said their business wasn’t ready to embrace it, compared to 26% that said it was 35% said their business model wasn’t ready, compared to 28% that felt it was So how can non-technical leaders take ownership of digital transformation and drive it forward? In this guide, the team at Vistage share tips and advice that will help any leader make digital transformation happen in their organisation. How to lead digital transformation projects with total confidence – even if you don’t have a technical background. Read the guide below to find out more and visit the Vistage website to see how they work with business leaders ON their business too. Download and read the guide below:

2020 was undoubtedly a difficult year for many business and in a year where business has had to transform the way it meets the needs of society and the environment, family owned businesses risk falling behind, according to a new global survey of 2,801 family business owners. While more than half (55%) of respondents saw the potential for their business to lead on sustainability, only 37% have a defined strategy in place. European and American businesses are lagging their Asian counterparts in their commitment to prioritising sustainability in their strategy. 79% of respondents in mainland China and 78% in Japan reported ‘putting sustainability at the heart of everything we do’ compared to 23% of US and 39% in the UK. Larger businesses and those owned by later generations also buck the trend, with greater focus on sustainability. This reluctance to embrace sustainability comes despite the fact family owned businesses are highly likely to see a responsibility to society. Over 80% engage in proactive social responsibility activity, and 71% sought to retain as many staff as possible during the pandemic. Nor is it a function of economic pessimism – less than half (46%) expect sales to fall despite the pandemic and survey respondents felt optimistic about their business’ abilities to withstand and continue to grow in 2021 and 2022. Instead, the issue is an increasingly out-of-date conception of how businesses should respond to society, with 76% in the US and 60% in the UK placing greater emphasis on their direct contribution, often through philanthropic initiatives, rather than through a strategic approach to ESG matters. Family businesses are also somewhat insulated from the investor pressure that is currently pushing public companies to put ESG at the heart of their long term plans for commercial success. Peter Englisch, global family business leader at PwC says, “It is clear that family businesses globally have a strong commitment to a wider social purpose. But there is a growing pressure from customers, lenders, shareholders and even employees, to demonstrate a meaningful impact around sustainability and wider ESG issues. Many listed companies have started to respond but this survey indicates that family businesses have a more traditional approach to social contribution.” “Family businesses must adapt to changing expectations and, by failing to do so, are creating a potential business risk. This is not just about stating a commitment to doing good, but setting meaningful targets and reporting that demonstrate a clear sense of their values and purpose when it comes to helping economies and societies build back better.” Growth The survey suggests family businesses have weathered the pandemic relatively well. Less than half (46%) expect sales to fall despite the pandemic and survey respondents felt optimistic about their business’ abilities to withstand and continue to grow in 2021 and 2022. Digital Transformation Even though 80% of family businesses adapted to the challenges of the COVID-19 pandemic by enabling home working for employees, there are also concerns about their overall strength when it comes to digital transformation. 62% of respondents described their digital capabilities as ‘not strong,’ with a further 19% describing it as a work in progress. Yet here there are clear generational differences: 41% of businesses that describe themselves as digitally strong are 3rd or 4th generation, and Next Gens have taken an increased role in 46% of digitally strong businesses. Peter Englisch adds that “It is a concern that family businesses are lagging behind the curve. There is clear evidence that having strong digital capabilities enables agility and success and that they have a similar enthusiasm for sustainability.” “Businesses should consider how they can engage the experience and fresh insight of Next Gens when it comes to prioritising their digital journey.” The Governance Gap While family businesses report good levels of trust, transparency and communication, the survey highlights the benefits of a professional governance structure. While 79% say they have some form of governance procedure or policy in place, the figures fall dramatically when it comes to important areas: just over a quarter state they have a family constitution or protocol, while only 15% have established conflict resolution mechanisms. Peter Englisch continues saying that “Family harmony should never be taken for granted – it’s something that must be worked on and planned for, with the same focus and professionalism that’s applied to business strategy and operational decisions.” “There are growing concerns from regulators around the world about family business succession, especially with a third of 1st, 2nd or 3rd generation businesses expecting the next generation to become majority shareholders in the next five years.” “It is therefore vitally important that businesses take a lead on ensuring they have formal processes in place they can ensure stability and continuity in the long run,” concludes Peter. Download and read the full research report here:

Given their portrayals in the media, it might be easy to dismiss family businesses as hotbeds of power playing, favour currying, and back-stabbing—preoccupations that can hurt the company, the family, or both. Think of the Murdochs and NewsCorp, or the Redstones and National Amusements, to name just two. But despite the headline-grabbing tales, many family businesses have enjoyed success for decades, even centuries. For instance, the Italian winemaker Marchesi Antinori, established in 1385, has thrived as a family business for more than 600 years. Similar examples can be found across the globe just within the alcohol business; they include Gekkeikan in Japan (founded in 1637), Berry Bros & Rudd in the United Kingdom (1698), and Jose Cuervo in Mexico (1795). So which is it? Are family businesses prone to dramatic implosions, or are they some of the most enduring companies in existence? The answer is both. They can be much more fragile or much more resilient than their peers. Given that family businesses—companies in which two or more family members exercise control, concurrently or sequentially—represent an estimated 85% of the world’s companies, ensuring their longevity is essential. The United States alone has 5.5 million of these businesses, which employ 62% of the workforce, according to the research and advocacy group Family Enterprise USA. To explain the difference between those two fates, we’ll delve into an area rarely explored in business schools or the media: the impact of ownership on a company’s long-term success. Ownership of any asset confers the power to fundamentally shape it. Think of a professional sports team. Within the rules of the league, the owner has the right to make essentially every important decision, including whether to fire the coach, which players are on the roster, where the team plays, whether the franchise seeks to maximize wins or profits, and whether and when to sell it. The teams with the best track records have great owners at the helm. If your favourite team has an ineffective owner, you are probably doomed to disappointment. The owners of family businesses wield profound decision-making power. We know of sizable companies in which not a dollar can be spent without their approval. In a widely held public company, the owners are mostly investors. Their influence is limited. They typically let the board and management run the business; when dissatisfied, they “vote with their feet” by selling their shares. Ownership of a family business could not be more different. It rests with a relatively small number of people, who are related. Their ability to shape the company is profound and is itself shaped by their relationships with one another. That’s a potent mix, creating the extraordinary highs and lows we see daily in our work advising the owners of family businesses. Five core rights accompany family ownership—the right to: Design: What type of ownership do you want? Decide: How will you structure governance? Value: How will you define success? Inform: What will—and won’t—you communicate? Transfer: How will you handle the transition to the next generation? Understanding and effectively exercising these rights can lead to long-term success. Misunderstanding or misapplying them can destroy what a family has spent generations building. In this article we explore the five rights and offer battle-tested approaches for exercising them well. What Type of Ownership Do You Want? Family businesses are often lumped together as if they were all the same. But four fundamentally different types exist, distinguished by who can be an owner and how owners share control. If you want your family business to last for generations, you need to understand the characteristics of your type and the strengths and challenges associated with it. The choice of ownership type isn’t a mere legal formality; it can define or restrict various members’ involvement and may loom as an unrecognized source of conflict. Sole owner. One family member owns the company and is responsible for all decisions. This works best when the business requires decisive leadership and creates enough liquidity to satisfy nonowners (or when non-business assets can do so). The French cognac maker House of Camus has had a sole owner since its founding, in 1863. In each generation, one member leads the company, buying out siblings’ shares. The current owner, Cyril Camus, says this model has been essential to the firm’s longevity. With no siblings or cousins involved, family conflict around the business is rare. Sole ownership has downsides: Succession becomes a central issue, which may be decided according to merit (as assessed by the current owner) or assigned by primogeniture or a similar rule, and the owner must wrestle with what benefits to extend to other family members. This model can be risky, because much of the family’s capital and talent exit in each generation. Partnership. Ownership is restricted to family members actively working in the business. This allows for multiple perspectives and requires clear rules governing how people can join or leave the ownership group and what benefits accrue to nonowners. The German-Dutch Brenninkmeijer family, sixth-generation owners of the clothing chain C&A, have chosen this type. Children of current owners are admitted to the partnership on a competitive basis, after a rigorous evaluation and an apprenticeship. Like sole ownerships, partnerships keep family owners highly engaged but can be vulnerable to the loss of capital and talent. They are typically more resilient because they don’t rely on just one leader, but they may face conflict over who is admitted to ownership. Distributed ownership . Any family member may be an owner and participate in decision-making. This works well when most of the family wealth resides in the company, when it is mandated by law, or when it is expected by family culture. The Brazil-based conglomerate Votorantim has this type of ownership: In each generation, family members pass down their shares, usually evenly. With no need to buy out nonowner members, distributed ownership can keep family capital tied to the business. But owners may vary in engagement; aligning their interests and defining decision-making norms can be challenging, and resentment about “free riders” may arise if some are operating the business while others are “only” investors. Big problems may crop up if some members of the family want to cash out; having a clearly defined exit ramp reduces that risk. Concentrated ownership. Any family member may be an owner, but a subset controls decision-making. This works well when decisive action is required despite a multiplicity of owners, and it mitigates some of the challenges of distributed ownership. But the question of who will exercise control becomes more complicated with each new generation. Vitamix, the 100-year-old manufacturer of high-performance blenders, operates this way. Shares are passed down to descendants, but in each generation the CEO must own or control a majority of voting shares. Although the owners aim for consensus on big decisions, the CEO makes the final call. One of the chief risks is conflict over who will lead. Another is the possibility that those not in power will lose interest and sell their shares. Although hybrids exist, most family businesses fall into one of those four categories. (If a family business has some shares that are publicly traded, it may fit into any of them, depending on how the family has decided to handle its piece.) In a survey we conducted of family businesses of various sizes and across numerous industries and geographies, we found that 13% had a sole owner, 24% were partnerships, 36% had distributed ownership, and 27% had concentrated ownership. The type of ownership needn’t be a static choice. Be on the lookout for the need to make a change, which may arise when the next generation is joining, when the size or complexity of the business alters significantly, or when you’re bringing in outside leaders. The Antinori winemaking family had a sole owner for 25 generations: Control passed to a male descendant, keeping the business and associated land united. But Piero Antinori, who took the reins in 1966, has three daughters and no sons. He opted for a three-way partnership to succeed him. How Will You Structure Governance? The owners of family businesses wield profound decision-making power. We know of sizable companies in which not a dollar can be spent without their approval. When this power is channelled appropriately, it confers a major competitive advantage, facilitating the nimbleness needed to capitalize on opportunities as they arise. Many family business leaders we know can make big bets at a moment’s notice, without having to run decisions through multiple layers of management and bureaucracy. “Speed of response is becoming more crucial, and we can put large projects to work quickly,” says Alexandre Leviant, the president of the specialty chemical conglomerate ICD, which his father founded in 1952. But if that power is wielded ineffectively, the business will suffer. Some owners exercise too much control, stifling innovation and making it hard to attract and retain great talent. Others step back from major decisions, leaving a vacuum that may be filled by executives looking to their own interests. We saw a number of family businesses nearly destroyed when decisions were left to nonfamily managers who wanted to run the company down and buy it at a fire-sale price. Governance in a family business is all about finding a middle ground between micromanaging and abdicating responsibility, and it becomes more challenging as the family and the business grow. We suggest a simple framework to guide decision-making: the four-room model. Imagine your business as a home with one room each for the owners, the board, management, and the larger family. The owners set high-level goals and elect the board; the board oversees the business and hires (and if necessary fires) the CEO; and management recommends business strategy and directs operations. Because the board and management report to the owners, the first three rooms are in a row, with the owners’ room on top. The family’s room, which is critical for maintaining members’ emotional connection to the business, sits alongside the other three, underlining the importance of family influence and unity throughout. In a well-run family business, each room has explicit rules about who belongs there, what decisions are made there, and how. People’s roles vary from room to room. For example, a nonfamily CEO can run the management room but shouldn’t decide how the owners will use their dividends. Nonowner family members, for their part, can’t walk into other rooms and make decisions. Governance based on the four-room model makes the hierarchy and boundaries clear. Time and again, we’ve seen businesses slide into chaos for lack of a good decision-making process. Too often the problem becomes apparent only after disagreements have begun to destroy what years of collaboration built. At a regional retail chain headed by a family member we’ll call Steve, the lack of governance let his self-described “cowboy” instincts run unchecked, sparking resentment in his sister and his cousin, who were equal owners. Once they all recognized the problem, they turned to the four-room model and created an owners’ council, which Steve was required to consult for decisions of a certain magnitude. That allayed his co-owners’ concerns while forcing him to plan big moves more carefully, and the business—along with the family—got back on track. The four-room model helps owners maintain control over the most important issues and delegate other decisions. It establishes a process for revisiting decisions as goals evolve for the family or the business or both. How Will You Define Success? The owners of a business have a right to the residual value it creates. With that right comes the ability to define success. For widely held public companies, that’s straightforward: They aim to maximize shareholder returns. But few family businesses we know would describe their primary objective in those terms. That’s one of the best things about family ownership: You get to determine what matters most. No outsider can force you to value earnings growth more highly than, say, providing family members with employment, or can insist that you pursue opportunities that clash with your beliefs. Effectively exercising this right can be an incredible advantage in making a business last. It enables a long-term, generational approach that contrasts sharply with public companies’ obsession with quarterly results. But not all families are clear about what they value most. That lack of clarity can trigger battles over priorities, missed opportunities, or a failure to retain talented employees. More fundamentally, if you are unclear about your objectives, you risk losing your raison d’être for being in business together, especially as the company grows and transitions to new generations. Your path may become a dead end. To avoid that fate, you need an owner strategy that identifies concrete goals and sets up guardrails. Goals. These fall into three main categories. You can aim for growth: maximizing financial value. You can seek liquidity: prioritizing a healthy cash flow for the owners’ use outside the business. You can look to maintain control: keeping decision-making authority firmly within the ownership group by avoiding outside equity or debt. There will be trade-offs among these options. You might pursue only one goal, or you might decide on a combination. We have found that for most family-owned companies, this is a “pick two” situation, meaning they prioritize two goals at the expense of the third. That suggests three basic owner strategies—one for each possible pairing of goals, each forming a side of what we call the owner strategy triangle. Growth-control companies — the most common type we have encountered—focus on becoming bigger while keeping decision-making within the owners’ purview. Growth-liquidity companies also seek to become bigger, but they pay out considerable money to the owners and use outside equity or debt or both to keep the engine going—consequently relinquishing some control. Liquidity-control companies are not concerned with rapid growth; instead they hope to produce a significant cash flow for the owners while retaining decision-making authority. We know highly successful family businesses that have chosen each strategy combination. And these are broad strategies; companies can find spaces between them. What’s most important is understanding the explicit and implicit choices you are making about what to prioritize; those should flow from your fundamental values. You should revisit your choices as circumstances evolve, whether because of external factors such as economic developments, industry consolidation, and regulatory shifts or because of internal factors such as generational transitions, family conflict, and changes to senior management. Guardrails. Aligning on priorities is essential. But without concrete ways of measuring performance, it’s just lip service. Guardrails can help ensure that those running the business day to day are directing their energy and resources toward what you as owners care about most. They allow you to delegate decisions more confidently. Guardrails can be financial or nonfinancial. Owners should home in on a small number of financial ones—for example, minimum levels of return on invested capital or maximum levels of debt—and ensure that the company stays within them. Nonfinancial guardrails define outcomes for which owners are willing to sacrifice financial performance. The values informing them are often part of the glue holding the family together and a means of making the world a better place. For example, we work with a U.S.-based family business whose members lost relatives in the Holocaust. It invests only in countries with a high score in the non-profit NGO Freedom House’s annual ratings. Having a clear owner strategy fosters longevity by ensuring that the business accomplishes the owners’ financial and nonfinancial goals. Over the long term, families need an emotional connection to their company; they must be able to say, “We own this because we want to make a difference” or “This represents what our grandfather sacrificed to give us a better life.” Without an emotional connection, owners may be tempted to cash out. What Will—and Won’t—You Communicate? Owners are legally entitled to know a great deal about their business, such as what’s in financial statements, certain organizational records, and ownership documents. And except when they bring in outside investors, lenders, or board members, they are not obligated to share that information with anyone (other than the government). That means they control communication; nothing of consequence can be shared without their permission. How owners exercise this right significantly affects the business’s longevity. That’s because effective communication is critical to building one of a family business’s most valuable assets: trusted relationships. These are often underappreciated, but they help generate three important things: Financial capital : committed owners who have an emotional connection to the business and value long-term performance Human capital : engaged employees and family members, including spouses, who bring their full talents to their work and the family Social capital : a positive reputation with customers, suppliers, the public, and other stakeholders, which can help differentiate you in a crowded marketplace and build partnerships across generations The impulse to keep things private is understandable. Privacy can protect the business and the family from outsiders. But if owners hold their cards too close to the vest, they risk starving the business of its ability to cultivate valuable relationships. A business school professor we’ll call Sophie married into a family with a fourth-generation media business in Asia. Concerned about what she saw as a casual attitude toward innovation, she began asking about the company’s long-term strategy. The more questions she asked, the more information the executive team withheld, until it requested that her husband stop sharing financial reports with her for fear she would “rock the boat.” Sophie became increasingly anxious about whether her children would inherit a business with any value. In the face of the stonewalling, she withdrew, even scheduling vacations elsewhere during the family’s annual reunions. That deprived her children of opportunities to forge relationships with their cousins (and future co-owners), which could have a devastating impact on the business in the years to come. Delaying or poorly planning a transition to the next generation can wreak havoc on the family and the business alike. You need a continuity plan. Early on in the life of your business, communication is likely to be informal, perhaps taking place over meals. As things progress, consider what meetings, policies, functions, or technological platforms could improve your dialogues. Start by aligning on what you will and won’t disclose to each audience. In our experience, owners are often so worried about protecting details regarding their wealth that they fail to think through what they can share to help stakeholders feel connected to the business’s long-term success. Such information might include your owner values and strategy, how decisions will be made, how you think about succession, and your passion for the business. If you decide to keep such information private, tell your stakeholders why. We have seen cases in which the failure to communicate effectively was the single biggest reason for a family business’s demise. We’ve also seen some in which skilful communication pulled the company through tough times. Wield the right to inform wisely. How Will You Handle the Transition to the Next Generation? The final right of owners is deciding how to exit. You can choose who will own the business next, what form that ownership will take (whether shares or a trust), and when the transition will occur. With this right come complex and difficult decisions. What will you do with the assets you worked so hard to build? How will you let go? What roles should members of the next generation play? How should you prepare them? Are the relationships among them strong enough that they can work through decisions together? Delaying or poorly planning your transition can wreak havoc on the business and the family alike. A Boston Consulting Group study of more than 200 Indian family businesses found a 28-percentage-point difference in market capitalization growth between companies that had planned their transitions and those that had not. Family empires may be consolidated or squandered in the transfer of power across generations. To execute a successful transition, you’ll need a continuity plan that maps a path from the current generation of owners to the next. It should address three main challenges: Passing down your assets. Will you keep the same type of ownership (sole owner, partnership, and so on) or change it? Will you transfer ownership all at once or gradually (for example, by giving economic interests to the next generation while retaining voting control)? What tools, such as trusts and gifting, will you use to minimize taxes? Handing off roles . How will you create the glide path necessary for the current leaders to let go? How will you select successors across the four rooms in a way that feels fair and identifies the most-talented candidates? How will you ensure a smooth passing of the baton? Developing next-generation capabilities. What skills will each of the new owners need, whether they actively work in the business or not? How will you help them identify the roles for which they are best suited? How will you create opportunities for them to learn how to collaborate with one another? Transition is a process, not an event—and the more the continuity plan resembles a discussion rather than an ultimatum, the greater the chances of success. The plan can’t simply be dictated from one generation to the next; incoming leaders need to be prepared and aligned. To see what can happen when they’re not, consider the Pritzker family, which built the business empire that includes Hyatt hotels. Jay Pritzker, the leader of the third generation, and his brother Robert gathered the family in 1995 and handed out a two-page document describing their succession plans. It detailed a complex web of trusts created to hold the family’s assets, spelled out when members would receive distributions, and assigned leadership to a triumvirate. It was undoubtedly well-intentioned, but it didn’t work. Just months after Jay’s passing, in 1999, a series of lawsuits began. The family eventually decided to divide its holdings. Oftentimes the biggest hurdle to continuity planning is getting started. When facing pressing concerns in the present, it can be tempting to put off cross-generational conversations that may be fraught with issues of mortality and identity. So put those conversations on your agenda (in your owners’ room, with a designated continuity-planning task force, or through your board) and set some deadlines for them. We won’t sugarcoat the bottom line: Without hard and smart work by the owners, other family members, and employees, family businesses often implode. Much energy is needed to keep the many competing interests from turning destructive. There is no single way to survive, and there are few universal best practices. But by applying the five-rights framework, you can organize yourself for the work that family ownership requires. Ask the members of your business to individually assess your performance against each right. Then share the results and develop a plan that builds on your strengths and shores up your vulnerabilities. Only through such collaboration can you use the power of ownership to sustain your family business for generations to come. First Published in the magazine January/February 2021 by Harvard Business Review Reproduced with permission of the author.

HE Simm is a family owned, £100m, engineering and services business. Their roots are in Liverpool, but they have progressed over the last 70+ years to become a firm player in the mechanical, electrical and services industry UK wide. The Simm family own and run the business, which is currently in the third generation. The company won two coveted industry awards at the end of last year, with the judges acknowledging the wins due to the culture the family has created. We spoke to the current CEO and family member, Gareth Simm to find out more. “As the CEO of a family-owned and operated engineering and services business, ensuring that we have a good company culture – in terms of purpose, values and behaviours – is one of my key priorities. But what does a ‘successful culture’ look like? What does it mean?” As Gareth continues, “I believe that the clearest sign of a successful culture is employees who are happy, fulfilled and trust the company. We are a very close-knit team and our people are our greatest strength. Our founder and my grandfather, Ernie Simm, had a vision of building a ‘family’ of colleagues and we still take pride in valuing and investing in every individual who works with us. We aim to bring out the very best in people, giving them the support and training they need to learn, grow and achieve more than they ever thought possible.” “In my experience, business success then very often follows naturally. Employees who enjoy their job are more productive and stay longer, reducing turnover and the cost of recruitment and training. Having the right culture enables people to keep delivering quality day after day, motivated by genuine concern for the business because they feel that it’s their business,” he adds. “This has been starkly demonstrated over the past year. The Covid-19 pandemic has created a sink or swim scenario for many businesses in the UK and it is those with a strong culture that have managed to weather the storm best.” So what steps can businesses take to create a successful culture? Align strategy and culture For Gareth, one of the key things to do is to recognise the importance of having a strategy, as most businesses do – a long-term plan that includes goals and objectives, products and services, who your customers are and the markets you serve. What many fail to do, in my experience, is ensure that their company culture aligns with this strategy.” “Culture is the engine that drives your company strategy. If your company culture doesn’t underpin your strategy through the values and behaviours it promotes, then your strategy is likely to fail.” Learn from your ‘moment of truth’ Covid has been a real moment of truth for much of the UK, including the construction industry. “It’s at tough times like these that you find out whether your culture is worth the paper it’s written on. Good culture isn’t just about what you say as an organisation; it’s about what you do,” he explains. “Like all businesses in our sector, we have had to make some difficult decisions over the past year. However, we have tried to always lead with authenticity and take action that is in line with our fundamental values and culture. Firms that didn’t do this – that unnecessarily delayed payments to suppliers and didn’t adapt, for example – will have had their moment of truth. And in most cases, the outcome is unlikely to have been positive,” adds Gareth. “As we begin to see light at the end of the pandemic tunnel, now is the time to reassess and realign your culture moving forward, ready to meet whatever challenges lie ahead.” Lead with values As Gareth continues, “It is vital for business leaders to reflect their company culture in all they do. My grandfather’s ‘motto’ was: “If you’re honest, treat people fairly, provide a superior service and quality, and always deliver, people will trust you and work with you again.” It’s an old-school way of looking at things, but rings true to this day.” “Our values – teamwork, people, excellence and honesty – underpin every decision I make as CEO. I believe this enables me to lead with consistency and has helped to win the trust and confidence of customers and employees alike. On a personal level, creating a team of people who are eager to come into work every day and be at their best has been hugely rewarding,” explains Gareth. Empower employees By enabling employees at the coalface to make decisions and take responsibility for their work, HE Simm have also empowered their employees to drive the company values in everything they do. To really embed a culture and ensure that it informs everything your business does, they have created leaders everywhere. As Gareth continues, “If you expand your idea of a culture through to all touchpoints of the business, the benefit is immediately noticeable. People like to be treated with respect, regardless of whether they’re a CEO, an engineer, receptionist or supplier. Before you know it, your culture will permeate every aspect of your business, including the supply chain.” Think long term Finally adds Gareth, “A key difference between our family-run business and a big PLC is that ours works for future generations and prosperity, rather than quarterly financial figures. With a focus on long-term stability and performance rather than short-term profit and growth, it is infinitely easier to create a strong culture.” “The Covid-19 crisis has exposed holes in many organisations that made hay while the sun shone, but neglected the idea of rain. Beyond this pandemic, there’s going to be a new normal." "Businesses will have to adapt their cultures to be successful; adapt to decentralised working structures and, in many cases, material or supply chain disruptions. Ahead of the next crisis, I believe the industry as a whole needs to shift from focusing on short-term goals to longer term solutions underpinned by forward planning and, crucially, strong culture,” he concludes.

Family businesses are much more well-thought-of than other businesses, according to a new landmark national survey. Based on a 2,000-person survey, the research found that branding a private company as a ‘family business’ resulted in a significant and powerful reputational premium for the business. Nearly 66 percent of the public would think more positively of a business if they found that multiple generations of family members were active in its management. Conducted by specialist communication agency Transmission Private , the so-called ‘reputational premium’ was seen in all genders, regions, and age groups. In fact, the marked boost in reputation was at its strongest amongst the very youngest respondents, with nearly 70 percent of respondents between 18 and 25 years of age saying they would think more positively of a family business. The results come at a time when many businesses are scrambling to improve their reputations as the corporate world comes under fire from increasing levels of consumer activism — on issues as varied as sustainability, diversity, and pay — as well as finding themselves on the sharp end of difficult questions about reliance on government support to weather COVID-19. The research suggests privately-held businesses are missing a trick if they are failing to give visibility to their family ownership as part of their public relations strategy. Jordan Greenaway, Managing Director of Transmission Private, said: “The reputational benefits of being seen as a multi-generational family business are now clear, obvious, and significant.” “Sadly, there is sometimes an inclination amongst family businesses, especially once they get to 250 employees and above, to adopt the positioning of a publicly-listed, colourless corporate entity, airbrushing the family out of its public profile.” “We are now proactively advising businesses to reverse this, giving careful visibility to their family ownership and values. This may mean showcasing the business’ family heritage on their website or within collateral, or feeding family ownership messaging into communications and PR campaigns.” “Many of the biggest family businesses worry that giving visibility to their private ownership will expose family members themselves to criticism, but this is misguided. Clearly, the prominence of the family in the branding will differ from company to company, but this is not a discussion that should be shied away from.” The research also found that succession events, where a younger generation takes over management of a business from an older generation, throws up particular communications risks to family businesses. In fact, more than 1 in 4 people said they would think negatively of a family business if a younger member of the family was appointed to management out of the blue. The sudden appointment of a next-generation member to a company leadership runs the risk of triggering concerns amongst customers, partners, and peers that they might not have the skills, competency, or networks to continue running the business successfully. Luke Thompson, a Partner at Transmission Private, said: “This is worrying because many next-generation members will have been actively involved in the business — just not visibly.” “We are now advising family businesses to get ahead of the curve on this front. Family businesses need to start giving gradual visibility to next-generation family members up to a decade in advance of transition events, whether that’s on their website or within press announcements.” “Next-gen members should also be treated as a reputational asset to the business and its reputation. They often will have developed new skills from having spent at least part of their career outside of the family business. The new skills they are bringing to a business should be emphasised in collateral and communications activity.”” Transmission Private is the leading global strategic communications adviser to successful individuals, families, and their companies. The poll was conducted by OnePoll, which is a member of ESOMAR and employs members of the MRS. Download and read the report here:

Family firms are the backbone of economies the world over and the UK is no exception. With more than 6 million family firms in the UK employing over 13 million people, they are the engine room of communities across the country. Family businesses are different because they have a purpose, an underlying driver to flourish for generations, taking a long term view and in many cases the current generation see themselves as custodians of the business for future generations, seeking to pass the business on as a ‘stronger entity’ than the one that they inherited. All across the UK family firms make a difference on a daily basis, through the provision of jobs, creation of income and generation of wealth. Many have been around for generations, like Balsons, the butchers on the high street in Bridport that dates back to 1515 and is now in the 26th generation. Additionally, many family firms are embedded in a ‘place,’ often the location where they were founded, such as Walkers Shortbread in Aberlour and JW Lees Brewery in Manchester. These firms are part of the fabric of their community and it is not uncommon to find generations of families following a pattern of working for the same businesses. Research has shown that being a family business adds a real point of difference, from the way that they engage and support loyal employees to the way they are perceived by customers and suppliers alike. Because they are in it for the long term, decision making is focused on these goals and not made purely for financial return in the short term. Family firms are special and their narrative, the journey from the day they started with an entrepreneurial dream add to the essence of who they are, and help with creating an association with the business. Research has also shown that family firms are more trusted and good employers and they continue to make a difference through their resilience, drive and desire to succeed. Entrepreneurial family firms that have stood the test of time are resilient and innovative, making the necessary changes to continue to remain relevant. Family firms really are the backbone of the UK economy and a real force for good and that can only be a good thing. The obvious thing that makes family businesses stand out from their non-family counterparts is the ‘family factor’ and this is something that can be used to the competitive advantage of the business if harnessed in the right way. Sadly, all too often family business is portrayed as ‘small business’ rather than the reality that those in the know understand: family firms can be big business, take JCB, Wal-Mart, BMW, ALDI and many others and the myth has been blown away, but fundamentally it is more important that family firms are recognised for the positive values they bring to the economies and communities in which they operate. Rather than focusing on the sensational headlines around sibling disagreements, nepotism or inter-generational issues there are real positive attributes possessed and demonstrated by family businesses the world over on a daily basis which helps to show that family firms are a real force for good too. Family firms are generally seen as good employers, trusted and respected businesses, even more so when the family name is above the door and the business has been around for generations and the benefits associated with being a family business can be great. These benefits can even result in the family business deriving competitive advantage as a result. Here are ten benefits that family firms have: 1 – Values Family values can be translated into the way that the business operates, the culture of the family firm, and these can be passed from generation to generation as well as from family members to other employees. There is an immense level of pride amongst family members to respect the business, their predecessors and in many cases to act as stewards to pass on the business to the next generation and the values that underpin the family and the family business add to the essence of the family firm. 2 – Long Term View Family firms are recognised for taking the long term view, not always focusing on the short term financial performance and results of the business. A patient and often cautious approach can help to align resources and plans too. 3 – Loyalty Research has proven that shared values and vision amongst family members with clear and open communication of their goals and objectives can result in greater loyalty from family members too. 4 – Retention Employees of family firms are often cited by the family as an ‘extension of the family’ or as part of the ‘extended family’ and consideration and support of employees to such an extent can provide an incredibly loyal workforce who enjoy the work environment, the support of the family and the way that they are treated. 5 – Legacy Making a difference and creating a legacy is something that can come from a family in business and there are lots of examples where family firms are integral to the community in which they operate. Building on the efforts of previous generations and continuing the family tradition, protecting the name and the values that it upholds are also drivers for subsequent generations to continue in the same manner and to continue to give something back. 6 – Trust & Integrity Research has proven that the very nature of the family ownership can engender more trust from stakeholders and customers alike, and more and more family firms are celebrating their history and legacy in the brands that they are developing, recognising that it can be to their competitive advantage. 7 – Innovation Due to their governance and ownership structures family firms can be more innovative. In many cases, they recognise the need for innovation as part of their strategic planning to keep the business relevant and current and as such are able to respond to change and take on opportunities as they arise more quickly than some of their non-family counterparts. 8 – Entrepreneurship Successful family firms can be a breeding ground for entrepreneurship, supporting the next generation in their pursuit of new opportunities, either through opportunity, training, career progression or encouragement. 9 – Respect Many family firms are massively involved in their local communities and give back in many ways which engenders significant respect from the communities in which they operate. 10 – Relationships Whilst it may not be seen as the ideal situation for some, families that work successfully together get to spend more time together and sharing a drive towards goals for the business can be a bonding and fulfilling journey. Successful family firms reap the benefits and have structures in place for clear and effective communication, helping to minimise the risk of disagreements or conflicts arising. This enables them to focus on the business, with shared goals and commitments to getting the right results and without any doubt, when it all comes together, family business is different but can be a resolute force for good and secure competitive advantage too, further generating better financial results and performance that is of benefit in the long term too. Celebrate the strengths of family business. They are a force for good and provide significant benefits to communities around the world.

To complement its existing core business in supplying glass bottle containers, closures and decoration to international food and beverage brands, leading glass packaging firm, Croxsons, has recently launched a home & beauty division. The move builds on sustained business growth and will see Croxsons provide single-source packaging solutions for brands in this sector, including candles, reed diffusers, perfumes, cosmetics and personal care. The Surrey-based business has been supplying a broad base of clients ranging from the smallest start-ups, to the largest multi-national, with unique glass packaging and closure solutions for nearly 150 years. A Queen’s Award for Enterprise winner, Croxsons’ ongoing relevance is founded on the value the company places on nurturing business relationships and the breadth and completeness of their offering – a ‘family of packaging’ defined by providing single-source, multi-choice glass packaging and closure expertise. Commenting on the new venture, Croxsons’ chairman, James Croxson, said: “The launch of our home & beauty division has been on the cards for some time now. Given our glass packaging expertise, global connections and ability to provide stand-out primary packaging solutions, we firmly believe that we are well placed to provide brands in this sector with an unrivalled and engaging customer journey.” To oversee the initiative, the company has recruited Amanda Pritchard as a national sales manager. A trained packaging technologist, Amanda brings over 15 years of beauty packaging experience to the role. “I’m delighted to be heading up our move into the home & beauty sector,” she said. “The fact that Croxsons offer a complete product offering is a major selling point and I’m looking forward to building on this with current contacts and using it to develop new relationships. Given our expertise, we are looking to concentrate mainly on bespoke solutions, with some standard products featuring bespoke decoration.”

Family businesses believe their governance arrangements are entirely or broadly fit for purpose, according to 69% of respondents to a new survey published today by Smith & Williamson. Smith & Williamson’s latest Family Business Survey, conducted in September 2020 and which draws on responses from more than 140 families from the United Kingdom and internationally, examines and analyses the pressing themes of family-owned businesses. The report looks at the foundations for future governance that families are laying, both amongst themselves and where they have a business. The research, focuses particularly on family constitutions: are they present or absent, relevant or ignored? Just over a third of respondents (38%) to the survey said that they currently have a constitution, with 56% having none and 6% saying they did not know if they had one or not. More than three quarters of respondents (79%) introduced their constitutions to ensure their governance had some rigour; almost a third (32%) because of the size of the family and the challenges of managing it; only 16% were prompted to produce constitutions because of disputes arising. Interestingly, most constitutions had been put in place either more than ten years ago (41%) or fewer than two years ago (22%). Furthermore, more than half of those without a constitution thought they would need to implement formal governance structures in the next two years. The research also reveals: More than half (55%) of those who completed the survey rated regular family meetings as nine or ten out of ten for importance. More than three quarters of respondents (77%) have a family council Almost 60% of respondents thought their family was to some extent a brand in its own right. This points to the family business or financial interests having a real social purpose over and above a return on capital. Rupert Phelps, Family Wealth Partner at Smith & Williamson Investment Management LLP and Smith & Williamson LLP commented: “There can be little doubt that the larger the family, and the more generations it has been active in business, the greater the need for formal governance procedures to be in place. The evidence from our survey shows governance does tend to be a greater priority for large family businesses, but smaller businesses also recognise the advantages good governance can bring.” “Where families had created their own constitutions in the last few years, they were often evangelical about the process and the catharsis it provided; others had constitutions created using differing degrees of professional help. However, there was also a strong feeling that advisers should just guide, not control, the process. Families felt they had to take responsibility for the content, with advisers and consultants facilitating the thinking.“

Colemans is a stationery, office supplies and art & craft retailer with 13 stores across the East Midlands plus an online business that serves customers throughout the UK. We spoke to Tallie Patterson-Gordon, the third generation of the family who recently joined the business that was founded in 1969 by her grandfather, John Coleman. After starting his career as a fishmonger, John bought the local newsagents and progressed to selling stationery, office furniture and machinery. His daughter, Tallie’s mum, joined the business and has been running it for the past 35 years and as Tallie explains, “she has been the most inspiring female Managing Director too.” Joanna has driven the business from strength to strength but has remained true to the underlying values of the business, putting her staff and customers first. The company has been built on ‘second to none’ customer service and one of John’s favourite phrases is that “the customer is always right” as they collectively strive to fulfil their vision as the ‘customer’s first choice for stationery, arts & craft’. Fond Memories Growing Up Tallie joined the business in the summer of 2020, a difficult time for many businesses due to the pandemic but is already thriving in her new role. Looking back to her childhood she has fond memories of the family firm. As Tallie explains, “It’s hard to pinpoint a first memory as the business was always there as I was growing up but one thing that I do remember is that one of the major benefits as a child growing up in a family owning a stationery store is that I always had the best pencil case full of the newest smelly gel pens! School holidays were also great as I never had to play pretend shops, I got to do it behind a real counter with a real till although it was not so much fun for my Mum when a customer reported her for using child labour!” Like many next generation family business members, Tallie appreciates that the family business was always there. As she adds, “there isn’t a situation where you simply put on the ‘out of office’ and don’t talk about it, or when you get to the airport that work isn’t mentioned until you get home. I used to be frustrated by how we always seemed ‘to talk shop’ but now that I am involved, it is all I seem to talk about!” A Career Outside Of The Family Firm First Growing up there was never any pressure to join the family business and Tallie was able to follow her own dreams. “Joining the family business was not always in my plan. I did a lot of debating and public speaking at school and initially fancied following the law route, but as I got older I realised that it was buying and selling things that made me tick, the ability to see if we were making money or not and that retail was probably the one for me,” continues Tallie. Retail was calling and after a few different internships Tallie gained a place on the Sainsbury’s Graduate Scheme. “I spent five years at Sainsburys and loved my time there. They’re a brilliant company to work for and give a lot of responsibility to young employees,” she continues. “They gave me a lot of broad experience from a stint in Digital and Technology Strategy to a role on the front line at the Camden Road Supermarket, the store with the second highest footfall in the company. This really was a baptism of fire for me but I absolutely loved it. I turned the store around from having a very poor ‘mystery shopper’ score to one of the highest in the company,” adds Tallie. Her roles continued to change and provide more experience, returning to head office roles in procurement and three years buying various different meat and fish products. As Tallie explains, “I started as the charcuterie buyer which was hands down the best role ever – I got to travel to Italy, Spain and Germany eating the most amazing selection of cured meats. That led to turkey purchasing and in December 2018 I was the turkey buyer – probably one of the more stressful roles, especially when a supplier rang on December 18 to say they were 26,000 birds short for Christmas! I ended the buying role as the fish buyer in charge of £350 million annual sales, which although demanding was brilliant before some time in Business Development setting up a wholesale business division,” she concludes. Making The Leap To Join The Business But the family business was on the mind and the point reached where Tallie wanted to take control of her own destiny. Politics and processes were getting in the way and Tallie began to think about a role where she could make her mark. As an only child, and having seen the success that both her Mother and Grandfather had achieved, and without any pressure from either of them to return to the family firm, timing seemed to suggest it was right to make the move. As Tallie continues, “Mum was turning 60 in April and I was due to get married in May (delayed due to Covid-19) and it seemed like the right time to make a lifestyle change too with the plan over the next five years for Mum to slowly ramp down and me to slowly ramp up.” 2020 proved to be a strange time to join a business in the retail sector with Tallie joining when the shops were closed due to the national lockdown. This however enabled Tallie and her parents to use her digital skills to help develop and build their online presence. As Tallie adds, “We have built a brilliant new website which contains over 5,000 products and my role has been focused on improving the ecommerce and social media side of the business. We are already seeing the benefits and are getting some amazing reviews on the site and it has been a great project to help further develop a broader understanding of the family business too.” More Than Just A Family Business For Tallie, although it is often stated by other family businesses, Colemans is “not just a business run by a family. Care and respect for each other is our number one value and last year we celebrated our 50th anniversary and special recognition was given to our longest serving members of the team who have worked for us for over 20, 30 and 40 years! We have a lot of people who have worked for us since they left school and if you cut them in half they would say that they have ‘Colemans’ through the middle! I have grown up with these wonderful people in my life and even have a Godmother who is our Group Operations Manager!” Heritage Is Important Too For Colemans, the story is everything and the heritage hugely important. As Tallie explains, “The business is still grounded by the same values as when it was founded." "At 87, my Grandfather still comes to work most days and has set up a fantastic photo framing business in one of the outhouses of our Oundle store." "He is a hugely respected man, both in the business and in the local community. We are so proud to be a 51 year old family business that is still trading and I think/hope that everyone is excited that it is going to carry on into the third generation.” The Next Generation Challenge Although 2020 has not been the year that anyone expected, Tallie has used the time to start defining her role and the opportunities that lie ahead. As with everything, one of the biggest challenges she faces is time. “Coming from a large business where everyone has a clearly defined role to a business where everything is on you, time is a big challenge,” admits Tallie. “Prioritisation is so important and something that I don’t think that I have quite mastered yet but I’m getting there. I still get frustrated that some things on the ‘to do list’ just have to wait but I will get more used to it as I settle in. Obviously, there is a big challenge for smaller, independent retail companies like ours to continue to cut through the increasingly Amazon dominated, digital world and to remain viable and profitable too and for me personally, the adjustment to working in the family firm. Although I have grown up with this business, you don’t quite realise how different it is working for your family than a non-family business until you are in it!” “There is no ‘off switch’ and the laptop doesn’t close on a Friday night and come out again on Monday morning because you never stop thinking about it. The highs are so much higher and the lows are so much lower because there is so much more at stake.” Looking To The Future Tallie remains optimistic about the future and the opportunities that are open to them. “The opportunities are endless. In a family business, the world is your oyster and there is no one stopping you which is the best thing and the worst thing at the same time as you always feel that you could be doing more,” she continues. “I am excited about the opportunity to build on the great grounding the business has but also to continue to evolve the business, to modernise and future proof it. For our business, there is a massive opportunity to just make more of what we already do. We don’t shout about things enough so I am excited to get the word out and about the brilliant services that we offer. It really is an easy win for us – for example we have our own printshop and printing press but the details of this are currently in a display folder behind the counter and customers only really find out about it when they ask – we could be challenging companies like Papier with our printing offer!” Tallie has already embraced the business, the family business model and is beginning to make her mark, making a difference and helping to achieve the business mission to be the number one choice for stationery, art and craft in their local area and has a desire to expand more across the country. “I want to continue to operate bricks and mortar shops in towns where it is viable to do so supported by an all singing, all dancing online offering that delights customers both nationally and internationally,” she adds. “I am also passionate about the role and need for the success of local, independent businesses and to develop even more convenient delivery and collection points to enhance the customer experience and provide the convenience that shoppers really want.” Tallie is the third generation of the family to take a step into the family firm and is going in with her eyes wide open. “I am well aware of the ‘rags to rags in three generations’ phrase but have no concern about the future of our family firm. There are so many amazing family businesses that continue to thrive and prosper well after the third generation have taken over and we are planning to do the same, although the retail landscape is extremely daunting and posing some challenges at the moment – all I can do is focus firmly on the future and as I keep telling myself, all I can do is my best!” The future looks bright and the longer term aim for Tallie is simple – “to be running a successful retail family firm with a small management team of bright, ambitious people that have the drive to keep pushing the boundaries and coming up with new ideas that keep pace with the ever changing retail environment too.” We look forward to the continuing evolution of Colemans as it moves into the third generation and beyond.