When a founder becomes such a larger-than-life character that they overshadow everyone around them, continuity of the business becomes challenging. Sometime a founder’s image is so publicly associated with his or her company, one rarely stops to ask, “who is that person?” A few, such as Colonel Sanders of Kentucky Fried Chicken, Henry Ford, and Ralph Lauren become something even more than that, they become ‘iconic.’ For many family businesses, having an iconic founder has enormous benefits. But as BanyanGlobal’s Marion McCollom Hampton and Ben Francois wrote in the Harvard Business Review, that can be a mixed blessing. As Hampton and Francois discussed in this article, though it might be beneficial to have an iconic founder at the helm of a business for years, it can also cause family leadership beyond the founder to be much more challenging. After all, who can live up to the image of a truly ‘iconic’ founder who has become a kind of exaggerated character – a two-dimensional representation of the business without any visible human imperfections? Just google ‘Colonel Sanders or Henry Ford quotes’ and you’ll see the continued reverence for those founders. When a founder becomes a larger-than-life icon synonymous with the business itself, he begins to overshadow everyone and everything around him. Worse still, an iconic founder can start to believe his own hype and hold next generation leaders to impossible standards, create a ‘loyal’ workforce that is resistant to new leadership, and potentially even cause family members to walk away from the business. Ironically, a wildly successful iconic founder can unintentionally set his beloved business up for failure in future generations. So how can a family business avoid that very significant downside? Hampton and Francois shared their thoughts in their Harvard Business Review article. Sometimes the individual entrepreneur is in fact as wise and kind as the image portrays him to be. But in many cases, that real person behind the iconic status is all too human. Successful business leaders, iconic or not, make mistakes in business and in their personal lives. But we have seen iconic founders who begin to believe their own publicity and consistently choose to grow their image over helping others to shine. Sometimes, they hold their children up to such high standards – standards that they think reflect their ‘perfect image’ – that the next generation feel (rightly so) that they can’t possibly meet them. Iconic founders often lack empathy for the sacrifices others (family, employees) are making. They see the world through one lens, which leads them to push for business growth and celebrity at the expense of all other priorities. As the iconic founder’s family seeks Dad’s approval, he just pushes harder to promote his image as super-human. Those closest to him find it hard to challenge him in any setting, business or family, for risk of being disregarded by the icon – better to agree and stay in good graces than confront and be shut out. Hampton and Francois have seen difficult dynamics evolve in families of the iconic founder. When the icon makes irrational demands or unkind judgements, everyone snaps to order – no one disagrees. Family members’ (and often employees’ and colleagues’) unpleasant experiences with the icon get buried: to discuss their pain or to criticize is to be disloyal. The iconic founder’s flaws – some of them grave – stay invisible. And the grandchildren can be affected as well: younger family members know that there are bad feelings and even events that have been covered up, but they don’t know what actually happened. To ask is to run the risk of taking the icon off the pedestal, and then to be criticized or even ostracized from the family. Finally, the lasting effects of an iconic founder can stretch beyond his or her impact on the family to thwart the growth of the business going forward. The icon can cultivate and leave behind a ‘workforce of the past,’ with loyal long-term employees defaulting to the icon’s preferred ways of managing at the expense of fresh ideas. They can nurture a culture of ‘yes'[ people rather than independent thinkers and drive creative next generation family members away from the business and into their own endeavours where they have more control. We highlight some of Hampton and Francois’ ideas for navigating the challenges of an iconic founder below: How The Next Generation Can Counter-Balance An Icon When family members recognize the complexities of having of a truly iconic founder, you can feel trapped. But there are steps you can take to prevent an iconic founder from overshadowing the next generation’s chance to grow and develop as individuals in your family businesses: First, acknowledge and appreciate the contributions of the founder, but don’t let his shadow shade your identity. Recognize that the founder was a dynamic person who took risks with his career and with the business. Think of the founder as an inspiration, not a constraint. Forge your own career based on your skills and passions, whether within or outside of the business. Avoid the temptation to be a clone of the icon. Second, look forward, not backward. Recognize that your generation will need to find your own way. As next generation family members you may not yet be running the business, but as future owners, you can start to communicate, meet, develop trust, and determine how you want to be collective owners of the business. You do not have to be tied to the founder’s version of how family owners should operate. Third, be prepared to evolve. You will need to recognize the impact of the icon on the family and the business, and to have the courage to say, “we need to do this differently.” Families who move successfully past the iconic founder refresh their strategies and push their businesses to evolve. In the family, they allow the “icon” to fade and instead acknowledge the talented and flawed relative. About the Contributors: Marion McCollom Hampton is a co-founder and Senior Partner at BanyanGlobal Family Business Advisors. She has been a leader in the family business advisory field for more than 30 years and is a co-author of the foundational work Generation to Generation: Life Cycles of the Family Business (HBR Press, 1997). Ben Francois is a Principal at BanyanGlobal Family Business Advisors, specializing in family business ownership strategy.

A year ago, family enterprises that wanted to automate governance processes had to buy tools from multiple vendors. Today, vendors assimilate adjacent functionality, turning their point products into full-stack governance platforms. As we enter year-three of the global pandemic, a lot is changing in the family enterprise landscape, presenting a goldmine of opportunity for families to look digitally inward and move the technology needle. Trusted Family’s global community of over 160 family enterprises is at the brink of this opportunity. For them and many other family-owned enterprises across the globe. Nanditha Vijayaraghavan, Head of Marketing & Growth at Trusted Family and Samuel Bruehl, Partner, Generation Transition Advisors share their top predictions to leverage the power of digital governance ecosystems and thrive this year. Prediction 1: Remote collaboration will increase helping to keep the “wind in the sails” of family and shareholder governance The past two years have been challenging for all of us. For owners of family enterprises, the pandemic has put to the test the strength of family unity and the engagement of family owners. Family enterprises have proven to be resilient and agile. To maintain momentum on family and shareholder governance work, technology has been leveraged to communicate, share documents, and make decisions. The experience for most families has been positive. In the past, most work on family and shareholder governance would take place during a small number (usually quarterly) scheduled meetings throughout the year. With the transition to remote meetings and virtual collaboration, we are observing an increase in asynchronous working to maintain momentum on family and shareholder governance initiatives. Family members contributing to these efforts are meeting more frequently remotely for shorter meetings and then working independently on assignments. For example, one Family Council managed a project to establish a family employment and next generation talent development program using an asynchronous collaboration model. They formed two committees to work on each priority remotely. Each committee came together every 2-3 weeks for 6 months to discuss and make decisions on the design of the family employment policy and the talent development program. In-between meetings, family members were given assignments and collaborated online using a data room to share files and working documents. Using this asynchronous model, a project that normally would take a year or more to complete with 4-6 in-person meetings, was in fact completed in 6 months. We are optimistic that in 2022 we will see a return to “normal.” For business-owning families this will be a year to rekindle relationships and family traditions that have helped to maintain family unity across branches and generations in the family. For families with established family and shareholder governance structures and processes, this will mean that important Family Council and Shareholder Council meetings will take place in-person and this is where the big decisions will be made. However, the asynchronous approach to collaboration will continue and this will be an important way for Family Councils and Shareholder Councils to maintain momentum. It will create efficiencies by increasing the speed at which work is completed between meetings. The costs for Council meetings will also be reduced because families will opt for in-person meetings that are high impact but less frequent and for more virtual collaboration between meetings. Prediction 2: Digital centralization of family and shareholder information will be the norm Now that we have all become more comfortable working remotely, we foresee the year 2022 placing greater emphasis and more investment in ensuring family and shareholder information is accessible in one single place. There will be fewer people regularly coming together for in-person meetings, which means all the family and shareholder information that has traditionally been filed and updated in the office will now need to be accessible in a centralized online location. One family specifically invested in an online “Data Room,” which stores all the family and shareholder policies, meeting documents, and personal information on family members. Family members based on their roles can access different parts of the data room. Centralizing the family and shareholder information in this way, has led to greater feeling of transparency across the family, family members feel better informed, and decisions have been made faster because family members can more access necessary documents to review and provide input on to support decision-making. Prediction 3: Business-owning families will up their data security game In our experience, most families still lack sophistication in the way they manage family and shareholder information electronically. Many business families do not have well-defined and established cybersecurity policies and family and shareholder information is managed electronically in an ad-hoc manner. With the increase in asynchronous working and virtual collaboration, families will be investing in cybersecurity technology and trusted information management platforms to provide state-of-the-art data security protection. The Bottom Line: The pandemic has been an essential reminder of the potential of family enterprises, particularly regarding the possibilities stemming from technology. Digitalisation helped many businesses pivot their operations quickly in the past two years which was a wake-up call to many family-owned businesses on the importance of continuing to invest in their information technology infrastructure. Our message is simple: this is the tipping point and now is the time to act. Digitalised governance will become increasingly popular and family enterprises with established digital capabilities will likely fare better than those that are scrambling to keep up. Authors – Nanditha Vijayaraghavan, Head of Marketing & Growth, Trusted Family and Samuel Bruehl, Partner, Generation Transition Advisors

Making a Will is a vital part of any estate planning exercise. Sharing wealth with family and other loved ones in the most tax efficient way possible, is a priority for most people. Their aim is to provide for partners and ensure that children are supported financially to achieve their goals, whether those include buying a property, or starting a family or business. In this article, Anthony Thompson, a Partner in the Private Client team at Forsters shares his thoughts. Given this strong desire to share their wealth, it is concerning that nearly two thirds of adults in the UK do not have a valid Will in place. Statistically, a high proportion of these will continue to have no Will at their death. This means that their estates will be distributed to whichever family member stands in line to benefit under the intestacy rules, and with no choice of who acts as executor. What Happens If You Don’t Have A Will? As an example, if someone dies intestate (without a will) leaving a spouse and children, the spouse will have the right to: Administer the estate. Inherit all the personal belongings. Inherit a legacy of £270,000 and one half of the remaining estate. The balance of the estate will pass to the children in equal shares. This will rarely be the result that the deceased would have chosen. In fact, dying intestate can be the catalyst for serious friction within a family that, in the worst cases, may end in litigation. Every family is different, with unique dynamics between family members that a Will can help to accommodate. A testator may be part of a cohabitating couple, or in a second marriage or civil partnership. There may be children or step-children (or both) with whom they may or may not get on. They may have adopted children or, increasingly, their children may have been born by way of surrogacy, which raises its own inheritance issues. Adult children or step-children, in turn, may be in difficult relationships with spouses, civil partners, boyfriends or girlfriends. It is also worth noting that intestacy can have unfortunate inheritance tax consequences which it may be possible to mitigate with a Will. Why Make A Will? Such complex relationships provide strong reasons for individuals to ensure they have a Will in place. However, even those with more straightforward family arrangements should make a Will to ensure that their spouse, civil partner or other partner, children and members of their wider family, receive the gifts and shares of their estate that they wish to leave, and that the people they wish to administer their estate are appointed to do so. Many people also choose to appoint guardians for their children in their Wills. While this can be a good approach, choice of guardians can sometimes be one of the most difficult decisions for a couple to make. As such, it is important not to hold up signing a Will because this issue remains outstanding. Once guardians are chosen, a separate deed can be drawn up or a couple’s Wills can be updated, whether by making a new Will, or using a separate document, known as a Codicil, which is read as if it was part of the Will itself. Life Events And Other Reasons For Updating A Will There are many reasons for updating a Will. A testator’s choice of executors or guardians may be out of date. They may have changed their mind about legacies; who should benefit or how much they should receive. There may be a statutory reason, for example, where trusts have been set up in a Will that now need to last into the grandchildren’s generation and beyond. Before April 2010, the fixed period a trust could last was limited to 80 years. This has been extended to 125 years, and Wills that pre-date this change should be changed to take advantage of the longer period. Significant life events may affect the validity of an existing Will, or the nature of the legacies within it. Marriage Or Civil Partnership Unless a Will is made expressly in contemplation of marriage or civil partnership, it will be revoked automatically on either of these events taking place. As such, couples getting married or entering into a civil partnership should ensure that they make new Wills or Codicils, either in advance, clearly stating their intention to marry or become civil partners, or as soon as possible following the ceremony. The Arrival Of Children The arrival of children is an exciting, but incredibly busy time. However, it is obviously important to ensure that children are properly provided for in the event of a parent’s untimely death. Many Wills will already include gifts in favour of future children, but even if this is the case, it is important for parents to re-visit their Wills to ensure that such gifts continue to reflect their intentions. Divorce, Second Marriages Or Civil Partnerships And Second Families Divorce or the dissolution of a civil partnership does not invalidate a Will, but instead the Will is read as if the former spouse or civil partner had pre-deceased the testator, and his or her estate passes accordingly. While this may be what the testator would want, that may not always be the case. In any event, it is a good idea to revisit the terms of a Will following a divorce. Once again, any subsequent marriage or civil partnership will invalidate a pre-existing Will unless made in contemplation of this event, so individuals should review their Wills before, or as soon as possible after, getting married. This is particularly important, because consideration will be needed to ensure that legacies take account of any children (or grandchildren) of the previous marriage, as well as the needs of a new family. Updates To Take Account Of Legal Changes Transferable nil rate band: Changes to the law made in October 2007 mean that it is no longer necessary to make specific provision in a Will for the use of the nil rate band (the value of a Testator’s estate which can pass tax-free to any beneficiary, currently £325,000)). This band is now transferable to the estate of the surviving spouse or civil partner in the event that it is not fully utilised on the death of the first to die. When updating their Will, testators may choose to remove a nil rate band trust or other gift where one is included, in favour of a different type of legacy. Residential nil rate band: Another, more recent, nil rate band-related change applies to estates that include a residential property that has been the main residence of the deceased. If this passes to a child or other direct descendant of the deceased, an additional £175,000 “residential nil rate band” may be available (£350,000 if the transferable nil rate band from the other spouse is available). There is a tapering of the relief for estates with a value over £2 million, so this nil rate band will not be available in all circumstances. In most Wills, such a property would be left to a spouse and then to children, or to children directly. However, where this is not the case, testators may wish to revisit their Wills to take advantage of the residential nil rate band where it is available. Trusts – discretionary or life interest: Historically, Wills often included a life interest trust, initially naming the surviving spouse as the life tenant (who would be entitled to the income of the trust during their lifetime) and then for children and grand-children. More recently, following changes made in 2006, such trusts have fewer tax advantages than in the past over discretionary trusts, at least once the surviving spouse or civil partner has died. Consequently, many more Wills nowadays for testators with a significant asset base, are set up as a flexible discretionary trust, rather than a life interest trust. The discretionary trust will name the close family members who are to benefit and will often include a power given to the trustees to add further beneficiaries at a later date. The precise wishes of the testator are set out in an accompanying (but non-binding) side letter just as they can be with a life interest trust. The letter can say whatever the testator wishes in his or her own style. It has no specific legal format and can be updated by the testator at any time to take account of changes in circumstances and without going through the formalities of preparing a new Will. Such a format provides significant flexibility. Testators can provide guidance to the trustees as to how their property should be distributed, or how their business should be run, and by whom. At the same time, the trustees are not bound by these wishes, as they would be by clauses in a Will, and can adapt them to take account of different scenarios as they arise. For example, if a potential beneficiary is in a difficult relationship, or is likely to be divorced, the trustees will be able to monitor how and whether he or she receives income or capital, and consider how best to avoid an inheritance falling within a financial settlement. Where A Discretionary Will Is Not The Solution A discretionary Will may not suit every situation. A couple may prefer more clarity, perhaps because theirs is a second marriage for one or both of them, or they are troubled by the non-binding nature of the side letter. However, where a Will contains a trust, whether it is discretionary or includes a life interest, testators should consider carefully the level of freedom they want to give their executors, trustees and guardians (where relevant) as the ultimate decision-makers. International Considerations Additional considerations apply to individuals with international connections. Anyone who is resident outside England and Wales, but who owns property in this country, or who is resident here with property abroad, should take advice on how best to ensure a smooth succession to their assets wherever they are located. The domicile of the individual concerned may also be relevant. Under the general law of England and Wales, the place where an adult is domiciled may vary during their lifetime. It will depend on whether they retain their domicile of origin (generally where their father was domiciled at the time of their birth) or have acquired a different domicile of choice (the place where they intend to live permanently or indefinitely). This may be relevant in the context of succession to their estate because under the law of England and Wales, the law of the place where property is situated governs the distribution of immovable property (e.g. their residence or commercial property). On the other hand, an individual’s movable property (e.g. cash, bank accounts, shares, works of art etc) passes according to the law of the individual’s domicile at death. For this or other reasons, in some cases, it may be advisable for an individual to have more than one Will, each dealing with property in different jurisdictions. In addition to the legal issues, practically this may help to ensure that such property can be dealt with and distributed as quickly and efficiently as possible following their death. If a testator has more than one Will, care must be taken to ensure that those made in different jurisdictions do not contradict, or even revoke, each other. It is also vital to ensure that the intended gifts can be made under the law of the relevant jurisdiction. Legal advice in each jurisdiction in which property is held should always be taken, whether a local Will is being made, or all property is to pass under a single Will. The full pdf of this article is available to print and download below:

There were a record number of job vacancies in the UK this year centred around environment, social and governance (ESG) – with more anticipated in 2022 according to global recruiter Robert Walters. There have been more than 35,000 new jobs created this year alone around ESG – with the number of people moving into these roles increasing by +7% to now represent upwards of 400,000 professionals in the UK. The heightened focus on ESG comes as the UK presses ahead with its world-leading commitment to reduce its greenhouse-gas emissions to net zero by 2050, in addition to mounting pressure on listed companies to be more transparent around pay and representation at board level. Added to this the Financial Conduct Authority (FCA) recently announced their work with Government to improve transparency and data discrepancy, in a bid to put UK financial services and regulation at the forefront of ESG internationally. All of this is leading to ESG being treated with increasing importance by business leaders, where currently half of the country’s leading firms link executive pay to ESG measures. The findings come from a new report from recruiter Robert Walters: Environment, Social, and Governance: Mindset Over Must. Chris Poole, Managing Director of Robert Walters UK comments: “Right now, businesses are under more scrutiny than ever. Processes, suppliers, materials, and policies often have more of an impact on consumer actions than a finished product. As governments strive to achieve environmental targets, and the choice widens for customers on socially-conscious products and services – ESG will increasingly become more critical for survival, and not just for investment.” “With that the number of ESG roles across the UK has risen sharply this year and will continue to grow as organisations strive to be more ethical, fair and inclusive.” “These roles can sit in HR (+19%), IT (+18%), Marketing (+18%), Finance (+6%), Research (+6%), Legal (+3%) or standalone roles reporting directly to the Board – and will lead to new working practices impacting organisational sustainability and resilience, whilst also building long term value for Stakeholders.” Ticking the box with sustainability: 54% increase in CSR job vacancies when compared to pre-pandemic levels 28% of CSR vacancies is for senior roles – up from 7% A quarter of CSR hires comes from consumer goods industry 51% of professionals state that it is important that their employers CSR-values align with their own Roles relating to corporate social responsibility (CSR) increased by +54% when compared to 2019 pre-pandemic, and by +121% when compared to 2020 – with May 2021 being the second-busiest month on record. Recruitment has also been steadily shifting to senior hires, from 7% of total CSR vacancies in 2019 to 28% in 2021. Not surprisingly the industry where hiring for CSR experts is most prominent is consumer goods and services – which accounts for nearly 23% of all professional vacancies. Chris adds: “Some thought that in a global crisis, ESG targets would be the first to go. However, many companies strengthened their commitment to ESG during the pandemic. The suggestion also that people would care more about jobs and rocketing government debt over, for example, more socially conscious behaviour, appears misplaced.” Companies press ahead with D&I agendas: +32% increase in D&I roles compared to pre-pandemic levels 40% of D&I roles are for senior positions within an organisation 2/3 of fund managers reduce investment in companies that score poorly on D&I 62% of professionals would turn down a job offer from a company with poor D&I initiatives 1 in 5 D&I-related vacancies are advertised by the technology sector D&I-related professional vacancies in the UK have increased by +32% when compared to 2019 pre-pandemic, and by +202% from 2020 – with peak activity taking place in Q4 2020 post the Black Lives Matter protests in the summer. The majority of roles (40%) are for senior positions based in London (52%). The industry with the largest share of D&I-related vacancies is technology, media and telecoms (TMT) – representing 21% of all advertised roles, followed by the public sector/ not-for-profit (19%), and financial services (13%). Robert Walters analysts predict that hiring within this space will continue to increase, particularly when research shows that almost two-thirds of UK fund managers are reducing their investments in companies that score poorly on D&I metrics. Governance high on boardroom agenda: +87% increase in Corporate Governance roles since 2020 1/3 of job roles are for senior positions within an organisation 40% of all Corporate Governance roles is within professional services £430m+ is the cost of Corporate Governance per year in the UK A record number of vacancies for corporate governance roles was recorded in spring/summer this year – with job roles up by +87% from 2020. The UK government has hinted at plans to significantly increase the number of companies subject to stringent governance standards. This news has pushed many in the sector to get on the front foot where the biggest industry for corporate governance vacancies is professional services — responsible for over 40% of all hiring so far in 2021, followed by financial services (21%). Chris adds: “Over the last decade, we have seen a significant shift in the way that businesses approach social responsibility – with ESG making its way rapidly up the priority list. In 2019, the Global Reporting Initiative revealed that 93% of the world’s largest companies by revenue already report on their ESG performance. That these corporations believe it is important to publish their work in this area reflects how central ESG has become to the way some of the larger multi-national corporations have started conducting their businesses.” So why ESG is important from an employment perspective? 1. Reputation: Businesses which are failing to meet the expected ESG performance standards should expect to see a knock-on impact on their reputation. As a workforce strategy, ESG has become a competitive advantage in attracting and retaining talent; numerous studies have shown that, when weighing up potential employers, millennials are hugely influenced by how a business responds to and tackles social issues. 2. Productivity : Companies with a strong ESG and labour relations proposition have better productivity. Addressing the widening gap between executive and workforce pay is also directly linked to productivity. Fairer incentive structures can help drive an inclusive culture and employee engagement, which in turn, can boost productivity. 3. Value : Almost all investors and stakeholders are now alive to ESG performance, and want to see not just short-term plans but also how the core business model incorporates and deals with these issues in the long term. Businesses that do not have an ESG and labour relations agenda will find themselves struggling to find investment from savvy backers, who recognise the need to manage these risks and promote compliance. 4. International standards : Businesses will no longer be able to rely on their geographical location when complying to base level labour laws. There are international frameworks that set out expected employment standards across the world by which non-governmental organisations, investors, other stakeholders and the media are now judging businesses. This includes: the UN Global Compact; the International Labour Organisation Conventions and Declarations; the International Bill of Human Rights and the OECD guidelines. 5. Legal compliance : The ability to investigate ESG breaches and issue fines has significantly increased. For example, gender pay gap reporting is now a legal requirement in the UK for companies with more than 250 employees and similar legislation applies in Ireland, Australia, and California. While the level of penalties varies considerably from country to country, the willingness to impose top-level fines has increased across the board.

The purpose and strategic direction of an organisation lies at the heart of impactful leadership, says Saara Bange, Associate Director at Aalto University Executive Education. Based on the leadership framework at Aalto University Executive Education, Bange says that the knowledge, skills and competencies of an effective leader come down to three key factors; sensemaking and interpreting, adapting and aligning, renewing and growing. A key skill of a leader is to break down information and use it as an aid for decision making – sensemaking and interpretation is key for this as it describes the way we make sense of the world around us. The leader’s task is to ask; What is happening? What will happen? Which beliefs will influence the events? It is necessary to understand and accept that the answers will never be perfect, says Bange. She adds that this imperfection cannot paralyze decision-making and execution which brings us to the second factor; adapting and aligning. This refers to a leader’s ability to adapt activities to the surrounding reality as it is interpreted – the company strategy, context, and events on both a micro and macro level. On an individual level, it means that leaders who are aware of their behavioural styles and ways of making sense of the world can use that knowledge to adapt to the situation. The third skill is renewing and growing – this is both the leader’s personal renewal and the impact on organizational renewal and growth. Bange says that this may require challenging both the leader’s own and the organization’s mindsets. She adds that adapting and aligning involves continual development, whereas renewing and growing refer to a leader’s ability to respond to sporadic, surprising changes in the operating environment. “It is important to remember that leadership never takes place in a vacuum; the organizational and wider context exist along the perimeters of leadership.” “Even the most skilled leader is unable to leave a positive imprint without structures and frameworks that support leadership. The collective capabilities, knowledge, and skills of the organization set the conditions for a leader’s activities,” says Bange. By strengthening these knowledge, skills and individual competences, Bange believes leaders can become more effective and leave their mark – on the team, organization, and surrounding society.

As the UN’s Climate Change Conference of the Parties (COP26) gets underway, HLB has published its 2021 Sustainability report, “Is your strategy sustainable?” This new report outlines a three-step roadmap to help businesses develop their sustainability strategy and explores the technologies that can help at each stage. Many businesses still find it difficult to begin their journey to net-zero. We are at a pivotal moment to take action on climate change, and HLB is dedicated to helping clients develop sustainability strategies for a better future. “Sustainability needs to be baked into your strategy at its core, not as a supplement or an add-on’’ says HLB’s Global Sustainability Advisory Leader Manosij Ganguli. ‘’A sustainable business will be a profitable business that will be around in the long-term. Our new report offers clear guidance for business owners, many of whom know they need to think more sustainably, but don’t know how or where to begin on their journey to net-zero.” The HLB report suggests starting small but with decisive actions and follow HLB’s three-step roadmap: Step one –taking a snapshot of your baseline Step two – targeting a sustainable business model Step three – monitoring and reporting to realise a sustainable vision Within each step of the journey, some practical actions are highlighted to support new strategic objectives, as well as boosting business’s bottom line. It also includes key sustainability and technology questions to help determine a starting point, transform and reshape the business model, and measure and report on progress. You can read the full report below:

There is growing pressure on businesses to play their part in tackling climate change, and an increasing number of companies are making commitments to reduce their greenhouse gas emissions. But how reliable are the data and metrics that companies disclose? Not very, according to voices from financial markets to civil society, who are increasingly raising questions about the quality of the data underpinning corporate climate reporting. Without trust in data, doubts will grow about businesses’ ability to tackle the problem and whether they are delivering on their promises to reduce emissions. Companies, consumers, policymakers and investors all require trustworthy data to make informed decisions on climate change as we ratchet up actions towards global reduction commitments. This paper, published by PwC, explains where the mistrust is coming from, the questions to ask of companies, and the steps that businesses, including family businesses, and others can take to increase the robustness of the data. Download and read the full paper below:

Leading glass packaging company, Croxsons, has made changes to its leadership structure as part of their succession plans. Tim Croxson, currently the company’s COO, has taken up the position of CEO with immediate effect, in place of his father, James Croxson, who steps aside to concentrate more on developing Croxsons’ international concerns. The change of ownership, due to be formalized later in the year, comes after a period of extraordinary growth for the family firm, who celebrate their remarkable 150th anniversary next year. In taking the business forward and increasing its market share, both James and Tim, who represent 4th and 5th generations of the Croxsons family respectively, have enjoyed a fruitful partnership together over the past 20 years. Global sales, has enabled Croxsons to extend its reach and strengthened its brand – a development that was rewarded with a Queen’s Award in 2019 for exceptional progress being made in international growth and exports. Regularly featuring in the Sunday Times Fast Track 200, Croxson has offices in the UK, Australia, New Zealand. USA and Hong Kong. “Having been in the business for over 50 years, I have seen both the packaging industry and my own company change extensively in that time,” said James Croxson, who turned 70 earlier this year. “The company has grown from being wine barrel suppliers and bottle washers in 1872 to now a Global packaging supplier, providing over 50 different countries with millions of bottles, jars, caps and corks. As we approach 150 years of being a family owned business, we are proud of our company, its heritage, its 5 generations, its great team and all its achievements.” “As is the norm in a fast growing SME, I have done every role and have built a great team over the past 50 years, who have been a joy to direct and lead. My main focuses going forward are international sales, continuing to build our international sales teams and giving the next generation some inevitable pearls of wisdom. And like Tim, I look forward to the next chapter in Croxsons’ illustrious history.” Tim Croxson added: “Moving into the CEO seat at Croxsons is really a natural progression for both James and I. Our combined strengths and the team we have built around us, have helped put the company into an incredibly strong position. Alongside the board, we’ve both worked hard to future-proof our offering and be clear on our purpose, thereby ensuring we continue to be relevant for the next 150 years. I look forward immensely to continuing that self-belief, creating value for our customers, and maintaining our uniqueness.”

How can you ensure that your business reflects the character of your family? Could an internal brand be part of the solution? The defining feature of a family business is the family – whether that’s a couple, siblings, or a multi-generational dynasty. Whatever the configuration might be, if you’re going to identify as a family business, you want to be able to see yourself in it. It might sound abstract and impersonal to talk about your family as part of a brand strategy, but ultimately it’s about ensuring that your business reflects who you are. What are you like? What are you passionate about? How do you work out what is most important to you, and embed those priorities in the company? Express What Matters As the Institute for Family Business puts it, “building a compelling family business brand necessarily involves bringing the values that define the company and the family to life.” The first step is to articulate what your values are, and why they should matter to your audience. Family culture is usually unspoken, but you have to be explicit about it if you want to pass it on. That means paying attention to your internal brand – how your employees perceive the company and what they think its characteristics are. Your employees see the workings of your business every day. They know whether it is living up to the rhetoric or not. You’re relying on them to express the company through their work, whether that is in marketing, dealing with partners or suppliers, or workplace culture. They are an audience for the brand, just as much as customers are. And if you are going to be the face of a company, especially one with your name on it, you have to know that your employees see it the same way you do. Pass It Down Family businesses often pass on their brand characteristics informally from one generation to another. For example, Lego began with a woodworker called Ole Kirk Christiansen. He made wooden toys by hand, and when he first moved to machine tooling, he made himself a reminder to maintain the same high standards: he carved the words ‘only the best is good enough’ and hung it on the wall. He expected the same from his son Gotfred when he started in the workshop. When Gotfred sent a shipment of toys with two coats of paint instead of three, Ole told him to bring them back and do it properly. Then he instructed his son to carve the motto out for himself as a reminder of ‘how we do things around here’. That’s what a brand characteristic is: how we do things around here. The difference is that as a company grows and the number of employees expands, the company needs to formalise those values and find new ways to express them. A few decades later, Lego bricks had gone around the world and imitators were beginning to emerge. Gotfred, now in charge, found a new way to articulate that original lesson: “no one must be able to do this better than us”. It set a standard for what was now a diverse workforce across multiple locations, giving them something to aspire to and take pride in. Quality remains one of Lego’s brand characteristics, alongside imagination, creativity, learning, fun, and caring. It was Ole’s grandson, Kjeld Kirk, who formulated those six principles into the brand Lego operates by today. Make It Real Like many typical brand values, ‘quality’ is very generic. What makes it authentic is the way the idea is brought to life and personified by the family story. As you look at how to express your family through the business, look for those stories in your history that demonstrate the principles. Identify iconic moments that demonstrate ‘how we do things around here’, or when key lessons were learned. A story will anchor those principles in employees’ minds, becoming part of company lore. Make sure those stories are illustrative and not prescriptive. There should be enough flexibility for the business to interpret their values in new ways and adapt without losing integrity. Try to demonstrate those principles through the founding family in visible ways. Use reminders to keep those characteristics in mind – your own equivalent of carving them and hanging them on the wall. Keep running your processes and business decisions past that brand framework to make sure that you are living up to what you think is important. Developing an internal brand for a family business takes time and investment, but it can be an inspiring project. In our branding work, we’ve seen many businesses reinvigorated by the process of working out their key characteristics and embedding them in an employee brand. It can create unity, pride, and a new sense of purpose.

Some companies use their status as a family business as part of their brand, while others choose not to. What are the advantages of a family business brand? And is it something you could consider? Michael Gough explains more. 85% of all companies in Britain are family businesses – owned by one or more members of a single family. They employ half of all private-sector employees, making them a vital part of the economy. But you won’t always recognise a family firm when you see it. Foreground And Background Families Take Mary and Doug Perkins. The opticians they founded in 1984 was the first to feature a showroom, and following changes to UK regulation, the first to brand itself and advertise. Specsavers now has 1,978 stores across ten countries. It is still owned by its husband and wife founders, and all three of their children work for the company. It’s a quintessential family business, but you wouldn’t know it from the branding. Others put the family front and centre. Warburton’s have the words ‘family bakers’ in their logo. Their tagline, ‘from our family to yours’, appears in adverts and on the packaging. You can’t miss the fact that Britain’s biggest bread company is a family business. They really want their customers to know that there have been five generations of Warburton’s bakers. It’s central to their brand proposition. Why do some family businesses use it in their branding and others don’t? And what are the benefits of using the family connection? Positive Connotations Research shows that people have very positive impressions of family business, and that highlighting family ownership can be a valuable aspect of a brand. People associate them with trustworthiness and social responsibility. The family connection also has connotations of quality and a focus on customers. It’s not hard to see why. ‘Family’ is a positive word in the English language. It suggests that there are real people behind a company – people who get up and go to work and care about what they do. It gives the business a human face, and that helps to build trust and rapport. Even though you are unlikely to ever meet them as a customer, there is a sense of relationship there, a friendliness and approachability. For multi-generation family businesses, there are the added benefits of longevity, family history, and expertise passed down. In some cases, such as the investment and banking services of Rothschild & Co, there are centuries of tradition to draw on. The value of that heritage is incalculable, provided it can be successfully communicated. Staying true to tradition and adapting to changing markets is an ongoing balancing act for older firms. Plenty of family businesses have faltered by failing to stay relevant, and the strength of longevity became a weakness. That’s one of the reasons we recommend brand reviews and audience surveys from time to time. Emphasise With Care Building a successful brand takes strategy and application. There’s nothing automatic about sticking ‘a family business’ on your letterhead. Neither do you need to roll out the founding family all the time. There’s a balance to strike, incorporating the family into the way that you talk about the business, highlighting it when it’s helpful, and making it part of the origin story. An outside perspective will help to get this balance right, and as a branding agency a large part of what we do is helping clients to focus in on their strengths and distinctives. The family and its story may be one of those things. If you’re a family business, your customers may value that about you. It could help to build a connection with new customers, giving them a sense of who you are and what you stand for. It’s an advantage that you might not be tapping into at the moment. Could you be doing more to highlight it? A good first step would be to research it with your audiences. We ran a survey as part of our work on rebranding the property developer Thornsett. We discovered that their clients and investors really valued the company’s family bond, something the directors had assumed was irrelevant. You don’t know until you ask. About the Author - Michael Gough is the Strategy Director and co-founder of the brand and design agency Sparks Studio. He helps established businesses with rich histories and complexity to re-establish their relevance, to connect with changing audiences and express what matters now. He also hosts the podcast Why It Matters, a series of conversations with leaders who are passionate about something that is at risk of being overlooked.

Oxenwood was established in 2014 by Charlie Alexander, a former corporate lawyer with a passion for design, not far from the family home on the Wiltshire/Hampshire borders. After the family moved from London to Wiltshire, Charlie spent over two years looking in vain for an original outdoor table that would sit perfectly at the heart of their newly designed garden. There was simply nothing available that was original, robust, low maintenance and sensibly priced. Charlie realised that the choice of original luxury garden furniture available to customers was limited and, so, Oxenwood was born. Oxenwood is a brand with Charlie’s family at the heart of it and with the support of Charlie’s wife, Camilla, he focused on developing a range of original, durable and robust furniture. Charlie wanted to create furniture which, whilst elegant and functional, would provide a focal point of its own in the garden. The range firstly focused on outdoor furniture, then expanded quickly into indoor furniture and now extends to Oxenwood’s outdoor kitchens. Paul Andrews spoke to Oxenwood’s founder Charlie Alexander to find out more about his family business journey. When was the business founded? Oxenwood was founded in 2014 in Andover. Tell me a little about the history of the business and why it was started? I had been a successful City lawyer for 25 years and wanted to find a second career that was markedly different from my legal career; one that would use and test different skill sets. My wife Camilla and I were on holiday in France and one evening at dusk we were in a hotel garden with beautiful outdoor furniture and it struck me that British outdoor furniture was generally one dimensional and the seed was sown. After a detailed research process I identified a gap in the outdoor furniture market and Oxenwood was born; although at that point the hard work really began! Are there any other family members working in the business? My wife, Camilla, is a highly successful lawyer (and is still lawyering). We have four children who are at various stages of education, however, they often work in the business during their school/university holidays and always enjoy working The Chelsea Flower Show! What was your journey into the family business and what do you do now? Although my legal career did train me in some essential skill sets such as attention to detail and marketing, Oxenwood was a journey into the unknown but it was critical to me that Oxenwood remained a family company where the business’ ethos and priorities could be reflective of the family’s values and priorities. I have been involved in every aspect of the business so that I can understand the whole business from top to bottom, however, now that the business is semi-mature, I am 90% office based and dealing with clients, which is the best bit. What values are important to the family and the business? Doing the right thing not the expedient thing. Exceptional client service. Sustainability – we are constantly looking at our processes to see how we can improve our sustainability. Giving something back – we support Rewilding Britain and are a member of 1%for the Planet. As a family business creating a business with an appropriate value system is simpler than a large law firm! Do you build the family ownership into the marketing and brand narrative and if so, how? Yes we see family ownership as central to the Oxenwood brand and story. Family is central to our website and our digital media presence. Importantly, we are not and do not plan to be a large business; our objective is to grow but within parameters so we can retain the benefits of being a personable and flexible business making wonderful furniture. What do you think makes working in a family business special? Being able to forge a business which is truly reflective of the family’s values and one in which the whole family is involved/interested. Have you taken any particular steps to help protect the business for the future? The business is 100% owned by the family – succession planning is for the future! What advice would you give to anyone in the next generation considering joining their family firm? Having a family business is more than a job, it is 24/7 and 365 – the buck always stops with you. Being open to ideas from all members of the family no matter how young and to take care of family relationships – you cannot treat them as a business relationship – it is family which always takes priority. Lastly, listening. Visit their website here to find out more

In a post-pandemic world, many new opportunities and challenges lie ahead for family-owned businesses and business families. Recent research conducted by the STEP Project Global Consortium in collaboration with KPMG Private Enterprise “Mastering a Comeback: How family businesses are triumphing over COVID-19” highlighted the unique characteristics and competitive advantages of family businesses, and how those have put them at the forefront of economic recovery around the world. Not the least of these unique characteristics is the powerful impact of multi-generational family involvement. There is no question that COVID-19 presented historic social, environmental and financial challenges and opportunities. And in our research, we found that businesses with multiple generations in the firm were 45 percent more likely to implement a business transformation strategy than single-generation family firms. As family members across the generations came together to deal with swiftly accelerating challenges and opportunities, there was a realization that the transformation of the business itself was needed. It has been my experience that this has opened important conversations within families to ensure that the right leadership is in place to deal with what will likely continue to be a volatile, complex and ambiguous business and social environment for the foreseeable future. Several trends that were an outcome of the pandemic are not likely to abate: digital transformation and the adoption of new technology; streamlined operating practices; rapidly increasing attention to environmental, social and governance (ESG) issues; and greater appreciation for the influence and decision-making power of the customer and the need to find better ways to connect with customers and suppliers. Without question, the pandemic has been transformative. And I believe it has provided an exceptional opportunity to leverage family business-style relationships to transform the current business model and guide the family and the business forward for even greater competitive advantage. Who will navigate the transformation? Throughout the months of the pandemic, I experienced many family businesses that worked collaboratively across multiple generations of the family to make change happen – and to do it with speed. Not only did younger members of the family search for better answers and uncover new opportunities, they also used their influence to encourage a whole new approach for tackling the reality of the changes and leading the business in new directions. As days and months went by, it became increasingly evident that many younger-generation family members have the progressive ideas that are going to be important and relevant to respond successfully to a continued acceleration in market changes. What mechanisms will need to be in place to recognize the trends and opportunities as they arise and keep bringing fresh ideas to the surface? Increasingly, the answer to this question is leading to critical (and sometimes challenging) conversations among families about the need for a new leadership approach. What’s on the transformation agenda? In recent conversations with business families, many are closely examining the efficiency of their operating processes, looking for ways to access new market channels, and searching for better ways to connect with customers and suppliers to create a sustainable future. As their focus on addressing environmental, social and governance issues intensifies, they are making important decisions about the most critical aspects of their ESG strategy and the associated investment priorities – from ensuring an ethical supply chain, to de-carbonization, access to sustainable finance or satisfying customer choice. I believe that family businesses will continue to outperform others by adopting specific leadership styles and approaches that continuously reinvigorate their firms. Increasing the diversity of decision-making within the family, creating innovative solutions, leveraging the power of digital technology and getting on the front foot of the ESG agenda, will not only strengthen the financial performance of their businesses, but satisfy the non-financial goals of the family as well.