Family businesses should trust in next generation leaders to thrive in digital age according to the latest research. Family business NextGens view themselves as agents of change for digital transformation but are looking for greater support and trust from current generation leaders, according to a new report by PwC. PwC’s Global NextGen Survey 2019 has found that a majority of NextGens are already deeply engaged in the family enterprise, with nearly half (48%) reporting that they already run significant internal operations. A quarter (26%) are already in an executive director position. This level of engagement is also matched by future ambitions to lead, with 41% seeking an executive director role within the next five years and nearly a third (29%) looking to be a majority shareholder. Confidence is also high amongst NextGens about the value they can bring in terms of skills. Over two-thirds of respondents see their strongest attributes (problem-solving and leadership) to be essential skills in the future business landscape. 64% say they can add value to ensure future business strategy is fit for the digital age. Peter Englisch, Global Family Business Leader, PwC Germany says, ‘The survey findings highlight the positive news that NextGens are ambitious and deeply committed to the family business. They see a clear role in securing the family legacy in an age of profound disruption and transformation. Yet they also see themselves as being held back and frustrated by a lack of opportunity.” ‘We should recognise, however, that these frustrations are realistic and pragmatic. What NextGens are looking for is support in terms of developing the expertise and experience they need to succeed. Their view can be summed up as: “Help me unlock my potential so I can gain the skills and experience I will need to take on the leadership roles I aspire to.” “They are a diverse group in terms of their needs and ambitions. NextGens require an approach that is built around understanding their needs and ambitions and this survey provides an important guide to the next steps they should take.” The survey identifies four key personas of NextGens, based on their views of their skills, contributions and career goals. These personas are: 1 - Transformers: Self-confident future leaders (46% of respondents) Transformers aim to lead change in the family business and are more likely to aspire to executive roles within five years (56% of transformers said this vs. 41% of all 956 respondents) 2 - Stewards: Keeping to tradition and existing networks (26% of respondents) Stewards are more likely to be over 35 than other NextGens (42% vs. 36% of all respondents) and to be in a management role (44% vs. 39% of all respondents). 3 - Intrapreneurs: Proving yourselves by running ventures under the family’s wing (20% of respondents) Intrapreneurs are more likely to feel the need to prove yourself before presenting ideas for change (27% vs. 21% of all respondents). 4 - Entrepreneurs: Following your own path outside the family business (8% of respondents) Entrepreneurs are less likely to see themselves as future leaders of the family business — though they want to lead their own business — and are more likely to aspire to a governance role in the family business (for example, on the family council). The survey provides specific guidance for each persona in how they should approach their professional development. Vicki Huff Eckert, US and global leader, PwC New Ventures says, “It’s vital to understand the importance of a cross-generational approach. In some family businesses, there may be up to five generations all working together in one company. Each generation tends to have characteristics that can clash with those around them — but they also have insights, experiences and skills that can benefit the business.” “Weaving in the best traits from each generation — knowing when to let the young take the lead and when to rein them in — can make the difference between simply surviving and passing on a thriving enterprise to the next generation.”

Jonathan Gallagher, the youngest of three Gallagher brothers, founded Easigrass more than three decades ago and the business continues to go from strength to strength. A former tennis coach, Jonathan played on a variety of different sporting surfaces throughout the 1980s. Jonathan’s experience on the grounds on which he taught and played led him to realise there was a gap in the market for providing maintenance of these surfaces. He soon went on to set up a maintenance company, which within no time had expanded to re-surfacing services for tennis courts in the UK. Business grew rapidly, and Jonathan soon established an excellent reputation of his business in the tennis court industry. There was major development within the sports surface industry at the time, with the introduction of artificial grass. Jonathan identified this as an opportunity to explore, and so passed on the reins of the maintenance side of the business to his eldest brother, Timothy, in order to focus his attention on artificial grass development. Timothy Gallagher has since built up one of the leading sports maintenance businesses in the UK, and continues to maintain surfaces for Jonathan’s old clients, as well as a growing customer base which includes local authorities, universities, colleges and schools. Jonathan moved on to work closely with all the leading European artificial grass manufacturers in order to learn all the techniques and installation processes of supplying and fitting this new product. He then spent ten years travelling across the UK and abroad, fitting installations to perfect this skill and gain invaluable experience. His work took him beyond the tennis market, with developments in other sports such as soccer, hockey and rugby. Easigrass now installs FIFA, IRB and FIH approved fields throughout the world. Jonathan seized the opportunity to add artificial grass to his expanding enterprise and worked very closely with all leading European fake grass manufacturers, learning all the techniques and installation processes. He focused on perfecting these installation procedures and gained huge experience working with all the leading manufacturers over the following ten years throughout the UK and abroad. Ten years ago Jonathan’s second-eldest brother, Anthony, joined the Easigrass team. Anthony Gallagher brought together many years of experience in sales, construction and marketing. This was at a time when the only grass available for domestic setting installation was the same type and style as that was being fitted on sports fields. Anthony saw the opportunity to introduce a product, which would closely resemble real grass. He was the first person in the UK to introduce dead grass infill into artificial grass to give the product a more authentic and natural look. Securing the TM on the brand, as well as European patent on the iconic grass-covered Smart car, Anthony also became the first to gain entry into judged garden competition with artificial grass at the RHS Chelsea Flower Show in 2010. Easigrass was awarded Silver Guilt for its show garden in the first year. In 2012 a determined Anthony entered an Easigrass garden in the prestigious competition again and was rewarded with the highest accolade in the garden world by winning a Gold Medal. Easigrass is extremely proud to be the first and only artificial grass company to be awarded gold by the Royal Horticultural Society. “This is a measure of how perfect our craftsmanship is,” Anthony explained on winning the award in 2012. “We are delighted to be recognised as a quality company by independent assessors who are held in the highest regard within the horticultural world.” The mass exposure of Easigrass and its products as a result of its incredible success generated a vast number of enquiries from around the UK and abroad. The Easigrass National Franchise Network was established to meet demand, which became too great for the central London office to meet on its own. In the following five years, Anthony secured a 30-strong franchise network in Britain. This ensured customers received the same level of experience, knowledge, skill and professionalism as they had from the headquarters in London. As part of its franchise plan, Easigrass trains all partners in the latest techniques of quality synthetic grass installation where products are designed to last. As well as having a franchise network here in the UK, Easigrass is delighted to have established an International partner network with partners situated in South Africa, the United Arab Emirates, the Balearic Islands, Ireland and New Zealand. As part of a continued drive and commitment to quality, Easigrass fit sports installations internationally. The company has a specifically dedicated group of technicians who can be dispatched anywhere in the world to install domestic grass. Always looking to expand its network, Easigrass has firmly proven itself as one of world’s leading artificial landscape providers. Easigrass is the most recognised and trusted brand within the industry and like other successful family firms has innovation at its core. Add to the product the desire to establish Easigrass as a household name, a great network supported by the vision, drive and passion of the family, it is no wonder that Easigrass is going from strength to strength. Visit www.easigrass.com to find out more

Glossop Cartons is one of the UK’s leading manufacturers of carton board packaging products. Paul Andrews met the sisters behind this successful family firm to find out more. As one of the UK’s leading manufacturers of carton board packaging products, Glossop Cartons’ innovation, quality, service and investment in the latest technology has seen it grow from a humble start-up in 1982 to a thriving industry leader holding a strong customer base of leading household names. They recognise that service and flexibility are the essential pre-requisites in meeting the requirements of major multiple retailers, and as such, they have continuously invested in systems and processes that benefit their customer needs, such as quick lead times and the ability for their packaging to stand out from the crowd. Glossop Cartons differentiates in its industry by being very customer-focused, trying to understand the issues its customers face and coming up with effective packaging solutions to resolve those issues. Joint Managing Director, Jacky Sidebottom-Every has been involved with the business since it was established by her father back in 1982 along with Jacky’s then boyfriend, now husband Brian and one of her sisters, Jill. Fourteen months after the business was started her father died suddenly and they were very much thrown in at the deep end. Jacky’s other sister, Vicky was still at school at the time is Marketing and Commercial Manager for the business. As she explains, “It was a difficult time for us as Dad passed away unexpectedly and the business had not been going very long at all. We had some difficult decisions to make, not least Mum possibly having to leave the family home as it had been the security for the bank and we had to work fast. Friends introduced us to a manager at Barclays and that was essentially the starting point for our future. We had monthly meetings and he was a real asset to the business – a mentor to me as well as helping us to get to grips with actually running a business and helping us through those tricky times.” At the start they made some big decisions, not least the move into new premises with just £10,000 of working capital and learning as they went. “It was certainly not easy as the new building was old, cold and damp and the money was soon spent on introducing three phase electrical supply in order to run the machines and heat the business,” adds Jacky. However, like many successful family firms this was a family that was driven to succeed and were building something as a legacy to the father that had created it, looking to make it a success and continuing to invest in learning and development to ensure that not only could they compete commercially but offer clear solutions to customers in what is an incredibly competitive sector. As a family business the years have come and gone, some better than others, but as a business industry knowledge has continued to grow and they have continually invested in new technology to increase productivity. They have also become more ambitious as the years passed and in 2010 undertook their first acquisition which was an asset, goodwill and sales ledger purchase from the administrator, of another packaging company. This was followed in November 2015 by purchasing another business which this time included the purchase of the other companies’ buildings and retention of most staff which resulted in two businesses with different histories and cultures coming together. As Vicky explains, “Bringing together two businesses in terms of people and culture is a challenge but over time the workforce has become one and we now working to a set of core values and solid family foundations too which is certainly helping.” Glossop Cartons have grown to become a business that succeeds based on quality, service and value, responding to customer needs in an ever changing economic and ecological environment, not to mention the prevailing air of economic uncertainty, and providing real packaging solutions is what they do best. Award recognition is testament to their success too, winning major awards for packaging solutions that are world class and in part due to their investment in new, innovative equipment that enables bespoke packaging and cartons to be manufactured with intricate designs, cutting and folding too. Many of us live in a world surrounded by cartons and packaging on a daily basis but few of us will ever appreciate the time, effort and detail that goes into creating a carton unless they experience the opportunity to visit a carton manufacturer. It is a truly precise business with state-of-the-art equipment and machinery involved, folding and gluing cartons that can then be stored flat and transported on pallets to customers to pack as required. The family are involved too, making sure that they are visible to staff and customers alike, something that Jacky truly believes sets them apart from the competition. “We are a family business and do like to develop the “right” relationships with our clients and in many cases our customers want access to senior management, this helps with trust and some of our customers are also family owned, there is a real understanding of the importance of family values, a strong bond and being able to have clear lines of communication too,” adds Jacky. “And it is by bringing these family values, principles and morals to work that has enabled us to grow the business.” “Honesty, integrity and a desire to do the right thing are key, and we need our customers to trust us to deliver each and every time too,” she adds. As with all businesses there are some challenges and one of the biggest challenges for Glossop Cartons is attracting and retaining the staff they need. As Jacky continues, “It is a challenge to find the right skills that we need and our industry is compromised because skills have not been replaced over time, commitment and the need to want a long-term career is less common these days and people move on more frequently,” she adds. “We have five vacancies currently and it takes a lot of time and investment to search and find suitable applicants and then to induct and train them when they start too,” she continues. Being involved with the local community is important and the team regularly visit schools and colleges to talk about the business and the sector as a whole, highlighting some of the opportunities that are available to the next generation and hopefully creating interest in businesses like theirs too. “It is important to take the time out to talk about the packaging sector,” explains Jacky, “and the opportunities that it offers too. Community is important to us as a business and we like to be involved.” Jacky is on the board of the British Printing Industries Federation, and their schools initiative supports the BPIF’s goal of promoting careers in the sector. ”We believe educational partnerships are a great way of supporting our local community, keeping youngsters fully informed on all the opportunities available to them as they make their next steps after leaving school. Deciding on a career path can be a difficult task and we need to do our bit to help with the process too.” The family firm has been on a journey since those early days and despite the early hurdles has succeeded where many others have failed, the family ethos, strength and desire to succeed had created a great business that is now leading the way, a business that their father would surely be incredibly proud of. As Jacky concludes, “we have never taken major risks and our decisions are measured and well thought through, but this, together with our solid family footing has created a platform for us to grow. We have come a long way and the journey continues but we are still fresh and innovative, forward thinking, continually investing and looking at the future path and development that packaging needs and relishing the journey that lies ahead, whatever that bring in the way of new machines or further acquisitions.” To find out more please visit www.glossopcartons.co.uk

William Santus and Company have been making a variety of sweets for over 100 years. Paul Andrews visited them in Wigan to find out more. Their survival may be surprising in itself but what is more remarkable is the legendary status that has surrounded their ‘Uncle Joe’s Mint Balls.’ These sweets have been immortalised in countless articles, cartoons and poems and there has even been a song written about them and they are synonymous with Wigan, the town of their production. Uncle Joe’s Mint Balls is a privately owned family business that was established in England in 1898 by William Santus. Ownership has passed down through generations of the family and is currently owned by John and Antony Winnard, William’s great nephews. They are joint MD’s of the business now but entry into the business can certainly not be described as straight-forward. John and Antony both have early memories of working in the factory for their father who they describe as a hard task masker, carrying 50kg bags of sugar, making lollipop boxes. There was even a two year stint for a fellow confectionery business in Bolton filling licorice tubes with sherbet! As John explains, “it was all character building stuff and eventually we registered to undertake a City & Guilds course in Sugar Baking with the caveat that should the fail to pass the exams, there would be no place for us in the business!” Clearly things worked out well as 42 years on and they are both still actively involved in the business. Sadly, their father passed away at the age of just 55 back in 1990 and from that on their futures were set. John became responsible for the external face of the business, sales and marketing whilst Antony took responsibility for everything to do with the factory, a delineation of roles and responsibilities that has served them well over the years. “Of course we discuss things and have been known to disagree but we always work things out,” adds Antony, “and we have lots of friends in good businesses locally that we can sound ideas off and canvass for input into decisions too.” John agrees, adding that “we know how the other works and where boundaries lie and that works well for us too.” Uncle Joe’s Mint Balls are still manufactured using the same traditional methods as when Mrs Santus originally made the sweets in her kitchen back in 1898. The completely natural ‘secret recipe’ has been passed down through the generations and today, the sweets still contain no artificial colours, are gluten free and suitable for the vegan and vegetarian markets. Today, the sweets are produced in the same, careful manner as they were all those years ago, over gas fires and hand-made. The craftsmanship is apparent as you walk around the factory and the team are very skilled in what they do. As John explains, “we are a small business with a small but incredibly loyal and dedicated team. We work hard and have employed a flexible working matrix so when things are quiet people can take extra time off although we are committed to a 34 hour week as minimum. The business is seasonal so we tend to work more hours in the winter months and not work Friday’s during the summer. It works for the business and is great for the staff who get time off during the warmer months to spend more time with their families as well.” Over the years the brand has grown and it is the desire of the current generation to continue to grow and to increase the availability of Uncle Joe’s products to consumers in the UK and overseas. Running next to the Mint Balls’ proposition is the Uncle Joe’s Favourites range which helps to supplement and augment their position in the market place. Antony and John are agreed on the way forward, to continue to build a long term and sustainable brand within the sugar confectionery product category. They appreciate that it is not an easy challenge but relish the future and enjoy special moments as and when they happen. As Antony explains, “one of our proudest achievements is the fact that we have made it successfully to the fourth generation and beaten the odds, unlike many other family firms that have fallen by the wayside, and to be over 100 years old as a family manufacturing business is something that we are rightly proud of.” John agrees, adding that “We are also immensely proud of the recent visit from Prince Charles, not only reflecting on the 100 year anniversary of us being in the current factory but also the recognition of surviving as a fourth generation family firm. It was a truly great moment for us and one that cemented our pride and place as an ambassador for Wigan too.” The business has been on quite a journey since they took over the mantle following the death of their father. John explains that “we had to really change the fortunes of the business because when we took control of the Company it was making a trading loss. It has been challenging at times but our staff have always been, and are, great , and an integral part of what makes this business what it is today.” Today Antony and John employ local people and produce a product that can be found in many corners of the globe. As they continue, “How many Wiganers at the turn of the century could ever have imagined that the delicious minty sweets they enjoyed would become legendary, not just locally but worldwide, a real symbol of Wigan around the world?” “This really does fill us with a deep sense of pride, borne from our family and a traditional recipe and we look forward to what the future holds,” continues John. “There is currently no next generation in the business but they have worked here and are now off following their own careers and dreams,” adds Antony, “and although we would love one of them to get involved in due course, we will have to see what the future holds in terms of succession at a later date.” For now the focus is on the business with continuing investment in machinery and processes to drive the business forward. Who knows what the ‘wonders of Wigan’ have in store… To find out more please visit www.uncle-joes.com

Paul Andrews met the team behind Robertson to understand more about the family business, its values and their plans for the future. Robertson is one of the UK’s largest independently owned construction, infrastructure and support services groups. It’s products and services span the entire built environment lifecycle and sees the Group operate throughout the UK with offices across Scotland, the North of England and the Midlands. Bill Robertson who left school at 15 to become an apprentice joiner, was one of 9 children. His father had previously employed him and his brother in his own joinery business but sadly died at the age of 57. The remarkable history of Robertson began in 1966 when Bill founded his own modest joinery firm at the age of 21 in Elgin in the North of Scotland. ‘Robertsons of Elgin’ was born. Bill employed his brother Bobby as his one employee and set about growing the business. Bill was entrepreneurial and through innovation, productivity and sustainable growth strategies transformed the business into what today is one of the UK’s largest privately-owned construction, infrastructure and support services groups that comprises 22 businesses and employs over 3,000 staff. Robertson is a diversified group of businesses with expertise in construction, facilities management, house building for the private and affordable markets, investment, property development, civil engineering, energy services, building services, regeneration and asset management serving both the public and private sectors. As Bill explains, “More than 50 years ago, I started a small joinery business in Elgin. As the years moved on I wanted to create a multi-trades business that would service the area around my home town. Now, with a comprehensive range of business units, over 3,000 employees and offices from Inverness to Sheffield, you can safely say that we have exceeded this…and then some.” “The geography we cover is much wider than I could ever have imagined when I set up the business at the age of 21. This is a fantastic achievement that wouldn’t have been possible without our loyal employees, new and old, and our excellent relationships with clients and partners.” As an entrepreneur and business owner, Bill remains Executive Chairman and today, at the age of 73 remains actively involved too. Bill’s strategy of creating a broad range of businesses that are run as separate, fully resourced entities has ensured strong growth, value creation and career opportunities, and has led to the comprehensive group of well-run companies that exists today. With management teams and a professional structure, defined roles and responsibilities and an underlying set of clearly communicated values and a vision for the future, it is easy to understand how the business has grown and become the success that it is today. In terms of family, the business is currently transitioning to the second generation in order to fulfil one of Bill’s key objectives, to focus on succession and the longevity of the business for future generations of the broader Robertson ‘family.’ Elliot Robertson is now Chief Operating Officer of Robertson Group and as a former MD of Robertson Homes, his role as COO is to lead strategic development. Elliot has over 23 years of experience in real estate development and regeneration and his goal is success as a business under family ownership for the next 50 years. This is a family business built on solid foundations. As well as looking to the next generation to lead the business the family retains ownership and is setting the strategic direction based on the strong, underlying family values that have been present since the business started. This is a business where people matter. Many firms make this claim but at Robertson it can be felt from the top down. Bill is immensely proud of his business and reaching 3,000 employees is a major achievement. For Bill, creating the environment for people to flourish and reach their potential is key, something that he is incredibly passionate about. As part of their success Robertson has been instrumental in delivering outstanding projects such as the award-winning Macallan Distillery & Visitor Experience in Aberlour, Spanish City in Whitley Bay, and many other high-profile projects across the UK. Robertson’s place on a number of major construction procurement frameworks has put the business in a good position to help clients deliver essential, cost effective and high-quality social infrastructure. In the private sector they have developed key strengths in the food and drink, commercial, tourism and leisure, and retail sectors, enjoying high levels of repeat business from world-renowned brands and family businesses alike. Additionally, Robertson has a strong history of working with the public sector, with particular expertise in healthcare, education, regeneration and affordable housing. So what are the keys to the success of Robertson? Robertson has, from day one under the direction of Bill, employed a straight forward approach – effective costing, pricing and risk management in a sector where there are often lots of unknowns, this policy has stood the test of time. As Bill reiterates, “We need to understand what it will cost to do the work and what are we going to be paid for doing it.” The business is meticulous in the diligence undertaken before each and every project identifying and determining budgets and making sure that it always delivers the best possible result. This is backed up by empowered individuals with responsibility and pride in what they do, underpinned by a strong entrepreneurial culture that is built on the foundations of innovation, productivity and sustainability. Family firms are special and have unique characteristics that can provide the right environment for employees to flourish. At Robertson these traits include the speed of decision making, the values of the family within the business and shared goals supported by a framework that encourages open and honest communication based around the pillars of people, process, productivity and profitability. This family firm has come a long way since it was founded in 1966 and is a truly transformational business, something that is of immense importance to the team. As Bill explains, “Clients trust us, partly because as a family they have direct access to the management team and clients crave certainty. We deliver, and we demonstrate trust in all that we do. We bring lasting value to the communities we serve and work tirelessly within these communities to engage with local schools, community groups and occupiers to create real benefits in the long term. In the last year alone, we have engaged with more than 12,000 young people in a range of specially designed activities and events aimed at inspiring the next generation of construction professionals. Our commitment in this area emphasises our awareness of the need for the private sector to help re-energise local communities.” Robertson is an exceptional family business, delivering solid financial performance, providing excellent career opportunities within all aspects of the construction industry, driving growth through innovation and continually demonstrating a determination to succeed. The business is and will remain family owned, focused on long term growth to create a successful business for its employees and clients for the next 50 years and beyond. The final word has to go to Bill who above all is passionate about the next generation of people driving Robertson on the next leg of their remarkable journey. “Our apprentices and the youth in the business are amazing. When I started Robertson, I wanted to create opportunities for people to work. I began life ‘on the tools’ and know what it is like to work hard and strive to provide for a family and the people within Robertson reflect that desire too. I am proud of the business that has grown from Elgin to become what it is today with our team. I cannot guarantee that I’ll be here in 50 years, but I do know that Robertson will be.” Family Business United visited Robertson as part of the 2019 Family Business Road Trip. Find out more about Roberston by visiting their website www.robertson.co.uk

The festive season is nearly upon us and a focal point for many homes is the Christmas Tree. Paul Andrews spoke to the second generation of Sholach Christmas Trees to find out more. As Kelly McKintyre explains, “The McIntyre family have farmed at Wester Essendy for around 100 years. William McIntyre bought the Sholach in 1995, adding to the land he had inherited from his father. Following the raspberry growing history of the family he diversified into growing Christmas Trees in 1992 and ran the business with his wife Jean.” “We are an established family run business based near Blairgowrie, Perthshire and have been selling Nordmann Fir and Norway Spruce direct to the public and via wholesale partners for over twenty years.” Until 2012 the business had been Willie’s concern but things changed dramatically with his death that year. Following his death, the family, Jean and their son Willie and daughters Sarah and Kelly came together and took the collective decision to continue the growth and sale of Christmas Trees as a legacy to him with the trees being grown in Scotland on the family plantation and being sold locally as well as through the family connections in London. As Kelly adds, “The first few years were a struggle. We didn’t have enough mature trees so we had to plant more small trees. It was a huge learning curve as we had to learn how to grow and tend the trees and at that time we only selling via the wholesale route and the business was not making financial sense.” “As a next generation we have all lived in London at some point in our lives but my siblings, Sarah and Willie, have lived there for nearly 20 years. It was Willie who came up with the plan to ‘miss the middleman’ and sell directly to the public in London last year and we added the direct to public sales side to the wholesale business.” Living in Crystal Palace Willie found a great pitch at Crystal Palace Park and as a result of offering a tree in a local pub, they secured a pitch in Tooting and the supply to their pub chain. This was a turning point for the business. As Kelly explains, “Off we trundled with an artic lorry full of trees and Sholach Christmas trees London was born. It was scary! It was a new venture and we invested a large amount of time, energy and money into the planning and execution of it. Thankfully all the hard work has paid off but we still have a long way to go!” As a family firm business revolves around the wholesale of trees locally in Blairgowrie and Perth together with the pop-up shops at Crystal Palace Park and the Graveney and Meadow in Tooting, London. Kelly is justifiably proud of their achievements which are made all the more real by the fact that the siblings all have other ‘day jobs’ besides working in the family business. “It’s a real family affair. My mum, Jean, does the finance and accounting side of thing whilst I do the social media, website and photography as well as running the Crystal Palace site. Willie does the management and works on the trees and general logistics of everything from London.” The nest generation, G3 are also getting used to roles in the family firm because since leaving school, Kelly’s son, Conall has started seasonal work and as well as having a job with an accountancy firm in London her nephew helps out distributing marketing fliers and putting up banners.” Sister Sarah helps out after her work in London and so do friends and family. Firm favourites are the Norway Spruce, ‘The Traditional Christmas Tree’ which is back in fashion and provides the classic smell and memories of Christmas Past so if you’re ‘pining’ for the nostalgia of Christmas past this is the tree for you. Overwhelmingly the most popular choice is the Nordman Fir, the non-needle-drop-variety that has a fine symmetrical, pyramid shape and strong branches. It’s big, glossy green needles are soft to touch, and it is often the tree of choice for all the family to decorate. Sholach Christmas Trees embodies the very essence of what being a family firm represents. Commitment, shared vision and strong values at their core with a next generation demonstrating real purpose and desire to continue a legacy in memory of their father. As Kelly concludes, “It’s hard work running a family business the way we choose to do so as we all have our ‘day’ jobs but we’re passionate about continuing dad’s legacy an creating something sustainable in his memory. The Sholach really is a magical place and we have a lot of enjoyment there throughout the year in spite of the hectic two months around the harvest and selling period!” A family firm with real purpose that truly embodies the sentiment of this time of the year. Visit www.sholachfarm.com to find out more.

The results of the 2019 Family Business Survey published by Family Business United are in and the family business community has spoken. The latest report identifies the things that are on the boardroom agenda and the topics that are keeping business owners awake at night. Download and read the full report below:

Everything about your family business is personal: the decisions you make, the goals you pursue and the legacy you leave. Running a family business requires a balance of business imperatives, emotional bonds and personal values of the family. This personal approach is the guiding principle of the latest PwC report entitled Agents of Change: Earning your licence to operate, which draws insights from a survey completed by almost 1,000 members of the next generation in family businesses (the “NextGens”) around the world to help distil a sense of what you need to succeed. The results are striking, and strikingly consistent across sectors and continents. As Peter Englisch, Global Head of Family Business at PwC explains; “You told us you are deeply committed to your family business and have extremely high ambitions for it. But you also identified the challenges you face as you seek to prove yourselves as agents of change. These are compounded by what we know from our survey of the current generation. They are not convinced NextGens are ready to step up.” “Here you will find the results of the survey, as well as recommendations built around you and the way you want to contribute to your family business, which we believe will resonate as you seek to earn your licence to operate.” Download and read the full report below:

Establishing a governance framework for your family business can improve business performance and help satisfy the expectations of all family members. Indeed, this step may be essential if the business is to keep on producing the rewards the family has come to expect. This stage is often reached when the founder of the business relinquishes day-to-day control of the business, or when it reaches a size and complexity unsuited to informal and unstructured management styles. Continuation of family ownership and control can be fraught with difficulty. In business, as in life, families don’t always see eye to eye. Family members can have different expectations and ambitions for the business. Family disputes can paralyse management of the enterprise, endangering ongoing family control and, sometimes, the very existence of the business. It’s important for families to recognise that a family business has a life of its own that transcends that of the family. It’s why a professional and structured approach to the management of the business serves everyone’s best interests. It’s also why we’ve established the 10 Rules of Good Governance: Establish a family council to approve key strategic business decisions, resolve family disputes and decide how to distribute the wealth generated by the business. Appoint an effective board, including independent directors. Define the respective roles of board and management and appoint the best person available as CEO. Conduct board meetings constructively, making them business focused, not family focused. Make decisions methodically, covering all the relevant issues. Develop a clarity of vision that leads to a proper strategic planning process. Understand and manage your business risks. Look for the ‘bad news’, ensuring that problems and irregularities are not overlooked or ignored. Monitor and evaluate business performance, highlighting key trends and issues. Create an effective assurance framework embracing management controls and internal and external audits. About the Author - Dominic Pelligana, KPMG. Reproduced with the express permission of Family Business Australia, a partner of Family Business United and the peak body for family and private business in Australia.

The nation raised its glass last night as St Austell Brewery took home three titles from the 2019 Family Business of the Year Awards, including the overall Family Business of the Year. They were been crowned Supreme Champion at the National Family Business of the Year Awards (‘FBOTY’) in a glittering ceremony at the prestigious May Fair Hotel in London. It was an incredible night with two more awards for Best Food and Drink Family Business, and the regional title for the South West. The Family Business of the Year Awards, organised by Family Business United, celebrate the vital contribution that family businesses of all sizes play in the UK economy. Innovation, investment, passion and pride are evident in family businesses across the UK confirming that the family business has much to celebrate. With around 5 million family firms in the UK providing around 12 million jobs and generating a significant contribution to GDP, these national awards certainly help to put the family business sector on the map and give them the recognition they deserve. St Austell Brewery are the largest regional brewer and wholesale wine and spirits distributor in the South West with a pub and hotel estate of 180 managed and tenanted sites. Paul Andrews, Founder and Managing Director of Family Business United explained: “St Austell Brewery is a fantastic family firm and is highly deserving of all the plaudits that winning this award brings.” “This is a family business with core values that enable them to provide places that inspire and products and experiences that delight. The judges were impressed with the very nature of who they are and what they do. They are proud of the families that have worked for them for generations, have solid governance and above all, great products that build on their family heritage.” “In their own words – they are proud, they have heart, they deliver excellence, they are one family, they innovate, and they nurture. They are a world class drinks and hospitality company helping to put the South West and family firms across the UK on the map. With strong family values permeating all aspects of the business, strong governance and a vision for the next generation, they really do exemplify all that is great about being a family business.” concludes Paul. Clare Reid of Seven Investment Management who presented the award as sponsors confirmed, “This is a family business with a remarkable history and heritage that remains relevant to the current day. Family is very much at the heart of all they do and they are a superb example of a great British family firm and one that is setting the bar for others to follow.” The 2019 awards attracted a record number of entries with more family firms than ever, from across the UK, competing for the awards. The winners were announced at a glittering ceremony at The May Fair Hotel in the heart of Mayfair, London on June 6. James Staughton our Chief Executive who is fifth generation added: “This is a fantastic award to win and I am incredibly honoured to accept the award on behalf of everybody at St Austell Brewery. We are a proud, independent, family-run business that’s been around for over 165 years but without the support of everyone involved in our constantly expanding and complex operations, we wouldn’t be the success that we are today.” “Our heritage is extremely important to us and the Hicks family crest, originating in the 17th century, still forms a central part of our corporate branding. Tribute, our flagship ale, was named in tribute to the family and those who built the business. To win this great accolade against such worthy competition makes us very proud and we are glad to be contributors to the strong and vibrant family business community across the UK.” Paul concluded, “It’s a privilege to organise these awards and to find out more about the fantastic family firms that are the backbone of the UK economy. St Austell Brewery is one such firm – a great family business, a great family business ambassador and a well-deserving winner of the title of Supreme Champion Family Business of the Year 2019.”

Hearing about embezzlement in a public company rarely shocks anyone, but when it happens in a family business, people are often stunned. “How could he steal from his own family?” “Doesn’t she know she’s hurting her siblings/cousins/parents?” ​As tough and painful as embezzlement is, it’s not as uncommon as many of us would like to think. Sure, the kind of embezzlement that results in jail time is rare, but other levels of it happen daily. ​How could this happen? Many factors lead to embezzlement, including chronic financial strain, a general sense of family entitlement, lack of internal company controls,and the reality or perception of being overworked and underpaid. To make matters worse, often the embezzler doesn’t even know that what he or she is doing is wrong. ​Here’s an example of how embezzlement can start small and quickly grow: Jim (the business owner’s son) fills up his gas tank once on a Friday and pays for it with the business account, knowing that the miles he drives will be primarily for personal, not business use. He tells himself it’s okay because he has filled the tank on his own some weekends and used “his gas” for business use on Monday and Tuesday. Then he takes a few vacation days and doesn’t record it as paid time off. He picks up gift cards for employee recognition and pockets a few for himself. He knows that Dad pays him less than local competitors, and this is the way he evens it out. He notices other family members treating the business the same way, so it simply becomes the “way we do things around here”—it is their company culture, not embezzlement. ​The misuse of company assets, time, and money escalates. Soon, Jim adds a non-working family member to payroll, petty cash disappears, one out of ten customer checks are rerouted to Jim’s personal account, and personal items are consistently charged to the business credit card. Eventually, an employee in accounting notices and agonises about who and when to tell. ​So while embezzlement starts small and often innocently in a family business, it can quickly escalate to something big that damages the business, hurts non-family employee morale, and breaks family trust. Take Action ​What do you do when you realise a family member is embezzling from the business? Action is obviously required, and taking a cautious, thoughtful, respectful approach is wise. To begin, have a pre-meeting of key leaders, without the suspect family member present, to address the following questions: 1. Do we have clear, hard, verifiable facts before we assume fault and intent? 2. Who will be at the meeting to lay the facts out? 3. Are we going to involve the legal system? 4. If we continue employment with this family member, do we need to change their job position? 5. How or will we message this to the rest of the family? To other employees? To the Board of Directors? 6. How or did the company contribute to this problem? 7. If the company did, what steps will we take to prevent it in the future? 8. How or did the family contribute to this problem? 9. If the family did, what steps will we take, as a family, to prevent it in the future? 10. Has this family member had chronic, known problems with finances? 11. Generally, how can we protect the company from future misuse of company assets or embezzlement? 12. How do we protect the whistleblower? 13. Do we have a whistleblower programme set-up internally? Are employees trained annually? 14. Do we talk openly in Family Council about our responsibility to financially protect and care for company assets? Do we give specific examples of what is and is not allowed? 15. Do we have a solid non-compete clause in our employment contracts and/or employee handbook in case we have to release the family member from employment? 16. Do we consistently run a professional background check on applicants? 17. If I need to walk the family member out the door, how do I prepare? Computer security, locks, passwords, current company asset retrieval, bank account access protection, social media tracking, last paycheck, etc. 18. Do we need to involve the corporate attorney, Board of Directors, outside legal attorney, CPA, business psychologist? If so, when and how? ​Once you’re clear on these aspects, it’s time for the second meeting—this one with the suspect family member. When you begin the meeting, keep it at the level of discovery. Lay out the facts and ask the family member their perception of what happened. Really listen to what they say and how they say it. Remember, it’s common for family members not to realise that they are indeed embezzling. If this is a first offence, and if the embezzlement is not excessive, some education may be the best course of action. However, if you believe the family member knew what he or she was doing and did it anyway, or if the embezzlement is substantial, termination may be the only option. ​During the meeting, you need to be vigilant in checking yourself by asking “What would I do if this wasn’t a family member?” and “Is this at a level where I will be able to trust them again?” Your answers to these two questions will reveal a lot about your best action plan. Keep Your Family and Business Strong ​Of course, education of all employees (family and non-family), strict policies about how the company’s assets and resources can be used, and enforced controls that can spot any wrongdoing are the best ways to reduce your family business’ chances of falling victim to embezzlement. Acknowledging what could happen, along with some planning to prevent it, will keep your family and business strong, successful, and honest.

A practical insight into some of the questions that need to be considered when creating a constitution. The best way to start creating a formal Family Constitution is by clarifying a number of key issues, including: Why the family want to be in business together? What is this all about? What is the ‘glue that bonds us to each other and to our shared investment in the family enterprise?’ What returns are we looking for? These questions might sound obvious; but the tricky part is that the reasons why a family want to stay connected through a family enterprise often change over time. It cannot be assumed that whatever drove one generation will necessarily persuade the next generation to devote part of their lives to the family enterprise. For example, founders are often motivated by the entrepreneurial dream of being in control of building a new venture and creating a legacy to pass to the next generation. But the next generation face a different challenge. Are they committed to preserving and extending this legacy? Do they have a shared understanding of what it is? Does it mean as much to them as it did to the founders? Does the family want the family enterprise to continue because it provides them with career opportunities, or a good investment, or because it is their name above the door, or because they feel responsible to the other stakeholders, or because it is good fun or because it is a bit of each of these and some other things besides? A very important point about understanding the shared purpose in a family enterprise is that it is usually a combination of financial and emotional reasons. This is one of the things that makes family enterprises different from other types of business. In non-family enterprises, it is assumed that the sole purpose is increasing shareholder value for the current owners. In contrast, the reasons why a family want to be in business together might be a mixture of the following: Providing the desired level of financial security for a growing family. Achieving a lifestyle. Creating, preserving and/or extending a legacy of family ownership to pass to the next generation. Pride in a brand (especially if it’s the family name) or a reputation for being a family enterprise. Providing career opportunities for family members. Attachment to a particular industry, product or geographical area. Keeping a growing family in touch with each other as they get on with their own lives and grow up and grow apart. Putting something back through philanthropy. This is not a tick list and every family has to articulate their own version of a shared purpose. But when the family understand why they are in business together, there is no doubt that this can be a great strength. The “glue” binds them together and makes them willing to stick with the family enterprise through thick and thin. Equally, the absence of a clear shared purpose poses significant risks and dangers. Without it, as time unfolds, there will just not be enough “glue” to bond the family members to each other and to their collective investment. In the absence of “glue”, things tend to fall apart. And when this happens, it often results in the family’s wealth and their personal relationships being wasted in needless conflict. When families end up in conflict, it usually involves family members who have different ideas about what they want from their family enterprise. One might want to maximise the return on investment while another wants to preserve and extend a legacy to pass to the next generation of family owners. There is ample scope for conflict here but the real problem is perhaps that these family members should never have been joined together in a family enterprise in the first place. Articulating and writing down the shared purpose, and putting it at the front of the written Family Constitution, makes it far easier for individual family members to decide whether a role in the family enterprise will either help them achieve what they want for their lives or constrain them and thwart their own ambitions. The standard against which family members should be encouraged to measure their enthusiasm for the shared purpose is ultimately very practical; is it “good enough” for me to want to be part of the family enterprise, in whatever role(s) I choose; owner, executive, leader or family member. The standard of “good enough” is, frankly, as good as it can be in the real world, and if it cannot be achieved in the eyes of some, then the practical question that needs answered is how to let family members who do not want to be in the family enterprise exit gracefully, and allow others, who have a sufficiently strong sense of shared purpose, move forward together. If structures are created that bind people into a family enterprise against their will, the feelings of reluctance, disappointment and even coercion will leak out eventually, usually with troublesome consequences. Reproduced with permission from Your Family Constitution, published by Family Business Solutions.