We are delighted to announce that Andrew Keyt has been inducted into the Family Business United ‘Family Business Hall of Fame,’ which recognises the exceptional contribution of individuals and their work in advancing the field of family business. Andrew helps build family capacity to enable business continuity through building family cohesion and ownership competence. At the age of 22 Andrew became a third generation owner of a family real estate partnership, along with his dad’s cousins. The challenges of working through strategic and family challenges inspired Andrew to dedicate is life’s work to helping families build their businesses and build strong family relationships. Prior to founding Generation6, Andrew was the President and Founder of Keyt Consulting, a private firm that assists family enterprises with succession and strategic planning, dealing with family conflict and communication, working with adult sibling and cousin teams, and executing emergency management transitions. He has worked extensively with some of the largest enterprising families in the United States. Andrew served as the Clinical Professor in Family Business and Executive Director of the Loyola University Chicago Family Business Center for over 20 years. In addition, he led the Family Business Network – United States (FBN-USA), the leading network for business-owning families worldwide, as President and member of the board between 1998 and 2020. Andrew is the recipient of numerous awards, including the Family Firm Institute Interdisciplinary Award, recognizing outstanding achievement in the advancement of interdisciplinary services to business families. He is a published author, presenter and contributor of more than 100 articles in trade journal publications. Andrews’s book, “Myths and Mortals: Family Business Leadership and Succession Planning,” leverages ground-breaking research to guide new family business leaders on how to establish credibility and run their operations their way. Andrew holds an Executive MBA for Families in Business, an M.S. in Marital and Family Therapy and a B.A. in Psychology. He is based in Chicago. As Paul Andrews, Founder and CEO of Family Business United adds, “Andrew has been a key advocate and influencer in the area of family business communication and governance over the years and truly deserves his place in the Family Business Hall of Fame.” As Andrew concludes, “I am always deeply humbled by the trust that families place in me to help them work to build more connection, alignment and cohesion, and leverage that to make a positive impact in the world through the work that they do." "I’m honoured that my work has been recognized, and that is only possible because of the trust that families place in me. I am truly delighted to have been recognised by Family Business United and to be inducted into the Family Business Hall of Fame.”

We are delighted to announce that Edouard Thijssen has been inducted into the Family Business United ‘Family Business Hall of Fame,’ which recognises the exceptional contribution of individuals and their work in advancing the field of family business. Edouard is the founder and CEO of Trusted Family, the leading digital governance platform for multi-generational family businesses and family offices. At the age of 21, he realised how difficult it is to stay together as a business family in the long term and to remain successful over the generations. As the family grows and spreads out in different cities or countries, how can a business family make good group decisions and keep everyone aligned? Edouard developed a digital governance platform and mobile app for his own family business, together with a friend from another Belgian family business. They quickly found out that many other family companies around the world had similar needs, and they turned it into a company called Trusted Family. Today Trusted Family works with many of the world’s leading family businesses and family offices. As Paul Andrews, Founder and CEO of Family Business United adds, “Edouard has been a key pioneer in the area of family business communication and governance over the years and truly deserves his place in the Family Business Hall of Fame.” As Edouard concludes, “I am truly delighted and honoured that my work has been recognised by Family Business United and gained me recognition as an inductee into the Family Business Hall of Fame.”

We are delighted to announce that Professor Claire Seaman has been inducted into the Family Business United ‘Family Business Hall of Fame,’ which recognises the exceptional contribution of individuals and their work in advancing the field of family business. Claire researches family business and translates the results into usable information and solutions for family businesses, policy makers and students. Claire researches, writes and teaches students and professionals about family businesses. Family firms form the economic bedrock of Scotland and the UK – and indeed many other countries – and turning research into practical systems and solutions is vital. Access to research for business professionals is also important and Claire has been an avid supporter of Family Business United in the development of their research. She is currently Editor in Chief of the research journal, the Journal of Family Business Management and publishes new research on family businesses in different sectors, countries and continents. Her books include ‘The Modern Family Business’ and ‘Corporate Citizenship and Family Business’, which looks at the different ways in which family businesses contribute to the development of civil society. As Paul Andrews, Founder and CEO of Family Business United adds, “Claire has been a key pioneer in the area of family business research over the years and a fabulous supporter and ambassador for family businesses, not just in Scotland, but around the world. She truly deserves her place in the Family Business Hall of Fame." As Claire concludes, “The passion and commitment that families bring to business and their crucial importance to economies and communities worldwide has a profound influence on society. Better understanding that force and finding ways to support family businesses is one factor that will drive the creation of better societal solutions to some of our most profound problems. I am honoured to work with the sector and with Family Business United to help translate cutting edge research into practical solutions.” “I am truly delighted and honoured that my work has been recognised by Family Business United and gained me recognition as an inductee into the Family Business Hall of Fame.”

We are delighted to announce that Peter Englisch has been inducted into the Family Business United ‘Family Business Hall of Fame,’ which recognises the exceptional contribution of individuals and their work in advancing the field of family business. Peter is an avid challenger and supporter of family businesses to create their legacy and deliver on their responsibility. Peter is PwC’s Global Family Business Leader. Influenced by his personal family business background and with 30 years’ experience in supporting international and national family businesses, he and his team supports clients to solve sensitive family business issues including succession planning, next generation development, corporate, family or wealth governance as well as philanthropy and impact investing. He is the author of several family business, family office and growth strategy related publications as well as a regular speaker at family business and family office conferences. Peter is also board member of the Family Firm Institute (FFI) and engaged in various non-for-profit organizations. He is Certified Public Accountant and tax advisor in Germany, US Certified Public Accountant (CPA) and holds a Master’s degree in Economics from the University of Münster, Germany. Finally, he was recognized by Family Capital Publishing as Global Top 100 Family Business Influencer in 2021 and 2022. As Paul Andrews, Founder and CEO of Family Business United adds, “Peter is a great advocate and ambassador of the family business sector and has developed a fantastic family business presence over the years and deserves his place in the Family Business Hall of Fame.” As Peter concludes, “I strongly believe in entrepreneurial family businesses as a force for growth, innovation, prosperity and good. This is why I am passionate about this sector and supporting them to deliver on their responsibilities as owners as well as managing their family dynamics.” “I am very honoured for being invited to the Family Business Hall of Fame. This means a lot to me as it indicates that my work over the past decades has been recognized and valued.”

We are delighted to announce that Martin Stepek has been inducted into the Family Business United ‘Family Business Hall of Fame,’ which recognises the exceptional contribution of individuals and their work in advancing the field of family business. Martin is the CEO of the Scottish Family Business Association who advises and mentors individuals and families within the family business sector. Born in 1959 into a first generation Polish-Irish-Scottish family business, Martin worked in the business throughout his school and university years, and came back from abroad in 1987 to work in and become co-owner of the business. He did this from 1987 to 2002 when the business went into administration. During this period, from 1995 to 2001 he attended the ground-breaking Centre for Family Enterprise at Glasgow Caledonian University, under the guidance of Dr. Barbara Murray. In 2005, he set up the Scottish Family Business Association, launching it in 2006. The Association engaged with and encouraged advisors, academics, government bodies, and of course family business leaders to actively pursue greater interest and expertise about family businesses. As more institutions and individuals grasped the challenge and opportunity, they withdrew from the areas they were involved in, in order to give more space for them to flourish, and not to be an impediment to their success. Martin co-authored several academic papers over the years, wrote booklets advising lawyers how to best work with family businesses, and delivered endless talks, speeches and workshops to the wider world of family business. In the tentative ‘post-Covid’ era Martin has focused on fewer but deeper talks and other events in order to restimulate those in the sector to engage more fully in a world that is now very different from the one left behind in March 2020. As an individual Martin now has a focus primarily on helping individuals within a family business context on how to live a fulfilling, meaningful life, either within the family business setting, or outside of it if it is a hindrance to the individual. As Paul Andrews, Founder and CEO of Family Business United adds, “Martin has been a great pioneer and ambassador of the family business sector over the years and deserves his place in the Family Business Hall of Fame.” As Martin concludes, “I experienced many joys and woes in my life as a member of a business family. My work is ultimately about helping others in the same setting enjoy more joy and endure a whole lot less woe than they might otherwise have experienced.” The sector is complex, so I wouldn’t say I love it, but I do feel very deeply for the people who are in a family business and innately care for their wellbeing. The sector is the most natural organic form of business there is, and as such expresses more powerfully all the best and worst of human nature, and I try to help people in those situations.” "I am honoured to be recognised in the Family Business Hall of Fame, not for myself, but for two groups of people; those who did the crucial work before me, especially Barbara Murray, then George Stevenson, and those who worked with me in the early days of the Scottish Family Business Association, particular the founding board, all of whom were family business leaders. The other group of people to whom I would like to dedicate this award are my siblings, my parents, and the remarkable heritage of business success, and survival through warfare and famine, that my Polish and Irish ancestors achieved.”

We are delighted to announce that Ken McCracken has been inducted into the Family Business United ‘Family Business Hall of Fame,’ which recognises the exceptional contribution of individuals and their work in advancing the field of family business. Ken helps family enterprises create effective governance, and to develop practical plans to cope with the transition in ownership and leadership between generations and is a consultant and teacher who has worked with family enterprises in various parts of the world for over 25 years. A former lawyer, Ken helped to establish the first university-based education programme in the United Kingdom for family business owners and leaders. His work now includes: Succession planning for family businesses and family offices. Creating effective governance for these enterprises. Helping clients implement their succession and governance plans, including serving on various family councils and similar bodies and coaching individuals through the process of change. Providing training for the different generations in an enterprising family and for their advisers. Ken is a Fellow of the Family Firm Institute (FFI), an international association for family business practitioners and educators. He is author of the Society of Trusts and Estate Practitioners (STEP) Advanced Certificate in Advising the Family Business, which is provided as an online course to a global audience. He is also author of the book, Creating the Trusted Team of Advisers for a Family Business. Ken is a past recipient of the FFI Award for Outstanding Interdisciplinary Achievement and the STEP Award for Family Business Adviser of the Year. As Paul Andrews, Founder and CEO of Family Business United adds, “Ken has been an avid supporter and contributor to the world of family business for many years now and deserves recognition for the work that he has done and continues to do within the family business sector.” As Ken concludes, “I find family enterprises fascinating." "I love providing ideas and information that will help them to understand their unique challenges and to make good decisions that will shape their future. There is plenty of space in a Hall of Fame for many more advisers who want to develop and expand this field of knowledge and practice.”

We are delighted to announce that Greg McCann has been inducted into the Family Business United ‘Family Business Hall of Fame,’ which recognises the exceptional contribution of individuals and their work in advancing the field of family business. Greg is a founding member of the Generation 6 firm, and consults with, coaches, writes about, and speaks about family enterprise in order to make the family involvement a strategic advantage in their shared efforts. As the son of a serial entrepreneur Greg has worked in his family’s business since he was 12 years old. He now is an owner of his family enterprise. These experiences growing up led Greg to consulting, speaking, coaching, teaching, and writing two books on family enterprise. Greg works with family enterprises in the areas of leadership, succession, communication, and conflict resolution, with a special emphasis on leadership. Greg has coached leaders and executives for over 20 years and is certified in Leadership Agility and Myers-Briggs Type Indicator. As a consultant, Greg has helped numerous family enterprises transition to future generations. As a speaker, he addresses national trade associations, universities and family business forums on leadership, character, generational opportunities, and family enterprise. As a thought leader and author, Greg has published many valuable works on family enterprise. This includes the upcoming book on the future of single family offices. As a coach, he has worked with family enterprise leaders, executives, family office leaders and members of the rising generation since 1998. Now retired from Stetson University after 27 years in academia, Greg was Founder and Director of the Family Enterprise Center, where he led the effort to develop the nation’s second minor and first undergraduate major in Family Enterprise. He also was the EMBA Director and Cohort Coach. Greg also served on the Board of Directors of the Family Firm Institute (FFI) from 2005 to 2008. He was awarded the institution’s 2016 Interdisciplinary Award for outstanding achievement in the advancement of interdisciplinary services to business families and the 2006 Barbara Hollander Award acknowledging him for a lifetime of achievement in family enterprise education. Greg is an FFI Fellow and is certified in Family Business and Family Wealth Advising from FFI. He proudly serves on the InnerWill Board of Directors, as well as the Family Business Fellows, Smith Family Business Initiative, Cornell University, SC Johnson School of Business. Greg holds a J.D. and was a member of the Florida Bar, (retired), University of Florida, a licensed CPA (inactive) and a B.A., Stetson University. He is based in DeLand, FL. As Paul Andrews, Founder and CEO of Family Business United adds, “Greg is a great advocate and ambassador of the family business sector and has developed a fantastic family business presence over the years and deserves his place in the Family Business Hall of Fame.” As Greg concludes, “I so admire the courage and dedication of families working together to make their enterprises, their communities, and in fact the world a better place. The privilege to do this work has brought profound meaning to my career.” “I am truly delighted and honoured that my work has been recognised by Family Business United and gained me recognition as an inductee into the Family Business Hall of Fame.”

We are delighted to announce that John Broons has been inducted into the Family Business United ‘Family Business Hall of Fame,’ which recognises the exceptional contribution of individuals and their work in advancing the field of family business. John Broons is a globally awarded family business expert and one of only three people in Australia to hold the coveted title of Fellow of Family Firm Institute (Boston, USA). John has dedicated his working career to answering the question: how do I guide and support families in business to a place where they’re thriving? Not only has John spent the last 40+ years answering this question, but he’s also been there and done it. Early in his career, John successfully bought and sold his own family business while maintaining close and connected relationships within his own family. One of the founders of Family Business Australia (FBA) in Victoria and a former FBA board member, he has a certificate and advanced certificate of Family Business Advising. John has been awarded The Executive Connection’s (TEC) Gold award ten times (from 2012 to 2022) for his outstanding mentoring, coaching and facilitation of executive groups. In 2019/2020, he won the Australian National FBA Advisor of the year award. Using his Thriving Family Business© method, developed from decades of wisdom and insights gained from working with family businesses, John consults globally, always with the aim of working with families to create a thriving family business. As Paul Andrews, Founder and CEO of Family Business United adds, “John is an exceptional individual who has worked tirelessly over the years to support the family business sector and deserves his place in the Family Business Hall of Fame.” As John concludes, “I became involved with family business issues in my family’s 3rd generation business. There is so much that is not known by so many families that with education and positive support and feedback these families can thrive. The work I do goes deep into my soul knowing I can help these families in business to thrive and it is an honour to have worked with so many family firms over the years.” “I am truly delighted and honoured that my work has been recognised by Family Business United and gained me recognition as an inductee into the Family Business Hall of Fame.”

Sustainability is an increasingly important topic in the world of business. As concerns surrounding the planet and climate change continue to grow, there’s increasing pressure on organisations of all sizes and from all industries to demonstrate what they are doing to reduce their environmental impact. In this feature, Joe Oughtred (pictured), co-founder of AXIOM Sustainability and part of the sixth generation of the family behind the William Jackson Food Group, explores why sustainability is integral to the success of family businesses and how data collection is an essential starting point for reducing carbon footprints. Sustainability & Family Businesses From the local bakers and butchers to clothing stores, technology businesses and some of the country’s leading food companies – family businesses are an integral part of the UK economy. There’s also a strong link between the values that govern them and the core principles behind the sustainability movement. Whilst many corporate-owned companies might prioritise results for the next quarter, as family businesses, we’re required to take a much longer-term, generational view on business strategy. Building and protecting a business and growing a legacy is deeply entrenched within the DNA of family businesses – it’s a key part of what distinguishes our companies from other organisations. Within the culture of many successful family businesses, there’s a distinct feeling that you don’t truly ‘own’ the business at all but are rather looking after it and nurturing it for future generations to enjoy and benefit from. Rather than extracting as much value as possible, the aim is to create, develop and leave that value for your children, grandchildren and their families. Now, it’s up to us as family businesses to apply these same principles when considering issues of sustainability and looking after the earth. If we’re going to succeed and continue in nurturing the successful, long term legacies of our organisations, we need to lead the way and ensure that the planet is in a state where it can support our goals! Family Businesses – Protecting The Planet & Family Legacies Family businesses of all sizes play an important role in the economy – and we’re all in a position to do our bit to support sustainability. Currently, small family businesses aren’t beholden to the same stringent pressures and expectations as larger corporates. For example, whilst companies qualifying as large under the Companies Act 2006 are obliged to report on their ESG performance, smaller businesses do not. However – as discussions around climate change and the planet increase in prevalence and importance, it looks likely that smaller businesses will be expected to engage with these sorts of initiatives in the future. In addition to being the right thing to do, it’s also beneficial from a commercial perspective given the growing numbers of clients and consumers who are looking to work with and support environmentally conscious businesses. Embracing ESG initiatives and reporting under SECR can therefore help bolster a business’s reputation, as it demonstrates its green credentials and a commitment to being progressive and relevant. Why Should Family Businesses Engage With Sustainability Initiatives? The family business sector is, in many ways, leading the way on sustainability and can be an example to other sectors. They are very mindful of their decisions and the impact that they have on the environment employees and local communities. For example, they often do a lot of charitable work and take CSR very seriously. However – we still have a long way to go, and despite the benefits that engaging with sustainability initiatives can bring to small businesses, many family businesses are still reluctant to prioritise this as part of their long-term strategy or goals. Although business owners might want to do the right thing and improve sustainability, there can often be a disconnect between ideology and action. Even where multiple generations are aligned on the concept, it can be difficult to embed sustainable practices throughout an organisation’s operations. For many, simply knowing where to start can be a huge challenge in itself. Other challenges include navigating areas like reducing Scope 3 (supply chain) emissions, which fall outside the reporting organisation’s control and as such, can be notoriously difficult to measure and improve. However, if family businesses are to be successful and sustain their legacy well into future generations, it’s essential that they proactively improve their green credentials across the entire supply chain. The topic of sustainability is only going to grow in importance, and family businesses – regardless of their size and industry – need to keep up and consciously reduce their environmental impact. The Value Of Data Before organisations can implement sustainability programmes, embrace carbon reduction initiatives or proactively demonstrate green credentials they need to have accurate information about where their business stands now in terms of emissions and sustainability performance. Obtaining a clear insight into an organisation’s overall sustainability performance relies on the collection of key emissions data such as Scope 1, Scope 2 and Scope 3. In addition to revealing an organisation’s direct environmental impact, it also shows that of its suppliers – equipping business owners with the information needed to identify areas in need of improvement and make positive changes. However, this data can be difficult to gather and in a busy business environment, spreadsheets no longer cut it. Embracing technology and specialist software designed to automatically collect and collate this data can be an incredibly valuable tool for organisations seeking to improve their green credentials and make better business decisions. It’s also highly beneficial for those family businesses that are already engaged with sustainability initiatives, as this data can back up sustainability claims and enable them to lead the way more visibly. Although there are lots of family businesses that have already made significant progress with regard to reducing their environmental impact, our sector can often struggle to communicate this. Collecting, collating and measuring data can therefore equip business owners with the tangible figures needed to substantiate sustainability claims – enabling them to shout about their positive progress or specific environmental achievements and certification. About AXIOM - AXIOM is a powerful, cloud-based platform designed to help businesses monitor, analyse and improve sustainability performance. Covering all aspects of ESG, AXIOM sustainability reporting software has been built to help organisations cut their carbon emissions, get to Net Zero fast and accelerate their progress on sustainability. Visit their website to find out more.

There are currently over 900,000 people with dementia in the UK and this figure is expected to rise to 1.1 million by 2030. The growing prevalence of dementia means many people have become aware of the benefits of setting up a lasting power of attorney (LPA), so that in the event that they develop dementia a trusted person they have chosen can make decisions on their behalf relating to financial and health matters. But if you are a shareholder of your family business it is important to have a separate LPA covering your stake in the business. Here we look at what you need consider when setting up a business LPA. In this article, Amanda Simmonds, a Senior Associate Solicitor at leading Yorkshire law firm Lupton Fawcett explains more. What is lasting power of attorney? A lasting power of attorney (LPA) is a legal document that allows someone (your ‘attorney’) to make decisions for you, or act on your behalf, if you are no longer able to or no longer want to make your own decisions. There are two types of LPA. The first relates to decisions about property and financial affairs and enables your attorney to deal with day-to-day personal financial matters such as managing a property, paying bills, investing money and managing bank accounts. The second type of LPA relates to your health and welfare. It enables your attorney to make key personal decisions such as the type of healthcare and medical treatment you receive and where you live, as well as day-to-day matters such as your diet and routine and who you have regular contact with. However, if you are a shareholder of a business, it is likely to be a wise move to appoint different attorneys for your personal financial matters and your business responsibilities, not least because the attorney for your personal matters may not have the experience or qualifications to make decisions relating to your business role. What needs to be considered in setting up a business LPA? You should give careful consideration to who you appoint as your attorney for your business LPA as it is a role that involves important responsibilities and powers. The skills and experience they will need will depend on your business and the decisions you are involved in. The LPA should set out the scope of the role and can also include guidance or instructions to help your attorney exercise their powers in line with your wishes. You may also wish to appoint a replacement attorney in the event that your attorney becomes unwilling or unable to carry out the role in the future – for example, in the event of their own loss of mental capacity, or their death. An LPA doesn’t have to be used straight away but once it has been registered with the Office of the Public Guardian it can be used at any point with your consent, in the case of a financial or business LPA, or by your attorneys in the event that you have lost mental capacity. This means you retain control over the decisions the LPA covers unless you no longer have the capacity to make them – and you have the peace of mind that comes from knowing if this situation arises, the person or people you have appointed will act on your behalf. Limitations on a business LPA You should note, however, that a business LPA cannot cover any role you hold as a director of your business and that, under your company’s articles of association, this role would normally cease if you lose mental capacity. The model articles state that a person ceases to be a director if they are certified by a medical practitioner as having lost capacity and that this will continue for more than three months. It is therefore important to also have a business plan in place to cover who would step up to your role if you lose mental capacity. Without it, your business operations may be interrupted, or the viability of the business threatened, if you are unable to make decisions and fulfil your responsibilities. What happens if you don’t arrange an LPA and you lose mental capacity? If you lose the capacity to make your own decisions and don’t have a power of attorney your family can apply to the Court of Protection to have a deputy appointed who can make decisions about financial and health and welfare matters. The cost of applying to the Court of Protection is greater than the cost of preparing and registering an LPA and, while the Court can handle urgent or emergency applications where a decision must be made quickly, there can be delays in appointing deputies to make ongoing decisions – delays that can have a detrimental impact on your interest in your business. It is also possible that the deputy appointed by the Court to make decisions on your behalf is not the person you might have chosen when you had the capacity to do so. Making arrangements for an LPA and putting a business plan in place today doesn’t mean handing over control before you are ready to – in fact, early planning puts you in control by ensuring that if you’re unable to make decisions about your business, a person of your choice will do this on your behalf. And, as long as you have mental capacity, you can revoke an LPA and put a new one in place at any time. Taking professional advice You can obtain more information about LPA from independent organisations including Age UK and STEP, a global body of lawyers, accountants and other professionals that help families – including family businesses – plan for their futures. Each individual’s circumstances and needs are different, as are the requirements and governance of every family business, but obtaining professional advice will uncover all the issues you need to consider when setting up a business LPA.

As an organisation Family Business United (‘FBU’) is all about championing the significant contribution made by family firms through income generation, employment and wealth creation, not forgetting their contribution to the communities in which they operate. Our purpose is to raise the profile of family firms and to dispel the myths around them, recognising them for the impact that they make daily on a local, regional, national, and in some cases, international level. Family Business MATTERS is the latest campaign launched by FBU to make people realise the impact of the sector. The facts and figures show their importance. Did you know? It is estimated that family businesses in the UK generate around £2.0 trillion in turnover annually (1) Family businesses are significant employers, employing around 14 million people (1) Family businesses represent around 86% of all private sector employees (1) There are around 5 million family firms in the UK today (1) Family firms employ around 51% of the private sector workforce in the UK today (1) In 2019, family businesses contributed £637 billion to UK GDP (1) Family businesses in the UK generate around one third of UK GDP (1) The Top 100 family firms in Scotland generate revenue of around £20 billion annually (2) The Top 100 Scottish family firms employ over 112,000 people (2) The oldest family firm in the UK is RJ Balson & Sons who are based in Bridport and date back to 1515 (3) The oldest family firm in Scotland is John White & Sons who are based in Auchtermuchty and date back to 1715 (4) The top ten UK family firms generate annual turnover of £49 billion Some of the largest family firms in the UK include JCB, Arnold Clark, Euro Garages and Pentland Brands Britain’s Top 100 family businesses now employ over 750,000 people (5) Britain’s Top 100 family businesses are all very substantial enterprises with an annual turnover of at least £500m (5) Family firms really are the engine room of the UK economy and that is why Family Business Matters! Notes: Note 1 – Source: The UK Family Business Sector Report 2020-21 Note 2 – Source: Family Business United Research, The Top 100 Scottish Family Firms Note 3 – Source: Family Business United Research, The UK’s Oldest Family Firms Note 4 – Source: Family Business United Research, Scotland’s Oldest Family Firms Note 5 – Source: Boodle Hatfield Report, The Third Pillar of the UK Economy

As we enter deeper into the 21st century family businesses have a world of opportunity in front of them but need to take stock and act accordingly. The world is changing so it is important for family business owners/leaders to recognise that things are changing and to consider the impact that these may have on their businesses, this week, this year and in the years that lie ahead. Those that take a long term strategic view, and the emphasis is clearly on strategic, will undoubtedly be better placed to survive and thrive for generations to come. The CEO of tomorrow’s family firms will need different skills to the CEO of today and ‘yesteryear’ and whilst it is an obvious statement to make, time needs to be give to addressing the future skill needs of the next generation of leaders so that they can gain the skills now, and not be playing catch up later on. Obviously the past couple of years have been tricky with economic and political uncertainty in abundance, and to a certain extent this will prevail whilst key macro decisions are being taken and implemented. But there are other changes taking place that should be on the family business radar, if they are not already. Climate change and sustainability, sustainable business goals, globalisation and the rise of the millennial generation continue to fill the media pages and these are just some of the signs of things to come. The High Street is suffering and the retail sector is changing almost daily, shopping habits continue to evolve and the continued growth of ‘home shopping’ is seriously affecting many family firms too. Add to the mix the inherent pace of change with technology and the rise of AI and robotics and things that may have been ‘out of reach’ may become game changers going forward. Consider the impact of new ways of doing things and the impact these may have, the role of drones, driverless vehicles and the like and how the family firm may need to adapt. Families also have to address the role of social media and the impact on their businesses or ‘real time’ marketing, brand voice and messaging and how this may impact on their business and customer engagement going forward – not easy by any means and something that some find a lot harder than others, but social media is here to stay and will need to be part of an ongoing communications plan for all family businesses to explore and address. The family business world is also facing changes to the very nature of the family firms as more and more families are approaching key stages in the transition of their business to the next generation and notoriously over the years succession planning and such transitions have been difficult and trying times for many. Given the rate of change in the world at large, the worlds in which family firms operate, time needs to be used wisely and not spent focusing on internal matters. There is also the need for the right people and with a near fully employed workforce, recruiting and retaining the right people to meet the ongoing and future needs of the business will become even more critical but families have the benefit of their history and heritage that can come to bear in this regard. Research suggests that people are attracted to family firms with the right roles, opportunities for growth and empowerment to do their job so by their very nature, family firms can have an advantage when it comes to finding the right people with the right skills going forward. Communication is also key. Open and honest conversations underpin the very essence of family businesses and families and their broader management team are encouraged to take time to reflect on where their journey is taking them, considering what is the purpose of the business and where their journey is going to end up. Collective, shared vision and purpose is essential as family firms continue to embrace the changing world around them as is the need for clear communication within a family and within the family firm, empowering boards, management teams and employees to contribute to the underlying goals and ambitions of the family. Family firms that have already survived for generations prove that longevity is possible and that with the right governance frameworks, strategies and conversations, plans can be put in place to continue to thrive. But it is not always easy and there is also a need from time to time to step back and look at the business going forward and take stock of some of the ‘bigger picture’ challenges that may also be serious opportunities for the family business too. The pace of change currently is fast but as a result family firms face opportunities as well as challenges. Family firms that will be successful going forward will be responsive to the opportunities present and deal with the challenges head on. One of the keys is taking the time to think of what the real challenges are and to plan for them appropriately. The next generation have different skills and can be of great value in developing new approaches and embracing new technologies and develop new approaches too so the need for conversations between the generations is crucial to assist the development of the right plan for the business. There are also pressures from regulatory bodies too and the need to ensure compliance with the changing nature of regulations, not least the corporate governance reporting that all private businesses need to have taken on board to some extent as well. The world is changing but family businesses have the opportunity to once again rise to the challenge but need to take the long term view and plan. As always there is a lot on the family business agenda but thinking strategically about the business and removing the barriers to take time out to work on the business rather than in the business is essential for long term success. As we enter the new decade, family firms should be encouraged to take stock and spend some time on their strategic vision and plans for the business, and all that entails, to help them move on with the next stage in their family business journey too. Time is something that is often in short supply but when it comes to the family business and plans for the future, finding time to think about the future will undoubtedly be time well spent.