Ninety-three per cent of scale-up founders do not believe the UK workforce is adequately prepared for widespread AI adoption, according to new research from Helm, Britain's largest entrepreneur network. When 400 members of Helm were asked in an online survey: ‘Do you believe the UK workforce is adequately prepared for widespread AI adoption?’ 3.5 per cent said ‘yes’, 93 per cent said ‘no’, and 3.5 per cent said ‘don’t know’. The survey, carried out between February 5-6, also asked: ‘Do you expect AI adoption to lead to job cuts in your business within the next 12 months?’ 33 per cent said ‘yes’, 64 per cent said ‘no’, and 3 per cent said ‘don’t know’. Asked: ‘Are you delaying or reducing new hires as a result of increased AI adoption?’ 58 per cent said ‘yes’, 35 per cent said ‘no’, and seven per cent said ‘don’t know’. Andreas Adamides, CEO of Helm, said: “AI is forcing business leaders to make some difficult decisions about jobs and hiring. Many founders are under pressure to move fast, stay competitive, and rethink roles as automation accelerates." “The bigger opportunity now is to upskill workers for higher-value roles and use AI to drive sustainable growth." "If businesses and policymakers invest in skills early, AI can become a powerful engine for productivity rather than job insecurity.” Helm member, Joshua Wöhle, Founder and CEO of AI training company, Mindstone, said: “AI has the potential to be transformational for British business, but the skills gap is making people focus on automation, which is where technology has historically made a difference, instead of augmentation, where generative AI really can make a difference." “Automation leads to job losses versus augmentation that moves the top line. Ultimately, this comes down to training.” The average Helm member is the founder of a company with an annual turnover of £21 million.

Bechtel has been selected by Emirates Global Aluminium (EGA) and Century Aluminum to perform preparatory engineering and early execution planning for a new primary aluminum smelter in Inola, Oklahoma — an investment expected to create thousands of jobs and support long-term economic growth in northeast Oklahoma. When complete, the facility will be the first new primary aluminum smelter built in the U.S. since 1980 and is expected to double the current U.S. primary aluminum production, strengthening America’s industrial base and supply chain resilience. The project is expected to create approximately 1,000 permanent direct jobs and up to 4,000 construction jobs, delivering long-term workforce and community benefits across Rogers County and the greater region. “Our team brings deep experience delivering complex U.S. megaprojects and aluminum facilities around the world,” said Ailie MacAdam, President of Bechtel Mining & Metals. “We are proud to support EGA and Century as they advance this important investment in America’s industrial future, and we look forward to working closely with our customers, partners, and the local community as the project moves into its next phase.” As part of its scope, Bechtel is evaluating modularization and pre-assembly strategies to improve construction efficiency, along with logistics planning that leverages road and river transport while minimizing impacts on local traffic. Bechtel brings decades of global aluminum experience and U.S. megaproject delivery expertise to support early planning and execution, helping position the project for safe, efficient, and reliable delivery. Over the past 25 years, Bechtel has delivered approximately one-third of all aluminum smelting capacity built outside China and has served as a trusted U.S. delivery partner since 1898.

The findings from the Small Business Strategy report that late payment is closing an estimated 38 UK businesses every day, is consistent with what we are seeing directly through Purbeck Insurance Services’ latest data on personal guarantee backed borrowing. Todd Davison, MD of Purbeck Insurance Services, the UK’s only provider of personal guarantee insurance to small businesses says: “In Q4 2025, 37% of all loan applications were for working capital to support cashflow, up from 33% a year earlier. This is a clear indicator that a significant proportion of SMEs are using borrowing defensively — to plug gaps created by rising costs, payment delays and tightening liquidity, rather than to pursue growth." “The problem is particularly acute in sectors such as construction. Looking at loan behaviour in this sector, our analysis shows that over half of the loans taken by constructions firms are for working capital." “At the same time, many directors are being asked to secure borrowing with personal guarantees, putting personal assets on the line just to stay afloat. That’s why Personal Guarantee Insurance (PGI) plays an increasingly important role — giving business owners greater confidence to access essential funding while reducing the personal financial risk that often comes with it." “Tackling late payment must now be a central pillar of the Small Business Strategy." "Ending this entrenched practice would ease pressure on working capital, reduce reliance on emergency borrowing, and allow SMEs to focus on growth rather than survival.”

As the government carries out negotiations for a new agreement with the EU on food and drink trade, the Food and Drink Federation (FDF) – which represents the UK’s 12,000 food and drink manufacturers – has set out its top ten key priorities to ensure the deal delivers for the UK. Exports to the EU have fallen almost a quarter (23.4%) over the last five years, when compared with the five years prior to Brexit1. The Sanitary and Phytosanitary (SPS) agreement will be a positive step towards easing the complexity food and drink manufacturers currently face when trading with our nearest and most important trade partner, removing burdensome certificates and checks at borders. However, achieving this will require alignment with the EU across more than 100 areas of food safety regulation – a significant shift in UK policy which comes with risks and potential unintended consequences for the nation’s food and drink manufacturers. For example, where the UK has adopted different policies to the EU on pesticides in recent years, a recent report showed that aligning to EU regulations without sufficient transition periods, could cost UK businesses up to £810m2. Additionally, Swiss businesses had 24 months to adapt to similar changes as part of its arrangement with the EU, while the UK plans to implement these changes by 2027. Karen Betts, Chief Executive, The Food and Drink Federation (FDF), said: “Europe is our biggest trading partner for food and drink, so getting the detail of the SPS agreement right couldn’t be more important. First and foremost, businesses need to know what to do by when, and how long will they have to comply. Early clarity on regulatory changes, allowing sufficient transition periods, and ensuring our voice is heard for decisions that will impact UK businesses in the future are non-negotiable to protect the competitiveness and long-term resilience of our sector." “The scale of the coming challenge for government is huge but we stand ready to work closely with them to ensure this deal delivers for the UK, by removing barriers to trade and helping to recover lost ground on our exports to Europe.” To mitigate against risks, FDF is outlining ten crucial priorities which government must act on to protect the competitiveness and resilience of the nation’s food and drink supply chain: 1. Early and transparent communication with businesses With most of the agreement in place, businesses need clear guidance on where EU and UK regulation has diverged, and what will fall into scope of the new agreement, so they can prepare properly and don’t face a cliff-edge 2. Communicate changes with global suppliers In 2024, the UK introduced a new approach to global imports, but it will now revert to the EU’s approach to imports from abroad. It’s essential that government communicates this with ingredient suppliers from overseas so they also have time to adapt to prevent disruptions to the UK’s food supply chains 3. If we can change the rules now to make things easier for businesses, then we should Where the EU has more advanced frameworks and authorisations then the UK should align now so our businesses are not disadvantaged, for example align authorisation of new, innovative food ingredients. 4. Ensure that the UK has a voice in EU decision making The UK must have a seat at the table for future EU decision making, to ensure that policy decisions don’t have negative impacts on UK businesses 5. Allow sufficient transition periods for companies to adjust Sufficient transition or exemption periods are essential to minimise disruptions to supply chains, particularly for long shelf-life products that don’t meet EU regulations, but will have been made well in advance of the deal coming into force 6. Retaining control over national legislation in specified areas The UK has specified some potential areas to retain control over national legislation to protect UK-specific industries – we must ensure these carve outs are continually assessed so we stay competitive 7. Prepare for future supply chain disruptions Ensure there are mechanisms in place to safeguard against supply chain shocks, such as the UK having its own national measures on pesticide use in the event of a poor harvest 8. Plan for the removal of ‘Not for EU’ labelling The SPS agreement has the benefit of removing the need for ‘Not for EU’ labelling for products sent to Northern Ireland. Engaging retailers, logistics partners and manufacturers early will help ensure we see the benefits of this 9. Monitor future EU policy development Have procedures in place to monitor future EU policy and regulation developments so we can shape their impact and prepare businesses properly for their implementation 10. Provide the right support for businesses to make the most of the new agreement SPS is only one part of the trading puzzle. Providing practical, tailored support for food and drink businesses will help them make the most of new opportunities to revitalise EU exports

The ultimate goal of many enterprising families is growing a prospering organization stewarded by a committed group of united family owners. And while many succeed in developing a successful organization, they struggle with managing the increasingly dispersed and diverse family group. As the family – and with it, the shareholder group – grows, it tends to grow apart: Family members become more distant over time, both geographically and emotionally. With many more relationships involved, some relationships naturally get more attention than others, diminishing the overall strength of family relationships over time. What is more, with every generation, the connection between individual family members and the business tends to get weaker, unless the family takes continuous and significant efforts to keep the family engaged and knowledgeable about the business (Baus, 2012). Systematic ownership competence development can greatly enhance family capability and unity and strengthen the connection between the family and the enterprise. It enables family members to contribute to business success and to family functionality, in whatever role they choose or are given. Yet only few families dedicate enough resources to ensure that their family members become capable stewards of the family enterprise and stay that way (von Schlippe, Rüsen & Groth, 2021). The Value Of Competent Owners The success of any long-lived family enterprise depends on the quality of decisions made by its leadership. On the business side, this might include the top management team, the board of directors, and in some cases, some influential shareholder. On the family side, decisions are made by family shareholders, and very often members of the extended family without ownership. Ownership competence means nothing more than having the ability to make decisions that benefit the longevity and prosperity of the family enterprise system. In some families the decision-makers may not have the business acumen one would expect to see; instead, their primary purpose may be to represent the family. For example, a family member serving as a board director may have no prior executive or even non-executive business experience. Yet, they are being asked to make decisions about business strategy, major acquisitions or divestitures, or human resource issues. Successful, long-lived family enterprises rely on the ownership group’s intent to act as responsible and competent stewards of the family business. This includes owners’ ability to make timely, sound and well-informed decisions, and the capacity to remain a unified, aligned group even in the face of diverse interests and objectives (Binz Astrachan, Waldkirch, Michiels, Pieper, & Bernhard, 2020). For a family with a multigenerational vision, educating family members to become such competent, responsible stewards of the family enterprise is a responsibility, and not a choice. What Is Family Ownership Competence? Family ownership competence refers to the knowledge, skills, and capabilities that enable family shareholders to successfully perform their role(s) as owners and stewards and make sound decisions that contribute to the success of the firm and the functionality of the family (Vöpel et al., 2013). These competencies fall into three broad categories: Business : Competencies related to one’s own family business (e.g., knowing about and making use of the firm’s history, key customers and suppliers, industry trends), as well as general business competence (e.g., finance, strategy) Family : Competencies related to nurturing a healthy and unified family (e.g., family dynamics, communication, conflict management) Individual : Competencies related to individual development and growth (e.g., boundary management, giving and receiving feedback, growth mindset) Competence profiles differ depending on the role(s) a family member holds in the business and/or the family. For example, a family CEO or a family board chairperson ideally has strong competencies across all three dimensions: They intimately know their industry; they have a deep understanding for how family dynamics shape communication and conflict patterns; and they have a growth mindset that allows them to deal with feedback constructively. While it may be beneficial for a non-owning family member to also develop these competences, it is not a necessary requirement for them to successfully perform their role as a family steward (Binz Astrachan et al., 2020). Ownership Competence Development In Business Families Business schools generate tremendous revenues educating individuals who lead organizations on all levels of the hierarchy. Comparably fewer efforts are made to educate the individuals who own those organizations, and who oftentimes set the strategic course for managers to execute. Ownership education may be limited because we have so little research on ownership competence and what it takes to be a competent owner. However, given the economic and societal contributions of family enterprises around the world, business schools might be well-advised to address this shortcoming! In their survey of 263 family firms, Vöpel and colleagues (2013) found that the majority consider developing ownership competence to be a decisive success factor. Respondents said ownership competence increases family cohesion and the ability to develop a shared set of goals (83%), and that it helps mitigate conflicts in the ownership group (67%). But while the respondents agree on the importance of ownership competence, the survey also showed they are not willing to make it a priority. Our own surveys and interviews [Binz Astrachan and colleagues (2020), and Binz Astrachan and Botero (2021)] have found that while families view ownership education as a key to family enterprise continuity, many families struggle with dedicating resources to developing and delivering a relevant and engaging curriculum. Some families lack a champion for ownership competence development within the family, which limits their access to financial educational resources. Other families are fragmented and disconnected from the business, which requires tremendous efforts to get family members to commit to spending time together for educational purposes. Or, as Doug Baumoel so thoughtfully added when reviewing this piece: “There’s got to be something ‘in it’ for each stakeholder to participate. When ownership is fragmented such that the financial value of ownership becomes insignificant – and the emotional value of ownership of the family legacy asset has been diluted for lack of attention -- there is little incentive for owners to carve out time.” What is more, we’ve seen that our respondents recognize the importance of educating family members on “softer” issues of the family enterprise system (e.g., communication, family dynamics). However, educational content heavily focuses on the business side of things. For example, data collected in 2021, for an updated version of the Witten/Herdecke study on ownership competence, shows that while 88% of respondents perceive communication to be a critical skill, only 51% currently include communication in their current curriculum. In summary, a business family’s understanding of what constitutes a competent owner seems short-sighted, situational, fragmented and overly reliant on the business side. While many families have a long-term vision that goes well beyond 20 or 30 years, they don’t invest sufficient resources to prepare the next generation of owners so they can adequately perform their rights and responsibilities over this period of time. With so much need for improvement, adding ownership competence development as a standing item on the family council’s meeting agenda would be a first great step to seizing this opportunity! The Ownership Competence Development Curriculum There is no ideal curriculum – and families are well advised to customize any blueprint to their own context, need, and objectives. The limited research and anecdotal evidence says that most curricula prioritize business-related skills such as management and strategy, finance, and industry knowledge. Family-related skills such as the family history and family dynamics, effective communication and conflict management are viewed as critical, but are often not an essential part of the educational journey. Takeaways 1. Ownership Competence Development Requires Resources, Advocates, & A Strategy Systematic ownership competence development requires a significant commitment of collective and individual family resources. Funds must be allocated, time must be made, commitment must be secured. Assigning a powerful advocate within the family helps in advancing these efforts. An ownership competence development committee should prioritize developing a strategy detailing the who, what, and when of ownership competence development for the entire ownership group. The first step is starting the conversation by discussing some of the following questions: What do we want our family members to know about the business and the family? Are we appropriately preparing the next generation for their ownership responsibilities? How much money, time and emotions are we willing to dedicate to this process? Who should be in charge of ownership education? Do we need outside help? 2. Identify Paths To Ownership Competence Development For Different Roles The individual’s age, and their current and future role(s) in the business as well as the family, will determine how they acquire competencies. For a newly elected family board member, pre-board mentoring sessions and post-board meeting de-briefings with a seasoned director or an executive like the CEO are great learning opportunities. Other roles may require more formal education (E)MBA programs, or targeted programs focusing on specific skill development such as accounting classes, or programs specifically designed for governing owners such as the one the Loyola Governance Institute offers. Coaches can help with personal development. To build family business competency, involve key executives in putting together presentations for the family. This is a great way to connect the family to the business and signal continuity to key associates, while conveying knowledge. 3. Hold The Family Accountable Regardless of whether family members have operational roles in the business, family members who want to be professional owners must thoroughly understand the business, the family’s values and goals, and the dominant dynamics shaping their family interactions. Agree, as a family, on competence expectations for different roles. Make the path to acquiring this competence clear, and make access to the right training accessible. Ownership comes with a unique set of rights – and with many responsibilities. Educating current and future decision-makers in the family enterprise is a responsibility, not a choice. Without preparing them to be competent owners and responsible stewards, you risk setting them up for failure…and putting at risk the many stakeholders depending on the firm’s sustained success. I want to conclude by sharing an important observation Dough Baumoel made when reviewing this article: “Owner education – both ‘hard and soft’ – is important (…) but so is owner alignment. [Consider wealth disparity between branches], which can make even the best educated owners have very different views regarding their shared assets. Anticipating this can be helpful. In addition, values differences can drive differences in owners’ intentions; some may not want to be owners of a meat processor or gun manufacturer." "My point is that having educated, engaged owners is not always sufficient: Exit options to help those educated owners who remain forge better alignment together is also an important part of the equation (…) development of ownership competencies as an important and necessary condition for success – but, like all initiatives, not sufficient alone for generational success.” This article first appeared on FamilyBusiness.org and has been reproduced with permission of the author.

If you’re a fan of the television show Succession, or if you’re aware of the conflicts playing out publicly and perennially among some of the most visible family businesses in the world — think the Murdochs or Sumner Redstone’s family— you might assume that family businesses are more fragile than other forms of enterprise. Indeed, that’s the conventional wisdom: Many articles or speeches about family businesses today include a reference to the ‘three-generation rule,’ which says that most don’t survive beyond three generations. But that perception could not be further from the truth, according to BanyanGlobal’s Josh Baron and Rob Lachenauer, who carefully walk through what the data really tells us about the success rate of family businesses over generations. The oft-repeated 3 Generation Rule, Baron and Lachenauer argue, is misleading. The data suggests that, on average, family businesses last far longer than a typical public company does. Far from being doomed to failure, family businesses across the world will continue to be a leading source of jobs and economic growth for years to come. On average, the data suggest that family businesses last far longer than typical companies do. In fact, today they dominate most lists of the longest-lasting companies in the world, and they’re well-positioned to remain competitive in the 21st century economy. Where did that three-generation idea come from? A single 1980s study of manufacturing companies in Illinois. That study is the basis for most of the facts cited about the longevity of family businesses. The researchers took a sample of companies and tried to figure out which of them were still operating during the period they studied. They then grouped the companies into thirty-year blocs, roughly representing generations. Only a third of family businesses in this study made it through the second generation, and only 13% made it through the third. But when you look closely at the study, you might see things a bit differently. First, its core findings are often described incorrectly. When people talk about the 3 Generation Rule, they suggest that this study reveals that only one-third of family businesses make it to the second generation. But the study actually says that one-third make it through the end of the second generation, or sixty years. That’s a thirty-year difference in business longevity! Not the same thing at all. Second, Baron and Lachenauer point out, what the study didn’t say is how that compares to other types of companies. The comparison, it turns out, is actually quite favourable for family businesses. A study of twenty-five thousand publicly traded companies from 1950 to 2009 found that on average, they lasted around fifteen years, or not even through one generation. In addition, tenures on the S&P 500 have been getting shorter. If the average company joined the index in 1958, it would stay there for sixty-one years. By 2012, the average tenure was down to eighteen years. A Boston Consulting Group analysis in 2015 found that public companies in the United States faced a five-year ‘exit risk’ of 32%, meaning that almost a third would disappear in the next five years. That risk compares with the 5% risk that public companies faced in 1965. Finally, the study provides no insight on why some businesses disappeared. Family disputes and business problems surely did hurt some of them, but in other cases the owners may simply have sold their business and started a new one. That’s far from ‘failing.’

“What do you mean we can’t pay dividends this year?” Elisa was incredulous. The board of the watch company she and her husband Mark had founded had just reviewed projected end-of-year performance. Usually this meeting was a celebration of another incremental step forward, with moderate growth, no debt, and significant dividends, which Elisa and Mark used to support their comfortable lifestyle and charitable donations. This year, however, revenue growth was way up, but profits were down, and the covenants on the debt taken out by the company to achieve that growth did not allow for any dividends. It was the first time that Elisa had felt out of control of the company she had co-founded. (Throughout this article, names and identifying details have been changed to protect confidentiality.) How could the founders and sole owners of a company find themselves surprised by its inability to pay them annual dividends? Elisa and Mark had done many things right in building their business, including eventually appointing an independent board and an outside CEO to help the company reach the next level. But they made one crucial mistake. They failed to clearly and concretely articulate their “owner strategy,” meaning the tangible outcomes that they wanted to achieve – and avoid – as owners. For widely-held public companies, the owner strategy is simple. They are owned primarily by institutions (like index funds) or investors who have no personal tie to the business. These owners expect the company to maximise the growth in value of their shares, usually measured by hitting quarterly earnings targets. Indeed, most of what is taught in business schools and described in management literature is based on the assumption that companies exist to maximise shareholder value. But “that assumption ignores an equally obvious truth,” Bo Burlingham points out in Small Giants: “What’s in the interest of the shareholders depends on who the shareholders are.” For the vast majority of businesses in the world, controlling ownership is in the hands of people with a tie to the company, rather than outside investors. That includes companies owned by founders, families, foundations, partnerships, and employees. Family businesses alone account for approximately 70% of companies in the US, 79% in Germany, 85% in France, and over 90% in Asia, India, Latin America, and the Middle East. When these businesses are privately held, they provide owners the most freedom to define how they will measure success. They can choose to pursue certain outcomes and avoid others, even if they do not maximise the economic value of their business. We have found that very few of these owners would describe their sole objective as maximising shareholder value–and for many, it is not their primary objective. Yet, they are often not clear about what they do want, which can create missed opportunities for growth, a loss of talent due to frustration over the direction of the business, or a loss of control by the owners as management fills the void in with their own priorities. A clear owner strategy is critical to keeping a business on course. Passion project or growth machine? In the case of Elisa and Mark’s watch business, their mistake was in not articulating their owner strategy to themselves and then sharing it with the rest of the company. They had started their watch business several decades ago as a passion project. Elisa had been trained as an engineer and was fascinated by how to improve the functionality of the product. Mark helped come up with sleek, new designs and had eventually left his job to help her launch the company. Together, they created one of the industry’s most distinctive brands, with revenue approaching a billion dollars. But growing the business had never been a priority for them. As long as it maintained the culture of innovation and allowed them to enjoy the fruits of their labours, Elisa and Mark were happy. As the company grew to a size that exceeded their ability to manage it, they decided to hire an outside CEO with a strong track record in their industry to take over day-to-day operations. The CEO saw an opportunity to aggressively grow the business, and invested heavily in international expansion and the IT systems required to support it. He also came up with less expensive, and lower quality, versions of the core products in order to broaden the company’s appeal. Although there were promising signs from these investments, the lack of profit growth–and the missed dividend– led the founders to realise that the CEO’s vision was out of sync with their own priorities. So the founders opted to fire the outsider CEO and elevate an insider to the role instead. While the new CEO lacked the outsider’s credentials, they knew that he would ensure a return to a prioritisation of culture and creativity over hockey-stick growth. They created a clear owner strategy to guide all of the company’s major decisions – and achieve their own definition of success. To avoid a repeat experience, they spelled out their owner strategy to the company and worked with the board to align the new CEO’s compensation incentives with it. Define your owner strategy An owner strategy generates alignment among owners, board members, executives, and employees, which, in turn, improves both performance and satisfaction. Think of it this way: if owners are clear about how they want to keep score, board members and management teams will know how to win. That clarity also allows companies to define success on their own terms, rather than someone else’s. And isn’t that the point of owning a business, or working for one? Defining an owner strategy requires asking two basic questions: 1 - What are your goals: growth, liquidity, or control? There are three broad goals that owners can seek. They can aim for growth, meaning to maximise the financial value of the business. They may pursue growth to build long-term wealth, broaden their impact on society, or for the psychic rewards that accompany getting bigger. They can also seek liquidity, which is to generate cash flow for the owners to use outside of the business. Liquidity can be useful to pay for lifestyles, fund philanthropic efforts, or allow owners to have more independence by diversifying their assets. Lastly, they can want control by keeping decision-making authority within the ownership group. Some owners want control over their own destiny and don’t want to give up their autonomy to anyone else. Others value control as a way to run the business in a way that preserves what they value, such as a distinctive corporate culture, or having a company that lasts for generations. Most successful businesses face a trade-off between the pace of growth, how much liquidity the owners take out of the company, and how much control the business retains over its decisions. A company could pursue only one of these goals, or some mix of the three. But for most companies this is a “pick two problem,” meaning they can focus on two at the expense of the third. Growth-control (GC) companies are focused on getting bigger while maintaining control over decisions. They grow primarily through their retained earnings, paying low (or no) dividends to the owners. They also have low (or no) external equity or debt, since answering either to outside investors or borrowers requires surrendering a level of autonomy. When outside equity is taken on, it is often done on a limited basis or through dual-class shares that ensure the core owners maintain control (as in Google/Alphabet and Facebook). The avoidance of debt is often a surprise to those used to looking at widely-held public companies or private equity firms, who seek to maximise returns through leverage. For private companies, debt can be useful, but is usually recognised to come at the cost of control. Closely-held public companies will often take a similar view. In its Owner’s Manual, Warren Buffett says that Berkshire Hathaway will “use debt sparingly,” and will “reject interesting opportunities rather than over-leverage our balance sheet.” Growth-liquidity (GL) companies are also growing rapidly, but are paying out money to the owners and using other people’s money (equity and/or debt) to keep the engine going, giving up some control as a result. When companies go public, they are adopting this strategy. Private companies can use it too. We worked with one business that had a lot of growth potential, but the owners were concerned about the long-term threat for disruption in their industry. So they sold a stake in their business to a strategic investor and used part of the proceeds to diversify into other areas. Liquidity-control (LC) companies are not concerned with how rapidly they grow, but instead want to produce significant liquidity for the owners while allowing them to maintain control over decision-making. Elisa and Mark fit this profile as owners of their watch business. These are broad types, and companies can find a space in between. But, as they move from one part of the triangle to another, they are making trade-offs among the three main goals. Each of these core types brings its own advantages and risks to be managed. And we know of highly successful companies that follow each path. The key is for the owners of a company to be aligned on what goals they want to pursue, recognising that there are trade-offs among them. It is also important to revisit these trade-offs as things change, either external factors like the economy and industry consolidation, or internal factors like a shift in ownership or senior management. What worked brilliantly in one environment can be a disaster in another. We have found that aligning on the priorities of the company is extremely helpful. But to make it real, these broad goals have to be translated into specific ways of measuring performance. And that leads to the second question: 2 - What are your ‘guardrails’ for the business? Guardrails are boundary conditions that the owners want to put on the company’s actions based on their goals. They define what is in and out of bounds. Guardrails can be financial or non-financial. On the financial side, they should align with the mix of growth, liquidity, and control that the owners want to prioritise: Growth in value metrics (e.g., return on invested capital or total shareholder return) show owners how financial performance compares to peer companies and/or to other investment opportunities Liquidity generation metrics (e.g., dividend payout ratio) inform owners if the enterprise is producing the expected amount of cash to meet the owners objectives outside of the business Resilience of control metrics (e.g., debt-to- EBITDA) help owners understand and manage significant risks to the enterprise that could threaten their control of it. In our experience, owners should hone in on a small number of financial metrics (usually four to six) that can define whether or not the company is successful based on what matters to them. Doing so balances providing clear guidance to the company’s leadership with leaving them ample opportunity to figure out the best business strategy. Many owners are willing to sacrifice some level of financial performance to achieve other objectives. Oftentimes these objectives are not stated explicitly, but it is essential to define their non-financial guardrails. In our experience, they typically fall into four main categories: Is it important for the company to be led by its owners, even if they are not objectively the most qualified? We worked with one family business that believed strongly that only a family member should run the company, even if it meant that it would grow less quickly. Sectors/geographies. Are there particular areas that the owners wish to avoid investing in, or that they want to preserve, even though they are unprofitable? Some companies will hold onto an under-performing asset because it has non-financial value to the owners, as a source of historical pride or importance to the community. Are there any decisions that will be made or avoided to preserve relationships among the owners? Some companies will keep a division or office open despite its poor financial performance because it is led by an owner and closing it will have a negative impact on the broader harmony of the group. Business practices. To what extent are the owners willing to reduce financial performance in order to align business practices with their values (social, religious, environmental etc.)? We know one company that decided they would not supply the cigarette industry because it did not align with the owners’ values, even though it would have highly lucrative. Others pay higher than market wages or commit themselves to environmental sustainability standards that exceed industry expectations. There are no right or wrong answers in defining guardrails. The key is to create alignment among the owners on specific metrics and targets that measure success and inform major decisions. Create your owner strategy statement In order to codify their alignment, the owners of a company should draft an Owner Strategy Statement, which not only articulates their goals and guardrails, but the rationale behind them. The statement should be as specific as possible. The acid test is: does it help the company make decisions that require trade-offs? For example, one business we know set a 15% return on invested capital (ROIC) target for its retained earnings. During the time that the market was expanding, they reinvested almost all of the profits back into the business. As the market matured, they began to reduce investment and increase distributions to shareholders. A good Owner Strategy Statement should be the basis of a dialogue between the owners and board/management, as there are times when an owner strategy may require adjustment to fit with business realities. It also should be a living document, revisited whenever there are meaningful changes to the internal or external environment. Lastly, it should be translated into a dashboard that identifies the metrics and targets the owners can use to measure success, which they should review on a regular basis. Owning a company creates an opportunity to, within reason, choose your ownership adventure. Elisa and Mark figured this out while there was still time to make a change. Clearly defining success puts you in the position to create a company that accomplishes what matters most to you.

Here at Family Business United we are delighted to announce the launch of our inaugural Global Family Business Think Tank Report which summarises the thoughts of over 100 leading family business owners, experts and advisers from around the world on specific topics that will help to shape family business discussions and strategies going forward including thoughts on board diversity, future roles of women in family business, purpose, values, storytelling and governance to name a few. Check out the inaugural Global Family Business Think Tank Report here Key Findings: 97% of respondents believe that we will see more women family business leaders in the next few years Only 26% of respondents feel that family businesses make the most of their narrative Only 26% of respondents feel that family business boards are sufficiently - diverse 97% of respondents feel that family businesses need to change the way that they engage with the next generation 83% do not feel that there is sufficient support from governments or policy makers As well as the top level statistics that highlight areas that need to be on the family business agenda, we have included quotes from some of the global participants and a number of articles too. As Paul Andrews, Founder and CEO of Family Business United who published the report explains, "We hope that the report enables conversations to take place to bring the family business community together to further innovate, drive changes as a force for good and helps provide further support for families in business to continue to flourish for generations to come." "The aim of the report was to harness the collective voice of the family business community around the world and share their thoughts and comments on areas that are certainly being discussed in family business board rooms and there is certainly plenty to think about and for family firms that are looking to plan for the next stage in their journey, areas that they should, if they are not already, be considering." "This is the first of our Global Family Business Think Tank Reports and not only does it highlight key areas for family businesses to consider, it will prove useful in helping us to develop and deliver further resources, insights and thought leadership pieces to address the areas discussed and enable family businesses to continue the conversation." "We could not have compiled the report without the assistance and participation of our friends around the world and we are immensely grateful to everyone who took the time to share their thoughts with us, contributing to a document that will certainly make a difference too," concludes Paul. Find out more: These results were part of the 2024 Global Family Business Think Tank Report that was published in Spring 2024. Check out the full findings in the report here

Perdue Farms, a family owned fourth-generation U.S. food and agricultural company, has decided to incorporate the on-farm hatching concept “NestBorn” into their broiler production & supply chain. The adoption of this innovative & future-proof approach to hatch day-old chicks in broiler barns – instead of in hatcheries – perfectly fits into the company’s belief in responsible food and agriculture, and is aligned with its deep, long-standing commitments towards animal care and No Antibiotics Ever. In the summer of 2023, a demonstration NestBorn Egg Placing Machine was placed into operation by Perdue Foods near its headquarters on the Delmarva peninsula in order to efficiently transfer larger volumes of pre-incubated hatching eggs into broiler barns. It was the first time a NestBorn machine, which picks up candled and vaccinated eggs from setter trays in an automated and gentle way to then place those egg directly on the floor of a temperature-controlled broiler barn, was installed in the U.S. The advantage of hatching directly on-farm is that access to feed and water is immediate, lowering the risk of hungry and thirsty chicks. Additionally, hatchery handling and day-old chick transport are also eliminated which means potential discomfort of the newly hatched chick is avoided. Overall, these “Higher Welfare Hatching Practices” will also translate into enhanced chick quality & health benefits. After more than one year of demonstration and validation in a “deep litter” context, Perdue Farms and NestBorn, have agreed – in a preferred partnership context – to further deploy the NestBorn on-farm hatching solution. In its first phase, two state-of-the-art NestBorn Egg Placing Machines – constructed and supported by automation expert Viscon – will be deployed in the U.S., significantly increasing the number of on-farm hatched chicks in Perdue’s operations. Bruce Stewart Brown, Chief Science Officer for Perdue Farms commented: “In our mission to responsibly raise animals for food, we always are looking for continuous improvement of animal welfare,” said Bruce Stewart Brown." “A few years ago, we started to investigate the feasibility and potential benefit of on-farm hatching in our operations. We started taking pre-incubated eggs to broiler barns, instead of using the hatcher. We concluded that NestBorn is an additional asset for our broiler operations that will help further our efforts around the highest animal care and in our commitment to no antibiotics ever.” On behalf of the Belgian-based NestBorn company, General Manager Erik Hoeven shared his pleasure with this first expansion outside the European continent saying: “Since the official launch of NestBorn in 2018, chicks have been hatched on-farm with our concept in more than 10 European countries. We are very pleased that we found a visionary poultry company in Perdue Farms, who helped us to fine-tune the equipment and methodology for the specific U.S. barn conditions." "We hope that favoring the barns instead of the hatchers for the final 2 or 3 days of the hatching process, can offer alternative solutions for Perdue in terms of future hatchery designs and investment strategies.”

DHL and Mars UK have announced the opening of a new state of the art warehousing facility, London Thames Gateway. The opening marks the completion of Mars UK’s new world-class logistics operation, through a £350 million investment and partnership with DHL. The project will reduce Mars UK’s logistics carbon footprint by 7.7% and remove a million miles a year from roads - which is 40 times around the world. The new facility, standing at 42 meters makes it one of the tallest distribution centres in Europe and features 3,700 solar panels, which produce 27% of the site’s power usage. It has achieved BREEAM 'Outstanding' accreditation, placing it in the top 1% of non-domestic buildings in the UK environmentally. The building helps Mars realise its ambition of creating a world-class logistics network that is sustainable, smart, and agile. Its streamlined operations incorporate the latest automated pallet storage and retrieval (ASRS) technology and the Gateway facility also features High Frequency charging of equipment resulting in up to 30% less energy usage, rainwater harvesting and LED lighting throughout. The two new sites will increase Mars’ UK warehousing capacity by over 50%. The location of the warehouses means it has strong transport links. Mars is able to streamline the inbound and outbound distribution of its product portfolio, removing a million miles a year from roads. From Whiskas® and Pedigree® to Celebrations® and Ben’s Original®, Mars UK transports over 1.2 million pallets of its products every year – which, if you stack those pallets on top of each other, is the equivalent of shipping the height of Mount Everest every other day. The completion of the new facilities is a significant milestone in Mars UK and DHL’s journey to a more sustainable future, showcasing their commitment to finding innovative solutions to reduce environmental impact in logistics operations, whilst ensuring that Mars is well positioned to deliver their portfolio of products to future generations. Adam Grant, General Manager, Mars Wrigley UK – Mars said: “Today is a major milestone for Mars UK’s logistics operations and a meaningful step in our sustainability journey." "Over the past few years, our partnership with DHL has seen the completion of two pioneering facilities. Not only does this futureproof our distribution practices, it also puts into action Mars’ aim to create a world-class logistics operation that is sustainable, smart and agile.” Saul Resnick, CEO, DHL Supply Chain UK&I said: "This project with Mars UK further solidifies our belief that working with partners whose business and sustainability targets align with your own allows you to achieve the best results." "This partnership does exactly that - it represents a great example for others of how businesses can work together to reduce carbon footprint and create a more sustainable future. We look forward to continuing our partnership with Mars UK and supporting the company’s growth in the years to come."

JCB is set to double the size of a new factory currently under construction in Texas as the company confirmed that newly-announced tariffs will impact its business in the short-term. JCB has been manufacturing in the USA for 50 years, and last year bought 400 acres of land in San Antonio after recognising the need to produce even more machines in North America, where the company’s existing manufacturing plant in Savannah, Georgia, has operated for 25 years and employs around 1,000 people. The original plan for a 500,000 square feet factory in San Antonio has now been revised and JCB is forging ahead with plans to double its size to one million square feet. The new $500 million plant is due to start production next year and employ up to 1,500 people and will build on JCB’s growth in North America. JCB Chairman Anthony Bamford said: “JCB has been in business for 80 years this year and we are well accustomed to change. The United States is the largest market for construction equipment in the world and President Trump has galvanised us into evaluating how we can make even more products in the USA, which has been an important market for JCB since we sold our first machine there in 1964.” JCB CEO Graeme Macdonald said: “In the short term, the imposition of tariffs will have a significant impact on our business. However, in the medium term, our planned factory in San Antonio will help to mitigate the impact. We are thankful that the tariff is only 10% and we can only hope that the UK Government will conclude negotiations on a trade deal in the coming days and weeks.”

The French Oil Mill Machinery Company marked its 125th anniversary, celebrating a rare legacy of continuous family ownership and manufacturing innovation. Founded in 1900 by Alfred Willard French, Sr., the company has grown from a pioneering engineering endeavour into a global manufacturer of custom hydraulic presses and processing equipment used across the composite, laminate, oilseed, plastic, and rubber industries. To celebrate the occasion, the company hosted a private open house on Wednesday, May 21, at its Piqua, Ohio, headquarters and manufacturing facility, where operations have continued for more than a century. Invited guests included company leadership, employees and their families, shareholders, and special partners who gathered to honour the company’s rich history and ongoing commitment to innovation and global impact. The event featured a reception, self-guided tours of the manufacturing operations, and a debut of the company’s history museum, a permanent exhibit of artifacts, photographs, and machinery that helped shape the global oilseed and rubber industries. In addition, guests were able to view a recently commissioned portrait honoring the late Chairman and CEO, Daniel P. French, who passed away in 2023 after more than fifty years of service and leadership. Tayte French Lutz, Chairman of the Board and CEO, said: “Less than one percent of businesses founded in 1900 are still operating today, and fewer than 3% of family businesses reach a fourth generation of leadership. That perspective makes this milestone especially meaningful for our family, our employees, our shareholders and the Piqua community that has supported us for 125 years.” Founded on the principles of progressive thinking, inspired creativity, and a strong work ethic, French is true to its mission: “We make machines to make people’s lives better.” The company has supported customers in more than 80 countries across diverse industries, including aerospace, defense, food, medical, sporting goods, sustainable energy, and more. Still proudly headquartered in Piqua, the company continues to drive innovation with the same dedication to quality and craftsmanship established at its founding. Over the decades, the company has been awarded numerous patents, contributed to wartime efforts, and received prestigious honours, including the President’s “E” and “E” Star Awards for Exports. The 125th Anniversary Open House was a celebration not only of French’s history, continuous innovation, and leadership, but of the employees, global customers, and community who have helped write its story. “Our legacy is written in steel, precision, and perseverance,” added Lutz. “But our greatest legacy is not behind us, it lies in the future we continue to shape.” About French Oil Mill Machinery Company Founded in 1900 and headquartered in Piqua, Ohio, The French Oil Mill Machinery Company is a custom equipment manufacturer serving the composite, lamination, rubber, and oilseed industries. Known for quality, innovation, and engineering excellence, French delivers value-driven solutions that support industrial progress around the world. Top Photo: Tayte French Lutz looking at a photo of Daniel French.