Family Business. Move Ahead Together in Uncertain Times
by Marilyn Edelson

In these uncertain times, preserving a family business and strengthening it for the next generation are crucial undertakings. Many once-thriving businesses are at serious risk of failing as the result of "funnel vision" or by being driven apart by seemingly irreconcilable conflicts.

The passion to keep a legacy going gives closely held businesses a great incentive to survive economic downturns. Yet, half or less of all family-owned businesses make it to the third generation. In fact, these businesses face unique challenges. Divorce of a key family business member, conflict between married principals or between generations, handing over leadership to a generation yet unprepared to take the reins or getting the current generation to let go can rock, even destroy, ongoing concerns.
The will to try a new way of relating, however, can make a huge bottom-line impact for family businesses under stress. Working with a business coach with a background in family systems work can help families safely and intelligently negotiate their unique and complex issues so they can work on the technical issues of running a business while developing behaviors that lead to desired results.

The issues seen most frequently are those related to succession planning, family conflict and divorce. Each business has its own specific issues. It isn’t uncommon, for instance, to see the owner/parent wanting to control everything about the business despite the children being capable of running it more than adequately. While the younger generation feels like they are being treated like small children, the older generation often feels no longer valued for their knowledge and experience by “ungrateful” children. The younger generation may receive coaching on using the parent as an inside consultant, while the older generation may be helped to get perspective on their achievements, rebalance their lives and find a meaningful next step.

Succession planning is a complex process primarily involving considerable legal and tax planning, but emotions can derail the process. A typical example is when one child is successfully engaged in the business, but siblings are not. The parent/business owner wants to be fair to all children but the child who has sacrificed and stayed in the business feels she deserves more for giving herself to the family. Openly discussing what is fair can not only lead to more creative approaches to estate and succession plans but also to equalizing the other siblings shares of their parents’ overall estate.

In a business impacted by painful divorce, the spouse leaving the family business might be guided to see his or her self-interest in behaving mindfully of the business, while other family members might be guided on getting back to business, rebuilding and planning for the future. In couple-owned businesses. Issues such as balance of power between husband and wife, and life balance for both— especially if they also have children— can become interwoven with satisfaction and success of the business.
BrandEquity International is a family-owned business founded by Joe and Elinor Selame that grew over the past 40 years to become one of the leading firms in developing names, trademarks, store and package design for Fortune 500 as well as small family-owned businesses. The firm’s credentials read like a Who’s Who of famous business trademarks from Kodak to Sheraton and Amoco and, locally (in Massachusetts) to Stop & Shop supermarkets, Kabloom, Zoots and national brand, Nantucket Nectars. The past several years have been challenging as the industry saw a sharp decline at the same time the founders were looking to reduce their hours and involve themselves in new interests. Coaching was felt to be a valuable service to help the family begin planning the company’s future. The family business coach not only worked with key family members but with the entire executive team to structure meetings on a regular basis and help the team be responsible, accountable and more focused in their vision.

Karen and Minouro Yahara have been through a number of transitions in their 10 years in their business. Recently, Sasuga Japanese Bookstore, based in Cambridge, MA has seen a marked reduction in foot traffic due to a sharp reduction of the Japanese population in the Boston area over the past several years. Their internet-based business, however, which includes supplying Amazon.com, has grown by leaps and bounds, confronting the Yaharas with the need to look at at new business models. Working directly with Karen who faithfully translates our meetings to her husband afterwards (Minouro speaks little English), a future for the business is being constructed that will give each the opportunity for personal satisfaction, sustainable growth for the business and return for their investors.

Barry Lipsett, second generation President of Charles River Apparel in Medford, MA has met with a family business coach every other week for about six months to discuss issues dealing with the family business he is successfully growing despite the difficult economy. For him, a coach has been “a great sounding board’ for the many issues that I must deal with each week” including the needs and wants of his talented but sometimes touchy sales force that includes family and non-family members. He describes his coach as “a good listener and a helpful resource outside the business and outside the family. She pushes me to follow through on my decisions and keeps me accountable.”

In all situations, the consultant plays an important role in defusing emotions and keeping everyone's eyes on the prize. Participants are asked to acknowledge and take responsibility for the results they produce, progressive and regressive. Clients frequently already have the answers within. The family business coach's role is to help them organize and surface that knowledge in order to move beyond the issues that block -- or threaten to block -- progress.
Given the regressive pull of families, the biggest task is freeing from those ties that bind so they can make good choices -- individually, for the business and for the family.