Credibility for the Family Business

Credibility for the Family Business

Family Business Forum News
by Jim Klaes

“Business is simple,” Tom Monroy told students and others in McNeill Auditorium at UTEP’s College of Business this past June.”We over-think and make it harder than it has to be,” said the Ph.D. from Baldwin-Wallace College.

“I myself learned everything I needed to know from my grandmother, who started our family business,” be said.”It was not until 1943,” he pointed out, “that Harvard Business School taught the first course…ever…in general business management.”

Monroy named six disciplines a company leader must have to establish credibility: discovering personal strengths and weaknesses, appreciating those who do the work and supply the goods, affirming shared values, developing capacity (of the individuals and, therefore, the company), serving a common purpose, and sustaining hope that the shared goals will be achieved. More…

Will you be a Survivor

Will you be a Survivor

by Diane Denslow

Studies indicate that only one third of family businesses make it from the first to the second generation yet a majority of family business owners intend for their businesses to continue. What happens? Most businesses are sold to non-family members due to a lack of planning. The following are key areas to address if the family business is to remain viable and in existence for future generations.

Plan for a transition of leadership. A family business owner should begin this planning for transition a minimum of ten years prior to the time they plan to leave the business. Family members that will be taking over the management of the business must be prepared for their respective roles. This means giving them increasing areas of responsibility and the opportunities to develop the required skills so they are ready to take the reins when the appropriate time comes. More…