The business of family business

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The business of family business

• Greg Helfrich
• The Enterprise Coach Inc.

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Family Businesses are Different!
Non Family Business - two basic relationships
ownership and management.
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Family Businesses are Different!
Family Business three sets of relationships
family, ownership and management.
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Ownership Stages of Family Businesses
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Stages of Family Development
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Stages of Business Development
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Philosophies of Successful Families in Business

• Fair isnt necessarily equal
• Compensation as employee, shareholder and estate
  participant are different
• Employee based on value add
• Shareholder based on dividend from profits
• Estate benevolence of older generations

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Philosophies of Successful Families in Business

• Meritocracy
• Participation as employee is based on skill,
  ability and results not last name
• Competencies are judged as objectively as
  possible.
• Family members are able to separate their roles
  as employee and shareholder/family member.

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Philosophies of Successful Families in Business

• Stewardship and Leadership
• Members of the family treat the business as a
  family asset to be perpetuated and grown for the
  benefit of the family.
• Members of the family see themselves as leaders
  inside the business regardless of role.

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Philosophies of Successful Families in Business

• Proactive approach
• Policy before need
• Planning and discussion in advance of issues
  avoids conflict

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Philosophies of Successful Families in Business

• One standard for behaviour
• Family members work the same hours as the staff
• Family members recognize their responsibility as
  role models

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Philosophies of Successful Families in Business

• Communication isnt accidental
• Regular family meetings
• Structured agenda
• Facilitated to ensure real dialogue
• Issues are surfaced, not buried

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Role of Family Business Facilitator

• To facilitate discussion among family members as
  they debate, discuss and decide issues that
  relate to the family and its business.
• Reduces potential conflict
• Allows for better business decisions
• Health Family, Healthy Business

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Why Greg Helfrich

• Trained as family business facilitator by the
  Canadian Association of Family Enterprise
• Trained as a mediator by the Pulse Institute
• Practical, proven business knowledge gained from
  helping over 75 client companies as a management
  consultant
• Non-Family executive in a large family business