In This Newsletter
Heritage is a newsletter geared toward the interests of family business
owners. It is published by the Family-Owned Business Institute at The
University of Tulsa. To learn more about the Family-Owned Business
Institute, visit our website at:
http://bus.cba.utulsa.edu/fobi.
Notes from the FOBI Vice-President
Family-owned
businesses are, by far, the most common business structure in the world.
These businesses are truly unique, creating wonderful close-knit
entities based upon family ownership and commitment. Working your entire
life with your spouse, children and/or other family members can be a
blessing and provide many rewards. However, it is not always an easy
task to manage opposing family and business dynamics. When not
managed properly, these competing tensions can tear a family and a
business apart, sometimes beyond repair.
We have all heard the survival rate stats: first generation to the second (30%) and even lower from the second to the third (13%). Why? Perhaps for family businesses, the ultimate survival of the business is more complex. In many respects, operation of a family business is similar to any other business in that the goal is to provide a quality product or service and make a profit. However, family businesses have several distinctive challenges. Most of these challenges arise due to business versus family decisions made by the family member(s) in control. These challenges come in many forms such as sibling rivalry, which is often associated with power and control, or with issues related to poor communication, succession planning, non-family managerial roles, inclusion and exclusion of certain family members and in-laws, and issues regarding compensation for family members. The decisions made in a family business are just different, right?
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| Director | Marsha Cole | Baker and Cole |
| Secretary | Alex Gravley | Quik Print of Tulsa |
| Vice President | Chip Meade | Anchor Paint |
| TU Representative | Claire Cornell | |
| President | Scott Burnett | Burnett, Inc. |
| Director | Justin Meade | Anchor Paint |
| Treasurer | Jamie Hutchison | Precision Aerospace |
Raising the Bar:
How an effective advisory board can increase skills, professionalism, and effectiveness in the family business
by Lisë Stewart
Talented
entrepreneurs who know their particular product, industry, or service
very well often start family businesses. They may toil for years,
even decades, building their company, developing their teams, and
providing jobs for various family members. However, it is common
for these close-knit family companies to become complacent and
accustomed to doing things the way they have always done them or
settling for 'home-grown' solutions to problems, while missing out on
opportunities to innovate and grow through new ideas, fresh thinking,
and alternative experiences.
One very cost effective way to inject new talent, experience, and fresh ideas into a company is through the development of an effective Advisory Board.
Notes from the FOBI Vice-President
Raising the Bar:
Family Matters
September
4:00-6:00 p.m.
Helmerich Hall, Room 121
TU Campus (Bldg. #14)
Facilitator:
Jim Shirley
James Shirley Management Consultants
October
Fall Holiday Happening!
October
15th
4:30-8:00p.m.
Stone Bluff Winery
24145 E. 191st St. South
Haskell, OK 74436-2087
RSVP to Claire by
October 1st
918-631-2684 or
claire-cornell@utulsa.edu
Join us for wine and heavy hors d'oeuvres
November
Friday, November 20th
11:30 a.m. to 1:00 p.m.
Location: TBA
Speaker: Dr. Kevin J. Fleming
(Life,
Executive, and Business Coaching)
Topic: Transformational Leadership: Improving Your Family Business
through Value Alignment
Welcome our Newest FOBI Members
Business
continuation planning can be a delicate balancing act when it comes to
family owned businesses. Balancing the need to be fair with family
members with the needs of the business can put the owners in a difficult
planning situation. In many cases, the largest asset in a business
owner’s estate is the business itself. This can create the problem that
to split the estate evenly, it may require splitting the ownership of
the business into minority shares between children working in the
business and children that do not. This can create operational problems
for the business and conflict between the children.
T. D.
Williamson, Inc.
Dick Williamson -
Chairman of the Board
Annie Tomeck -
Community Relations Liaison
Emily Perkins -
HR Generalist/Marketing Analyst
6801 S. 66th
W. Ave.
Tulsa, OK 74131
Roto Hammer Industries, Inc.
Craig Sutton -
President
Katherine Sutton - Controller
2804 W. 40th Street
Tulsa, OK 74107
(918) 446-3655
The Ultimate "Team Building" Experience
by Mike Henning
We
often read in periodicals that employee trust in leadership/owners of
private companies is at an all-time-low. These comments are not only
directed at public companies, but private and family-owned enterprises
as well. My own observations of business over the last 19 years as a
family business advisor indicates that due to high-profile scandals such
as Enron, Parmalat and Adelphia, it has become popular in the press and
on television to follow such cases on a day-to day basis, thus setting
the tone for employees in general to distrust their bosses.
Editor:
Claire Cornell
Publisher:
Nancy Shelton