Finding Joy and Family Business Growth Through Joy in the Family
Family-owned businesses are inspiring and anchor many communities in America. Most family business execs are servant leaders, committed to the family, employees, community, and ideals.
Inside these businesses, there's often turmoil and frustration. That's true in every business, but in family business, the frustration has a particular bite.
Working through the specific challenges of family-owned businesses is difficult but necessary to help families find joy in each other, optimize the financial rewards, and provide the growth and opportunities to which leadership aspires.
Josh Gentine understands family business - from the inside. As a collegiate athlete, board director, founder, almost priest, and long-time consultant, he uses his wisdom and insights to help families find joy in each other to unlock the joy and potential in their business.
Industrial manufacturing companies are no different than others - except that the inherently traditional and conservative nature of the business may intensify resistance to management best practices that can drive family business growth. Improving family communication is an important first step to exploring options around strategy, growth and talent.
Connect with Josh for thoughtful, personal, informed insights into improving family business harmony and performance.
Bench Consulting Website and Family.inc Website |
Been There, Done That: Solving for the Family in the Family Business Growth Equation - Josh Gentine on Industrial Growth Insitute Episode 48
Episode Recap
Summary
In this conversation, Ed Marsh and Josh Gentine explore the complexities of family-owned businesses, focusing on the challenges of succession planning, the importance of outside experience, and the balance between preserving legacy and embracing innovation.
Josh's family business and governance insights are built on many personal experiences, including growing up in Sargento Foods, a very successful family business based in Wisconsin, where he remains a 3rd generation family owner and board member.
He shares insights from his work with family enterprises, emphasizing the need for effective communication, governance, and the role of independent directors in fostering growth and adaptation in a changing business landscape.
They explore the complexities of family businesses, emphasizing:
- the importance of independent directors, servant leadership
- continuous learning
- need for families to invest in their dynamics to ensure harmony and success in their enterprises
- challenges of managing talent within family businesses
- the significance of evaluating business performance against family values
- Independent Directors' Value and Contribution
Josh also shares his background growing up around a family business, playing football for Notre Dame, launching an internet company, and his detour as an aspiring priest.
Takeaways
- Family businesses face unique challenges during generational transitions.
- Succession planning is crucial for maintaining family harmony and business continuity.
- Outside experience is essential for the next generation in family businesses.
- Effective communication is often lacking in family enterprises.
- Balancing legacy preservation with innovation is a common struggle.
- Independent directors can provide valuable oversight and guidance.
- Understanding family dynamics is key to resolving conflicts.
- The entrepreneurial spirit is often passed down through generations.
- Digital transformation is necessary but can be met with resistance.
- Creating a culture of trust and understanding is vital for family business success.
- Independent board members alleviate family decision-making pressure.
- Creating a professional development committee is essential.
- Investing in family dynamics leads to business success.
- Transitioning to a business family mindset is crucial.
- Continuous learning fosters growth and adaptability.
- Evaluating return on equity is necessary for sustainability.
- Understanding family dynamics is key for independent directors.
- Sacred cows in organizations can hinder progress.
- Independent directors can challenge and support family businesses.
- Embracing a stakeholder mentality enhances community relations
Takeaway Quotes from Josh Gentine
- "Sacred cows can be hard to address."
- "Invest in your family dynamics."
- "Transition from a family business to a business family."
Outline
0:00 Navigating Family Business Transitions
12:09 The Entrepreneurial Spirit in Family Enterprises
24:04 Balancing Legacy and Innovation
35:58 The Role of Governance and Independent Directors
43:41 Navigating Family Dynamics in Business
49:58 The Role of Independent Directors
50:26 Embracing Servant Leadership
54:55 The Importance of Continuous Learning
01:00:27 Evaluating Business Performance
01:02:31 Advice for Independent Directors
01:08:29 Common Challenges Across Industries
01:10:04 Managing Talent in Family Businesses
01:20:42 Investing in Family Dynamics
Finding Strong Independent Directors Who Can Guide Family Business Growth
Most family business boards have few members with outside business experience. And those that do, often seek familiar experience - depth in areas in which the business already is strong.
Independent directors (more on Ed Marsh's perspective as an independent director) can add significant breadth from both strategy and governance perspectives. A strategic board skills matrix is an important tool to that end. Here's some info on why sales is a critical and often overlooked component of a strong board skills matrix, and more on building your company's skills matrix below.
