Mike Boyd interviews successful families and their advisors to learn how they steward their wealth across generations, managing succession issues to "keep it in the family".
Very few family businesses do the work and even fewer make it beyond the third generation.
Follow along to learn about family governance structures, family office investing, succession planning and raising happy, healthy and enterprising children of wealth.
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Multigenerational wealth creation involves so much more than just capital accumulation. The most successful families cultivate and collect values, stories, knowledge and resources to pass on to the next generation. The systems and processes to do this are very intentional. Very few do the work and even fewer make it beyond the 3rd generation.
Join Mike Boyd (https://mikeboyd.com.au/) on The Business of Family (https://www.businessoffamily.net/) Podcast as he interviews members of some of the world's most interesting families about how they pass knowledge, resources, values and wealth to the next generation.
Family Constitutions and annual letters
Family meetings and retreats
Succession planning
Stewardship
Family Office investing
Multi-generational wealth creation and preservation
Enduring companies and familes
Family enterprise
Human, Intellectual and Financial Capital
I’ve been fortunate enough to meet some extremely successful families in my travels and gleaned insights from how each are shaping their legacy.
Many will tell you that it’s the human, intellectual and spiritual capital that makes them successful for generations & that financial capital is simply a function of their success in these areas.
If multigenerational families and businesses fascinate you too, subscribe now to The Business of Family Podcast.
I hope you enjoy sharing this learning journey with me and would greatly appreciate any feedback, resources or referrals you have to offer.
https://twitter.com/MikeBoyd/status/1277889154601201664
For more episodes go to
BusinessOfFamily.net (https://www.businessoffamily.net/)
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Scott Peppet - Building a Family-Focused Office for Sam Zell
Season 2
Monday, June 20, 2022 • Duration 01:07:57
Scott Peppet serves as the President of Chai Trust Company LLC, the private trust company that serves as the family office for Sam Zell (https://www.egizell.com/people/sam-zell/) and his family. Equity Group Investments (https://www.egizell.com/), a division of Chai trust, provides investment management services on its behalf.
From 2000 to 2018, Scott was a professor of Law at the University of Chicago where he focused on Bargaining, Dispute Resolution, Translational Law, and the complexities of multigenerational family enterprises. Scott speaks regularly on Family Offices, Private Trust companies as well as Intergenerational Leadership while also maintaining an active website (https://scottpeppet.com/).
Scott is a G2 family member. He is Sam Zell's son-in-law, having married Sam's eldest daughter.
Standout Quotes:
* "Business works on short wavelengths and family works on very long wavelengths" - [Peter Evans, Scott]
* "What does it mean to try and help family members really develop and really take ownership, so they can figure out how to deploy what they have?" - [Scott]
* "There are many different kinds of wealth… you probably aren't put on the earth to grow the financial capital, there's lots of professionals who can help you do that" - [Scott]
* "Too often, the implicit message sent to family members is 'this system is really here to steward the money" - [Scott]
* “Families rarely fail for taking too much risk, they fail for taking too little risk” - [Scott]
* "My goal is to create a family-focused office, not a family office, and a trusted company, not a Trust company" - [Scott]
* "If you want to succeed you have to have a family that understands what you're doing" - [Scott]
Key Takeaways:
* Scott is the President of Chai Trust Company, LLC, the private trust company that serves as the family office for Sam Zell and his family. Equity Group Investments, a division of Chai trust, provides investment management services on its behalf. From 2000 to 2018, Scott was a professor of Law at the University of Chicago where he focused on Bargaining, Dispute Resolution, Translational Law, and the complexities of multigenerational family enterprises. He speaks on Family Offices, Private Trust companies as well as Intergenerational Leadership while also maintaining his active website. Scott is a G2 family member, as he is Sam Zell's son-in-law.
* Scott got married to Sam's older daughter 20 years ago while he was already teaching as a Law professor. Since then he got increasingly curious about family enterprises till he fully transitioned into working in the family enterprise. After a few months of knowing each other, they started dating but Scott had no idea about her family wealth till she opened up about it.
* About Sam Zell: Sam is a serial entrepreneur, who first built a business in Real Estate, following which he turned to distressed Corporate Investing in the 80s, and then in the 90s, he created some of the largest REITs in the US today. He has continued to work on REITs and corporate investing since then. He has done several businesses over the years. Sam is also known for his straight talk, always making his stand clear in any discussion. He is also very astute and broad in his thinking.
* As a Law professor, Scott worked on conflict intervention with corporations all over the world. When he started having kids, he got curious about how the family wealth could be managed productively for the family, especially for the kids. Sam encouraged him to work on it. Some authors that stood out in Scott's study were Jay Hughes and John Davis.
* Scott describes the family structure; at the time Scott joined the family, Sam was 59 years, his 3 children were in their 30s, and as of now, there are 9 grandchildren. There was a form of governance structure, a board with his 3 children which wasn't functional as Sam made most decisions. However, now there has been a need to rebuild the structure as the company has evolved and this has been a huge part of Scott's focus since he moved full-time into the family enterprise. He has had to put in a lot of work to fully understand how the family enterprise functions; to make things change in a family system that often moves very slowly, you have to know where you're going. It involves a combination of urgency and patience, while thinking long-term, steps need to be taken early and consistently. Most of the family members are not employees, some of them are on the board. There is one board with both independent and family directors.
* The business continues to be eclectic, investing across all kinds of sectors, especially with the benefit of permanent long-term capital. At the same time, complex actions and decisions can be taken quickly. Also, family learning and development are being built as the kids grow to become adults.
* In the inflationary period currently, the business finds smaller companies that need capital and expertise to grow to the next level; companies that would rather grow their equity than sell to a PE company. These companies are great partners for the business since their interests are already aligned to grow the equity.
* While most families would rather have more joy over more money, the reality is that many family members Scott has met around the world don't have that much joy or self-possessed ability to do things in the world. They often feel enmeshed in a family structure they have little control over. This is not good for the family or the external world that could be benefitting from the good such families could accomplish.
* Laying the foundation for the next generation practically, Scott uses some rules. The first is based on the 5 Capitals; Not everyone is supposed to grow financial capital but they can add to the overall well-being of the family by building on the other forms of capital. Unfortunately, the experience in most families is that stewarding the money is the main goal, which is an implicit frame that must be dissolved. The second one is that each family member should participate meaningfully in every learning experience. Doing this means creating activities or agendas that are not solely about financial capital or the enterprise, although as the kids get older they get interested in the business itself.
* To assess how well you're building human capital, score how often you were talking about money over the last few years in your family meeting. Most times it forms a huge percentage of those meetings, but in a setting where money isn't the focus, there is a push to find other topics that can help people open up. Scott's family has started experimenting with these kinds of meetings interspersed with other activities.
* These kinds of meetings expose several overlapping purposes, help family members connect, offer a chance for content transfer, and contribute to self-development and self-growth. Different topics are often discussed and it becomes obvious how they are related. Listeners are encouraged to check Scott's curriculum diagram on his website.
* There is often a dichotomy between responsible stewards and lazy inheritors, however, managing inherited wealth can be complicated. The general goal is to cultivate engaged owners and integrate financial capital into their lives productively, but there is no concrete formula on how to do it.
* Most family offices should just be Money offices because all their time is focused on financial capital and legal risk such that the family itself is secondary. On the other hand, a family-focused office is there to grow the family's human capital as much as the financial capital.
* Trust companies around the world have become ubiquitous in wealthy families although they often don't have much life in them. However, a trusted company is a part of the family ecosystem which goes beyond managing money to a level of trust-building with the family. That forms the basis of how Scott decides on whether or not progress is being made; 'what is the level of trust in the system?'. Not to downplay the role of financial investment, but there has to be synergy within the system.
* Over the long term, families rarely fail for taking too much risk, they fail for taking too little risk. They focus so much on preservation because they are afraid of taking risks, and they wither in the end. Sam Zell still takes as much risk as he used to, not as a gamble but with a critical assessment of each situation. It is important to preserve the investment company with its risk-taking culture, and at the same time grow a family that can continue such activity over time.
* The family enterprise avoids governing by committee, especially on the investment side, so as to move quickly. Having family members behind an entity is not a bad idea but there's no point in having many family members making every investment decision. In Scott's family enterprise, this bureaucracy is avoided by ensuring decisions are narrowed down to the exact professionals. Other bigger family questions can be discussed by the family as a whole. Mike's family employs Adhocracy which encourages a culture to challenge the slow slide into bureaucracy.
* The team behind the family enterprises consists of about 85 people and functions as one entity that is the trust company, the family office, and the investment management company. There are investment professionals, lawyers, a family office and operations group, and accountants. All of these are interdependent. The company is mostly focused in the US but there are also real estate investments in other countries.
* As an outsider joining the family, it is easy to simply be a critic which will result in pushback from the family. From the onset, Scott acted from a place of love for the family and was concerned with how to continue to build productivity within the family. He intentionally took time to study the family business all the while continuing his profession as a Law professor. He advises inlaws to keep their jobs for as long as possible till they are sure they can add value to the family enterprise. He also understands that being an inlaw comes with restrictions from certain roles, but rather than get overly perturbed about it, he focuses on the ways to be helpful in the family.
* Scott has a background in communication, mediation, and negotiation which has been pivotal in building consensus in the family business. Ultimately, there is no playbook to navigate the complexities in a family enterprise.
* A typical day in Scott's life involves some time spent on investments, working with boards or committees, family learning and development, as well as time spent on management. He has come to understand that his job is to get a grasp of the system as a whole; Sam explained to him that it will change from obligation to opportunity.
* There are a few family heirlooms and the family has also documented some of its history like the story of Sam's family leaving Poland for the US. They do this mostly by putting together short films. It also serves as a way to communicate family values; Sam has always used art to communicate.
* Scott's letter to his kids: We have the capacity as humans to grow into something greater, more awake, and more alive than we are now, into a different kind of existence. This is the uniqueness of being human; the constant evolution makes life wonderful.
Episode Timeline:
[00:50] Meet today's guest, Scott Peppet.
[02:00] Scott's relationship with Sam Zell.
[04:54] How would you describe Sam Zell?
[09:18] Did you develop an interest in how family enterprises function before or after meeting the Zell family?
[12:35] How complex was the family when you joined?
[16:44] Did you have to contend with people with multiple hats in the family business?
[19:04] What does the office look like today?
[21:40] Is there any particular industry that has growing potential now as regards investment?
[24:40] How do you plan to raise the next generation in the family enterprise?
[35:17] Going beyond stewards' first inheritors.
[37:35] Creating a family-focused office and a trusted Company.
[42:10] How do you manage risk in the family ecosystem?
[44:37] How do you fight bureaucracy as the office gets bigger?
[49:05] How big is the family enterprise team?
[51:50] What was it like joining the family and navigating the complexities of a family enterprise?
[55:20] How helpful was your career in Law and conflict resolution in the family business?
[56:55] A day in the life of the President of Chai Trust.
[01:00:50] Is the family intentional about keeping things for historical sake?
[01:05:02] Scott's letter to his kids
For more episodes go to
BusinessOfFamily.net (https://www.businessoffamily.net/)
Sign up for The Business of Family Newsletter (https://www.businessoffamily.net/newsletter)
Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd)
If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Scott Peppet.
Matina Agio - The Inheritance Muse
Season 2
Sunday, October 31, 2021 • Duration 50:39
Matina Agio (https://www.matinaagio.com) is a personal inheritance consultant. Her work inspires a deeper perspective into inheritance - beyond the legal and financial. She provides niche counselling, facilitating her clients- often in midlife, to resolve inheritance-related dilemmas, manage their possessions and create a meaningful legacy.
Through her signature method - THE INHERITANCE MUSE METHOD™ (https://www.matinaagio.com/), she addresses both the tangible and intangible aspects of their inheritance, heritage & wealth. Matina’s clients include art collectors, historic home owners, affluent individuals and family office members around the world. Matina’s experience of living & working in England, France, Germany, Italy, US, Canada and Greece, allows her to address their varying backgrounds.
Standout Quotes:
* "For me, the main wealth of our inheritance lies in the intangible inheritance because it is that which is not vulnerable, and it is that which probably the most influential" - [Matina]
* "A bad experience may turn out to be a very wealthy experience, it depends on how we process that...sometimes we receive good gifts in bad packages" - [Matina]
* "Objects are storytellers, they contain memory" - [Matina]
* "We just give our kids things, but we should give them stories with our things" - [Matina]
* "The value of something to us is always what our experience of it is" - [Matina]
* "Our ownership is a symphony of things put together, and we as good conductors have to master that symphony... so we can have harmonious wealth" - [Matina]
* "It's not what happens to you but what you do with what happens to you" - [Matina]
* "There are people who own a lot of things and experience very little value and then there are people who have very little things and they experience a lot of value" - [Matina]
* "The legacy of someone and the effect that they have in your life can never be taken away... that's the most meaningful part of the wealth that you can give others" - [Matina]
* "Research shows that family wealth is almost never lost due to poor financial decisions, its almost always lost by a breakdown in relationships and communication with co-inheritors" - [Mike]
* "You cannot make decisions without understanding who you are because who you are will affect how that thing will play out in your life" - [Matina]
Key Takeaways:
* Matina describes an "Inheritance Muse" as someone who inspires others in relation to their inheritance. Inheritance can either be tangible or intangible. The intangible inheritance is more important because it is more influential and less vulnerable. It affects our beliefs, attitude towards life, abilities, and self-confidence.
* Since parents are not perfect, sometimes we get good gifts in bad packages, so to understand intangible inheritance, sometimes we have to open our minds and look at what is there and how we can manage it so it adds value to us.
* Describing how she started her work with inheritance, Matina shares her back story; although born in Athens, her family had to relocate to Canada following a political event that made the family unsafe. A key determining factor in her career was the heritage and culture her parents brought from Athens, which influenced her greatly.
* This spurred her on to study interior design and renovation of historic homes and eventually become a cultural entrepreneur. Following the death of her parents, she inherited the home in Athens and had to curate everything by herself and started to work on also curating the influence her parents had on her as part of the legacy for her children.
* Storytelling is the center of Matina's work; using the stories behind objects owned by clients to resolve issues. Parents need to tell stories about their things to their children because it is unlikely for a child to sell something that has a story to it.
* When navigating inheritance and trying to be a custodian of what has been left behind, employing the concept of "Gratitude" is highly efficacious, in that it helps to understand the value of these things. This gives a reason to own these things and helps us know what our relationship was like with those who left them behind.
* The Legacy Scale: This is a process to understand the personal value of any property to a person irrespective of the market value.
* 2 classes of Real Estate: Objective Real Estate is the first type and it includes properties that have value but no particular personal relationship. Assets such as family homes on the other hand make up the second type of Real Estate which is usually more complicated and may involve co-inheritance.
* There are 3 ways you can value something: First is the intrinsic value which is the value of that thing for itself without the market value. The second is the synergetic value which is the value of something in relation to the other properties owned by a person, or the impact it may have on other aspects of wealth. The last is the subjective value which is the question of "what does this mean to me?
* Matina shares that she only works with individuals and not groups, because with an individual, issues can be dealt with in-depth and with speed. Even if the inheritance involves other people, by working with one person you change the constellation because the most important thing for a person to understand is " "What do I want?". The goal is to empower the individual to see how the inheritance fits into his life purpose and what action needs to be taken.
* Matina describes the idea of "Life closure by design"; preferably the age of 50 is the ideal time to be more conscious about life closure, especially having light ownership and getting clarity on what will be left behind using "the Inheritance Muse method".
* For the younger generation who are about to receive, it is very important to create conversations with your parents on things they feel strongly about, their lives, and their values.
* When we have a relationship with something, the value of that thing is the value to us, not the monetary worth. Rather than keep that thing locked away, Matina advises people to use it in their lives in a more natural way.
* What we do with our inheritance has two aspects; the first is to optimize it and use it so we can create happiness for ourselves, the second is to preserve what we can so we can give it to the next generation with stories and history.
* The work of the Inheritance Muse is to help people understand where the real value is, in their assets. Matina explains a term called Wealth Dyslexia as the inability to grasp the scope and range of your wealth in a way that will give you value
* Regarding the sale of property with a history, Matina highlights that it may not be possible to keep everything but properties can be sold with the story which adds value to it. Selling a property can help the owner feel lighter and focus more on things that have particular value to them.
* Legacy is the effect that our lives have on other people's lives whether good or bad. Daily, we are curating our legacy, by who we are, what we do, and what we say. It's never too late to work on this.
* The awareness of the certainty of death is empowering as it should give the ability to live life more intentionally and assess the impact of our ideals in our lives.
* Inheritance is a gift given, we have to look at this and say, "what do I want with this?" It is important to look at it in a nonmonetary way, so we can know its effect on our lives. This is also covered in the "Inheritance Muse method". Understanding who you are is as simple as finding out where you are in your life and what you want.
* From Matina to her kids: Resilience is very important and also finding time to tune into your deeper voice within. You have a choice in every moment. We are free to choose how we see something and how we respond.
Episode Timeline:
* [00:50] Meet today's guest, "Matina Agio, a personal inheritance consultant.
* [01:43] Matina describes what it means to be an "Inheritance Muse".
* [03:39] What separates intangible inheritance from pure legacy?
* [06:28] How did you find yourself on this path?
* [16:56] How do you navigate inheritance?
* [19:00] Is Real Estate more difficult to manage than other items of value?
* [23:32] How often are you working with individual inheritors compared to co-inheritors?
* [26:35] How do people engage you, and when?
* [36:44] How do people go about deciding to let go of an asset with family history?
* [39:35] Matina's insight on 'Legacy'.
* [45:31] How should one approach inheritance?
* [48:15] Matina's letter to her kids
For more episodes go to
BusinessOfFamily.net (https://www.businessoffamily.net/)
Sign up for The Business of Family Newsletter (https://www.businessoffamily.net/newsletter)
Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd)
If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Matina Agio.
Moses Kagan - On the Shoulders of Giants
Season 2
Sunday, October 17, 2021 • Duration 01:03:52
Moses Kagan (https://www.kagansblog.com/) has been buying, renovating and managing apartment buildings in Los Angeles since 2008. His company, Adaptive Realty (https://www.adaptiverealty.com/), along with its investor-partners, owns approximately $200MM worth of high-quality buildings in interesting neighborhoods. Unusually for a real estate private equity firm, Adaptive and its partners do not fix and flip; instead, they act as permanent holders and stewards of the assets under their control.
Standout Quotes:
* "Rich families that own good assets generally don't look to sell them to maximize Pre-tax IRR" - [Moses]
* "If you do not lose the building, the rents will recover" - [Moses]
* "When you start to think about things indefinitely, and you're not in a rush, it kind of opens up other possibilities in terms of structure and strategy" - [Moses]
* "It's very hard to go from zero to something… and it takes an entirely different set of skills to go from something to something much larger" - [Moses]
* "I do not believe that we as individuals live our lives for ourselves" - [Moses]
Key Takeaways:
* Moses has been buying, renovating, and managing apartment buildings in Los Angeles since 2008, through his company, Adaptive Realty, alongside investor partners. He focuses on sub-institutional deals.
* The most important part of the strategy is that rather than buy, fix and sell buildings to maximize pretax IRR, they buy properties, make them high-quality assets, manage and refinance them to get higher returns. The strategy was born from his family values as they had always been involved in Real Estate but never engaged particularly in sales of property.
* There are two reasons why people sell; firstly investors have a mindset too focused on Pretax IRR, and secondly, the sponsor gets their money after selling. If you just hold on and keep the building, the rents will recover.
* The initial funds for the business came from friends and family of Moses, and later from another family office who partnered with them. This partnership helped them build a track record that encouraged other investors to feel comfortable with them.
* The structure for the business model is not to buy, renovate and sell like the typical model with PEs, but rather they partner with wealthy families with the explicit assumption to hold on to the property not sell, however, liquidation rights goes to the family that put up all the capital. The primary strategy has been to refinance the property to pull the capital out and give it back to the investors who still retain ownership and cash flow from rents. Adaptive Realty only gets fees for their work but not cash flow from rents, sales or refinance until the investors have got their capital.
* Describing his family history, Moses shares how his first building was bought with capital from the family money dating back 4 generations. The wealth he enjoyed from his family was mostly in form of basic needs being met and, particularly education.
* When starting a business with a partner, it is critical to have a decision-maker or tie-breaker irrespective of how profits are split. The relationship between Moses and his partner in terms of how earnings are split is quite stable even for the coming generation but open to discussions if need be.
* There is currently no long-term family structure for his family, however, Moses spends a lot of time with his kids, to instill the values of passing on to the next generation what was done for them.
* Discussing Storytelling, Moses emphasizes that your forebearers are a living part of your life, and tries to make those people present for his children even though they will never meet them.
* Gaining exposure and immense assistance from his friends to succeed, Moses was also motivated to start finding ways to help people who didn't have the kind of opportunities he had.
* Advice from Moses to those aspiring for multigenerational success: Don't put yourself in a position where one investor can wake up one day and force you to restart your career. This involves having different capital providers rather than being completely dependent on one.
* From Moses to his kids: We owe everything to those who came before us, however, we can't repay them. We can only try to do for those coming after us what has been done for us, if not more.
Episode Timeline:
* [00:48] Meet today's guest, Moses Kagan.
* [01:53] About the business, Adaptive Realty.
* [13:50] How do you get investors to join you with your strategy of holding properties permanently?
* [16:45] How have you structured Adaptive Realty to be different from the typical P.E model?
* [21:55] Moses shares his family background.
* [32:36] What's your perspective on multigenerational wealth?
* [38:28] What does the future look like in terms of the next generation?
* [41:07] Do you expect your children to get involved in the business?
* [46:15] Is there any form of family governance structure?
* [48:18] Moses shares his approach to storytelling as a method to pass on values.
* [52:55] How Moses works to help others who haven't had the same privileges he enjoyed.
* [57:06] Advice from Moses to listeners aspiring to build generational legacies.
* [01:00:33] From Moses to his kids.
For more episodes go to
BusinessOfFamily.net (https://www.businessoffamily.net/)
Sign up for The Business of Family Newsletter (https://www.businessoffamily.net/newsletter)
Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd)
If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Moses Kagan.
Sean Lang & Jeff Watters - Appointing a Non-Family CEO & Selling a 5th Generation Business
Season 2
Sunday, September 19, 2021 • Duration 01:09:15
The Lang family recruited Jeff Watters as the first outside CEO to lead Ainsworth Pet Nutrition in it's 5 generations. Sean Lang and Jeff Watters worked together, partnering with a private equity firm to scale the $100m per year business into a $2 billion dollar exit over the space of a decade.
This story covers not only leadership succession within a family business but also ownership succession and how the family have stayed together and united around a family office in the absence of an operating company.
Standout Quotes:
* "What's gotten us here, isn't going to necessarily get us there" - [Sean]
* "As a family, we realized that we would have to make a pretty major change in the journey... And we made the choice to start that journey from family-owned and family-run, to family-owned and professionally-run" - [Sean]
* "I think in any family business, there's a certain level of distraction or disruption that comes from the family, and if you can move that into the family council and outside of the board room, it seems to be better for everybody" - [Jeff]
* "The family office is being driven by a stewardship theme; Leave it better than you found it" - [Sean]
Key Takeaways:
* Sean Lang and the Lang family represent a 5th generation business family who owned Ainsworth Pet Nutrition, while Jeff Watters is the first outside professional CEO recruited by the family to lead the business till it was finally sold.
* The business started small, with deliveries made to "mom and pop" stores, expanded over the years, and all interested family members worked in the factory. After school, Sean started as a sales manager and worked his way up to be president.
* The family realized that there was a need to make a major change to move with the competition and this would require great talent, moving from family-owned and family-run, to family-owned and professionally-run
* Although Jeff was in a place where he wanted more in his life personally and professionally, his relationship with Sean was initially not a professional one. Following further interaction, Jeff realized the family was committed to the business, and they were authentic and intentional about their growth.
* The average tenure of a Public Company CEO is about 4 years, and a Family Business CEO is about 6years, even if you think you're going to be there longer than that, you have to plan according to the statistics.
* The introduction of professional leadership after 5 generations took some time, however, this had been tried previously and even though it failed, the family had started to get used to the idea. The goal had become to keep the family culture but adopt the benefit of big company thinking and growth capabilities.
* The notion of an organic, natural but very transparent onboarding process is extremely helpful for professionals outside looking to join a family business.
* Jeff also encourages professionals considering entry into a family business. You just have to bet on yourself to a certain extent. Once you're satisfied that the other party has high integrity and will deliver on their promises, have the conviction that you're going to deliver on yours, and if it doesn't work out, it doesn't work out. There will be other opportunities.
* While Jeff's transition into the business had its hiccups, there was a lot of intentional effort from all sides to communicate effectively and create ways to tackle arising issues. This was made easier by the family culture of transitioning where the older generation completely let go of the business which allowed Sean to give Jeff the space needed.
* Working with a Private Equity Company was pivotal in driving the rapid growth of the company moving from a 200 million-dollar company to a 2 billion-dollar company in 4 years.
* Jeff describes that the main factor that drove growth while working with the PE Company, was a deep cultural alignment
* Between the family and the company. It was all about a long strategic view of the business.
* The family council was started by Sean's father, and one of the policies laid down was that incoming family members needed to work somewhere else for 2 years or until their first promotion whichever came later, before joining the business.
* In the absence of an operating company, Jeff wanted to still have a family enterprise that could act as glue for the family, and help be a driver for education for the rising generation. This would also foster the creation of mechanisms to share the family history and culture with coming generations.
* It's not always easy to leave it better than you found it, given the mathematical fact that families almost grow faster than businesses and assets, that means each family member needs to be self-sustaining and look at any help from the family later in life as icing on the cake, not the cake itself.
* Sean shares he now has more time for family and personal relaxation, while also finding businesses to invest in. Jeff also tries to have fun, works with his wife on philanthropic projects, and serves on a number of boards.
* Jeff's letter to his kids: Jeff tells them to be bold in the pursuit of what they love, hopefully, it will be something that allows them to leave this place a better place. He encourages them to take a leap of faith, the financial fortune is an opportunity for them to invest in their future in a way that can be fulfilling for them and differentiating for their community.
* Sean's letter to his kids: The family business cocktail of money, love, and power is trouble. It can rip families apart easily and needs to be proactively managed within the family with the help of professionals.
Episode Timeline:
* [00:52] Introducing today's guests, Sean Lang and Jeff Watters.
* [02:30] Sean shares the history of the family business.
* [08:00] What was the reason for bringing in outside leadership?
* [10:00] How Jeff got involved with the business.
* [15:18] Were there any surprises while bringing in the idea of getting professional leadership after 5 generations?
* [20:21] Jeff describes his transition into the role of CEO.
* [29:30] Discussing the growth of the business, involvement of a Private Equity, and the decision to exit rather than transition to a 6th generation.
* [42:02] When did the Family Council begin?
* [52:25] What was the transition like after the final decision to sell the company?
* [01:00:22] Before the company was sold, there were plans to continue the Family Council?
* [01:03:51] What Next?
* [01:06:00] In a letter to your children, what is one lesson or idea you don't think many parents would mention but you consider important to understand?
For more episodes go to
BusinessOfFamily.net (https://www.businessoffamily.net/)
Sign up for The Business of Family Newsletter (https://www.businessoffamily.net/newsletter)
Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd)
If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guests: Jeff Watters and Sean Lang.
Frazer Rice - Decision Making for Wealthy Families
Season 1
Monday, April 19, 2021 • Duration 50:37
Frazer Rice (https://frazerrice.com/) is a Regional Director for Pendleton Square Trust Company (https://pendletonsquaretrust.com/). In that capacity, he focuses on trustee, fiduciary and family governance issues for wealthy families. He is the author and podcast host of "Wealth, Actually (https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT)" which centers on decision-making for wealthy families The podcast interviews wealth experts and entrepreneurial families and individuals.
Standout Quotes:
* "Something that's happening industry-wide or at least in the US is the concept that being a corporate trustee is a different business than the asset management side of wealth management" - [Frazer]
* "Most of the trust planning is articulating a move at the minimum from Gen 1 to Gen 2" - [Frazer]
* "I view the Trust and the planning around the Trust to be an outgrowth, when done correctly, of a solid communication structure that has been developed within the family" - [Frazer]
* "What the family bank approach is offering to families is a way for them to pass on their intellectual capital...to their human capital, the next generation by having them apply for the financial capital" - [Mike]
* "If the kids see what's important to the other kids early, and attach a dollar manifestation around that, I think that you're building the context so you have fewer blow-ups later on" - [Frazer]
* "I think the most important thing anyone can have in their lifestyle is the ability to be comfortable in their own skin" - [Frazer]
Key Takeaways:
* Frazer shares his background and experiences so far, from college to working in politics, after which he decided to study law and gained exposure while working in different firms. His career started down the path of wealth management when he worked with a Trust company.
* He is also the author of the book "Wealth Actually" and the host of a podcast that discusses topics related to finance and wealth management even though that was not the initial plan for the podcast.
* Pendleton Square Trust is an administrative Trust company that fulfills the function in a Trustee role aimed at helping families get access to good Tennessee jurisdiction.
* 3 main Functions of a Trustee: First is the administrative function which includes safeguarding and reporting on assets, paying the taxes. The Second is the distribution of the asset to beneficiaries. The third function is the investment management of the asset which is excluded at Pendleton, Frazer believes most places don't do everything well.
* A trustee does not have to be a corporation, it can be an individual acting as a trustee with the ability to perform all 3 key functions, however, it may be difficult to find one person who is great at all functions.
* A lot of families would prefer to have more control, and a private trust company allows them to control the aspects they're comfortable with and outsource the rest.
* There is a possible conflict where corporate trustees who also provide asset management services invariably provide their asset management services.
* The most common customer for the company is a US family that is either actively transferring wealth from the first generation to the second generation or generally has a multi-generational approach.
* For those families that have taken their hands off the wheel in terms of managing the wealth, the Trust company operates more like a family office but for those still actively engaged in the continuation of the business, that business becomes the real center of the family office.
* One of the real destroyers of wealth is bad communication amongst the family, this leads to conflict, which leads to litigation and litigation is expensive
* There's a lot of good work that needs to be done ahead of building the structures so that you're not only setting something up that takes care of the money for the family, you're also getting the family ready for the money.
* Family or Shared Philanthropy is one of the tools that helps to work with families as it gets the family members to express their interests and helps them work together while considering the needs of each other.
* The Vacation Fund Concept: This is another tool, and the idea is to have the kids make a joint decision around the investment of money by getting them to plan the vacation based on a particular amount available. It helps identify which kids have aptitude and interest, the aggressive or conservative ones, and other responses exhibited by the kids towards the task. Summarily the kids get involved in financial planning and learn critical points related to it.
* The idea of a Family Bank is putting structure around the request of money for projects so that it forces preparedness in front of real people who have to make a decision. Learning that persuasion is important helps the next generation to deal with the real world.
* It also provides an opportunity to combat the situation of assets growing linearly being overtaken by liabilities growing geometrically, as more opportunities explored can increase the growth of assets.
* There's a big difference between Operational succession and Ownership Succession of a family business, the difference in roles may mean some people get paid more but this needs to be discussed earlier on before the transition period.
* From Frazer to his kids: I think the most important thing anyone can have in their lifestyle is the ability to be comfortable in their skin. The concept of trying to please other people's sense of success is a difficult road because you're never going to please everyone all the time, more so you will be running from things that could be your path to success. o
* Run your own race, be comfortable in your own skin.
Episode Timeline:
* [00:46] Introducing today's guest, Frazer Rice, Regional Director for Pendleton Square Trust Company.
* [07:26] About Pendleton Square Trust Company and Wealth Management.
* [08:46] The 3 main functions of a Trustee.
* [11:21] In the US, do families have to appoint a company to act as Trustee in an administrative capacity.
* [12:16] The concept of a Private Trust Company.
* [18:54] Who would you say is your most common customer?
* [28:02] Frazer shares tools used when working with families.
* [32:51] The Vacation Fund Concept.
* [38:40] Frazer's insight on a Family Bank.
* [47:57] Frazer's letter to his kids
For more episodes go to
BusinessOfFamily.net (https://www.businessoffamily.net/)
Sign up for The Business of Family Newsletter (https://www.businessoffamily.net/newsletter)
Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd)
If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Frazer Rice.
Ben Grossman - Co-President Siblings Stewarding a 111 Year Old Family Business
Season 1
Monday, April 12, 2021 • Duration 50:43
Grossman Marketing Group (https://grossmanmarketing.com/) was founded as Massachusetts Envelope Company in 1910 by Maxwell Grossman (https://www.bengrossman.info/), whose lifelong dream was to own his own business.
Now, 111 years since its founding, Ben Grossman, along with his brother, David, are the 4th generation of family leadership. Today, the company is a full-service resource helping clients with a broad range of traditional and digital marketing needs.
Ben Grossman holds a BA from Princeton University and an MBA from Columbia Business School. Prior to Columbia, Ben worked as a strategy consultant to Fortune 500 clients, as well as started and sold a sportswear and marketing firm.
Ben is also deeply involved in sustainability and how it relates to business, and writes and speaks frequently on the topic.
Standout Quotes:
* "Our prices make friends and our service keeps them" - [Ben]
* "What he was really saying was that life is made up 3 things; Family, Career, and Community, and education has always been of critical importance to our family" - [Ben]
* "Find a way to generate revenue as soon as possible because numbers speak for themselves and no one will ever question your existence at the organization if you generate sales and gross profit" - [Ben]
* "Learn the business, understand exactly what's going on in the business, so when you speak up you know what you're talking about, and you're right!" - [Ben]
* "What our grandfather and our father tried to impart in us is that although business is incredibly important, nothing in business is important enough to ever risk jeopardizing your family relationships" - [Ben]
* "That sort of value of just 'try and treat people the way you'd want your family to be treated' has been passed down from generation to generation" - [Ben]
* "Regardless of how successful you are, or your family's been over the years, you need to recognize that markets can change and you must always remain responsive to customers' needs" - [Ben]
* "Ultimately, we have to be willing to evolve because if we don't evolve, we will get left behind" - [Ben]
* "Always do right, this will gratify some people and astonish the rest" - [Ben]
Key Takeaways:
* The company has always had a service-driven culture and this has kept the business going for over 110 years.
* Ben explains that the company had initially started as an envelope company and had also bought up different companies during its growth, with the investment in promotional products being the most notable that boosted growth.
* Following his education, Ben had decided to step out and gain some experience although he was passionate about finally going back to join the family business.
* Ben explains that based on lessons from his great grandfather, Life is made up of 3 things, Family, Career, and Community. Education has always been of critical importance to the family.
* The "Start, Stop, Continue" Review Method: Ben had asked workers to review the company's methods to identify processes that needed to be implemented, stopped, or continued for better productivity.
* Ben shares that following political engagements, his father moved on from the family business and is fully engaged in public service. He adds that working harmoniously with his brother is aided by the understanding that every win is for the company and not the individual, and also their roles tend to be complementary to each other.
* Understanding that it was necessary to establish credibility by generating profits immediately after joining the family business, Ben reached out to some prospects and started to achieve his goal within a month.
* One of the critical values imparted by their grandfather was the understanding that business should never jeopardize family relationships.
* Another key value learned was the importance of treating colleagues the way family would be treated in a workplace.
* You need to be willing to adapt to ever-changing business environments and conditions. Ben remembers how the family had always focused on the customer, and that what differentiated their company was the incredible customer service.
* Highlighting the involvements of different family members in service to the community, Ben explains that service to the community is one of the values that have been passed down each generation beginning from the Founder.
* Considering the future, the most meaningful investment made in recent times has been expanding into e-commerce.
* Ben shares he would give his children the same advice he got from his grandparents regarding joining the business, and this is to do what their heart wants to do, follow their career path, and not be constrained to join the business based on the financial implications.
* From Ben to his kids: Always do right, this will gratify some people and astonish the rest
Episode Timeline:
* [00:49] Introducing today's guest Ben Grossman, and Grossman Marketing Group, the Massachusetts envelope company.
* [01:40] The history of the Grossman family business.
* [07:05] Ben narrates how he and his brother joined the business.
* [11:52] As brothers, how do you get along and what roles do you each play today in the business?
* [21:54] A listening tour: Using the "Start, Stop, Continue" Review Method.
* [25:36] Do you have any apparent failures that have set you up for later success?
* [32:15] Ben describes the family history of service to the community.
* [37:58] Has the family been intentional about documenting its history?
* [39:30] How do you pivot and evolve a marketing group like yours into the 21st century and beyond?
* [43:43] Are you nurturing your children to be the 5th generation of the business or leaving it to them to find their path?
* [48:35] A letter to Ben's Kids.
For more episodes go to
BusinessOfFamily.net (https://www.businessoffamily.net/)
Sign up for The Business of Family Newsletter (https://www.businessoffamily.net/newsletter)
Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd)
If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Ben Grossman.
Berry Liberman - Using Financial Capital as Force For Good in the World
Season 1
Monday, April 5, 2021 • Duration 01:01:11
With one of the most recognisable family names in Australian business circles Berry Liberman is using her financial capital to make a positive impact in the world. Her family office, Small Giants, is 100% invested in Impact ventures - challenging the traditional notion of "do anything to make it and then give it all away" philanthropy.
Berry Liberman (https://www.dumbofeather.com/people/berry-liberman/) is the co-founder and Creative Director of Small Giants (https://www.smallgiants.com.au/) and the Publisher and Editor of Dumbo Feather (https://www.dumbofeather.com/) magazine.
Small Giants was founded in 2007 to create, support, nurture and empower businesses that are contributing to the world in a meaningful way. Dumbo Feather is a labour of love. Designed, edited and printed in Melbourne, Australia, it is a quarterly journal highlighting the stories of extraordinary people, living lives of passion and commitment to changing the world we live in.
"We spent our first decade growing a collective of businesses committed to positive change, including Impact Investment Group, The Sociable Weaver, Dumbo Feather and The School of Life. Our focus has been moving capital from the old economy to the next. We’ve sought to prove that a business can be profitable while remaining purpose driven and ensuring value for all stakeholders, including the environment. Likewise, we’ve found time and time again that value can be created without investing in extractive industries."
Standout Quotes:
* "Family was Business, and Business was family, it was one thing" - [Berry]
* "Both my parents in a way saw work as service, you contributed to the society that you were lucky enough to live in" - [Berry]
* "When you go to your grave, you go with only one thing, and that's your name" - [Berry]
* "If you know your shadow self, there isn't anything that can take you by surprise " - [Berry]
* "I wanted to do big work, and I didn't want to be afraid, and I knew that the thing that scared me most was everything that was happening on the inside of me" - [Berry]
* "One of the things about family businesses is they're often a massive spaghetti ball, and all of the spaghetti is interwoven into all the other spaghetti and it's very hard to separate" - [Berry]
* "Business and Financial capital can be a force for good in the world" - [Berry]
* "We didn't have the language for it at the time but we had the intuition, that growth at any cost, that the extraction economy, was coming to an end" - [Berry]
* "Money in families is complicated, and Family Business is complicated, and it's never about the money, it's about the people and the relationships and the emotional maturity of those people" - [Berry]
* "We are the custodians, not of financial capital that is our entitlement, but the financial capital that is handed from one generation to the next, much like fresh air and fresh water, we are custodians" - [Berry]
* "Impact investing is a paradigm shift, it's not an asset class, and once you make that shift in your mind, you can't do anything but invest that way" - [Berry]
* "You are the company you keep" - [Berry]
* "I would tell them not to hate anyone, ever, and to love hard, I don't think you lose anything when you love" - [Berry]
Key Takeaways:
* In a true 'rags to riches' story of how the family clothing business began, Berry describes how her grandfather alongside the family, used to recycle the unsellable silk stockings discarded by a company, and eventually caused a shift in demand in his favor.
* Berry shares that she was raised perceiving business as fun, and something that involved the whole family. Unfortunately following the crash in 1991, the impact weighed equally upon the family.
* She narrates how she was able to forge her path outside the norm, because there was very little attention on her, especially following the passing of her father and ensuing family changes.
* As for her psychotherapy, It became clear there was a need to answer pertinent questions about herself and sort through unresolved issues personally. "I wanted to do big work, and I didn't want to be afraid, and I knew that the thing that scared me most was everything that was happening on the inside of me". She also disclosed that ultimately she wanted to be her own person but she didn't want to do it at the expense of family harmony.
* By the time Berry stepped in to join the family business, seeing how it was being run, she knew she wanted to do things differently.
* Narrating the events surrounding the inception of the company "Small Giants", Berry highlights the deep concern that was born following her knowledge of very critical climate issues, and this ignited a passion to create a better world for her kids to live in.
* It's an intergenerational project and the main goal is to become a good ancestor if you're a person of privilege and you have the resources.
* Much like with the financial capital that is handed from one generation to another in family businesses, we are also custodians of the fresh air and water handed down to us.
* Mike shares that the phrase "Stewardship" comes from environmental sustainability and so aptly applies in the context of this conversation.
* Berry explains that Philanthropy means "love of humankind" and in her view should be a whole portfolio vision; love of humankind with everything you have.
* "The Doughnut Economy" by Kate Raworth: This book describes a metaphor that likens the outer part of a doughnut to the bounds of the environment, and the inner part to society. Kate suggests living in the sweet spot between the bounds of ecology and human flourishing, such that you can engage in business but with more accountability built-in.
* The pillars of investments by Small Giants include Food and agriculture, Energy, Finance, and the Built environment.
* While Berry admits that little effort has been put into planning for the future as regards her kids being involved in the family office, she notes that doesn't want them to do Small Giants necessarily. She would rather they had the same freedom she had, to go on their journey, with full support to become themselves fully.
* Berry emphasizes the importance of talking to her children; "No topic is out of bounds, and I will let myself be challenged by my children because they've got a pretty good compass"
* Recent research shows that Kids that know where they come from, and particularly the trials and tribulations of prior generations, are usually resilient as a result.
* From Berry to her kids: "I would tell them not to hate anyone, ever, and to love hard, I don't think you lose anything when you love"
Episode Timeline:
* [00:54] About today's guest, Berry Liberman.
* [02:30] Berry describes her family origins.
* [09:07] What were the key building blocks along the path to the growth of the business empire?
* [15:00] Could you tell us where you started, and what you wanted to do with your wealth as regards the impact you wanted to have on the world?
* [25:37] Berry describes the structure at the family table when she stepped in.
* [38:58] What are some of the impact investments you have made?
* [41:55] How do we ensure there is a return so that we can keep on doing good?
* [47:36] Small Giants' Pillars of Investment
* [51:22] Do you anticipate your kids getting involved in the Small Giants family office?
* [56:50] Has the documentation of your family history been intentional so far?
* [59:50] A letter from Berry to her kids.
For more episodes go to
BusinessOfFamily.net (https://www.businessoffamily.net/)
Sign up for The Business of Family Newsletter (https://www.businessoffamily.net/newsletter)
Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd)
If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Berry Liberman.
Denise Logan - Work, Money & Meaning: How to Let Go When the Time Comes
Season 1
Monday, March 29, 2021 • Duration 01:02:47
An award-winning professional speaker and author of The Seller’s Journey (https://deniselogan.com/the-sellers-journey/): A Business Fable about Navigating the Emotional Obstacles to Selling Your Business, Denise Logan (https://deniselogan.com/) has addressed audiences on three continents about the psychology of business owners and how to make it easier when the time comes to let go. Known as The Seller Whisperer, she draws upon a twenty year body of work focused on the intersection of work, money, and meaning and how it is reflected in the legacies of today’s business leaders.
She has rightly observed that while work is where we spend the majority of our time, much of it is spent wishing we were somewhere else, doing something else. Divorcing meaning from our work too often leaves us blindly trudging through a mediocre life using money as the miserly arbiter of success in matters of soul and meaning. It leads to an endless chase for more, hoping to outsmart death and desperately prove that our life somehow mattered. Even worse, when work is how we define ourselves and we are faced with job loss or impending retirement, it can seem terrifying.
What happens when your old answer to the question “What Do You Do?” no longer fits? If you thought you are what you do, and suddenly you don’t do it anymore, do you not exist?
Standout Quotes:
* "Every family's dynamic is slightly different and always the same" - [Denise]
* "So as fear starts to escalate, our thinking is disrupted" - [Denise]
* "The best transitions happen 5 years before someone is ready" - [Denise]
* "The reality is that every owner will exit their business, voluntarily or involuntarily... so you will either transition to someone or you will leave your business with it being unprepared" - [Denise]
* "if we look at mortality issues, often the more mortality resistance that someone has , the higher the likelihood is that they will also be avoiding succession planning"
* One of the questions I start early on with an owner is ''what does work provide for you, beyond the money?... where will you get those needs met outside the business?" - [Denise]
* "Succession happens at all different ages" - [Denise]
* "Are we simply creating roles in the business so family members have work to do, as opposed to are they the right people in the business?" - [Denise]
* "Change is hard at first, messy in the middle and gorgeous at the end" - [Mike]
* "Transparency always works, it is always better" - [Denise]
* "The arc of the journey for an owner is the same, whether we're talking about a $50000 hair salon or 500 million-dollar company, the arc of transition that's happening for someone is the same"
* "Transition will happen no matter what, so the question is 'what kind of transition do you want to have as a business owner?'"
* "Success is often determined by how prepared you are rather than just letting it be" - [Mike]
* "Our legacy comes from our daily actions, it is not just the amount of money that we leave behind or the money that we have accumulated" - [Denise]
* "We can often get completely spun up on what our number is, the number is not the number in the bank account, the number is the number of memories that we have left behind because that is truly how we will be remembered" - [Denise]
Key Takeaways:
* Denise started as a mental health professional and then moved into practicing Law where she started her firm but sold because she lost interest in the business. This prompted her to start a road trip till she was invited to help build a friend's business before the sale, an experience that kick-started her work of helping owners transition during the sale of their businesses. It also inspired her book, "The Seller's Journey".
* Using the analogy of a fist, Denise likens the fear center in the brain, 'the Amygdala' to the thumb of the hand, pointing out that while the other fingers could restrict the thumb's movements the same way the frontal cortex can restrict the Amygdala, excessive pressure from the thumb or the Amygdala, in this case, can break free of the restraint, leaving the fear to roam free. This explains the chaotic nature exhibited by people, typical of family dynamics.
* Another description using the hand involves the 5 ways through which fear shows up, the 5 fingers are used to represent them; Fight Flight Freeze Fawn, and Submit. Individually, there are often 2 or 3 of them that function more as natural go-to responses when facing fear, anger, or stress.
* The anchor, Wave, and Island styles of attachment: An Anchor attachment is someone who can tolerate too close or too far. An Island attachment is the type of person who pulls away or isolates themselves when things get rough. A wave attachment describes a person who reacts to disruption by continually checking on others.
* It is necessary to identify needs that are met by the business beyond the money because there is concern about how these needs will be met outside the business, and this could often form the basis for the continuous attachment to the business.
* Addressing the handling of messy parts of the conversation, Denise emphasizes the importance of honesty and transparency in allaying the fears that may misguide people's actions in the family.
* The 'O-MY' syndrome (One More Year) occurs where a seller repeatedly creates reasons to delay their exit from the business whenever they get closer to the agreed time of sale. This is a signal that something else is going on, a different existential crisis and there are needs to be met.
* The moment that you cease to exist is when the last person who has a story to tell about you passes.
* Money matters, but it's not the only thing that matters.
* There will always be a story that is told about you, the question is "is it the story that you would like to have told about you?"
* From Denise to her kids: The way you will know that you were loved was by how you were held and how you were cared for, not by what I left you.
Episode Timeline:
* [00:49] Meet today's guest, "Denise Logan" a.k.a 'the Seller Whisperer'.
* [01:45] An overview of the journey to becoming "the Seller Whisperer".
* [08:52] Denise's 'fist' analogy in describing the role of fear in the brain.
* [11:30] The 5 Appearances of Fear.
* [14:10] The anchor, Wave, and Island styles of attachment.
* [18:10] Do families typically find you when a transition is already underway or as they're contemplating a transition or an exit?
* [33:23] How do you handle the messy aspects of the discussion?
* [45:30] How often do sellers get caught up on a particular figure that they will only sell at?
* [50:39] Discussing the success of transitions generally.
* [01:00:56] A letter from Denise
For more episodes go to
BusinessOfFamily.net (https://www.businessoffamily.net/)
Sign up for The Business of Family Newsletter (https://www.businessoffamily.net/newsletter)
Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd)
If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Denise Logan.
Julie Charlestein - The First Woman & 4th Generation Charlestein to Lead Premier Dental
Season 1
Monday, March 22, 2021 • Duration 38:05
Julie Charlestein is a fourth-generation CEO and president of Premier Dental (https://www.premierdentalco.com/), a global dental development and manufacturing company serving the worldwide oral health professional market since 1913.
Julie is the first woman and the fourth generation of the Charlestein family to lead the company. Since accepting the position as CEO, Julie has implemented changes to adapt to the times, and advanced its product line to advance Premier's market impact.
The Charlestein family have adopted an interesting ownership and control structure for Premier which Julie has kindly agreed to discuss with us today.
Standout Quotes:
* "Even though I had proved myself and worked in the company for 15 years before I became CEO...people were still looking at me like did I deserve to be there?" - [Julie]
* "The way that the transitions are the easiest is when everything is written down" - [Julie]
* "Giving one person control, I think, removes a lot of the family bickering" - [Mike]
* "Remember who you are" - [Julie]
* "The dollar is Round" - [Julie]
* "I think giving the next generation members the opportunity to opt-in, rather than have an expectation, often creates the greatest want" - [Mike]
* To start a revolution, the only solution, evolve" - [Julie]
* "Don't let perfect get in the way of good" - [Julie]
* "Science doesn't always sell" - [Mike]
* "Family is family and that's where you should be connected" - [Julie]
Key Takeaways:
* The company was started by Julie's grandfather while working for his boss as a Dental Instrument Sharpener and has transitioned from the marketing of dental consumables for other brands to focus on their brand.
* Joining the family had never been an expectation by the family or part of Julie's plan, but it was looked upon as a thing of pride for the family.
* Julie explains that when it came time to join, she took conscious effort to familiarize herself with the general goals and ideals of the family business
* Highlighting factors like her young looks and family background, Julie describes the impression she got when she joined the family business, who thought she didn't deserve to be there. and after working hard, she proved them wrong.
* The transition of the business from her father to her was seamless, and void of the typical situation where the prior generation holds on to the business even after completing the transition process in writing. Julie also notes the critical role of ensuring all processes involving transition are penned down in legal documents.
* While getting together as a family is pivotal for a family business and is being inculcated, there is room for improvement.
* Julie's Family Value: "Remember who you are", you need to have a sense of who you represent including your family, your community, the company.
* Another family value from Julie: "The dollar is Round"; this means you can have money now and it can just as easily roll away from you, then roll back towards you.
* Describing the evolution of the business under her, Julie explains her goal to make the company more data-driven and consumer-led, through branding, marketing, digitization, and social media.
* One key lesson from a significant failure while running the family business was that "Science doesn't always win", as the scientific
* superiority of a product does not guarantee sales. This was realized following the creation of a multipurpose dental product, which seemed like it could do everything, but the product only ended up confusing consumers due to a lack of specificity in function. This experience had a strong impact on the parameters surrounding any development within the company.
* From Julie to her kids: Remember who you are, The dollar is Round, Respect, and Family ties.
Episode Timeline:
* [00:49] Meet today's guest, Julie Charlestein, a 4th generation CEO.
* [01:37] The backstory of Premier Dental Family Business.
* [09:28] Growing up, was joining the family business always an expectation?
* [14:22] Julie describes the transition of the business from her father to herself.
* [24:16] Does the family get together regularly for a family meeting or family council?
* [25:27] Are there any key values passed down through the generations that still hold today?
* [26:52] Do you do anything intentionally to document the history of the family?
* [28:10] Is there a 5th generation already involved or interested in the business?
* [29:40] The Evolution of the family business under Julie.
* [32:58] Julie describes one of her most significant failures.
* [37:25] Is there potentially another chapter for you beyond your journey with the family business?
* [38:10] Julie's letter to her kids
For more episodes go to
BusinessOfFamily.net (https://www.businessoffamily.net/)
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Follow Mike on Twitter @MikeBoyd (https://twitter.com/MikeBoyd)
If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes (http://getpodcast.reviews/id/1525326745), I receive a notification of each review. Thank you! Special Guest: Julie Charlestein.
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