Yellowstone: Will Beth Dutton Save the Kingdom?
From Philo.com
Tradition and Change in Family Business: A Yellowstone Parallel to Reality
Like many family business leaders, John Dutton struggles to uphold longstanding traditions while external competitive pressures mount and next-gens clamor for change. “Yellowstone” is an American Western drama series that has portrayed the conflicts associated with a cattle ranch family business that began back in the 1890’s with the development of the American West. The much-anticipated final season debuts November 10, 2024.
The series stars Kevin Costner as John Dutton, the current patriarch, who is struggling to keep the business afloat to honor the legacy and the land he has inherited. External environmental and competitive forces have made the cattle rancher’s way of life harder to preserve. Dutton also has three surviving children who are fighting for their own goals, or against each other, which makes leadership transition or any other change very challenging.
So many unresolved issues remain before the series rides into the sunset – issues that mirror the real-life family business challenges that I’ve encountered as Director of the West Michigan Family Business Alliance. For instance:
- Who will win the siblings’ war for recognition, power and control: Beth, the devoted, tough, and business savvy daughter who seeks to protect her father at all costs; Jamie, the adopted son who lacks self-confidence and has consistently struggled to gain acceptance to the point of betraying his father; or Kayce, the only one who loves and embraces the cattle rancher’s way of life but seems uninterested in running the business?
- With the family’s livelihood and estate dependent on bringing the cattle to market, will this year’s cattle survive the illness spreading throughout Montana and killing the livestock?
- Will Kayce, and his Native-American wife, finally resolve their cultural differences rooted on the displacement of the Native American Indians during the American West development in the eighteenth century?
- Will John Dutton accept the changes suggested by his daughter Beth to keep the ranch profitable?
The most intriguing challenge is the current patriarch’s struggle to keep his family’s ranch – a kingdom of the size of Rhode Island – while upholding the traditions of the cattle ranching lifestyle in a challenging competitive landscape. Paradoxes are inherent to family businesses (Schuman, Stutz and Ward, 2010) and, like John Dutton, family business leaders must balance long-standing traditions with the need for change and innovation (McAdam, Clinton, & Dibrell, 2020). Successful family businesses must also identify what to preserve and what to let go of. This is called temporal symbiosis: the ability to concurrently perpetuate tradition while achieving innovation, acting as a “shield of the past and an engine for the future.” (Erdogan, Rondi and De Massis (2020).
The Struggle Between Tradition and Innovation
Family businesses are seen as protectors of the tradition, transmitting beliefs, practices, and legacies across generations, which together can limit the change needed to remain competitive over time (Erdogan et al., 2020). In “Yellowstone,” John Dutton’s tradition implies family loyalty, long and hard workdays herding cattle, and completing cattle drives by horseback. But his cattle ranching methods are not enough to withstand market disruptions, disease and the rising costs of operations and taxes. The ranch’s inability to vertically integrate downstream threatens not only its profitability, but also John Dutton’s ability to keep the promise made to his father of preserving the land for future generations.
From Pexels.com
Meanwhile, the next generation is not as aligned with the family business’s older ways, and the current generation struggles to keep them involved and engaged (Mc Adams et al, 2020). Beth Dutton, the next generation, envisions a different path forward. She breaks down the numbers for her father: the cattle are worth roughly $1.50/pound, hamburger is valued at $5.00/pound, and a good steak is worth roughly $39.00/pound. And another ranch, 6666, has sold over 8 million pounds of beef from their online website. Beth points out that while cattle ranchers sell cattle, ultimately selling beef is far more profitable. The money made from selling beef will create more financial stability for the Dutton family and could secure the land for future generations. This is a perfect example of vertical integration, without compromising tradition. She will do anything to keep her father happy and consequently save the family legacy and the ranch.
How Family Firms Can ‘Save the Ranch’
While the Dutton family and “Yellowstone” may be a dramatized example, laying the groundwork to avoid drama starts well before the conflict begins in family business. Successful transitions require engagement from both the current and the next-generation leaders. Past research (Kreg & Moores, 2017 and Craig, 2021) and my own experiences show that
Next-generation leaders are:
- Preparing and developing their business and leadership skills to move the business forward.
- Taking initiative (often without waiting for the baton to be passed).
- Developing a collaborative leadership style with trusted advisors and allies.
- Developing an entrepreneurial skillset and nurturing to establish this culture in the business.
The best current generation leaders are:
- Establishing trust in their next gen; treating them as equal business partners and not children.
- Providing them with a career path preparing them to lead the organization and to make their own decisions and mistakes.
- Recognizing that the next-generation leaders have different skills and will do things differently.
- Supporting the next-generation leadership development through a peer network, leadership training, and elevating professional opportunities within the organization.
- Learning to let go and move on.
Like other family businesses, Yellowstone’s path for future generations is not clearly defined or guaranteed. The above suggestions might help family businesses facing similar challenges chart a new vision to move forward, protect the business, and preserve the family legacy. While Beth Dutton’s solution is not the exact business the ranch has always been in, it could allow it to move forward. If John Dutton embraces this new vision and transition, he will be following his own advice to his troubled son Jamie: “Your grandfather used to say you can’t fix a broken wagon wheel, but you can use the parts to make a new one.”
Family Business Alliance strives to help family businesses with the tools, resources, and connections to help businesses succeed. Learn more about our resources including Leading Forward, Succeeding in Succession, and Navigating Governance that help to advance family business in our community.
Written by: Robin Burns, Family Business Alliance and Ana Gonzalez, Grand Valley State University
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References
Craig, J. B., & Moores, K. (2017). Leading a family business: Best practices for long-term stewardship. Bloomsbury Publishing USA.
Craig, J. B. (2021). Continuity Model Generation: Integrating Wealth, Strategy, Talent, and Governance Plans. John Wiley & Sons.
Erdogan, I., Rondi, E., & De Massis, A. (2020). Managing the tradition and innovation paradox in family firms: A family imprinting perspective. Entrepreneurship Theory and Practice, 44(1), 20-54. https://doi.org/10.1177/1042258719839712
McAdam, M., Clinton, E., & Dibrell, C. (2020). Navigation of the paradoxical landscape of the family business. International Small Business Journal: Researching Entrepreneurship, 38(3), 139–153. https://doi.org/10.1177/0266242619898610
Schuman, A., Stutz, S., & Ward, J. L. (2010). Family business as paradox (pp. 22-29). New York: Palgrave Macmillan.
The Welsh Wire: Lessons from a Trailblazing Female CEO in Concrete ft. Adrienne Heidema
A Testament of Timber: The Legacy and Innovation of L.L. Johnson Lumber Mfg. Co.
L.L. Johnson Lumber Manufacturing Company, a name synonymous with woodworking excellence, celebrates its 115th year, marking a milestone in its legacy of craftsmanship, innovation, and quality. Based in Charlotte, it is Michigan’s longest-running hardwood lumber distributor, with seven warehouses and two retail storefronts. We spoke with fourth- and fifth-generation leaders Tim and Connor Johnson to discover what drives this West Michigan business. Their story showcases an inventive spirit, family values, and an unwavering pursuit of quality.
A Leap of Faith: From Savings to Sawmill
It was 1909 when 34-year-old Laurin Lewis (L.L.) and his wife Zae boldly invested her hard-earned teacher’s savings in a portable sawmill. Their mission: to supply the booming railroad industry with high-quality hardwood lumber. As L.L. crisscrossed Michigan’s woodlots for a decade, their mobile operation paid off, producing half a million feet of railroad ties and crossing planks annually. This relentless dedication set the stage for a family business that has not only survived but thrived for over a century.
Today, with Tim and Connor Johnson at the Helm, the mill no longer processes whole logs; it still machines rough lumber on an 11-acre campus, which includes the iconic water tower owned by the city, seven warehouses, and a fleet of six delivery trucks. The lumber they sell is kiln-dried and graded, sourced from suppliers around the globe. By adopting a worldwide approach and catering to niche markets, L.L. Johnson operates as a versatile wholesale distributor, continuing the legacy that began with L.L. and Zae’s leap of faith over a century ago.
“We’ve been able to do this for over 100 years because you treat people right,” says Tim Johnson, who leads 47 employees. “You do the right thing — it’s just common sense.”
History Lessons: Pivots from Rails to Furniture
In 1922, when the railroad had grown beyond the state, L.L. set up shop permanently in Charlotte, strategically closer to the growing auto industry. Manufacturers needed to make cars and trucks, and the company’s annual production soon doubled. When steel began replacing wood by the end of the decade, L.L. started to look for new markets, turning his attention westward toward the Grand Rapids area.
Around this time, L.L.’s son, Darrel, joined him, having gained experience working with another supplier in the Midwest. Together, the father-son duo redirected efforts to supply “Furniture City” with the lumber required for its manufacturing needs. To support this new focus, they upgraded operations with a band sawmill, built dry kilns, and established warehouse facilities. As a result, the main plant in Charlotte employed a workforce of 29 by 1930. These strategic changes ensured the company’s survival and growth during the Great Depression.
Innovation and Expansion: The Third Generation’s Vision Unfolds
Although the furniture market sustained the business for decades, the Johnsons continued seeking opportunities for growth. This entrepreneurial spirit attracted Darrel’s sons—Dick, Bob, and Ted—to join the team in the 1950s, marking the beginning of the third generation’s involvement in the company.
The family business was incorporated in 1966 and underwent its largest expansion, introducing new machinery to mechanize the cutting, edging, resawing, and trimming of logs. In a demonstration of ingenuity, Dick and Ted Johnson designed a 40-foot diameter revolving round table for sorting lumber inside an 80-foot round building. This game-changer consumed just a tenth of the power required by conventional green chains used in most mills. The round building and table became a landmark advancement in the hardwood lumber industry, drawing business owners from across the country to Charlotte and solidifying their reputation for engineering excellence. By the 1970s, Johnson’s Workbench, a retail operation for hobbyists and professionals, opened its doors in Charlotte.
Digital Transformation: The Fourth Generation Leads the Way
From 1977 through the mid-eighties, the fourth generation — Mark, Steve, Mike, and Tim — began working for the company to modernize its physical and technological operations. Advanced computerized inventory and pricing systems were implemented, and the company’s website was launched.
“You won’t find these products or lines at Home Depot,” owner Tim Johnson says. The company offers over 100 domestic and exotic hardwood species, including Eastern White Pine and marine-quality plywood. Specializing in one-of-a-kind offerings, the company’s dedicated warehouse is stocked with unique and hard-to-find products. “That’s our game, that’s our thing,” says Tim Johnson. “We focus on carrying the kind of items you won’t find anywhere else.”
“I’ve had the pleasure of working with Johnson’s over the years, and I couldn’t be happier with their service let alone the quality they have to offer. The large variety of lumber, tools, machines, and materials they offer has consistently exceeded my expectations.” – John Geddie, Heirloom Woodwork
Honoring the Past, Building the Future
In 2008, Tim and Mark Johnson officially became the company’s new owners. A year later, Wood & Wood Products magazine named it one of the nation’s Top 100 Fastest Growing Wood Products Companies. Their commitment to innovation spurred them to tackle environmental challenges directly, ensuring the company stayed ahead in sustainable practices.
“It’s a difficult market,” says Tim Johnson. “Trees are growing plants that need harvesting. Managing them right, taking care of them, and planting more than we take is crucial to our industry.”
The company sources wood from responsibly managed forests and employs advanced technology to minimize waste and reduce its environmental footprint. For instance, it uses a thermally modified process to treat ash trees damaged by the emerald ash borer, an invasive beetle from eastern Asia. By thermally treating the wood, the Johnsons create an eco-friendly product from trees that would otherwise go to waste.
“We’re able to heat it up to a high degree, which makes it moisture-resistant and ideal for outdoor use,” says Tim Johnson. “It’s really pretty with a light brown hue, and because it was an ash tree that was soon going to be lying on the ground anyway, it’s a sustainable, eco-friendly solution.”
This commitment to sustainability aligns with their focus on meeting customer needs with precision. “We’re always working to meet customers where their demand is,” says Connor Johnson, Tim’s son and a fifth-generation leader of the company.
The company’s strength lies in finding the perfect balance between large and small orders. “We’re unique—we can sell by the semi-load or just a few pieces at a time,” says Tim Johnson. “It’s a sweet spot we’ve positioned ourselves in. I believe we’re the only ones in Michigan where you can buy just one board or an entire truckload.” No matter the size or the request, L.L. Johnson finds ways to meet those needs, standing as a steadfast partner in every woodworker’s journey.
In an industry shaped by shifting markets and environmental challenges, L.L. Johnson stands out not just for its products but for its commitment to doing the right thing—ethically, sustainably, and with an eye toward the future. The story of L.L. Johnson is not just one of survival; it is a narrative of enduring success, driven by a relentless pursuit of quality and a deep respect for the craft.
This interview has been edited for length and clarity. Email fba@fbagr.org if you are interested in exploring feature opportunities.
Family Business Alliance strives to help family businesses with the tools, resources, and connections to help businesses succeed. Learn more about our resources including Leading Forward, Succeeding in Succession, and Navigating Governance that help to advance family business in our community.
The Employers’ Association: A Valuable Partner for FBA Members
The Family Business Alliance is committed to providing our members with the tools and resources necessary to thrive in today’s competitive landscape. In 2023, we established a partnership with The Employers’ Association. This partnership provides FBA Members access to a suite of HR Resources tailored for small and large family run organizations.
Who is The Employers’ Association?
Operating since 1939, The Employers’ Association is a non-profit association that provides practical Human Resource Solutions to the local business community. They help hundreds of companies maximize employee productivity and minimize employer liability while seeking operational excellence through practical management advice, training, benchmark information, networking, and organization development services.
FBA Member Benefits:
FBA members gain several key benefits through our partnership with TEA. A standout advantage is the HR Helpline, which provides up to five complimentary calls or emails per month for practical HR support. This service is invaluable for addressing immediate HR concerns, such as compliance issues, employee relations matters, or policy questions.
Additionally, FBA members who are not currently TEA members are eligible for discounted TEA membership rates. They also gain access to TEA’s various roundtables, which cover crucial topics like HR, safety, diversity, and inclusion. These roundtables offer a platform for professionals to network, share best practices, and gain insights from peers in similar roles.
Why Participate in the Wage and Salary Survey?
Another standout benefit of our partnership with TEA is access to their industry-leading surveys, including the annual Wage and Salary Survey. This survey provides invaluable insights into compensation trends, helping businesses stay competitive in the marketplace. For FBA members, participation in this survey is an opportunity to gain critical market intelligence that can inform strategic decisions on employee compensation and benefits.
The survey questionnaire is sent annually in the first week of September. The survey closes in early October with final reports made available to participants in November. By participating, FBA members receive the Family Business Breakout Report and Wage and Salary Survey Summary Report at no cost and the full report at a discounted rate, ensuring access to detailed, up-to-date information for our members. Non-participating members may purchase the summary and full report, but at a higher cost.
The Wage and Salary Survey is just one example of how TEA’s resources can directly benefit your business. By staying informed about the latest compensation trends, you can better position your organization to attract and retain top talent, all while ensuring your compensation packages remain competitive and fair. By leveraging these resources, you can ensure that your organization remains competitive, compliant, and well-positioned to attract and retain top talent in today’s ever-evolving business environment.
For additional information on this partnership, please contact Family Business Alliance at fba@fbagr.org
The Welsh Wire: Managing Business Growth and Family Dynamics ft. Michelle Timmerman of Direct Supply Inc.
The Welsh Wire: Transitioning Leadership in a Family-Owned Business ft. Marlee D’Arco of Safety Services, Inc.
Get to know your ambassadors: Matt Maczka
Family Business Alliance Ambassadors are volunteers for FBA who are committed to helping members get the most out of their membership. They are all individuals who have been very involved with the organization and have used resources and programs to help strengthen their businesses and families. Ambassadors are available as a resource to our members for any questions they may have from a member’s perspective.
Matt Maczka is one of FBA’s committed ambassadors serving the family business community on his own time. Get to know Matt with his answers to our questionnaire below.
How did you first get involved in FBA?
I had been invited to a handful of events as a guest and really found the content to be very informative. I also wanted to participate in the Now Gen peer group which was great.
Why is FBA important to you?
The FBA is important to me because there are so many family businesses in West Michigan that all share the same opportunities, issues and areas for growth. Its is nice to have resources and others to share with and learn from.
What has been your favorite FBA event or activity?
The peer group has been my favorite activity and has the potential for the largest impact for members.
Why do you think family businesses are important to West Michigan?
Family businesses are a vital part of the community as employers who all share in the common goal great places to work first and foremost. They also provide resources for so many philanthropic endeavors of the area and community investments.
What are some of your favorite hobbies?
I enjoy playing and coaching sports for my 4 children as well as golfing, hunting and fishing.
Get to know your ambassadors: Mitchell Rasch
Family Business Alliance Ambassadors are volunteers for FBA who are committed to helping members get the most out of their membership. They are all individuals who have been very involved with the organization and have used resources and programs to help strengthen their businesses and families. Ambassadors are available as a resource to our members for any questions they may have from a member’s perspective.
Mitchell Rasch is one of FBA’s committed ambassadors serving the family business community on his own time. Get to know Mitchell with his answers to our questionnaire below.
How did you first get involved in FBA?
A family friend and FBA member highly recommended joining. Since then, I have attended multiple FBA events and joined a peer group.
Why is FBA important to you?
Coming into a family business can be intimidating. The pressure is on to maintain the family business. Every family business has its own unique strengths and challenges. FBA provides a great learning environment that allows members to discuss their own goals and challenges both professionally and personally. I am a believer that an individual is a lot of who they surround themselves with. Being a part of FBA has given me the opportunity to get to know other likeminded next generation family business owners. The peer groups and events are excellent for networking, exchanging ideas and sharing the inner challenges that every family business faces.
What has been your favorite FBA event or activity?
The CEO Summit in 2023 with the panel on Family Business. The speakers were top tier and the knowledge that was shared was priceless.
Why do you think family businesses are important to West Michigan?
Family businesses are the backbone of the US economy and West Michigan. Entrepreneurship gives individuals the opportunity to make an impact and give back to society for the better.
What are some of your favorite hobbies?
Traveling, golf, hiking, family time and water sports.
Get to know your ambassadors: Spencer Welsh
Family Business Alliance Ambassadors are volunteers for FBA who are committed to helping members get the most out of their membership. They are all individuals who have been very involved with the organization and have used resources and programs to help strengthen their businesses and families. Ambassadors are available as a resource to our members for any questions they may have from a member’s perspective.
Spencer Welsh is one of FBA’s committed ambassadors serving the family business community on his own time. Get to know Spencer with his answers to our questionnaire below.
How did you first get involved in FBA?
We have been platinum underwriters for FBA since 2018 and produce the FBA podcast through our
network, The Welsh Wire. When I joined the firm in 2019, We officially became a family business and also became members of FBA.
Why is FBA important to you?
FBA creates a community of people in similar seasons of life and gives them a safe place to learn, collaborate, grow, and counsel together. Being able to discuss the unique challenges and dynamics of a family business with other family businesses, provides a perspective that you can’t get anywhere else. FBA provides family businesses with the resources and encouragement necessary to ensure success for generations to come.
What has been your favorite FBA event or activity?
Joining a peer group is strongly recommended. The peer group allows you to develop deep relationships with leaders and future leaders of family businesses. In the peer group, you navigate the relational and business aspects of a family business.
Why do you think family businesses are important to West Michigan?
Family businesses play a huge role in economic impact, community engagement, longevity, and innovation in West Michigan. These businesses are major drivers of economic growth, supporting local suppliers and other businesses while reinvesting profits into the community. Family businesses take a long-term perspective focusing on sustainable growth contributing to economic resilience in the region. We are continually innovating and adapting to keep our region strong.
What are some of your favorite hobbies?
My hobbies include golf, reading, almost any sport, and exploring the outdoors.
