The Welsh Wire: Transitioning Leadership in a Family-Owned Business ft. Marlee D’Arco of Safety Services, Inc.
Zinger Sheet Metal Celebrates 70 Years
In celebration of their 70th family business anniversary, we sat down with Family Business Alliance member, Zinger Sheet Metal. Read on to learn about the owner and leader, David Capestany, third-generation steward of the West Michigan family business.
About Zinger Sheet Metal
Zinger Sheet Metal was founded in 1954 by Hank and Harold Zinger. The innovative brothers saw a gap in the market for prefabricated ducts. Under their leadership, Zinger Sheet Metal installed and manufactured duct work, primarily in the residential space. Today, the company serves the commercial construction industry and HVAC distributors through duct work manufacturing and HVAC CAD detailing.
The Pathway Into the Family Business
“When Hank and Harold owned the company, we were a small, mom and pop shop,” David shared. His grandfather had four daughters, and the only family member who ended up in the business was Nelson Capestany, Hank’s son-in-law and David’s father who joined the business in the 1980s.
Nelson Capestany had high hopes for the future of the family business. As a Cuban immigrant, David explained, he felt pulled to carry the legacy forward. “My dad was determined in pushing me in the direction of working for the family business. For someone who had to start from nothing in the US, his vision for me was to either be a doctor or take over the company. Those were my options in his eyes.”
David began helping in the business at 12 years old. He worked two days a week in the summers sweeping the floors, doing maintenance, and other projects. “If you mow fast, you get to sit in the shade for half an hour. If you’re slow, you get the full heat of the sun,” David recalls his dad telling him, and it’s clear this sentiment sums up the work ethic and mindset of the Zinger family.
Capestany continued working in the business on and off throughout high school and college. After graduating from Grand Valley State University with a degree in Management and Finance, he took some time out of the business to venture on his own. “A year later, I was engaged and looking for my next step, and Zinger was the best opportunity at that time, so I went in full time,” David said.
From there, he never looked back. Having started on the shop floor, David eventually began working as an estimator, then accounting and finance, gradually taking on more responsibilities. He explains, “At that time, we were 10-12 employees, and we’re about 24 now. Eventually, I started taking on more of a leadership role.” In 2014, David succeeded the business from his father.
Developing Your Passion
More than twenty years into his family business journey, David reflected on how his passion has grown. “Growing up, I wasn’t passionate about duct work. But the opportunity to be able to learn something in depth and get to the point where you have some expertise and people call you for help is rewarding. A lot of kids want to be passionate about whatever it is that they’re doing right out of school, but I realized when you take years and work at something, the passion grows.”
While it may have taken time to develop passion for duct work, David’s passion for the business and the people it supports has been a constant. The desire to continue improving employees’ livelihoods drives his desire to grow.
Over the years the company’s growth has enabled them to provide more significant benefits and meaningful career pathways. The third-generation leader explained they recently started working with a life coach who comes in every week to spend time with employees. They also began completely covering health insurance for their employees. “Those are some of the things I am most proud of – the opportunities we have been able to provide for employees.”
70 Years of Growth and Change
One of the most pivotal changes for the company’s trajectory was in the mid-2000s when Zinger Sheet Metal shifted from mainly residential work to commercial. Along with that, they expanded their repertoire of product offerings, enabling them to provide complete duct systems. “It opened up a completely different world for the business with new opportunities,” says Capestany.
Nearly twenty years later, the business is continuing to tailor its vision for the path forward. Capestany shared his goal to grow the company in its service footprint as well as product offerings. “About two years ago we took on a few larger customers out of Ohio, so now we’ve started to expand our footprint to become more regional.”
As for expanding their products and services, David hopes to become “more of a one-stop shop” for customers. They are continuing to hone their use of technology with the goal of passing on efficiency to their contractors and customers. For example, using CAD modeling, they have been able to tailor the installation process. “That’s what we’ve been really focused on – helping contractors reduce their installation time by providing them a detailed plan which helps reduce the amount of skilled labor that they need.”
A New Approach to Leadership
One element he contributes to some of Zinger Sheet Metal’s success is the implementation of EOS over the past few years. It has been a pivotal change for the business, David shared. “We began focusing on our leadership team and being intentional about our vision. We began sharing the purpose and vision with employees and setting goals.”
Working toward building a leadership is something David expressed he wished he had done sooner. “When you’re in your twenties, you think you know everything and can do everything, so you do it. So, I think investing in people earlier, giving them the opportunity to grow, and not forcing myself to be the expert in everything,” Capestany said.
The Vision Ahead
As for the family vision, David hopes that his kids take an interest in the business. “I’m trying to give them an opportunity to learn the business a little bit but also want to give them the opportunity to explore what they want.”
His 14-year-old son works at Zinger in the Summers. His three children also get to have a hands-on experience through schoolwork. “Having a sheet metal shop is fun because for school projects or visits, we might come here or build something. Other kids will bring cardboard, and my kids will bring metal. That was always me growing up, too. My projects were always metal because that’s what I knew how to work with.”
This feature is part of our Member Anniversary Program. For more information or if you are interested in exploring opportunities to be featured, please email aislinn@fbagr.org.
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.
Architects of Legacy: Family Business Leader Spotlight
In family businesses, legacy isn’t built overnight. It’s scaffolded through generations of stewards who uphold and transcend the values of their families and businesses. Architects of Legacy is a series profiling West Michigan family business leaders brought to you in partnership between Family Business Alliance and Memory Lane Jane.
What was your first job?
In 1972, my dad bought the business. The previous owners had a big safe—larger than my whole desk—partially stuffed with various coins and bills. My first unpaid job, at the age of twelve, was to count and roll all of that cash with my sister. She ended up finding a 1908 VDB penny, which I was so jealous of.
How did you become involved in your family’s business?
I earned my bachelor’s and master’s in Social Work from Alma College and Michigan State University. I started with internships until I landed my first official (paid) job as a counselor and psychology professor at an area college. At first, my dad was mad I chose a social service position over his business, but he soon realized the unique people skills I’d honed. Eventually, he told me, “People skills will carry you anywhere. Now’s your chance to come into the family business.” I listened.
At the time, I was one of two women in a company of a dozen or so men. I took a pay cut to work for my dad because I couldn’t make more than what the other woman in the office was making. I was responsible for spearheading the implementation of computer systems. It was a real time of change within our company.
I’d been working here for about a year when my dad seemingly caught a bad cold and lost his voice. He went to the doctor and was diagnosed with cancer. Less than a month later, he passed. My cousin George was thirty-five at the time, and I was twenty-eight. All of a sudden, we had a business to run and people to take care of. We were terrified but tried to convey confidence. We must have done something right because we’re still here and growing!
What was most challenging about stepping into the leadership role of your family business?
As a woman in business, there were moments when I needed to say things a few times before I was heard. But, for the most part, I felt listened to and respected. I was a twenty-eight-year-old woman in an industry of ninety-nine percent men. I remember sitting in the office with George needing to make decisions with an insurance agent when the agent looked at him and said, “Will you have your girl get me some coffee?” It was certainly a different time for women in business back then!
What was most exciting?
Today, there are more women in the industry than ever before. We’re hiring and finding more women—some without building material industry experience—who can learn and support one another. Together, we’re driving cultural change. That’s the most exciting part.
What leadership lessons have you learned from the previous generation that you rely on today?
There are so many lessons that it’s hard to choose! My dad always said you can’t surpass your self-imposed limitations. So, while others may limit you, never limit yourself—reach for the stars.
I also learned to do what you say you’re going to do by the time you said you’ll do it. Being genuine in that way builds trust, which is at the base of any great relationship. If you’re correcting someone, make it a growing conversation for all sides. People are the foundation of your entire business. Cheer them on, hear them, and give them the tools they need to succeed.
How do you keep your family business’ story and legacy alive?
Many of our people have worked with Monsma for decades. My cousin George is still an integral part of our company—going on fifty years. We recently had a truck driver retire after working with us for more than forty-two years. But he’s already been back here doing some one-off runs and subbing in for vacations. That’s the thing about Monsma. We always draw you back in somehow. Many legacies here are long-standing. Our employees are like our family. They’re all part of our story.
People don’t bring a blank slate to work every day. Many have struggles; most have more priorities than they’re able to handle. No one works in a nice little bubble. We try to acknowledge that, help each other out, listen, and do nurturing things for our employees when we can. As leaders, it’s our job to make work a safe and collaborative place for our folks to learn, grow, reach higher individually (and as a team), and celebrate wins.
What makes you most proud of your family business?
I’m proud of the “family” aspect of our family business, and not just our family. We had a woman who recruited her dad to come drive a truck for us. A pair of sisters were brought in by their aunt. We have a father-son team—one in computer data and the other a great inside salesperson. We are really proud that our people want to bring other good people to us, which makes us better overall.
I’m also proud that we’re competitive in the marketplace but collaborative with each other. We want to win our customers’ business; we want to win on our customers’ behalf. We represent our product mix with knowledge and pride. With each other, however, we share the load. If someone’s having a bad day, we step in to support. We’ve built and sustained an extremely collaborative environment.
What advice would you give to the next generation of women in family business?
There are a lot of lies out there—the ever-unattainable “balance,” for example. Constantly striving for balance is not something one can ultimately achieve. Life will always be a lot, especially for young working mothers. I remember that struggle well: I could get half of seven things done but could never focus on just one thing because that meant six other things were slipping. Give yourself grace and give others grace. Prioritize, and do your best.
Gloria Steinem once said, “There is always one true inner voice. Trust it.” Listen to what you’re being called to do, even if there are seven opinions against you. You have to trust yourself just as much as you trust other people. Another quote I love comes from Shirley Chisholm: “If they don’t give you a seat at the table, bring a folding chair.” I had to bring that folding chair to many meetings in my early years. Strong women have come before you—women who have faced similar struggles and have overcome challenges. Listening to their stories is powerful.
What do you think makes a family business unique?
Relationships really set family businesses apart. In my opinion, that’s the number one priority: If you take care of your people, they’ll take care of their people. If you hire somebody, invest time in them—you either coach them up or coach them out.
What is bringing you joy right now?
Having all four of our kids want to join the family business makes my heart sing. I get to witness their dedication, their care for our growth, their transparency, their authenticity, and their genuine interest in the work we do—everything we hoped to teach them. It’s so rewarding and special to watch them fall in love with the experience and the quest to be better each day.
About Monsma Marketing Corporation
Monsma Marketing Corporation has been providing premium brand products with outstanding service and delivery to retail building material dealers for over 90 years.
First operating as Grand Rapids Reserve Supply, Mosnma initially sold mostly commodity building products, gradually pivoting to specialty building products and materials. In the early 1990s, we launched into a new specialty building product category with fireplace inserts. The advances in this industry are stunning, and hearth now represents about one-third of the business.
FBA Welcomes Kelly Plawinski to the Board of Directors
GRAND RAPIDS, MI / January 18 – Kelly Plawinski has been elected to serve as a Family Business Alliance Board Member for a three-year term.
Plawinski is currently the Chief Operating Officer and Integrator at Adamy Valuation, a second-generation family business and FBA Member. She is responsible for the organization’s strategy and vision, firm operations, financial and HR oversight, as well as firm leadership. Prior to joining Adamy Valuation, Kelly had a successful and fulfilling corporate finance career at Ford Motor Company. Her background included over a decade of experience in process improvement, financial reporting, and guiding corporate-wide strategies.
Plawinski also serves as President for ACG of Western Michigan and has volunteered at organizations including LeaderWork, a Holland based leadership program, as a teacher for Junior Achievement, and a Candidate Concierge for Hello West Michigan. She received her undergraduate at Purdue University and completed her MBA at Michigan State University – Eli Broad College of Business.
About Family Business Alliance:
Family Business Alliance, West Michigan’s only association of family business organization, seeks to preserve our unique culture of family driven organizations. Established over 15 years ago by local leaders of family businesses, today we represent nearly 200 family run organizations. Together we create connections, elevate leadership, and navigate governance to advance family business in the West Michigan Community.
Written by Robin Burns
Architects of Legacy: Family Business Leader Spotlight
In family businesses, legacy isn’t built overnight. It’s scaffolded through generations of stewards who uphold and transcend the values of their families and businesses.
Architects of Legacy is a series profiling West Michigan family business leaders brought to you in partnership between Family Business Alliance and Memory Lane Jane.
What was your first job?
My first job was at our family business. I started in the summer before eighth grade doing any dirty work that needed to be done. I cut pipe; I helped maintain equipment; I swabbed the floors.
How did you become involved in your family’s business?
I was always interested in what my dad was doing. He started the company when I was 7 years old. I remember helping him out in the side yard, putting pipe together for a well point header. Mom ran the office out of our basement, so I helped her with various tasks. Our home phone number was also our business number, so, even as a young girl, I was screening and answering phone calls.
When I went off to school at Aquinas, I had the intention of coming back to our family business. I double-majored in business administration and environmental studies. After graduation, I became the payroll tech in the office.
What was most challenging about stepping into the leadership role of your family business?
My leadership role happened after an unplanned transition period. Essentially, I was thrust into the job without a plan in place. I had to make decisions very quickly because my family, my team, and our customers were relying on me. I couldn’t let them down.
What was most exciting ?
The exciting part came later in exploring what I could actually do with the opportunity in front of me—all the work, research, and learning to be done. The whole journey has been exciting. I have some awesome employees, which makes all the difference. At the 10-year mark, I felt like I could finally stop, take a breath, and reflect on everything we’d accomplished.
What advice would you give to the next generation of women working to find and build their voice in a family business?
Be curious and willing to learn. Do your research; trust your strengths. You have something great to offer. Do it scared, then find the courage to lead. (It’s a lot easier than said than done, but you can do it.)
What leadership lessons have you learned from the previous generation that you rely on today?
I learned the value of grit and hard work from my parents. When times get tough, we roll up our sleeves and we go to work. That’s what we’ve always done. We figure it out. My parents are the hardest workers I know.
How do you keep your family business’ story and legacy alive?
We tell a lot of stories, even amongst our team and crew at work. I think we keep the legacy of our family business alive by reminiscing. A lot of our long-standing employees have stories that go all the way back to the very beginning. Even at our company parties, we like to get together and laugh about some of the things that have happened through the years. Storytelling is part of our personal family history, as well—that’s how we keep the memory alive of family members who have since passed.
What makes you most proud of your family business?
I’m so proud of the growth I’ve seen across my entire team. I absolutely love being a part of a team; we are so much more than just a sum of our parts. I think it’s so special to see what incredible things a group of people can do when they come together.
What book is on your nightstand?
“The Infinite Game” by Simon Sinek—it’s a great book that discusses business as an infinite, rather than finite, game. In a finite game, there’s a score and a winner. An infinite game is perpetuated over time; you’re making long-term decisions for the infinite game. The book talks about caring for employees over the numbers on your financials, which is an aspect that resonates with me. Our people are the most important part of our organization because, without them, we aren’t anything.
What is bringing you joy right now?
I love watching my adult children blossom into wonderful people. I have a 15-month-old granddaughter who brings pure joy into all of our lives.
About Contract Dewatering Services
Contract Dewatering Services uses drilling and pumping methods to lower the groundwater temporarily for underground construction. We work anywhere that construction underground takes place below the natural groundwater table so that construction can move forward. CDS primarily serves the expanded Midwest—the middle states of the U.S.
Are Cybercriminals Knocking on your Door?
How to Manage the Risk of Cyber Attacks
i3 Business Solutions is a first-generation family business owned and run by Mike Ritsema, and his son, Marcus. Founded in 2004, the business is headquartered in Grand Rapids and has offices in Farmington Hills. In honor of Tech Week GR 2023, they have provided Member Insights on Cybersecurity for family Businesses.
i3 Business Solutions becomes or assists the technology department for almost 100 companies and 4,000 end users in the State of Michigan.
Cybersecurity Threat
Despite layers of cybersecurity protection, every month we continue to see compromises to Michigan businesses’ technology. How can this be?
According to the Verizon 2023 Data Breach Investigations Report (DBIR) 50% – that’s half of all cybersecurity incidents are due to social engineering. That means mistakes by the ‘human firewall.’ Furthermore, 74% – that’s ¾ of all breaches involve the human element – again, that’s mistakes by people in our companies. Human error.
The three primary ways that cyber attackers access organizational data are:
- Stolen credentials
- Phishing – whale or spear phishing
- Exploitation of vulnerabilities.
The Microsoft image displayed is an example of mistakes people make on a regular basis.
“Oh, I need to login again to confirm my account,” we think.
“Oh, I have a security alert and have to confirm my identity,” we click away as we rush through our day.
Clicking on the fake link and entering my login, password, and 2-Factor authentication hand our credentials to the threat actors. They’re going to work. They’re moving around in my network or Microsoft 365 or Google Business Suite account. They’re in there and will lay in wait for weeks or months – watching, learning, scheming, planning the way they’ll exploit the information.
More and more, cybercriminals are creating near perfect narrowly targeted emails directed at owners, executives, finance, and technology professionals. We call this whale or spear phishing.
Protection
That socially planned targeted attack means that all the firewalls and antivirus in the world can’t stop our employees from making a mistake! We must figure out how to protect our businesses from ACH mistakes, ransomware, and data exfiltration.
In cybersecurity we say it’s not if you’ll be hacked but when you’ll be hacked. Sad but true.
Action:
What are the top 7 things we can do to protect our businesses?
- Test & educate your team using a structured cybersecurity phish testing and training system.
- Implement Multifactor Authentication (MFA – 2-Factor) across ALL cloud or online systems – especially email.
- Implement Multiperson Authentication within your financial controls. That is, any change to ACH checking and routing account numbers or payroll data must be confirmed by a second person and a phone call to a known number to hear a (known) person’s voice.
- Implement Endpoint Detection & Response (EDR) which is the next generation antivirus that not only protects our PCs, Laptops, Macs, and servers – but also detects and automatically responds to threats.
- Review, manage, and deactivate former employee accounts and administrator rights across all relevant systems.
- Buy cybersecurity insurance.
- Confirm that you have a discrete offsite air-gapped backup to your most important information and data. Can you actually restore from those backups?
Responsibility & Risk:
Business owners, partners, executives, and managers focus on 4 business functions:
- Profitability – sustainability
- Productivity – efficiency
- Differentiation – value proposition
- Risk mitigation.
For me, risk mitigation is the highest on that list. We manage many risks in business: financial, physical, employee, and financial are just a few. During the Great Recession 15 years ago and the 2020 Covid-19 pandemic, managing the financial risk of i3 Business Solutions was my highest priority. We manage risk with various controls and review processes to assure consistent operation and growth.
Your IT Manager or technology provider are the stewards of your technology risk. You, the family business owner, partner, shareholder, or executive team own the risk.
Collar your IT Manager or technology provider and ask the above seven questions. Oh, a couple of them go to your Finance Manager or accounting assistant. Copy / paste and email the list to the appropriate individuals.
There are 18 controls and 153 safeguards in the Center for Internet Security’s cybersecurity framework. Get started today by asking the above 7 questions. Consider a wider cybersecurity assessment if you’re more concerned.
Tech Week GR: K Group Companies
It’s officially Tech Week in Grand Rapids! The non-conference conference is designed to showcase the region’s vibrant tech community, and we’re excited to share insights from a few of our family business members in this fast-paced industry.
We had the pleasure of speaking with Ben Kuncaitis from K Group Companies, a second-generation family business that has been in the technology space for over 40 years. Ben shared his insider insights on how the industry has evolved, their company’s history, artificial intelligence, and how businesses can prepare for the constantly changing industry.
About K Group Companies
Founders Mike Sr. and Elouise Kuncaitis in the early days of K Group Companies
K Group Companies has a rich family history, dating back to 1979 when Ben’s father, Mike Kuncaitis Sr., founded the first of the K Group Companies. Mike Sr. had already been serving in the tech industry and saw a path forward to launching his own firm.
At the time, the main business consisted of supporting large mainframe computers, programming, and maintenance. They were “machines the size of a room,” explained Ben. “We had a division of our business that even fixed typewriters at one point.” Evidently, the industry has evolved significantly since their founding days.
When asked why his parents chose to work in the tech industry, Ben responded, “I think they saw it as the future. I think he was wise enough to know that.”
Ben, alongside two of his brothers – Chris and Mike, Jr.- have since taken ownership and operation of the companies. As Ben recalls, he and his siblings were integrated into the business early on. “I would say it’s in us. Tech brings a lot of challenges, and you have to like change. If you don’t like change, you’re in the wrong industry. He’s always taught us to run at challenges, not run from them.”
According to Ben, his father “had a high business acumen.” As Mike Sr. continued to build the company’s foundation, he prided himself on creating a true partner relationship with his clients by being their trusted tech advisor and consultant. To this day, this valuable legacy rings true with K Group Companies and how business is done. “We’re able to meet a client at their level and scale with them as they grow, by leveraging technology,” explained Ben.
The second generation leaders. Pictured from left to right Mike Jr., Ben, and Chris Kuncaitis
Industry Insights
In their more than forty years in business, a lot has changed in the industry. “As far as going from where the supercomputer was the size of a room, to where it can basically fit in the palm of your hand. That’s quite a swing.” Naturally, the landscape shifted alongside the structures themselves.
One industry shift is the focus on and importance of cybersecurity. This is an ever-changing topic and is one of the fastest moving areas of technology. “It’s not a matter of “if”, but “when”, there will be a breach,” said Ben. “A breach is going to happen, so it’s important to put yourself in a position of strength, in the healthiest way possible.”
K Group Companies prides themselves on their ability to partner in this area with their clients, by embracing change and delivering sustainability. As Ben explained, “Bringing solutions that provide enablement for people and their businesses to achieve their goals” is what drives them as a business and as a family.
K Group’s Evolution
The K Group team at a team outing
To support this, the company recently rebranded as K Group Companies, effectively combining their four primary divisions under one umbrella.
These divisions include Standard Computer Systems Inc., Riverview Service, K Data Systems, and Data Consultants. This approach allows them to provide clients with finely tuned solutions, provided by their team of highly skilled, experienced, and specialized professionals.
The unification of their brands brings better alignment to their new divisions in the previous individual companies, as well as making their services more accessible to customers that traditionally work with one or more of the teams.
Through internal growth with new ventures and acquisitions over the years, K Group Companies can provide services for about anything pertaining to technology.
Artificial Intelligence
With all the buzz around artificial intelligence, we’d be remiss not to touch on the potential impact for the industry. From Ben’s perspective, “There is good AI and there is bad AI. All of it as far as I’m concerned is here to stay.” Whether we realize it or not, most of us take advantage of A.I. daily.
For the family business, “it’s all about balance.” While they employ artificial intelligence to help with things like job postings and basic marketing tasks, accountability and balance in its use is key, Ben says. “Don’t be hands off. You want to pay attention and make sure it represents what you want.”
There are still some growing pains and certainly limitations of the controversial innovation. For instance, simple things we understand as humans may not be possible for robots to grasp. Overall, given the constantly evolving nature of the technology, “At this point at least, there has to be a great amount of accountability,” Ben expressed.
West Michigan & Growing Tech Hub
Tech Week GR is all about showcasing the vibrant tech community in the region. While the benefits of this are ample, Ben acknowledged that being a tech leader “attracts the next generation to build here.” Their investment in the area helps contribute to a healthy workforce and economy.
Ben speaks to the growth of tech companies in West Michigan by comparing it to the growth in the region overall especially through the diversity of robust industries in West Michigan. From manufacturing, healthcare, agriculture, finance and logistics, these industries have a significant presence here and they create opportunities for unique
The ‘Next Gen’ behind K Group Companies
technological needs and support, Ben shared. As these sectors continue to grow in West Michigan, so will their need for specific technologies.
The access to education from local universities has helped manage the talent needs as the industry grows. “There is a lot of tech talent,” Ben explained. Even the various tech centers, ISD’s, and non-profits focused on technology help support the growing industry.
Security and AI, Ben predicts, is the area in the industry that will likely continue to grow most quickly. Given the rapid evolution of technology, it’s no surprise that the need for security is expanding and changing swiftly alongside it.
How to Keep up with Tech as a Business
Planning for technology can take time, Ben explained. At K Group companies, they work with their clients to “grow their technical maturity.” By breaking the company’s needs down into a “1-year, 3-year, and 5-year plan” they can help companies accomplish their tech goals. Because it is a capital investment, planning for it and having conversations about what technological tools are needed in the future helps. “Otherwise, this can be more of an emotional decision vs. a logical one,” Ben shared.
There are assumptions that family businesses can be slow to adopt new technologies and innovate. When asked how family businesses or any business can prepare, Ben provided a few steps:
Part of the K Group Team
- Meet often with leadership
- Plan your technological needs
- Be intentional with your budget and forecast your technology budget as a whole
- Enlist a trusted advisor
Much like technology itself, the family business K-Group Companies has consistently expanded and evolved along with the industry.
For additional cybersecurity tips for your business, K Group Companies has provided a checklist below to show some of the important solutions and security measures that can help protect your business.
Cybersecurity Solutions Checklist here.
FBA Announces the Leadership Class of 2023
GRAND RAPIDS, MI / August 3 – Family Business Alliance is excited to announce the participants for Leading Forward, The Institute to Inspire and Develop Michigan’s Family Business Leaders.
Leading Forward is the only leadership program in West Michigan which connects family business leaders to learn and support one another on their leadership journey. The program invites family business leaders to hone their skills and overcome the unique challenges of family business leadership for the betterment of the family, the organization, and community.
“These leaders are challenged not only with economic and market disruptions, but also the responsibility of stewardship to the family enterprise. They take on the responsibility of actively guiding the family members, imparting their values in the family and organization, and re-igniting innovation and reinvention by seeking new opportunities in a world that was very much different from the prior generation. Their success is critical to the family business culture and continued economic impact of West Michigan,” stated Robin Burns, Director of Family Business Alliance.
Leading Forward offers interactive facilitated sessions and learning opportunities from other local businesses who will share their visions and beliefs about leadership. They will tackle leadership styles, team development, effective boards, innovation, and culture.
The five-month program that features five half-day in-person workshops and one-hour individual coaching sessions will begin on August 9, 2023.
“These leaders are challenged not only with economic and market disruptions, but also the responsibility of stewardship to the family enterprise. They take on the responsibility of actively guiding the family members, imparting their values in the family and organization, and re-igniting innovation and reinvention by seeking new opportunities in a world that was very much different from the prior generation. Their success is critical to the family business culture and continued economic impact of West Michigan,” stated Robin Burns, Director of Family Business Alliance.
Leading Forward offers interactive facilitated sessions and learning opportunities from other local businesses who will share their visions and beliefs about leadership. They will tackle leadership styles, team development, effective boards, innovation, and culture.
The five-month program that features five half-day in-person workshops and one-hour individual coaching sessions will begin on August 9, 2023.
Introducing the first class of leaders:
- Brandon Bissell, Imperial Clinical Research Services
- Cameron Young, Behler – Young
- Elizabeth Avra, Apek Holdings LLC
- Geoff Miller, Grand Rapids Chair
- Kelly Slikkers, Tiara Yachts
- Robert Dunn, MountainAire Builders
- Ross Haan, Impact Fab, Inc.
- Steve Kloosterman, Westshore Electronics
- Todd Van Haren, SecurAlarm
About Family Business Alliance:
Family Business Alliance, West Michigan’s only association of family business organization, seeks to preserve our unique culture of family driven organizations. Established over 15 years ago by local leaders of family businesses, today we represent nearly 170 family run organizations with over 450 active representatives. Together we create connections, elevate leadership, and navigate governance to advance family business in the West Michigan Community. For more information about Leading Forward or Family Business Alliance, contact Robin Burns at robin@fbagr.org Written by Robin BurnsThe Welsh Wire: Assimilating Non-Family Executives in the Family Business with Sherri Welsh & Robert Stead
Doyle & Ogden Celebrates 65 Years
The original Doyle and Ogden Agency Building
Shannon Heads, Vice President of Operations
How did the family business begin?
In 1958 my grandparents welcomed their 11th of ultimately 12 children, my dad, Mike Doyle. At the time, my grandfather, Del Doyle, was working as an adjuster for Wolverine Mutual. With that any mouths to feed, my grandpa decided to find an additional source of income. That is when he decided to open his own insurance company, and several years later, he also started a travel agency.
The Doyle Family
Del Doyle
What’s been most surprising about your family business journey so far?
Being in the family business has made me feel even more connected to my grandfather than I ever have been. He started the company and passed away shortly before I was born, but being here every day to help continue his legacy has been so impactful. It continues to strengthen the thought of how blessed you can be both with the family present in your life now and the legacy of those who no longer are.If you could go back in time, what’s one piece of advice you’d give yourself?
To breathe and know you have time to accomplish all your goals and they won’t happen overnight, life is a marathon.In Doyle & Ogden’s 65-year history, what do you identify as the family business’s most important contribution?
The creation of our family foundation and the work we have done in the community to give away thousands of coats to children over the last 13 years.
All photos are courtesy Doyle & Ogden. The interview has been edited for length and clarity.
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.
This feature is part of our Member Anniversary Program. For more information or if you are interested in exploring opportunities to be featured, please email aislinn@fbagr.org.
Stronger Together: WM Uniform and Wildman Business Group Partner for Long-Term Success
Patrick Van Tuinen, President of WM Uniform, and Josh Wildman, CEO of Wildman Business Group
About WM Uniform
The early days as West Michigan Laundry
About Wildman Business Group
The origins of Wildman Business Group
Strategic Partnership: A New Transition
Josh Wildman and Patrick Van Tuinen
Business Group. Maintaining the same name, values, and customer service, WM Uniform is carrying the family’s legacy and team forward through the partnership.
Fulfilling the Family Business Vision
To both families, the partnership is more than an acquisition, and it will help them achieve their family business goals. It allowed Patrick to continue the business with the Wildman family while his cousins could retire. “I will be staying on, hopefully for years to come, and our fourth-generation family member plans to stay on. He is early in his career, but he has…gotten excited about staying on board,” said Patrick. For the Wildman family, their 200-year vision means they are committed to being a family-owned business for centuries to come, and partnering allows them continue making business decisions for the long-term. The acronym “W.I.L.D. – “World Influencers Living Differently” guides their decisions, Josh said, and stewardship is about changing lives in the communities where they serve and work. The Wildman Business Group approaches acquisitions with the goal of continuing the brand and legacy of the company, which is crucial to many family businesses. “You have a choice. You don’t just have to sell your company to the larger national or private equity. Together, we create synergies that benefit the combined organization,” explained Wildman. As part of this strategy, having family involved is a positive. “We want them there because that is the legacy. If it’s a healthy family situation, it’s going to be a win-win.”What’s Next for WM Uniform?
Third generation Van Tuinen family leaders
What’s Next for Family-Owned Businesses?
When asked what’s next for family-owned businesses, Patrick and Josh agreed: family businesses are not going anywhere. Patrick: “We have 12,000 combined customers and 90+ percent of them are family businesses, that’s who we choose to do business with.” Josh: “The majority of the economy is still based on companies like WM Uniform and ours.” Because family businesses can make decisions for the long term and tend to “put the people above the profit…it can be a catalyst to help our nation recover what got us to where we are,” expressed Josh.
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.
All photos are courtesy WM Uniform and Wildman Business Group. This interview has edited for length and clarity.
Written by Aislinn Teachout
If you are interested in exploring opportunities to be featured, please email aislinn@fbagr.org.
SecurAlarm Celebrates 30 Years
Brent Van Haren, President and Todd Van Haren, Controller
About
SecurAlarm is a second-generation, family owned business located in Grand Rapids. They specialize in providing comprehensive commercial security services – from cyber security, building security, and more. They proudly address the risks and concerns of their clients from physical property to business continuity.
Gloria Lubben and Pat Van Haren
Where and how did the family business journey begin?
It began in the heart of another family business. Our father, Pat Van Haren, began his career teaching but quickly realized it wasn’t his passion. He shifted to wiring houses and businesses with his dad who was operating a small electrical business, Van Haren Electric. It quickly grew into a successful electrical contracting business defined by high quality people and installations. Gloria Lubben joined Pat and his brother, Brian, to launch SecurAlarm Systems, Inc as a subsidiary to Van Haren Electric. At that time, there was a gap in the market for delivering complex solutions with high level quality. They cared enough and believed they could do better in protecting what matters to businesses. This is why we exist today.
Todd Van Haren speaking on an FBA event panel
What’s been most surprising about your family business journey so far?
The generosity of other family businesses and how invested they are in seeing each other succeed. We have learned so much from our fellow FBA members through Peer Groups, events, workshops, and other connections. While each business is different from a family/corporate structure and industry perspective, it’s amazing the similarities and challenges we share.If you could go back in time, what’s one piece of advice you’d give yourself?
Van Haren Family Photo
In SecurAlarm’s 30-year history, what do you see as the
family business’s most important contribution?
Remaining dedicated to why we exist: We Care, So We Protect. It drives our decisions, how we measure success, and how we serve our community, team, and clients.
We are in a rapidly changing cross section of industries (construction, security, and technology) and we look to our WHY whenever we’re at a crossroads. We engage with empathy and a desire to see our team, clients, and partners succeed. We invest significant energy into making sure whoever we encounter feels cared for by listening, confronting brutal facts, and taking action on whatever is holding us back. Because of this, our team members tell us they are better individuals, spouses, siblings, friends, and leaders. Our clients trust us and lean on us for guidance.
What do you identify as a pivotal change throughout the business’s history?
Over the last year, SecurAlarm has embarked on a business model shift, which we are still in the midst of. We are shifting our focus from products to services because we believe security is so much more than technology and transactional relationships.
We want to align technology, procedure, and training unlike any other security integrator out there. We want to deliver personalized, comprehensive, and strategic plans and solutions to our clients, who we think of as partners. So much change is required, and it will be a long journey, but we know it will allow us to better serve our team and clients for another 100 years. Why the shift? It goes back to our Why, of course! We Care, So We Protect.
All photos are courtesy SecurAlarm.
This feature is part of our Member Anniversary Program. For more information or if you are interested in exploring opportunities to be featured, please email aislinn@fbagr.org.
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.
Small Business Week Feature: Ludema’s Floral & Garden
To celebrate small business week, FBA sat down with Allison Ludema from Ludema’s Floral and Garden to understand their small, family business story and what makes them tick. Read on to learn how their business has blossomed over five generations.
Where it All Began
Ludema’s Floral and Garden, a fifth generation, family-owned business, has been on the same land since they opened in 1907. What is now a busy commercial area in Kentwood was once an agricultural area filled with greenhouses and family farms. Allison’s great, great grandparents began the business by selling their extra produce on a road-side stand, and they would drive their products to the East Side Market in Detroit and other local markets. Then, their focus was mostly fruits and vegetables. They eventually evolved into indoor plants and other garden crops.
Over time, subsequent generations began infusing their passions into the business. As Allison explained, the fourth generation, her mother and aunt, started moving the business toward floral sales.
“My mom was the one who developed the department from nothing…It’s grown by leaps and bounds, even 
in the last 10-20 years.” When Allison was a teenager, they began offering wedding services again and Ludema’s continues to expand and connect within the West Michigan Community.
In addition to weddings, corporate partnerships and events sales have continued to expand as they grow their reputation in this space within the community. For example, Ludema’s partners with the Amway Grand Hotel Downtown Grand Rapids to provide fresh, beautiful floral arrangements throughout their lobby.
“Our quality of work has pushed other people to recommend us,” says Allison. The family business also works with Corewell Health through a concierge service, and Allison’s goal is to continue developing these relationships and community partnerships in coming years.
“A lot of people still don’t know that we do fl
owers. They associate us with the greenhouse and produce we used to have, rather than a year-round floral business.”
Although the fifth-generation business leader manages the strategic direction of the company, the fourth generation is still involved behind the scenes. “We of course talk to each other about everything that’s going on,” and her parents still reside on the property where she and previous generations grew up. In addition to the strategic direction, Allison manages the retail operations and, like many family business owners, wears many hats. She is thankful to have a great team of managers and coordinators to help her day-to-day. Year round, their team consists of fewer than 20 employees but employs as many as 50 employees during peak seasons.
Allison never anticipated joining the family business even though she grew up on the property that has been in her family for over 100 years. “We always had to help growing up, even as little kids.” From learning how to serve customers, to tying bows for arrangements, she has been involved in the business for as long as she can remember. Wanting to pave her own path, Allison majored in Hospitality & Tourism with an emphasis in Event Planning. Although she didn’t know it at the time, it came in handy for her role today.
Today, it is the legacy and history that makes her most proud. She explains it wasn’t until COVID-19 created so much uncertainty for the business that it dawned on her just how special Ludema’s is to her and the community.
“It lit a fire under me. I did so many things I never thought I would have to do or explore. I’ve always been proud of it and love it, but the fear of losing it heightened it even more.”
Another point of pride is the relationships with her customers. “We have a lot of regulars who know a lot about our business and our family. That we know them by first name, and when they walk in we can greet them that way is a really special thing.” Maintaining that for more than 116 years is no small feat, and they have worked hard to do so. Allison explained that their cohesive team culture is part of creating this customer experience and welcoming atmosphere.
Aside from the customer connections, Allison feels that locally owned business are important “because we understand the community, how it changes and we can evolve with it.” Not to mention the passion and quality of their products, which has been passed down for generations.
“We care about the quality, and we care about what we are sending out the door, and I think that’s the difference with a small business.”
What’s Next For Ludema’s?
When asked what she is most excited about in the future of Ludema’s, Allison expresses, “I am very passionate about continuing to build our floral department and continue to let people know that we are here all year round to get a beautiful floral arrangement or help with an event. We put our hearts into everything that we do and when we do it, we do it well.”
As they continue to move forward, Allison acknowledges that without “that family connection from the beginning” and the foundation it provided, “we wouldn’t have the other unique parts of our business.” Like any family business, Ludema’s has transformed and evolved over the generations yet maintains the shared roots of generational passion and expertise.
Experience with Family Business Alliance
As a small, family business owner, the Family Business Alliance Peer Groups have been valuable for Allison. “Being in a room with people that have the same sort of struggles that I do is very comforting but also mind-blowing.”
“To hear people from corporations that I have known my whole life dealing with similar issues to my own is so comforting. No matter how big or how small, or what the struggles have been within you family company, to know that someone else is experiencing something similar that can provide insight, is what I appreciate.”
This interview has been edited for length and clarity.
Written by Aislinn Teachout
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.
Small Business Week Feature: GL Resources
As part of our Small Business Week celebration, we sat down with the family behind GL Resources – George Snyder, Joanie Snyder, and Alan Snyder to learn about their business and what it’s like working together as a small, family-owned business.
Before joining, Alan worked for a few notable local, family-owned corporations, including Steelcase and Bissel as a financial analyst. “I knew it was time for a new opportunity.” It was at that time that George approached him with a job offer. “We’ve been talking, and we might have a job for you at GL Resources.”
Alan notes it was the first time they had discussed him joining the business. “I was very excited about it. Working here was always in the back of my mind, but I wanted to build up other experience and learn from other companies first.” Although the business was not founded on the premise of passing it down, the family expressed that having the second generation involved has given them a transition plan.
“It’s a cool little business, and we felt if we could transition the business with Alan, it could go on another 40 years. If you don’t, it ends.”
Joanie, who serves as President, has been there since the beginning. After having their first child, she officially began working for the business. Beforehand, she had a career as an accountant, so managing the bookkeeping for GL Resources was a natural progression. Initially a spousal-run family business, George and Joanie’s differences also became their strength as owners and partners.
“I came from a very structured business environment,” says Joanie. “So, I tried to bring that structure here, but it took a while for us to figure out how best to do this.” As a “details person,” Joanie is now responsible for many of their organizational processes, formal structures, and general management. Conversely, George is the risk taker, so Joanie’s influence allowed him to focus on sales and vision.
Bringing in the second generation has helped professionalize the business in various ways, as is typical transitioning from the founder’s dream stage.
“Alan has really opened our eyes to be more forward thinking,” shares Joanie. Navigating generational differences when working together is inevitable in family run organizations, but the Snyder family has thoroughly enjoyed working together.
Where It All Began
Founded in 1982 by George Snyder, GL Resources is a first-generation family business location in East Grand Rapids. They represent furniture component manufacturers, and sell hardware, including drawer slides, kitchen hardware, hinges, and more. Connecting furniture manufacturers and hardware manufacturers from a variety of industries, GL Resources works with companies of all sizes. George and Joanie Snyder stumbled into owning their own business by chance. Both had previous careers and were originally from Pittsburg. When a friend needed a representative in West Michigan, the high school sweethearts decided to take the leap and relocate East Grand Rapids. Taking this position laid the foundation for what eventually became GL Resources. In 1984, George went completely on his own and they incorporated. “We had no plan,” says George, but they were up for the challenge. “Back in the 80s, there were a lot more furniture manufactures here, and there was quite a base in Western Michigan.” Since the early days, the business has grown in many ways. One progression was adding three additional sales representatives in the early 1990s, all of whom are still with the business today. Together, they cover the Midwest – including Michigan, Indiana, Ohio, Kentucky, Illinois, and Wisconsin.Working Together
Most recently the family welcomed Alan Snyder, their son, into the business in January 2021. Alan’s focus has been on growing the business and expanding into new product types and creating new partnerships throughout the US. His wife, Nicole, has recently joined the business as well, truly making it a family affair.Before joining, Alan worked for a few notable local, family-owned corporations, including Steelcase and Bissel as a financial analyst. “I knew it was time for a new opportunity.” It was at that time that George approached him with a job offer. “We’ve been talking, and we might have a job for you at GL Resources.”
Alan notes it was the first time they had discussed him joining the business. “I was very excited about it. Working here was always in the back of my mind, but I wanted to build up other experience and learn from other companies first.” Although the business was not founded on the premise of passing it down, the family expressed that having the second generation involved has given them a transition plan.
“It’s a cool little business, and we felt if we could transition the business with Alan, it could go on another 40 years. If you don’t, it ends.”
Joanie, who serves as President, has been there since the beginning. After having their first child, she officially began working for the business. Beforehand, she had a career as an accountant, so managing the bookkeeping for GL Resources was a natural progression. Initially a spousal-run family business, George and Joanie’s differences also became their strength as owners and partners.
“I came from a very structured business environment,” says Joanie. “So, I tried to bring that structure here, but it took a while for us to figure out how best to do this.” As a “details person,” Joanie is now responsible for many of their organizational processes, formal structures, and general management. Conversely, George is the risk taker, so Joanie’s influence allowed him to focus on sales and vision.
Bringing in the second generation has helped professionalize the business in various ways, as is typical transitioning from the founder’s dream stage.
“Alan has really opened our eyes to be more forward thinking,” shares Joanie. Navigating generational differences when working together is inevitable in family run organizations, but the Snyder family has thoroughly enjoyed working together.
The Importance of Small and Family-Owned Businesses
When asked about the importance of small and family-owned businesses, Alan expressed that statistically, small businesses employ a significant share of the country’s workforce. “I don’t think you realize that coming out of college as a young professional. Not everyone has the opportunity to go work from a family-owned business, but they are everywhere.” While Joanie stated that small businesses are “the backbone of America.” It is no easy feat starting and running a small business, and George explains he is proud that they have remained in business for 42 years. The family takes pride in their business and its history. Decades ago, Joanie would bring her sons into their office with her while she worked, which wouldn’t have been possible at a corporation. “That’s a unique aspect of small businesses, having the flexibility to do both.” This history creates a special atmosphere within the family business. In reflection, Alan shared: “My mom brought me in, and now my wife is bringing our two-month-old in, and that is special.”Community Involvement
For many small and family businesses, community is key. When he was first getting started, Alan leaned on resources like the Chamber Roundtables for support. “I was brand new to the sales role, so being with other sales professionals helped.” Being involved with Family Business Alliance and the Chamber has helped with various professional development areas, networking, and learning about other businesses in the community. The Family Business Alliance forums “are great information sources and it’s also great networking.” “Alan has done a great job branching out, being involved with the Grand Rapids Chamber and Family Business Alliance,” explains George. Alan has also recently joined a Peer Group. He explains, “I like to hear other people’s perspectives on how they are handling challenges within their businesses and grappling within their families.” For example, Alan has two brothers, one of whom may also be interested in joining the business at some point. “Hearing how they are handling it has been helpful for me to navigate how we should approach that in our family.” This interview has been edited for length and clarity. Written by Aislinn Teachout 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.Succession: Why Logan Roy Was Doomed to Fail
Image by HBO
If you are a family business leader, don’t be a Logan Roy.
For the last three years, millions of viewers have tuned into HBO’s hit TV show, Succession waiting for Logan Roy to identify a successor for Waystar Royco. The series magnifies all the complex drama which can plague a family run organization, but after 4 seasons, I do agree with Logan – they are all “idiots,” and Waystar Royco should not be succeeded to any of the family members. So, why was Logan doomed to fail in succeeding the business to his children? He ignored crucial components and best practices of family business leadership development. As each character develops through the series, viewers are tasked with evaluating them and trying to fit a square peg in a round hole. We come to understand that Connor has disengaged from the business completely and lives an entitled lifestyle without any sense of obligation to the business or community. He continues to purge his financial resources on an election campaign where he polls at 1%. Kendall, who appears in season one as the “chosen” son, lacks instinct, confidence, and organizational knowledge. When he appoints himself as CEO after his father’s airborne stroke in the opening scene, it is only then that he learns the organization is $3 billion in debt. He is also plagued with addiction and self-destructive behaviors attributed to his relationship with his father. Shiv, a politically savvy and competent political consultant, is filled with insecurity. Even when it comes to her judgement on picking a political candidate – the one area she is most qualified for – her expertise was undermined by Logan. And, finally, Roman, the youngest Roy child, constantly lives up to the “baby of the family” monolith and is enabled by Logan despite being incapable of cultivating relationships, personal or professional. We learn that despite being fired from an entry level role in the family business, he has earned a seat on the board and is eventually hired as Chief Operating Officer.
Image from Reddit / turdette_ferguson
- Define Leadership Needs of the Organization. Establish a leadership profile based on the opportunities, threats, and weaknesses of the organization. Consider the input from outside advisors, board of directors, and senior level management. What are the skills required to move the organization forward and to serve as the next steward of the organization?
- Define and Establish a Path to Leadership. No one starts at the top, even if they share the last name of the Company’s founder. Maybe the family member works through a management training program and experiences various aspects of the business, all these norms can be established through good governance.
- Utilize Leadership Development and Assessments Resources. History has demonstrated that the most effective leaders are self-aware. Assessments provide an objective view of the skills and capabilities of each family member. Once the assessment is completed, you have a professional development roadmap. Support individual development by engaging in leadership conferences that are dedicated to the development of family business leadership skills. Create opportunities for transparent and consistent communication through an annual review. Recognize the “perfect leader” does not exist and begin to develop a senior leadership team to support the next generation leader.
- Develop Professional Skills Outside the Business. A widely accepted best practice for family business organizations is to establish a governance policy which requires all family members to develop professional skills outside the business. This provides the family member an opportunity to build professional networks, gain organizational operational insight, and create diverse perspectives.
- Hire Based on a Job Opening and Alignment. Every Next Generation leader will be scrutinized when they join the business. Family members should be hired based on professional skills and experience to fill a need. Their entry point should be commensurate with the skills and experience they bring to the job and follow employment and market compensation guidelines.
- Identify Development Paths within the Organization to Build Confidence. Find opportunities for development within the organization in either roles or special projects. Many organizations rotate family members through departments to learn integral sections of the business. Others can create opportunities with new product lines, innovation projects, and market expansion opportunities. These roles provide learning opportunities for the next generation to develop confidence while also earning respect and credibility with other organizational stakeholders including other leadership, clients, and employees.
Key Questions for West Michigan Family Businesses
1. What are our core family values and how do they impact our success?
Family values are defined as the underlying beliefs, principles, and ambitions of the family. A shared value system can unite family members and provide a framework for relationships with customers, employees, and the community. Values serve as a compass to help organizations navigate difficult decisions, drive practices and policies, and distinguish itself from non-family run organizations. How do you best understand and identify your family values? Look back at your family business history. Identify pivotal points in the organization and define the value characteristics that best define how your family responded.
2. How do we deal with inherent conflicts?
All family businesses inevitably will experience conflict. Family run organizations operate in three spheres – ownership, business, and family. This is widely described as an intersecting three circle model, and the intersection of the three spheres is where you encounter common conflicts. Some issues that create the most tension include the direction of the business, roles and responsibilities of family members, and compensation. Having family business advisors, outside council, or more formal governance structures can help to navigate and minimize conflicts.
3. What governance systems do we have in place?
Many family business organizations begin with a founder whose entrepreneurial vision launches and builds the business. They prefer an independent operating style and full control over decisions and direction of the organization. As the founder looks to engage the next generation and families begin to expand, there is the need for a more formalized governance structure. Governance structures assist in developing family relationships, support effective decision making, and strengthen accountability of all stakeholders. Board of Directors, Ownership Agreements, Family Meetings, Family Councils, Family Foundation and Family Office are some common examples of systems that are available as the family grows and ownership becomes more complex.
4. Do we have clear compensation and equity arrangements?
Unsurprisingly compensation and equity are often the most contentious issues in a family business. What are the expectations of the family members (active and non-active)? What is fair? What is equitable? Family organizations should have well-defined job descriptions, compensation packages, and promotion criteria for both family and non-family members. Some organizations separate equity and profit structures to ensure that the distribution of profits to family members is documented and fairly distributed to avoid additional controversy. Equitable is not necessarily equal for many family run organizations.
5. What are the obstacles facing family businesses today?
All businesses are currently challenged with talent and retention issues as well as implementing growth and innovation strategies. Family Businesses are also challenged with unique obstacles concentrating in areas of family leadership and ownership. In a recent survey of family businesses in West Michigan, leaders identified they are most concerned with properly preparing the next generation, adapting governance strategies, and implementing their family values. In terms of ownership challenges, they are looking for information and resources on shareholder responsibility, evaluating equity, and shareholder agreements.
6. Do we have a business succession plan?
If you do not have a plan, you’re not alone. According to a recent study by PWC, only 34% of family run organizations have a robust, documented, and communicated plan in place. Succession plans should incorporate all aspects of a family business including ownership, governance, and leadership. Succession planning is a long journey and often includes defining when family members may work in the business, how profits should be distributed, who may serve on the board, preparing future leadership, and other matters such as taxes, liability, estate planning, ownership stakes, and voting rights. From planning to transition, succession implementation can be a seven-to-ten-year process.
7. How am I engaging the Next Generation?
As they say, “All the flowers of all of the tomorrows are in the seeds of today.” Successful succession planning begins long before the next generation can determine their future career choices. Engagement for family run business should include education, communication, and collaboration. Formal and informal education should include sharing and documenting family history and family values. Whether at the kitchen table or a more formal family meeting – these are key opportunities to share information. Families should also explore digital communication vehicles (websites, social sites, or newsletters) to build and connect family members. Finally, creating collaborative opportunities around a project or charitable giving provides tangible experiences to build relationships, reinforce values and cultivate engagement.
8. Do I participate in the family business community and take advantage of resources?
While every family business is different, many share the same operating challenges. Connecting with and learning from other family business organizations while developing a confidential and supportive peer network is a great way to tackle these dynamics. Sustaining a family business is a journey, but you don’t have to do it alone. Family Business Alliance seeks to help family organizations in West Michigan thrive by creating connections, navigating governance, and elevating leadership for over 165 member organizations. Learn more about how we want to help your family organization at fbagr.org.
EPIC Awards: Family Owned Business of the Year
As part of our mission to advance family business, we are excited to announce a new collaboration with the Grand Rapids Business Chamber.
Since 2010, The Grand Rapids Chamber’s EPIC Awards have recognized the amazing organizations that are building this thriving community and supporting our region through EPIC (Entrepreneurial, Progressive, Innovative, and Collaborative) proportions. This year, Family Business Alliance teamed up with the Chamber to establish a category exclusively for family business organizations to engage and be honored for their efforts and innovation.
We are all aware that family run organizations positively impact our community and economy, so we are excited that an FBA member will have the opportunity to be recognized as the Family-Owned Business of the Year!
The award will be given to a family business that is either a Family Business Alliance Member or Grand Rapids Chamber member and exhibits the criteria below:
EPIC Organizational Awards Criteria:
- Has a growth mindset and supports/demonstrates equitable entrepreneurship throughout the organization’s services and programs
- Creates an organizational culture that is progressive – not afraid to put new ideas into practice and has an intentional focus on belonging and inclusion
- Seeks out innovative opportunities to be creative in their designated industry and community by leveraging the organization’s diversity
- Gives back to the larger community and is actively collaborative with other organizations and initiatives to create a thriving West Michigan for all
As an organization, you can either nominate yourself, or be nominated by anyone from outside of your organization. To nominate a deserving organization, complete the nomination form. Nominations close on Thursday, August 4th. After all applications are reviewed by an independent Chamber Peer Selection Committee, finalists are notified. Award recipients are announced the night of the event, keeping finalists and attendees on the edge of their seats.
We are thrilled to be able to formally acknowledge the positive impact that family businesses make in our community. Happy Nominating!
Timeline:
- August 12th: Nominations Close
- September 5th: 3 Finalists are chosen & contacted
- October 4th: Finalist Reception
- October 19th: EPIC Awards Gala
For more information, please visit the EPIC Awards page or email Aislinn Teachout, FBA Marketing & Events Coordinator, at aislinn@fbagr.org or Megan Steenwyk, Business Services Manager, at megan@grandrapids.org.
Why Won’t My Parents Retire and Let Me Run the Family Business
If you have spent your career preparing to take over the family business, it can be frustrating to wait for the senior generation to decide that they are ready to retire. It also may be hard to understand why mom or dad chooses to keep putting in the long hours and would rather deal with the challenges of the business instead of retiring and enjoying life.
For the next generation, the waiting is even more difficult if your parents have not created a succession plan. This causes great uncertainty regarding the role each person should be preparing for and how a successor will be chosen if a parent passes away without a plan.
Sometimes the wait exists because the parents may still enjoy running the business. They likely are in no hurry to let go of a company to which they have devoted their lives. Or, parents may not wish to deal with the complex emotions, the fear of the unknown or the hard feelings associated with choosing successors. These issues and others can create barriers to planning for a transfer of the business to the next generation.
If you want to help your parents focus on succession, it is important to understand the issues behind their reluctance to do this planning and understand the strategies for addressing them (warning: it might take years). Below are some common issues that our succession planning attorneys, working with the family’s other professionals, help families overcome to begin preparing for ownership transition and creating a succession plan.
Coping With Reasons Why Parents Won’t Leave the Business
1. They are uncertain about how they can be financially secure away from the business.
This one is huge, and succession will not be addressed if this concern is present. However, many options exist to solve this problem, and your wealth advisors and your attorney can certainly help you find one that is right for your family.
- Common approaches include taking higher pay for a few years and saving it, selling a portion of the equity back to the business or to other family members, creating deferred compensation arrangements, or retaining assets to lease back to the operating business.
2. Their identity is tied to the business.
- A parent may be able to identify a new role for themselves that is related to the business such as: Chair of the Board, consultant, informal advisor, trainer/mentor, representative to industry associations or other related groups, etc.
- Depending on interests and skillsets, a parent can develop a new role relating to a family foundation, family investments, family governance, next-generation education, or a family office.
3. They worry that their life will lack purpose without the business to run.
After they have devoted decades to building a business, it may be hard for them to see that they could have an important purpose elsewhere.
- Help them realize that as they transition the business to someone else, they can use their lifetime of experience to benefit others. Examples of new ventures could include starting a consulting firm, speaking on business or motivational topics, serving on boards of other companies or nonprofits, leading philanthropic organizations, teaching business classes at a college, working with local business associations or business startup programs, or coaching students in business/entrepreneur programs such as Junior Achievement or DECA.
4. They believe successors are not ready to run the business.
Find out what their specific concerns are and take steps to alleviate these concerns.
- Seek opportunities to demonstrate the ability to succeed, including rotations through all functional areas of the company.
- Engage in learning and development such as an executive MBA program, leadership courses, mentorship plans, connections with other business leaders, and working with consultants or mentors from other businesses.
5. They believe that they are irreplaceable.
Some of the strategies mentioned above can help with this concern too. However, this one may be difficult to address without outside help.
- Make sure the senior generation gets exposed to the skills and successes of next-generation family members and a well-functioning management team.
- Identify friends or business acquaintances who have successfully transitioned their business and who might be helpful examples or resources.
- Consider meetings with former owners of multigenerational businesses now managed by the next generation. This could provide an understanding of the issues they faced during the process and help gather best practices.
6. They are avoiding hard feelings that will occur in the family when a successor is chosen.
This is where a good succession planning attorney or advisor can help your family design a plan that creates a win-win situation for the members of both generations.
- You may need to enlist additional help to move your parents to realize that if they want to ensure the continued success of the company after they are gone, they need to make decisions now that will make that happen. Help them see that it is bad for the business and for the family to have the children fighting for company control while working through their grief after a parent’s death.
7. They equate retirement with a decline in health or even impending death.
Everyone has heard a story about someone who died soon after retirement, and even though this is rarely the case, some people still equate retirement with the end of an active, healthy life.
- If you have solved issues #2 and #3 above, this may cease to be a worry for them, since they will be plenty busy. But if this worry still exists, there are plenty of resources and professionals to help you work through this issue.
8. They fear losing their prestige in the community (the business leader and/or the spouse).
- This is tough to deal with, although having the leader continue working in a new role in the business, foundation or family office – one that still provides opportunities for networking, speaking engagements and social visibility – could certainly help.
- Finding a board position or a leadership position in another organization, such as a nonprofit or industry organization, can also help with this.
If you are in a waiting situation that appears to have no end in sight, perhaps it is time to engage someone to help you have conversations about the future of the business. Our succession and estate planning attorneys can often facilitate these conversations and help families start planning for a successful business future.
Family Business Alliance, devoted to advancing family business organizations for multi-generational success, designs its programming, resources, and events to meet the needs of its members at these distinct stages. Currently, the Family Business Alliance represents nearly 170 member organizations throughout West Michigan and offers the opportunity to create connections, elevate leadership, and navigate governance. To receive more complimentary resources, connect with us online at Family Business Alliance.
This article is reprinted with permission from Warner Norcross + Judd LLP and author Bruce Young. This article is not intended as legal advice. For additional information, please contact Bruce Young at byoung@wnj.com
Understanding the Key Transitions in the Family Business Life Cycle
Understanding the key transitions in your family business in relation to the family business life cycle can help you navigate the unique operating challenges of leading and succeeding in a family business. With the help of Family-Owned Business Institute of Grand Valley State University and adaptations of several online resources[1], The Family Business Alliance has established a Family Business Continuum to help family businesses in West Michigan understand the distinct axes of the family business model and improve the opportunity for multi-generational success.
The Family Business Continuum Axes are defined as:
Ownership
The Family Ownership Axis identifies the key and controlling stakeholder(s) and is not linked to a specific generation. In many cases, the first stage of ownership is established based on a Founder’s Dream. The succession to the next generation can be either identified as a “New” Founder’s Dream or a Sibling Partnership. In a sibling partnership, the siblings jointly own the shares of the business, however, leadership may be singled out to a primary member. As the family and business operations grow, ownership models may evolve to a Cousin Consortium which includes extended family through multiple generations or may evolve to a model which includes Distant Relatives.
Leadership
The Leadership Axis defines the experience and engagement of family leadership in the business. Stages include Leading the Business where control is either one primary family leader or shared among siblings. The family leader(s) oversee all strategy and operations. In Joining the Business, a potential successor(s) is introduced to build professional experience, operational experience, and industry knowledge. At this stage, the business often
implements professionalization of roles and formal processes are developed. As the next generation has its own visions and often a strong desire to introduce more strategic thinking, they assume mid-level management roles, defined as Working Together. This leadership expansion phase is often linked with restructuring and may include the development of a board of directors, family governance policies, and family council meetings. Leadership succession can span more than a decade as a succession plan is created and implemented. Each generation transitions to new roles both internally and externally as they Pass the Baton. The family may also sell or expand to different markets and the family business may evolve to a Family Office.
Business
The Business Axis characterizes the stages of a business as it strives to move from a Start Up to Growth and Formalization, defined as the company leaving the niche market and entering a more competitive and larger arena. Often, organizations engage in strategic planning with outside professionals to meet organizational objectives to achieve Maturity and Stabilization. In this stage, the business focuses on the development of organizational talent and seeks to create a flexible framework to take advantage of market opportunities and manage threats. At Regeneration, the key stakeholders face a strategic choice for further growth and maturity. If reinvention is not prioritized, these businesses have a heightened risk of decline.
Family Business Alliance, devoted to advancing family business organizations for multi-generational success, designs its programming, resources, and events to meet the needs of its members at these distinct stages. Currently, the Family Business Alliance represents nearly 170 member organizations throughout West Michigan and offers the opportunity to create connections, elevate leadership, and navigate governance.
Understand your organization on the Family Business Continuum and download complimentary resources available through the Family Business Alliance. Serving over 165 members, Family Business Alliance seeks to advance family business in West Michigan. Together we, create connections, navigate governance, and elevate leadership.
[1] Sources: Ivan Lansberg, Succeeding Generations; Thwart Magazine, Family Business Life Cycle; Forbes How to Use the Family Business Life Cycle to Personalize your Family Office.
