You can only hope

Tonight I watched a documentary on ABC TV called dynasties. Tonight's family story featured the Ansett family.

If you can get hold of a copy, probably from the ABC shop, watch it. Then hope like crazy that, in your family business, you never treat your children as Reg Ansett did.

Unfortunately I have come across a couple of owners of successful family business in recent times who remind me of Reg Ansett. They will get everything they deserve however their children will have lost a major part of their lives pandering to their father's whims.

Families in Business can be and should be a wonderful team effort with everone sharing in the success..

A Queensland success story

I have just returned from Townsville where I was visting the North Qld branch of BMD. BMD is one of Queeensland's largest family owned companies. It was started in 1979 by Mike Power and they are specialists in civil engineering construction and design services.

On Friday night I attended the branch's Christmas drinks where there were 300 guests. The one thing that stood out was when company director David Duncan spoke he shared the company's growth and turnover figures and was forthright in telling those there that the goal was $1 Billion turnover. Current turnover was stated at $500 million.

In other words, they were prepared to be proud of their success and share it with staff, suppliers and clients.

Too often, owners are reluctant to share such information with their staff. Open communication is a part of BMD's culture. As their mission statement (which is in all their offices ) states, they maintain an environment that promotes teamwork, loyalty, trust and pride through strong leadership, communication and people development. In my contact with BMD , they certianly live up to their written mission statement. It not just a sign on a wall.

BMD is an example of a family business successfully making the transition through fast paced growth.

Is the family dynasty in decline?

In last week's BRW magazine there is an article which suggests that business owners need to consider selling as a viable forward strategy as the next generation are not interested in taking on their parent's business.

The article concludes that a recent study, The MGI Family and Private Business survey 2006, published by RMIT reflects the pessimism about passing the business to the next generation comes form a perceived lack of ineterst from younger members of the family. In my experince, this is a direct result of the business founders failure to move their belief system and understand the ever changing management dynamics in the year 2006.

Much of the hype about generation X and Y is true when it highlights their different attitudes and aspirations. It's not that they don't want to take over the family business, it's that they don't want to operate under the same mamangement culture over the past. The Baby Boomers have to accept that their sons and daughters do not think the same and have been exposed to a far greater range of education and global experiences that they were.

I have often had to listen to owners of successful business telling how the next generation don't have the same work ethic, how they have everthing handed to them on a plate etc etc. What a load of rubbish. It's 2006, not 1975. I have seen many siblings working within a family business who would do a far better job of taking teh business to a higher level of performance, if only the "Old Man" would get out of the way.

I believe the BRW article missed the point. The researchers should get out from behind their desks and work with the next generation at the coal face and really understand the day to day issues. They are well educated, prepared to work hard but are more inclined to enjoy a better life balance than their parents and are smarter at managing people to engage them and to create effective teams.

The Nugan Family Business

In this week's Boss Magazine ( Nov 2006 ) supplement within the Financial Review there is an excellent article on brother sister Matthew and Tifany Nugan. Here is a family business that looks like it is thriving with the next generation taking on important management roles and accountability.

The real success here is their mother. Obviously a very switched on business women who has taken the business to a higher a level of performance. She has a succession plan and understands the need to bring in outsiders to fill the key managemnt roles as the company expands and becomes more diverse.

I wish more business owners would realise that no one person has a mortgage on smart ideas and that you can never achieve real success working on your own.

FBA starts a mentors register

Family Business Australia has announced that they have established a register of mentors for their members to chose from. The panel members are experienced family business mentors who have been deemed suitable by FBA to represent their members.
The FBA nor the mentors take any responsibilities for the accuracy of the advice or guidance given in association with this program.

Mentoring is a valuable support mechanism for families in business and its a great way to share in the hard-earned knowledge and experience and to have an independant sounding board.

The base fee suggested by the FBA is set at $150 per hour which is extremely generous when compared to the going rate in the general commercial world.

For more information regarding mentoring visit my web site at www.ceoadvisor.com.au or at www.billwinter.com.au