ILMA Compoundings November 2016 - 21

FAMILY BUSINESS

Another 15 percent specifically wrote about how their affinity
groups had helped them with succession planning. This is what a
member of a Young Leaders group wrote:
"One instance is when they [the members of the affinity group]
gave me the encouragement to have a difficult talk with my
parents regarding succession planning. It was a talk that was
being put off, but I came to my parents and let them know all
the things that we needed to discuss as a family, and it made it
easier letting them know that I had learned this from my affinity
group, and they have had great success with it."
Some members told about times when their affinity groups had
helped them make the decision to bring in a family business
consultant and to start having a more formal family governance
structure. One member shared:
"An example would be hiring a family business consultant and
starting to have regular family meetings. Prior to this group this
was something that was not discussed or even thought about.
Since the start of this group we have come a long way and are
continuing to improve. Being able to discuss with the group
how to approach the family, and how to approach certain
individuals, has helped us out in getting the process started."
At the very least, two-thirds of all businesses in the world are
family businesses, according to the Family Firm Institute, so
it is not surprising that the Vistage groups generally mirror
these statistics. Many of the family owners are in the process
of succession planning, and they have the opportunity to
share their experiences with those who are going through the
same process. In addition, those who are being affected by
family businesses going through a transition also receive some
valuable insight. Virtually all Vistage members either a) work
in their own family business, b) work in someone else's family
business, or c) work with family businesses, and they are more
than happy to share their stories in each scenario.

The Future of Peers
Bottary, mentioned earlier as a co-author of The Power of Peers,
has been part of ongoing research at Seton Hall University
regarding peer groups. In a recent article titled, "Why Peer
Advisory Groups Will Be the Next Big Thing," Bottary claims
the perfect storm is here. He explains that the old model of
training leaders has been more "episodic/event-oriented" with
the hope that at a later date companies will eventually see the

results of the training. Since this is difficult to do at best, Bottary
suggests having a facilitator create groups who come together
specifically to meet difficult challenges and to set a strategy for
the future. He goes on to explain that what makes this the best
time to have peer advisory groups is:
1. Companies have to do more with less in a way that is both
effective and measurable, meaning they will have to produce
better leaders as well as good financial results.
2. The world is getting much more complex, even for leaders
of small companies, and leaders will be more likely to turn to
their peers for advice.
3. Leaders today are more attuned to social media and are
much more likely to look to peers for advice than in previous
generations.
4. Management education now takes more advantage of the
experience of those who've been in the trenches than just
one instructor.
5. More and more schools are using peer groups to facilitate
instruction than have been used in the past; consequently,
the next generation of leaders will be bringing this new mode
of training with them into the business world.

In Conclusion
There is great irony in the fact that what makes peer groups so
successful is the keeping of confidences of the members. While
secrecy serves the purposes of the group members well, it is
also what keeps many other family owners, who might also need
this support, from knowing about the benefits of joining such
a group. By not talking about the kinds of education provided
and experiences shared, others rarely get a glimpse of the
camaraderie and the effectiveness of the groups. Family owners
might not realize they have a choice: They don't have to go it
alone.
In my interview with Shapiro, he said: "The feeling of loneliness
is compounded in a significant way with family business owners,
because going outside the family for help leads to a feeling of
betrayal." However, it doesn't have to be that way. As one of the
respondents to my survey wrote about her group: "We know we
can share almost anything."
It is vital for family owners to know there are over 33 family
business centers connected to universities in the U.S. and
Canada that offer various affinity groups for CEOs, next-

Compoundings November 2016 * 21 * Vol. 66 No. 11
ILMA Compoundings November 2016

Table of Contents for the Digital Edition of ILMA Compoundings November 2016
