Automotive News - October 17, 2016 - Supplement - S42

42 ❙ OCTOBER 17, 2016 P R I T C H A R D FA M I LY A U T O S T O R E S , F O R E S T C I T Y, I O WA The next generation starts now Pritchard builds team of leaders for the future Printed in Automotive News July 18, 2016 Hannah Lutz hlutz@crain.com F or a 103-year-old family-operated dealership group, developing a succession plan ranks high on the to-do list. That's why Joe Pritchard, 52, the fourth-generation CEO of Pritchard Family Auto Stores in Forest City, Iowa, has appointed his son and daughter to put together a group of future company leaders. They call the group Ⅲ CEO's son, daughter the G5 - or Generation 5 - form a group governance board. of future The idea to build G5 came company to the Pritchards through a leaders class at the University of St. Thomas in Minneapolis. One of the Pritchard siblings who is not formally involved in the company graduated in 2011 from St. Thomas with a degree in family business. As part of her curriculum, once a month for a semester in 2009, the entire family - four siblings and their parents - went on a two-hour road trip to Minneapolis to participate in the course. It was the first time the family had discussed succession. A balancing act Ryan Pritchard, 31, Joe's son and an executive for Pritchard Family Auto Stores' retail and commercial business, said it helped the family "identify the weaknesses and strengths and grow not only as a family but as a business moving forward." "All [G5] members have governance power now. However, it's significantly influenced by the veteran members of the organization," Ryan said. "We gather the information and try to make a decision based on what's best for the overall enterprise." By establishing the G5 governance board, Angela Pritchard Spiteri, 29, Joe's daughter and vice president of operations, said her father is showing his interest in the voice of the next generation. "That's not something every leader in his role will do," she said. But with G5, the Pritchard family business intends to close the generation gap. Ryan and Angela, part of the fifth genera- The G5 group launched in Las Vegas. From left, Matt Wellik, Matt Nedved, Angela Pritchard Spiteri, Scott Floy, Ryan Pritchard and CEO Joe Pritchard. tion of the company's family leadership, say they balance each other out. "I'm more of a Type A personality. I look at structure and organization and the here and now," Angela said. "He's looking at the future and what we could be and where we're going to be." They both have their strong suits, Angela said, but they had to ask themselves, "What are the strengths we are missing?" They looked to their peers' fortes to gain skills neither of them had. Their peers "are leaders in the organization and feel responsible for the profitability of the organization," Angela said. Pritchard Family Auto Stores has a commercial-vehicle business, one pre-owned center and six new-vehicle dealerships in north Iowa. In 2015, the group sold 834 new vehicles and 1,519 used vehicles, including sales from the pre-owned center. The stores sell new Ford, Chrysler, Dodge, Jeep, Ram, Buick, Cadillac, Chevrolet and GMC models. Angela and Ryan said their father wants to be confident that they have a multifaceted, strong group to lead the company with them. "He wants to give us freedom and flexibility to grow and give our vision of the company [but still] keep checks and balances in place so we don't take 100-plus years of history and make a wrong decision to tarnish that," said Ryan. The five members of G5 are Angela, Ryan and three associates who are not part of the Pritchard family. They all work for Pritchard Family Auto Stores but have diverse backgrounds, including such industries as banking, accounting and trade. They are 24 to 34 years old. It's a "great team environment," Ryan said. It allows the company overall "to grow and evolve as the industry is changing." Commitment The Pritchards are looking for a long-term commitment from G5 members but also for a personal commitment to the success of the business. "And as a nonfamily member, that's a big ask," Angela said. They are working to pair G5 members with veteran employees to develop mentorships, aiming to achieve a balance of experience and fresh perspective. They hosted the first G5 conference at the National Automobile Dealers Association convention this year. The group had a launch meeting in Las Vegas before the convention began to discuss its objectives. The members took those objectives to the convention and "divided and conquered different workshops and vendors," Ryan said. Then, they regrouped each evening to discuss best practices they learned that they could apply to the business. G5 is "elevating our expectations and standards for customer experience. Our goal is to make the buying process as seamless as possible from start to finish," Ryan said. He wants the team to establish a network "where if I don't know that answer, I can get [the customer] that answer." c

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