ILMA Compoundings – September 2019 - 39

people drown in these circumstances.
What's the alternative? How can you
integrate these family members and set
them up for many years of successful
contribution to the business?
Think carefully about the best entry
point for this person. Every situation
will be different, but we can offer some
do's and don'ts regarding that first
all-important job in the family business:
* Don't start them too high, too
fast. No matter how brilliant you
think they are, they're just starting
off in their career. Hiring family
members right into a title of
"vice president" or putting them
immediately on the management
committee does nothing to build
their credibility with others in the
company, and it leaves no room
for growth.
* Don't start them too low to prove
that "family is no better than anyone else at this company." If they're
a college graduate, they're not
going to last long taking inventory.
* Don't start their career with an
extremely challenging, high-visibility project - with crucial
implications for the future of the
company - that no one else has
been able to get to. This could
very well be a formula for public
embarrassment of a fairly green
family member who is still learning the ropes.
* Don't start them at a remote
location, away from the central
functions and challenges of the
business, with minimal supervision. The growth and education
of family members are of utmost
importance at this point in their
career. They need to be close to
the center in order to absorb the
corporate culture.
* Do find a job that matches their
skills and interests. Find a position with genuine importance for

the company that provides a view
of the most important functions
of the business. Name a nonfamily manager who knows how to
nurture talent and encourage the
best in others as supervisor.
STAGE 3: EXPANSION
Leading public companies are often
known for the excellent learning and
development opportunities they offer
their people. Unfortunately, many
family businesses pay little attention
to the careers of family members who
seriously commit their work lives to the
business. This can lead to stagnation,
discouragement and depression as family members receive their 10-, 15- and
20-year pins. We think it's essential to
pay attention to the continued growth
and development of family members
working in the business.
Someone needs to keep watch over
family members' careers. Are they
getting a mix of operational and staff
experience? Are they getting exposure
to all the most important aspects of
the company? If problems arise, are
they getting timely, honest feedback
and support to help turn them
around? Are they communicating well
with all stakeholders - management,
family and board?
In family business, giving young
leaders constructive feedback is a real
challenge. There are many tools to apply
in support of family members' careers:
* Mentors or coaches: Experienced, skilled businessmen and
women can spend time with the
next-generation leader on a regular basis. They can provide a mix
of support and challenge to help
the individual reach his or her full
potential.
* 360-degree feedback: These
computerized reports provide
feedback from all directions.
Bosses, peers and subordinates all
complete questionnaires about
the young leader's performance.

Based on the feedback, the
individual completes a learning
plan that specifies how he or she
will strengthen weaknesses and
capitalize on strengths.
* Individual learning plans:
Written goals and timetables
for personal development help
ensure that the individual really
follows through.
* Peer support groups: These
groups can put the individual
with peers who have been in
similar situations in order to learn
from them. Many next-generation
leaders report that peer groups
provided the most important
learning vehicles as they moved
up in their organizations.
In making the final all-important
decision regarding the promotion of
a family member into the top leadership post, it's helpful to have outside,
objective input from nonfamily sources.
This is where a board of directors can
show its full value. Alternatively, a
continuity committee composed of a
mix of impartial family members and
nonfamily advisers can make the ultimate succession decisions. This relieves
family members from having to make
judgments about the careers of their own
sons, daughters, nieces or nephews.
Experimentation, entry and
expansion - thoughtfully planned,
carefully monitored and objectively
implemented - are perhaps the best
prescription for ensuring capable
family business leadership in future
generations.
Schuman is senior advisor
at The Family Business
Consulting Group.
Adapted from an article of the
same title on The Family Business
Consulting Group's blog on family
business.

39



ILMA Compoundings – September 2019

Table of Contents for the Digital Edition of ILMA Compoundings – September 2019

LETTER FROM THE CEO
INSIDE ILMA
WHAT’S COMING UP
NEW MEMBERS
INDUSTRY RUNDOWN
IN THE KNOW
INTERNATIONAL INSIGHT
MARKET REPORT
ON WITH THE WIND
IN SUPPORT OF SATISFACTION
SUSTAINABILITY HAS ARRIVED
BUSINESS HUB
COUNSEL COMPOUND
WASHINGTON LANDSCAPE
IN NETWORK
MEMBER CONNECTIONS
PORTRAIT
ILMA Compoundings – September 2019 - Cover1
ILMA Compoundings – September 2019 - Cover2
ILMA Compoundings – September 2019 - 1
ILMA Compoundings – September 2019 - 2
ILMA Compoundings – September 2019 - LETTER FROM THE CEO
ILMA Compoundings – September 2019 - INSIDE ILMA
ILMA Compoundings – September 2019 - 5
ILMA Compoundings – September 2019 - 6
ILMA Compoundings – September 2019 - 7
ILMA Compoundings – September 2019 - 8
ILMA Compoundings – September 2019 - 9
ILMA Compoundings – September 2019 - WHAT’S COMING UP
ILMA Compoundings – September 2019 - 11
ILMA Compoundings – September 2019 - 12
ILMA Compoundings – September 2019 - NEW MEMBERS
ILMA Compoundings – September 2019 - INDUSTRY RUNDOWN
ILMA Compoundings – September 2019 - 15
ILMA Compoundings – September 2019 - 16
ILMA Compoundings – September 2019 - IN THE KNOW
ILMA Compoundings – September 2019 - INTERNATIONAL INSIGHT
ILMA Compoundings – September 2019 - 19
ILMA Compoundings – September 2019 - MARKET REPORT
ILMA Compoundings – September 2019 - 21
ILMA Compoundings – September 2019 - ON WITH THE WIND
ILMA Compoundings – September 2019 - 23
ILMA Compoundings – September 2019 - 24
ILMA Compoundings – September 2019 - 25
ILMA Compoundings – September 2019 - 26
ILMA Compoundings – September 2019 - 27
ILMA Compoundings – September 2019 - IN SUPPORT OF SATISFACTION
ILMA Compoundings – September 2019 - 29
ILMA Compoundings – September 2019 - 30
ILMA Compoundings – September 2019 - 31
ILMA Compoundings – September 2019 - SUSTAINABILITY HAS ARRIVED
ILMA Compoundings – September 2019 - 33
ILMA Compoundings – September 2019 - 34
ILMA Compoundings – September 2019 - 35
ILMA Compoundings – September 2019 - 36
ILMA Compoundings – September 2019 - 37
ILMA Compoundings – September 2019 - BUSINESS HUB
ILMA Compoundings – September 2019 - 39
ILMA Compoundings – September 2019 - COUNSEL COMPOUND
ILMA Compoundings – September 2019 - 41
ILMA Compoundings – September 2019 - 42
ILMA Compoundings – September 2019 - WASHINGTON LANDSCAPE
ILMA Compoundings – September 2019 - MEMBER CONNECTIONS
ILMA Compoundings – September 2019 - 45
ILMA Compoundings – September 2019 - 46
ILMA Compoundings – September 2019 - 47
ILMA Compoundings – September 2019 - PORTRAIT
ILMA Compoundings – September 2019 - Cover3
ILMA Compoundings – September 2019 - Cover4
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