Next Generation Family Business : Finding your feet

Next generation : the theory

Site visits to successful family businesses such as the one organised by the IFB to Roberts Bakery really show the benefits good family businesses can bring to business operations. In theory shared family culture and values should lead to a smooth transition of leadership from one generation to another.  However in reality family dynamics are as complicated as those found in business leadership.  Combining the two does not simplify the situation.

This week I delivered a session on next generation family business to a group of enthusiastic  Lancaster University Masters Students .   Their questions really reminded me how complex these family business dynamics are.

Celebrating when things go right

The students questions were still ringing in my ears when my eldest pointed out we didn’t celebrate success enough.  He is right.  Like many growing businesses we tend to focus on the potholes on our journey rather than the beauty spots we pass.  That’s why I have really enjoyed my role as chair of the judges for the brilliant Northwest Family Business Awards.  Visiting the finalists and gathering the thoughts of our fellow judges has reinforced my belief in the value of family businesses from across the North West.  A huge well done to Sue Howorth and Dave Clarkson of the Family Business Network for organising this.

Finding your feet

So we know that the transition of leadership to the next generation is complicated.  We also know that done well next generational family businesses add huge value to their place.  Just look at the family businesses running farming, hospitality, manufacturing, food production and cafes in your area.  They are all dedicated to their business and their place and at some point they may look to pass their business onto the next generation.

To do this the next generation really needs to find their feet.  Each new generational business leader may have different needs. These could include gaining the confidence to replace the previous generation as leader. Or creating time to think about the future direction of the business. It could be finding a source of reliable answers to questions they may have on how to manage the transition in family business. Then it could be learning how to communicate with the family and the business as roles are changed.  Importantly the next generation need a supportive network of peers who are experiencing the similar business journeys to themselves.  Possibly most importantly they need a place where they can develop their leadership skills that will ensure the sustainability of their family business.

Offer of support

If you are reading this as a next generation family business member and you would like support with any of the issues raised please check out the Next Generation Family Business Event on the 17th March in Liverpool.  We (Thomas Jardine & Co) are really proud to be delivering this in partnership with Be the Business and the Family Business Network.

 

 

 


Number 10, productivity & living with jeopardy

Number 10

In these changing times we are living with jeopardy. This week at number 10 Jacqui met Boris Johnson. He said that he believes for the country to thrive business must flourish. Thomas Jardine & Co are doing our bit by working closely with Be the Business and others to help UK Businesses to increase their productivity.

Why productivity is important

The UK is facing an unprecedented productivity crisis. If we don’t correct this, we will inevitably lose business to more productive countries. Fixing this means we cannot continue doing what we have always done, we must learn to adapt and change.

Black Farmer and jeopardy

Whilst Jacqui was meeting Boris in London, we heard a master class from Wilfred Emanuel-Jones (Black Farmer Ltd) in Penrith. Wilfred took us through his story of dealing with jeopardy which he defined as the risk of loss, harm or failure.  He emphasized that businesses who can thrive with jeopardy will lead the way in the future. The world is changing rapidly, constant change will be the norm. We will all have to learn to unlearn what we know and adapt to new realities.

We have seen the future is bright and met some jeopardy masters

Jacqui’s visit to number 10 was sandwiched within a two-day course Thomas Jardine & Co delivered on design thinking for a marvellous group of SMEs and entrepreneurs. This course was part of Lancaster University’s Cumbria Growth Hub. Over these two days we really saw the ability of business owners to grasp new concepts and square impossible circles. Good business owners by default are living with jeopardy. If government allows them to flourish, they will help solve the productivity challenge.

Jeopardy is all around us, embrace it! Let’s enable the people who live with it daily to help create a business environment that increases our productivity to a level that is the envy of the world.


Working on your businesses future

What’s important in your future

It’s a simple question.  But a really hard one to answer.  Go on try it….what do you really want to be doing next year, the year after and in ten years time?  If you answered this with bullet points from your business plan please take a moment.  Have you thought about your life outside of the business? Now answer the same question, what do you really want to be doing next year and how is your business going to help you get there?

I am my business

There are so many people prepared to help you plan your future based on some great business models.  This is great if your business future matches your life plan.  We know running a business is different to the employed world.  The business becomes part of you and despite what everyone says it does become personal.  However like all things in life if you take control you will get more from it. Look at taking control of your business future as taking control of your health by regular exercise or your weight by starting a better diet.

So what is the secret of a good diet plan or a good exercise plan?  It’s to set goals and stick to the plan. Planning your business future is exactly the same. Like improving your diet or fitness, planning for your business can’t be separated from the rest of your life.  You know going on a diet at the same time as starting a bakery course isn’t a good idea.  Have you ever planned a business project at exactly the same time as a family holiday?  Would reviewing your business budget over Christmas really be a good idea? Both previous examples should be extreme examples, but probably not for a lot of us…  Good planning allows you to enjoy both your business and the rest of your life.  If you are stuck in the wheel of ‘business first’ every time maybe it’s time for a change.

A business with a lifestyle not a lifestyle business

What a lovely phrase ‘lifestyle business’ .  The world is full of lifestyle businesses.  Many of them make a good living for their owners who are actually getting paid for essentially living their dream.  Essentially most people don’t go into business to make a fortune. They create a business to get away from the problems they have met in the employed world.  When business are ran well the owners can make a good living and have a good lifestyle.

On the flip side business must be taken seriously.  There are far too many examples of start ups looking for a lifestyle that because of poor planning haven’t worked well for their owners. Business is relentless and even the best can get tired and that’s when its time to revisit the business gym or business diet club.

Finding your business gym or business diet club

Why does the Great British Public when it wants to get fitter or loose weight go to the gym or join a diet club?  The two reasons for this are that’s where the experts are and that’s where people who want to get fitter or loose weight go to.  It’s the same with business.  If the business has lost its way or it wants to get better, it goes  to experts form accountants, business advisors and business groups such as Be the Business. If the business wants motivation it should work with likeminded businesses (your peers).

Help can also be found from universities such as Lancaster University have always offered access to a range of experts from masterclasses to 6 month courses.  They also play host to resident entrepreneurs (Jacqui is a resident entrepreneur here).  Other universities host business experts to match the academic work they are doing ( Jacqui is part of WE-LEAD at the University of Birmingham).

As Thomas Jardine & Co we regularly work with universities, growth hubs and other business groups to design and deliver business courses designed to help businesses with specific development needs.  The most effective of these always involve peer work because your peers rarely let you down.

Working with business experts and your peers

Experts are useful, like personal trainers they can get you over a particular problem and motivate you in their session.  If the business wants to keep on track it finds fellow businesses who are doing well to talk to.  Our last year in the Guild in Carlisle has shown the absolute value of sharing space with fellow businesses of all sizes who just want to improve their businesses.  Business peer support here is as good as you get with regular gym goers.

So the choice is yours.  If you need to fix a specific issue then talk to the right expert.  Then, if you want to get in the habit of planning your business and building your future lifestyle then look to work with  a group of your peers. Finally, if you want to make a start on the next part of your business journey give us a shout.

 

 


Peer Learning and The Family Business

So, who is your peer?

A peer: “A person of the same age, the same social position, or having the same abilities as other people in a group”

Does this mean the family business is the ultimate peer group

The very nature of family business makes family businesses self contained peer groups. Family members working in a family business are  business owners tend to have the same social position.  All family members have  the opportunity to contribute to the success of the business.  A ‘husband and wife’ team will probably  be of similar ages. With a generational family business there is a possibility that there will be a number of them of similar ages.

Running your business with your spouse you will be both learning to manage business and personal life. You will be doing this with the one person who knows you better than anyone else. Growing up in a generational family business you will have felt the impact of the peer group. As a family business child you would hear kitchen table conversations between mum , dad and grandad. These family conversations create business actions (or inaction) driven by frank discussions in arenas of trust.

Nothing is more powerful than  your peers challenging you

Family businesses are used to everyone from suppliers to customers challenging their plans.  We all treat these challenges with the respect they deserve.  We know that the  challenges that really test us are made by folk who walk in our shoes.  Family business owners are used to been challenged by other members of their family.  This is what makes them different to non family businesses.  Our most memorable impact from facilitating the Lancaster University Family Business Program was the impact of family business owners working in peer groups to challenge each other.

To remain ahead of the game in business, your learning has to be greater than the rate of change.  Otherwise you will be left behind.

INSEAD an institution that works closely with some of the largest and most successful family firms from across the world. INSEAD puts the success of these businesses down to bedrocks of:  “Clear and well defined family values, trust, networks and innovation” . In todays rapidly changing business environment family busineses can build on their values, trust and networks to be at the forefront of innovation in systems and products. So, our learning must keep up with the rate of change, otherwise we will be left behind.

Action Learning is a powerful tool to enhance your decision making skills on your business journey, fundamentally there is no learning without action!

We have found that combining peer to peer learning with action learning creates a powerful tool.  This combination of learning  leads directly to actions  encouraged by a group of trusted peers.  It takes place in a confidential setting of your peers of  family business leaders from a variety of sectors.  Your peers asks you to examine the challenges within your business in an open and honest way, using open question techniques.  By doing this, the peer group  improves your confidence helping you achieve personal and business goals and achieve your overall ambitions.

Come and join us with Be the Business

Thomas Jardine & Co are working with Be the Business, the Family Business Network and Cumbria Growth Hub to deliver a family business programme based on peer to peer action learning and would love you to be part of it.  Take your first action and  come and join us.


Think Plan Do

Those who think and those who do

Our world is made up of three types of people.  Those who think and spend time planning before they do. Then there are those who do and spend time fixing what they’ve done after its done. Then in the middle are those who do a bit of  thinking and a bit of doing.

In business thinkers frustrate those who do and  those that do tend to worry thinkers.  People run good businesses when they know when to think and when to do .  Achieving this is down to habit and behaviour.

At Thomas Jardine we help businesses grow by supporting small changes in their behaviour that allows a constructive focus on thinking and doing.

On it not in it

At the Guild we run the ‘on it not in it’ club where we all spend time rebalancing the time we spend on our businesses (thinking) and the time we spend in our businesses (doing).  This is a real peer group of people who can genuinely support each other as we balance the need to think and do.

Be the Business and develop good habits with your peers

We must stress that the best people to encourage habits that balance your thinking and doing are those in the same boat as you. This is where peer groups and advisory boards come into their own. We are working with Be the Business to deliver both peer learning and advisory boards for the North West Family Business Programme. If you want to know more contact ourselves or any of our partners (The Family Business Network, North & Western Lancashire Chamber of Commerce; East Lancashire Chamber of Commerce and Cumbria Chamber of Commerce). Of course some times you need more than peer support to develop an idea and this is when you need more focused time thinking about and planning for your businesses future.

Innovation Design Programme

There are numerous programmes available that allow businesses the time and space to plan and innovate.  We are currently working with Lancaster University to develop a programme to encourage innovation in Cumbria’s  Supply Chain.  This is an exciting concept working across a supply chain and is based in part with work we did with Cumbria LEP on the food and drink sector.  For more details please contact Lancaster University Management School . 

Take time to talk to potential customers and fellow businesses

Programmes aren’t the only way you can share experiences with your customers and peers.  Last year we spent three great days in the company of  This is Cumbria.  At surface level this was a Cumbrian Food and Drink Pavilion at the Farm Shop & Deli Show.   Like all trade shows it allowed our businesses to connect with old and new customers alike.  The extra benefit was the time that these businesses could share their experiences with peers from the local area.  You get new ideas that drive your business thinking forward by talking with other businesses.  If you want to join us in 2020 please give us a shout.

Sometimes you just need to see the bigger picture

Most businesses don’t get a lot of time to really step back and think about the bigger picture. Some would argue that this ‘thinking time’ is just too far removed from actually working in the business.  However taking a deep breath and occasionally scanning the horizon can really help you check that the short term direction of your business matches with your long term goals.  With this in mind we are working with Cumbria Forum on a  two day event in September.  This will use design thinking to deep dive into future relationships with customers and suppliers.  If you’re interested please contact the forum.

Always leave with an action plan

Thinking and planning are essential for sustainable business growth.  But they are useless without actions. So hopefully this article has made you think and you are now tempted to make a new plan.  Please, please  give yourself up to three actions that you will take to make sure you convert thinking into doing.  Ideally share these with one of your peers ( they can then hold you to account) or if you want share them with us and we will remind you of your plans in 6 months time.  Let’s all think and do and make our businesses the best they can be.