I recently had the opportunity to sit down with a co-founder of a small, entrepreneurial company and learn about his experiences. The company was formed in 1998 and saw quick, continued growth that was only slightly curtailed by the downturn in 2008-09. Now, he and his partners are facing challenges as transitions and growth bring in a new, younger group of managers. Hearing this founder’s story, I was struck by how much his company’s path had in common with a family-owned business as well as what was different. Here is a short checklist (more…)
Communication: What Reddit’s story has to tell all businesses.
It’s been a busy month for Reddit. July has included a major shutdowns, the loss of a CEO and the return of a co-founder who quickly cracked down on errant users. It’s a storyline that could inspire TV soap opera writers!
In reality, there are two, overlapping stories which offer valuable lessons in communication for all managers. (more…)
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Overcoming Barriers to Succession Planning
Overcoming Barriers to Succession Planning
Family businesses are on the threshold of a historic transition. As of a 2007 study, the median age of top executives in family businesses was 50 years old and 40% of them expected to retire by 2017. Baby Boomer owners are relinquishing the reins of their companies.
So you would expect businesses everywhere to have succession plans in place or to be deep into the planning process. Yet, (more…)
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Miles Davis’ Lessons on Leadership
Miles Davis’ Lessons on Leadership
Miles Davis’ cantankerous personality is legendary. That is why I was pleasantly surprised to hear what his drummer, Jimmy Cobb, had to say about Miles’ leadership style. Mr. Cobb, the only surviving member of the sextet that created the groundbreaking Kind of Blue, was interviewed about the making of this album on BBC’s Witness. Here are some of the lessons from Mile’s leadership style that I gleaned from this interview. (more…)
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Business Longevity Insurance: Succession Plans
Business Longevity Insurance: Succession Plans
You have insurance to protect your business in case of fire, theft, and accident. So, why would you leave the future of your business to chance? That is what you are doing if you do not have an up-to-date Succession Plan. I have too often talked to business owners who are ready to cash out but cannot because they do not have anyone prepared to takeover or could not get the price they were expecting for their business. This article shows how a well thought out Succession Plan addresses these issues and much more.
Employee Retention: According to a PricewaterhouseCooper study, voluntary turnover is on the rise and even higher for (more…)
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Building a Solid Foundation for the Family Business
Building a Solid Foundation for the Family Business
Family businesses deserve to be pleased with their accomplishments. After all, according to an article in Bloomberg Businessweek family-owned businesses are responsible for 60% of all employment in the U.S., 78% of all new employment and add 50% to the national gross domestic product. The SBA points out that 90% of all businesses in the U.S. are family-owned. Family businesses are the foundation of our country’s economy.
The question is: How solid is the foundation of each, individual family business? (more…)