Says FABASA CEO, Philip Claasen: “If you are a roleplayer in a family or any other business, you simply cannot afford to miss this workshop – it promises to be empowering, enlightening as well as informative – helping you to make the most of your enterprise in these tough economic times.”

Other educational topics at the workshop will include: Sustainability for Family-Owned Businesses; The Impact of the New Company en Consumer Act; Financial Management, and Taking Care of your Staff – Your Most Valuable Asset.

The workshop will take place at Old Mutual, West Campus Presentation Room, Jan Smuts Avenue, Pinelands. Workshop registrations will commence at 09h15 followed by the workshop between 10h00 – 15h00, which includes a finger luncheon and soft drinks.

Workshop costs: FABASA members @ R350 per delegate or R300 for two, or more delegates. Non-members @ R450 per delegate. Non-members who join FABASA before the workshop, will qualify for the reduced workshop costs of R350 per delegate. FABASA membership is free.

You can register online for the workshop, or become a FABASA member at www.fabasa.co.za JUST FOLLOW the appropriate links. Alternatively, phone Giuliana or Philip on 021-554-3140.

Click here to register online

by Dr Philip Humbert

We have all read about people who are successful briefly. They win a gold medal, make a fortune, or star in one great movie and then disappear….These examples do not inspire me!

My focus and fascination is with people who seem to do well in many areas of life, and do it over and over through a lifetime. In entertainment, I think of Paul Newman and Bill Cosby. In business, I think of a Naval Officer, husband, businessman, politician and now as a mediator and philanthropist on the world stage, Jimmy Carter has had a remarkable life. We all know examples of people who go from one success to another.

These are the people who inspire me! I’ve studied them, and I’ve noticed they have the following traits in common:

• THEY WORK HARD! Yes, they play hard, too! They get up early, they rarely complain, they expect performance from others, but they expect extraordinary performance from themselves. Repeated, high-level success starts with a recognition that hard work pays off.
• They are incredibly curious and eager to learn. They study, ask questions and read-constantly! An interesting point, however: While most of them did well in school, the difference is that they apply or take advantage of what they learn. Repeated success is not about memorizing facts, it’s about being able to take information and create, build or apply it in new and important ways. Successful people want to learn everything about everything!
• They network. They know lots of people, and they know lots of different kinds of people. They listen to friends, neighbours, co- workers and bartenders. They don’t have to be “the life of the party,” in fact many are quiet, even shy, but they value people and they value relationships. Successful people have a Rolodex full of people who value their friendship and return their calls.
• They work on themselves and never quit! While the “over-night wonders” become arrogant and quickly disappear, really successful people work on their personality, their leadership skills, management skills and every other detail of life. When a relationship or business deal goes sour, they assume they can learn from it and they expect to do better next time. Successful people don’t tolerate flaws; they fix them!
• They are extraordinarily creative. They go around asking, “Why not?” They see new combinations, new possibilities, new opportunities and challenges where others see problems or limitations. They wake up in the middle of the night yelling, ”I’ve got it!”They ask for advice, try things out, consult experts and amateurs, always looking for a better, faster or cheaper solution. Successful people create stuff!
• They are self-reliant and take responsibility. Incredibly successful people don’t worry about blame, and they don’t waste time complaining. They make decisions and move on…. Extremely successful people take the initiative and accept the responsibilities of success.
• They are usually relaxed and keep their perspective. Even in times of stress or turmoil, highly successful people keep their balance, they know the value of timing, humour and patience. They rarely panic or make decisions on impulse. Unusually successful people breath easily, ask the right questions and make sound decisions, even in a crisis.
• Extremely successful people live in the present moment. They know that “Now” is the only time they can control. They have a “gift” for looking people in the eye, listening to what is being said, enjoying a meal or fine wine, music or playing with a child. They never seem rushed and they get a lot done! They take full advantage of each day. Successful people don’t waste time, they use it!
• They “look over the horizon” to see the future. They observe trends, notice changes, see shifts and hear the nuances that others miss. A basketball player wearing Nikes is trivial, the neighbour kid wearing them is interesting, your own teenager demanding them is an investment opportunity! Extremely successful people live in the present, with one eye on the future!
• Repeatedly successful people respond instantly! When an investment isn’t working out, they sell. When they see an opportunity, they make the call. If an important relationship is cooling down, they take time to renew it. When technology or a new competitor or a change in the economic situation requires an adjustment, they are the first and quickest to respond.

These traits work together in combination, giving repeatedly successful people a huge advantage. Because they are insatiable learners, they can respond wisely to change. Because their personal relationships are strong, they have good advisers and a reserve of goodwill when things go bad.

And finally, none of these traits are genetic! They can be learned! They are free and they are skills you can use. Start now!

Welcome to all our valued members. From everyone involved in FABASA we would like to wish you a prosperous and profitable 2012. May this be your best year ever! While browsing the internet the other day, I stumbled upon a wonderful article by Annie Galvin Teich in which she shares ten valuable thoughts which may be just as applicable to your personal life as to your family business.  I would like to share them with you.

Reinventing yourself and your family business

• People don’t do business with companies. They do business with people they like. You can and will be surprised by how much support you’ll find in your personal circle, business colleagues, industry acquaintances and, of course, friends and family.
• It’s all about connections. Your definition of success will morph and change as you meet and learn from others. The opportunities that appear along the way are usually a function of who you know.
• We are stronger than we think we are. When you have passion, conviction and determination, you can bounce back off the mat. Sometimes all it takes is a hot bath, a cup of tea or a nap and you’re ready to go another round.
• People are kinder than we think they are. Don’t make assumptions about people. Sometimes they are just waiting to be asked to help. Be nice.
• You don’t have to imagine your future in detail to create it. Many of us stop ourselves from taking a gamble because we don’t have what we think we need to be successful. It really is okay to move forward without these things as long as you understand that the destination can change.
• Getting up every day to work hard at moving forward creates its own momentum. It is impossible to work 10-12 hours a day for 6 months or 2 years without getting somewhere. You may end up somewhere you didn’t plan, but that is usually okay.
• Friends keep you honest. They know you; they love you; they support you; they pick you up when you’re discouraged; and they keep your ego in check.
• If you think you understand how much work is involved, triple it. Click your heels together three times and repeat after me!
• Backing up to go forward is often a wise thing. Sometimes you find that you’ve gone off on a tangent that, as compelling as it was, is not taking you in the right direction. Part of this new learning is realizing that you are not always going to make the right decisions. As the GPS navigators say, “recalculate.”
• Being able to laugh in general and at yourself in particular is good medicine. This new landscape you’re creating is exhilarating and scary. But you have to keep it in cosmic perspective. Laughter is good for you. Don’t take yourself or your learning moments so seriously that you cannot have a good chuckle. Life is too short.

Lesson 1: Establish Job Descriptions

Clearly defined descriptions are absolutely vital in any business, whether large or small, family run or publicly traded. Carefully thought-out job and well-written descriptions ensure that all aspects of the business are being tended to. Additionally, they help management make better hiring decisions and give employees a roadmap to success.

The lack of clarity in roles can be especially troublesome for senior executives and ultimately can lead to friction and deep rivalry among them. With everyone trying to stake out their own piece of the pie, people will inevitably be vying for the same piece.

Lesson 2: Establish Performance Measures

With no clear job descriptions, there are no clear ways to evaluate an employee’s performance. Take the time to create a measurement tool that you can use to judge each employee’s performance. This is your mechanism for holding people accountable. It will also help resolve any suspect of favoritism from non-family employees.

Lesson 3: Strong Leadership from Non-Family Members is Essential

Many family business owners maintain an open door policy for family members, offering anyone who would like to work for the business a job. These jobs are often management positions. As a result, many business owners are unable to hold family members and non-family members to the same standards and many employees become resentful of what they view as favoritism amongst the family. It is extremely important that some members of the management team be non-family members and that some of the day-to-day decisions fall on their plate.

Lesson 4: Profits First, Family Second

With no job descriptions, no performance measures, and too many family members clamoring for power, it’s easy to see how family tension can mount. In fact, owners can become so consumed with maintaining family accord that the business literally falls apart underneath them.

Every minute of time that is spent dealing with a family-related issue is a minute that could have been spent adding to the bottom line. And during work hours, the bottom line has to come before all else, including personal relationships.

As a manager, you can’t waste down time dealing with the business of family. You want to concentrate on the business of business. You want to concentrate on making a profit.

(Source: American Management Services Inc)

A family business consultant can serve a number of different roles in their work with family businesses of various sizes and stages of development. In my experience working with family businesses over the last twenty plus years, the most important step for a family business consultant is to become a trusted business advisor. Trust is important in all relationships, but in the relationship that exists between a family business consultant and client, trust takes on additional importance. Why? Most importantly, the family business consultant typically is not advising just on business issues, but also regarding a whole series of interpersonal challenges and conflicts that exist between and within generations of the family. In order to be effective in that role, the family business consultant must develop a relationship of credibility and trust with the family members. Without such a relationship, it’s very tough for a family business consultant to add much value, particularly in the realm of the family, which in a family business, in my experience, is usually more than half the game.

It’s important to understand that family businesses are complex. As if the family system and business system were not complex and challenging enough on their own, when you overlay one with the other, complexity goes through the roof. You move from the realm of “just” trying to solve business challenges, to trying to solve them in the context of relationships amongst and between generations of the family business owners. The family business consultant often steps into the proverbial “hornet’s nest,” where the business is experiencing challenges, in no small part brought on by ineffective communications processes and protocols amongst the family members. In such cases, the family business consultant must help all key stakeholders maintain perspective and get everyone “rowing the boat in the same direction”. Sometimes this is more easily said than done, particularly when feelings have been hurt and major philosophical differences exist about where to lead the company and often, who should be doing the leading.

So now that we’ve established a bit of context for the environment in which a family business consultant provides their services, let’s talk about some of the specifics, in terms of the roles and activities the consultant often undertakes. The following list is by no means exhaustive, however, it does provide you with a sense of some of the common areas where a family business consultant has an opportunity to provide value. I have broken the list into four categories: Relationships, Governance, Strategic Planning, and Succession Planning. Some activities can, and often do, fall into multiple categories, but for description purposes they are included in just one category below.

Relationships

• Resolve conflicts between generations and branches of the family
• Resolve conflicts within generations of the family
• Develop a Code of Communication
• Develop policy of who can and cannot work in the business, and under what circumstances, often called Family Member Involvement or Participation Policy
• Help navigate through crisis management, not just at the business level, but very often at the relationship level

Governance

• Assist in development of Mission/Vision/Values Statement
• Develop Board of Directors guidelines, including whether outside board members permitted
• Develop a Conflict of Interest policy
• Define roles of family member shareholders, family council, individual company boards (if a group), and other governance entities
• Develop policy regarding involvement and participation of non-family member executives

Strategic Planning

• Conduct strategic planning and “family meeting” retreats
• Facilitate development and implementation of the strategic plan
• Develop goals and strategic initiatives consistent with Mission/Vision/Values of family
• Ensure system in place for assigning responsibility and monitoring progress toward goals
• Develop advisory board, if necessary and desired, distinct and separate from Board of Directors
• Scenario planning
• Review and assess all growth and exit options

Succession Planning

• Develop a formal Succession Plan
• Ensure appropriate Buy-Sell Agreements are in place
• Coach, train and mentor successor generation family members
• Formulate leadership development and training program
• Develop a leadership succession plan that is fair and sensible

As discussed, this list of family business consultant roles is not all-inclusive. I could tell you some stories about some of the interesting roles we’ve been asked to serve on behalf of family business clients. The bottom line is that trust is everything in a family business environment. As long as a family business consultant is competent, once trust exists, the family business owners will seek the consultant’s assistance with issues from the mundane to the critically important. There’s a comfort level that comes from having a trusted advisor on hand, particularly when you are trying to manage and lead in the often highly-emotionally-charged context of a family business. It creates an environment where the family business consultant can provide an enormous amount of value for the family and the family business system that has been created, and hopefully, nurtured, over time.

THE FAMILY BUSINESS CONSULTANT SHORT LEARNING PROGRAMME

The NMMU Family Business Unit takes great pleasure in announcing that it will be running it’s flag ship short learning programme offering, entitled, “The Family Business Consultant”.

The Family Business Consultant Short Learning Programme is meant for individuals who have been, or who may become part of a family business, or who are already consultants or professionals who will be/are working with clients who own and manage family businesses.

THE FAMILY BUSINESS CONSULTANT