What is your Family Business Growth Story?
You may know that family business leaders represent over 60% of GDP and job creation. In every culture and corner of the world, you will find successful family-owned and operated businesses. What can you learn from these private business leaders?
Back in November of 2020, we hosted our second Family Business Collaboration Roundtable discussion with Kent Johnson, CEO and G4 leader of Highlights for Children.
Some pearls of wisdom that we learned from Kent were the following:
- "In hindsight, our family business has had 3 eras, with unplanned changes in senior leadership from tragedies, deaths, transitions."
- "We remained mission-driven and focused on fostering curiosity in children, considering those unplanned changes."
- "Amid the COVID-19 pandemic, we focus on listening well to others, responding to new "what if" scenarios, and leadership development."
- "Conflicts are more often family problems than they are business problems. We reduced potential conflict by inviting cousins to board meetings, pairing G4s, hosting fellowship and retreats, including spouses, reviewing our written values, implementing an "ages and stages" program for succession and continuous leadership development."
- For more details on this successful family business, visit their website: https://www.highlights.com
Highlights for Children was started in 1946 by Kent's great-grandparents. They were older when they started the business, 59 and 61. When most people are winding up their careers and thinking about retirement, Kent's family risked their future retirement to build a legacy that Kent has played a significant role in making successful. As educators, the founders of Highlights for Children, not only took their life savings but their life's knowledge in the field of education to create products that appealed to children and families. This doesn’t mean it has been easy on any of the four generations involved up to Kent's 4th generation of family members.
Having a family business has its ups and downs, and Highlights for Children was no exception. Those companies that can rebound from the lowest of times are sure to be strong it seems. It is in these rebounds that resilient leaders are built. Kent had his role models in the business that did just that. Not all leaders can step up to a challenge, nor do they want to. Kent was living out his dream as a researcher and scientist when the family business came calling in 2005. With a Physics Ph.D. from Harvard, his career aim was not originally on the family business at all. He mentioned that he was actually trying to stay away from the family business, which was evident from his advanced education in Physics.
One of the biggest challenges that Kent had to deal with personally was dealing with the perceptions that every family member beyond generation one has to deal with. When families hire subsequent generations into any role within a family business, there is some kind of intimidation system in place that puts questions in the minds of employees. These questions may include:
- Why are they here?
- Who do they think they are?
- Can I trust them?
- What experience do they have to deserve that role?
- Will they take the job I want?
- Will they be my boss one day?
This is just the beginning of the questions that may go through an employee's mind when a family member enters the day-to-day of a family business. Many times that employee watched the child grow up and then eventually enter the family business. As family business leaders, we can't stop the internal questions employees ask. However, as we have learned from this discussion and other roundtable discussions, having policies in place to require family members have specific skills, education, or experience, some of the chatter may be eliminated. We know that there will always be those that believe the position is undeserving regardless, and that is where it will be up to the incoming family member to prove their value on the business team. Oftentimes, family members do go above and beyond to work hard, learn more, and be committed time-wise. Kent mentioned that what helped him overcome some of this questioning was that he listened to people. That quality in an employee and manager is truly priceless.
We appreciate the advice from Kent and other Family Business leaders, as we learn how to solve the challenges that family businesses may encounter while managing the most important asset, the family. FBC members have full access to the video of the Roundtable as well as the searchable script.
Every family business has a growth story. What is yours?
We encourage you to write and share yours. For more details on Kent's family business see https://www.highlights.com
For the full transcript and video please join us at www.FamilyBusinessCollaboration.com/introduction
