Posting by:  Debra Andrews
Date: June 22, 2010

Every day, we are bombarded with marketing communications.  From the television to electronic and print ads, to Twitter and Facebook, there is no denying that there is a battle going on for our attention.  Most marketing communications tend to slide right off of us like Teflon.  Are limited-budget companies hoping to make meaningful, lasting impressions on their target customers completely screwed?  If you are a family-owned and -operated company with a couple generations under your belt, you will probably be just fine if you play your cards right.

According to marketing god Jack Trout in Differentiate or Die, all companies looking to grab the attention of consumers must have a sustainable competitive advantage to help them stand out from the crowd.  “Heritage” is one of those powerful trump cards for two primary reasons. 

Posting by:  John C. Morris, CFP
Date: May 24, 2010

The answer to the titular question is ever evolving, and no doubt varies from business to business and family to family.  However, there are common threads that weave throughout successful family businesses, and a recent study conducted by Harris Interactive identified them.  The study pointed to four common success factors for family-owned businesses:

• Communication
• Work/Life Balance
• Trust
• Planning

Seemingly Standard Success Factors – But Not Standard Enough

When I read these findings, the thought, “No, duh!” came to mind.  However, very rarely are these actions and characteristics carried out on a regular basis in a positive and effective manner.  Why is this?  What I have seen in working with our clients is that the emotion that makes family businesses great can also inhibit the communication, work/life balance and trust within the business.  It is proper planning that allows that emotion to flourish rather than detract from these areas.

Posting by:  Eileen O’Connor, CFP, MBA
Date: May 17, 2010

As part 2 in a 5 part series, I will next be reviewing the second attribute that McKinsey & Company, a leading strategy consulting firm for Fortune 500 companies, says is critical to ensure that a family business endures multiple generations.  These attributes are fairly unique to family businesses, an oftentimes overlooked ownership structure, but one that permeates our entire economy since family businesses are all around us.

In my last blog, I discussed the first attribute, Family Governance through formal forums, policies and/or services.  The second attribute relates to the formality of ownership structure(s) as depicted in shareholder agreements, holding structures and codified in legal documents.  To read the complete article to go:  https://www.mckinseyquarterly.com/The_five_attributes_of_enduring_family_businesses_2498