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Updated: October 31, 2022

'Nurture relationships' and other tips for family-owned businesses

By Renee Cordes

What do next-generation family-business leaders need to know about running a business? Two experts shared their tips with Mainebiz.

Steven Tenney Founding partner and CEO, Great Diamond Partners

Photo / Jim Neuger
Steven Tenney, Great Diamond Partners
  • Develop strong, open and regular communication with the prior generation so that expectations are clear. This helps to avoid misunderstandings that can lead to frustrations.
  • Learn all you can from the prior generation so you can carry on the legacy of the company — and develop your own unique abilities so you’re comfortable in your role and the company benefits from your fresh perspectives.
  • Nurture relationships with experienced people who are not part of your family and with people in a similar position in different companies and industries. You’ll find they face the same challenges you do, and their solutions will benefit you and your company.

Colleen McCracken Principal, CLMC LLC:

Photo / Courtesy of CLMC LLC
Colleen McCracken, CLMC LLC
  • Be your own kind of family business leader. Often, next generation leaders try to run the business as their parent(s) did. Authenticity as a leader is key to a leader’s success.
  • Don’t take the top family business leadership role for the wrong reasons.
  • Get outside support for a successful transition, A neutral party is key to the success of a family business transition. An outsider can provide structure to creating a succession plan and the discipline to hold everyone accountable to the plan that has been agreed to. Outside support can take the form of a trusted independent advisor and/or a trusted board of advisors specifically tasked with this responsibility.

IFOB’s ‘affinity groups’

Ten years ago, the Institute for Family-Owned Business created its first subgroup for next-generation leaders. Today, the Portland-based nonprofit has four so-called affinity groups, whose 38 members come together eight times a year in meetings led by business consultants.

“It’s hard to run a business in challenging times,” says Catherine Wygant Fossett, IFOB’s executive director. “If you add the family element, you have an extra set of dynamics that makes it more challenging and rewarding. I think today’s young leaders are resilient, compassionate and eager to take the reins. They are also more focused on strategic planning and seeing how they fit into the big picture.”

For more information, go to fambusiness.org

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