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1 st Families in Business Day - November 8, 2013

Discovering What Works for the Next Generation Ira Bryck UMass Family Business Center UMassFBC.com IraBryck.com. 1 st Families in Business Day - November 8, 2013. Free Ice Cream Tomorrow!. “ Let ’ s just determine ROI and send me my checks ” o.

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1 st Families in Business Day - November 8, 2013

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  1. Discovering What Works for the Next Generation Ira Bryck UMass Family Business Center UMassFBC.com IraBryck.com 1st Families in Business Day - November 8, 2013

  2. Free Ice Cream Tomorrow!

  3. “Let’s just determine ROI and send me my checks”o “What’s the problem? Let’s work, get along, prosper, and stop quibbling!”fom Ownership “I am SO taking a risk, and want my reward, not to mention a vote”fo “If you don’t add to the bottom line, you shouldn’t own stock”om om fo fom Management fm Family “It’s Thanksgiving- let’s stop talking about work”f “We can’t keep hiring relatives who aren’t up to the task”m “Forget dividends, we need new machinery, and I need a new car!”fm

  4. Is it an opportunity, or instead of the “real world”?

  5. Who gets to decide what is discussed, and how?

  6. How do you deal with misbehavior, and clarify roles and expectations?

  7. “It’s not the money, it’s the appreciation”

  8. How do the creators and preservers come to terms with each other?

  9. “He won’t step up!” “She won’t let go!”

  10. What sort of advice and perspective are most helpful?

  11. How do things need to change?

  12. Take a step and then another: Job descriptions  High value activities  Goals and metrics  Management by Objectives  Performance evaluations  Compensation policies  Budget awareness  Company of “Owners”  Attracting/Retaining Best & Brightest

  13. Take a step and then another: Job descriptions  High value activities  Goals and metrics  Management by Objectives  Performance evaluations  Compensation policies  Budget awareness  Company of “Owners”  Attracting/Retaining Best & Brightest

  14. Job descriptions • Every single thing you do • Including procrastinations • What do you control because you don’t trust? • What are you a genius at? • What are you only very good at? • What could 2 people each do 80% as well as you? • What jobs do you have through default, that are not done best by you?

  15. Take a step and then another: Job descriptions  High value activities  Goals and metrics  Management by Objectives  Performance evaluations  Compensation policies  Budget awareness  Company of “Owners”  Attracting/Retaining Best & Brightest

  16. High value activities • Genius on top, then very good… • Draw line; below is “stop doing list” • How to push authority down • $20 if you catch me doing that • Who is a genius in what you’re only very good at? • Are your high value activities in keeping with the purpose?

  17. Take a step and then another: Job descriptions  High value activities  Goals and metrics  Management by Objectives  Performance evaluations  Compensation policies  Budget awareness  Company of “Owners”  Attracting/Retaining Best & Brightest

  18. Goals and metrics • How do the goals serve your objectives and mission? • “Not everything that can be counted counts; not everything that counts can be counted” – Albert Einstein • What is the One Thing? • (i.e.: customer count)

  19. Take a step and then another: Job descriptions  High value activities  Goals and metrics  Management by Objectives  Performance evaluations  Compensation policies  Budget awareness  Company of “Owners”  Attracting/Retaining Best & Brightest

  20. Management by Objectives • SMART: specific, measurable, achievable, realistic, time – limited • Drucker: people don’t know the right objectives • How to be objective about objectives? • What drives what? • i.e. quality and service, or customer count?

  21. Take a step and then another: Job descriptions  High value activities  Goals and metrics  Management by Objectives  Performance evaluations  Compensation policies  Budget awareness  Company of “Owners”  Attracting/Retaining Best & Brightest

  22. Performance evaluations • 45% of HR directors don’t think they give accurate appraisal of employees’ work • 42% say employees not correctly rewarded • How can this be a tool that helps, instead of judges? • How does this relate to improving individual, as well as collective, performance? • How does this help create a great workplace?

  23. Take a step and then another: Job descriptions  High value activities  Goals and metrics  Management by Objectives  Performance evaluations  Compensation policies  Budget awareness  Company of “Owners”  Attracting/Retaining Best & Brightest

  24. Compensation policies • How is salary an investment, rather than an expense? • How to reward the right attitude, loyalty, perspective? • How to be appropriate about the “family factor”? • How to reward increasing the family’s asset? • What investment can a non owner have in a liquidity event (if any)?

  25. Take a step and then another: Job descriptions  High value activities  Goals and metrics  Management by Objectives  Performance evaluations  Compensation policies  Budget awareness  Company of “Owners”  Attracting/Retaining Best & Brightest

  26. Budget awareness • How does the company make money? • How can a non owner be helped to think like a stakeholder?

  27. Take a step and then another: Job descriptions  High value activities  Goals and metrics  Management by Objectives  Performance evaluations  Compensation policies  Budget awareness  Company of “Owners” Attracting/Retaining Best & Brightest

  28. Company of “Owners” • What is an Owner vs an owner? • How can a non Owner be appreciated and rewarded, with money and other currencies? • What kind of partnership can you have with non owners?

  29. Take a step and then another: Job descriptions  High value activities  Goals and metrics  Management by Objectives  Performance evaluations  Compensation policies  Budget awareness  Company of “Owners”  Attracting/Retaining Best & Brightest

  30. Attracting/Retaining Best & Brightest • Is what attracts them the same as what retains them? • What security can be offered? • What incentive is there to build the family asset? • How can you coach your key employees to be more in charge of their own financial situation?

  31. Kikkoman's Mogi Family Creed (17th generation business) • All family members desire peace. Never fight, and always respect each other. Ensure progress in business and the perpetuation of family prosperity. • Loving God and Buddha is the source of all virtue. Keeping faith leads to a peaceful mind. • All family members should be polite to each other. If the master is not polite, the others will not follow. Sin is the result of being impolite. Families--young and old, masters and workers--govern themselves by politeness; then peace will be brought of their own accord. • Virtue is the cause, fortune the effect. Never mistake cause for effect. Never judge people on whether they are rich or not. • Keep strict discipline. Demand diligence. Preserve order--young and old, masters and workers. • Business depends upon people. Do not make appointments or dismissals using personal prejudices. Put the right man in the right place. Loving men who do what they should brings peace to their minds. • Education of children is our responsibility to the nation. Train body and mind with moral, intellectual, and physical education. • Approach all living beings with love. Love is fundamental to human beings and the source of a life worth living. Words are the door to fortune and misfortune. A foul tongue hurts oneself and others. A kind tongue keeps everything peaceful. Be careful in every word you speak. • Keep humbleness and diligence, which have been handed down over the years from our forefathers. Make every effort to do as much as you can. • True earning comes from the labor of sweat. Speculation is not the best road to follow. Don't do business by taking advantage of another's weakness. • Competition is an important factor in progress, but avoid extreme or unreasonable competition. Strive to prosper together with the public. • Make success or failure clear, judge fairly punishment and reward. Never fail to reward meritorious service, and don't allow a mistake to go unpunished. • Consult with family members when starting a new business. Never try anything alone. Always appreciate any profit made by your family. • Don't carelessly fall into debt. Don't recklessly be a guarantor of liability. Don't lend money with the purpose of gaining interest, because you are not a bank. • Save money from your earnings and give to society as much as you can. Never ask for a reward or think highly of yourself. • Don't decide important affairs by yourself. Always consult with the people concerned before making a decision. Then employees will have a positive attitude in their work.

  32. We will/won’t ___ with FB members while not at workWe will/won’t ____ when hiring, firing, promoting, FB membersWe will/won’t ____ when making controversial FB decisions Best behaviors and attitudes about: vacation, money, work / life balance, expressing emotions, advising/guiding family members, buying major toys

  33. Please let me know if there’s anything I can do to help. Ira Bryck (413) 545 4545 Ira@UMassFBC.com

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