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18 FEDA News & Views Dealer's Notebook Edward Don & Company President Steve Don on Family Meetings and Other Family Business Best Practices By Stacy Ward, Managing Editor fedastacy@verizon.net Editor's Note: The following article originally appeared in News & Views in 2008 but still remains a great exam- ple of the disciplines and planning required to run a successful family business. W hen Steve Don decided to leave a lucrative post at an investment bank and enter the family busi- ness, there were no guarantees—just a road map. If he wanted to lead one of the largest E&S distribution firms in the country, the specifics of the journey were simply stated but tough. There were prerequi- sites—a graduate degree, preferably in business or law, and a well-established career outside of the industry. There were procedures, one of which called for routine meetings with a hand-picked mentor. And there was certainly lots of self-imposed pressure. "There were no secrets," says Don, now in his sixth year as president of Edward Don & Co., North Riverside, Ill. "I knew what the rules of engagement were going in; it was a very planned transition." In 1986, when his father, Bob Don, bought the company from remaining family shareholders, the Dons began holding regularly-scheduled family meetings to work through important issues like succession, not to men- tion to create a more productive forum for airing out concerns. "E-mail, after all, is not the best form of communication when it comes to resolving family or business conflicts," says Don. "But one of the best ways our family communicates is through family meetings. Although the first few meet- ings can admittedly be rocky, regularly scheduled communication is important to maintain consistent views across the family." A Family Constitution Once a year, the Dons come together for a decidedly formal family meeting. Open to anyone with familial ties to the business, including spouses, it is held at an off-site location, typically in a conference r o o m . There is an agenda and a business psychologist-type on hand to serve as a facilitator— as well as to help with the structure Don says is necessary to run a successful meet- ing. Topics discussed include business results; the mission of the company's three share holders; succession planning and the development of its family con- stitution, which Don points out is still a work in progress. "It's not easy," he says of the process, reiterating an all-too-common assess- ment by those who take on the task. Defined by most family experts as a set of guiding principles to help govern the family business, a family constitution can take months to complete and cost thousands of dollars to draft if a con- sultant is hired. It all depends on what those involved hope to accomplish, say experts. Some are used to establish employment guidelines for family mem- bers in the business; others contain pro- cedures for conflict/resolution, list core values regarding the business and even a family's ownership philosophy. "Our stated philosophy is that Edward Don & Co. is a business that's owned by a family and not a family business," says Don. "We're here to serve the business; r o o m . "Our stated philosophy is that Edward Don & Co. is a business that's owned by a family and not a family business. We're here to serve the business; the business isn't here to serve us." --Steve Don Recommended Resource Looking for information on succession planning and other relevant family business issues? The Family Business Consulting Group's website (thefbcg. com) is a great place to find lots of information on running a family busi- ness, says Edward Don President Steve Don, who is a big fan of the group's "Family Business Leadership Series." From books on how to get the most out of your family meeting to preparing successors for leadership, the series includes 23 titles on a number of issues facing family businesses. For more information, call 773-604-5005 or visit the following link: http://www. thefbcg.com/publications/books/.