Issue link: https://www.e-digitaleditions.com/i/679551
May/June 2016 17 continued on page 31 How do you handle the members of the family that are not going to be in the top role going forward? A clear process with fair, business-related criteria for select- ing those in the top roles is optimal. If possible, use objective decision-makers, not relatives of the candidates, to make the fi nal selection of leaders based on pre-established, measurable criteria. With a strong HR function or a strategic effort to match individual family employees' specifi c talents with company goals and needs, family members not in the top role may be able to fi nd other roles that are better matches with their skill and experience. If there are family members who argue for selecting an under-qualifi ed family member for the top role, help them see that the top roles at your competitors are fi lled with qualifi ed leaders who are being paid at market rates. Putting a family member in a role for which they are not qualifi ed, and over- paying them, will not be sustainable for the business in the long term—and possibly in the short term as well! What steps should the senior leadership take in relinquishing power to the next generation? Role transition can be very tough, especially with the older generation living much longer in full health and mental alert- ness. If the older generation is not willing to move on, the younger generation can be close to retirement age before they get a chance to lead. And some of your best next-generation talent is not going to wait until they are 65 to have a chance to fulfi ll leadership for the family business. We encourage senior leaders to develop meaningful outside interests. Sometimes it's philanthropic. Sometimes it's a new After the transition, how does the older generation settle into their new role and how does the younger generation transition into managing the older generation? In a family business, the younger generation never really "manages" the older generation. The younger generation just takes over day-to-day operations and responsibilities, while the younger and older generation collaborate on broader strategic and personnel issues for the business. The change in executive roles can be very tricky for the company and the management team. Transitions are especially tricky when the person giving up authority remains in the organization in a new capacity, such as CEO or Chairman of the Board. It is most challenging for the person giving up the authority. Managers, key salespeople, long-standing vendors, and other business partners are habituated and comfortable going to the former leader and will continue to do so unless the former leader pushes them consis- tently to the new leader. Pulling back from that level of daily contact with key stakeholders, and tamping down the desire to jump in and fi x problems is necessary but diffi cult to execute well. For the younger generation of leaders, it is important to understand this dynamic. Make sure the leadership team respects the new chain of command. Also, double and triple your efforts to communicate effectively with the older generation of leaders in their new role. They need to know that the business strategy is sound and that problems and issues are being addressed properly so they can step back from their former responsibilities. -Fred Singer, Singer Equipment Co. How do you manage the expectations of family members interested in joining the business? We have always followed the principal that company ownership is not guaranteed; it is earned by working in the company. We believe and view our roles as stewards of Boelter. We need to guide our organization to continue to grow profi tably while retaining our core values. This is the expectation we also have for future generations. This is an important principal we follow as we consider the next generation of Boelter leader- ship. The expectation is that, as with my generation, the future generation will be required to work outside of the family business before joining the company. We want them to experience getting hired, being accountable and essentially grow up and learn some of life's lessons before starting at Boelter. -Eric Boelter, The Boelter Companies