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Welcome to the Family Ties© e-letter brought to you by Pervin Family Business Advisors Inc.
It's Not All Gloomy!
Even though business family members are feeling bewildered and drained by the bombardment of bad news, curious about 'where is the bottom', dealing with challenges to cash flow and anxious about his/her business family future, positive situations are visible. Many of my family business clients are benefiting from sage advice from their Board and leading through their family values: employees are not being thrown out without thought; rather, cross training is being accomplished, teamwork is being reinforced and money is being left in the business [family salaries are reduced and dividends minimized or suspended]; many are very well positioned in niche markets, having preserved their wealth rather than chase short term profits, and have cash reserves; these people are buying the mismanaged businesses of former competitors at bargain prices and will emerge strong and profitable; alternately, some are selling their businesses, as the last five years have provided strong earnings and great balance sheets - they feel its time for something completely different [and these people always keep the real estate]; and, many are using their foundations to assist even more in areas where a hand-up is needed. The recent survey results from Barclay's confirm these observations.
On a personal note, Malcolm Burrows and I wrote a chapter on Private Foundation Readiness [PDF] for the upcoming STEP Business Families and Family Business; my wife, Elizabeth Qualben, who has been involved with micro-finance activities for many years is now serving as a Board member with ACCESS Community Capital Fund: Financing for entrepreneurs – a Community Loan Fund that helps small and emerging businesses in Toronto; and I attended a lecture given by Dr. Norman Doidge who wrote the book titled The Brain that Changes Itself; it's a great read and very engaging, as is the book suggested by my colleague and friend, Ron Sparrow, titled Divide or Conquer.
In upcoming issues, the business family topics will address beneficial aspects of governance, leadership, organization, planning and relationships, to offer a few ideas. If you have a question, a great idea for inclusion in this e-letter, or if you just have some comments you would like to share with us, we want to hear from you!
Articles of Interest...
THE 2 MOST ADMIRABLE QUALITIES IN A LEADER
When asked what they look for and admire in a leader and in a colleague, people put honesty at #1. But the second-highest requirement of a leader -- that he or she be forward-looking -- wasn't applied to colleagues. 72% of respondents wanted leaders to be forward-looking, but only 27% looked for that trait in a colleague.
SOURCE: To Lead, Create a Shared Vision in Harvard Business Review, January 2009.
CONFLICT 101 FOR LEADERS
Conflict and leadership – our new research study shows that they go hand in hand. The results show that leaders cause conflict, struggle with managing conflict, and could improve how they deal with conflict by making some basic changes.
SELLING THE FAMILY BUSINESS and Results
Campden FB conducted an online "selling the family business" survey to get the views of families from all over the world on this crucial topic.
THE PURSUIT OF HAPPINESS
Has the happiness frenzy of the past few years left you sad and anxious? Herein we report the surest ways to find well-being.
HOLD ME TIGHT
Love demands the reassurance of touch. Most fights are really protests over emotional disconnection. Underneath the distress, partners are desperate to know: Are you there for me?
WHAT BOARDS MUST DO IN THE CRISIS
Top consultants Ram Charan and Tom Neff say company directors have to roll up their sleeves in times like these and take a hard look at risk, targets, pay, and balance sheets.
The World's Billionaires - THE RICHEST PEOPLE YOU'VE NEVER HEARD OF
Meet the not-so-famous people behind some of the biggest fortunes on earth.
Focus on Philanthropy...
THE ROLE OF ADVISORS IN PHILANTHROPY [PDF]
Etienne Eichenberger and Heiko Specking consider the changing face of European philanthropy. Also, look at Family Ties December 2008 – Campden Survey on Philanthropy [PDF] on Pervin web site. Read more about The Toronto Community Foundation in Anne Brayley's article, Community Foundations Add Value to Donor Advised Funds [PDF]
CORPORATE PHILANTHROPY
A Special Report from BusinessWeek.
A CEO MASTERS MICRO-CREDIT
Ex-ABB chief (and GM board member) Percy Barnevik is making a different kind of subprime loan: to India's very poor.
AS CREDIT DRIES UP, MORE OWNERS SEEK MICROLOANS
The new candidates for this financing alternative have high credit scores and business track records.
48 HEROES OF PHILANTHROPY
Forbes Magazine list of 48 philanthropists in 12 countries.
Families in the News...
TALKING MANAGEMENT: STEPHEN BRONFMAN IN CONVERSATION
Karl Moore is talking management to Stephen Bronfman, who is a CEO of Claridge Investments Inc. and from a very well-known family here in Canada.
GOING TRIBAL IN THE BADLANDS
On trips through the High Plains, a family-owned business educates travelers about the Native American nations within our borders.
THE SON ALSO RISES: DONALD TRUMP, JR., ON REAL ESTATE OPPORTUNITIES IN EMERGING MARKETS (Podcast with Transcript)
Donald Trump, Jr. discusses how he views his unique contribution to expanding the Trump brand overseas, building on the foundation laid by his famous father.
MARILYN CARLSON NELSON
Raising four children and rising through the family business has taught Carlson's chairwoman a thing or two about patience.
What does the owner of the $40 billion Carlson Cos. have to say about surviving the recession?
FAMILY-RUN BUSINESSES MORE ROBUST
Family businesses have many traits that make them better placed than other forms of corporate ownership to survive the current recession, and could well come out of it stronger than their rivals, according to the report by Barclays Wealth.
Focus on relationships...
FAMILY RELATIONSHIPS: IN GOOD HANDS?
A survey about family business relationships conducted by Campden FB yielded important information regarding these critical issues... a majority of 53% described their relationships as "very close/close". Only 8% said "cool/distant or very cool/distant", while 39% described their relationships as "satisfactory".
FAMILY RELATIONSHIPS SURVEY: DIGEST
Overall, respondents were positive about the relationships they had with other family members who work in the family business.
INVESTING IN FAMILY RELATIONSHIPS: YOU SNOOZE, YOU LOSE
Imagine a business that is prospering and whose family owners have more money than they know what to do with. In reaching this point, however, there is a trail of broken relationships, family members who are scared and hurting, family members doing work that they don't like or not working at all, and a family that, overall, is adrift with no sense of purpose.
Interesting, Informative and Fun...
- Campden FB and Family Office magazine. It's always great!
- Mind Matters
- Forget Survival of the Fittest: It Is Kindness That Counts - A psychologist probes how altruism, Darwinism and neurobiology mean that we can succeed by not being cutthroat.
- Family Business Magazine e-Newsletter It's always great!
- INC Magazine
- Tough Times, Cheap Laughs - The history of capitalism is full of booms and busts. During down periods like this, some solace comes in the form of humor.
- Slideshow: More Recession-Era Cartoons
- Inside One of America's Most Fun Workplaces
- Perfect Timing - Exotic Watches Look Like An Investment Refuge These Days. But For Collector Nezam Soltanzadeh, Beauty Will Always Trump Dollar Value
- The last time we looked at the Bulwer Lytton Results was in 2007, the site where www stands for Wretched Writers Welcome. Here are the 2008 results.
- A new definition, inspired by Norman Doidge... click for more entries in the Fam Biz Dictionary
Bizfamoplasticity n. explains the notion that the business family is capable of changing and reshaping itself through positive thought and activity.
And, based on many requests, another joke from my Mother who is now 94 years old...
A minister, a priest, and a rabbi die in a car crash. They go to heaven for orientation. They are all asked, "When you are in your casket, and friends, family, and congregates are mourning over you, what would you like to hear them say?"
The minister says, "I would like to hear them say that I was a wonderful husband, a fine spiritual leader, and a great family man."
The priest says, "I would like to hear that I was a wonderful teacher and a servant of God who made a huge difference in people's lives."
The rabbi replies, "I would like to hear them say, 'Look, he's moving!!'"
Did you know...
Our web site is chock full of interesting and compelling articles for the family business. You can send our articles to a friend, family member or colleague, quickly and easily.
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