Family business entrepreneurship is alive and well in the Midlands

http://www.ifb.org.uk/ This year’s Midlands Family Business Awards, are helping put the spotlight on family business entrepreneurship, and the huge importance of British business families in the drive to grow the private sector as we rebuild our way out of the recession.

The awards, organised by third generation family business the Wilson Organisation, include a New Family Business category which I am judging alongside James Timpson (Timpsons) and Annabel Prow (Wilson Organisation). Meeting the shortlisted candidates for the award it was clear that we had a group of highly committed and passionate family business entrepreneurs. Each of the founders shared a strong sense of enthusiasm and the drive to succeed; above all everyone was passionate about serving their customers. Although making a profit is critical to secure the next stage of growth for the business, the path to success is through delivering excellent customer service. A common thread was the need to have clarity of vision and to stay focused, but also to have the flexibility to adapt to the customer’s needs.

Another common thread running through each business was the huge amount of personal effort and financial sacrifice made. The level of hard work that goes into getting early stage ventures going can put pressure on family life - sacrifices are made to ensure the new business gets the required effort. Some also cited the advantage of bringing family members into the business who can offer a wide range of skills; but it was equally important to be honest about individual strengths and weaknesses. Another factor that was cited as key was having excellent communications at all levels; something that becomes even more vital when the pressure is on. Communication will also be the subject at the IFB Regional Roundtable meetings this autumn in Yorkshire and the North-West.

The winner will be announced at a black tie evening reception at the family-owned Thrumpton Hall, just south of Nottingham on Thursday, 11 November.

Trust - a source of competitive advantage

http://www.ifb.org.uk/
This week’s IFB national conference has the theme Trust: A source of competitive advantage. Our view is that family businesses are uniquely placed to be at the forefront in the drive to revive trust in UK business.

Progressive family firms place great importance on a clear set of values, such as:

• Entrepreneurship - having a can do attitude

• Respect for People - fostering a strong workplace environment

• Social Responsibility - engaging with local communities

• and Sustainability - taking responsibility for the environment

Combine these values with a sense of stewardship, of being in business to succeed in the long-term and we have created a solid foundation for Trust. And this is of course Trust in the widest sense with all stakeholders; customers, employees, the supply chain, the public and indeed Government.

Knowing how family firms are perceived by the British public is important so the IFB commissioned a YouGov survey– over two thirds of the public recognise the important role family businesses play in economic growth and employment (68%) and almost two-thirds believe family businesses provide better customer service than other types of business (62%) – a key measure of trust in a business.

Sector firms of course, have to deliver strong business performance, but there is a growing and understandable pressure from society to broaden the measurement of success, beyond profits alone.

The benefits of a high trust organisation are immense: highly trusted companies can maintain strong levels of employee morale reducing staff turnover, absenteeism and associated costs. Their brands can achieve high trust status with the consumer. Mars and Beaverbrook the Jewellers are two family firms speaking at the IFB conference on how they are achieving strong trust.

But family firms have their challenges, such as;

• Improving decision-making, both at the owner and the business level through more robust governance

• Ensuring that the transition of ownership between generations is planned and doesn’t disrupt the business

• Making sure there is no glass ceiling for employment opportunities for non-family employees and being open to ideas and innovation

What we see is that the best family firms are embracing these challenges while building and sustaining high trust organisations.