On succeeding a talented entrepreneur
Leonard Lauder, chairman emeritus, The Estée Lauder Companies Inc.
“If you come into a business founded by a parent, you must remember from the day you arrive that a parent is always a parent. If the parent is 80 and you’re 55 years of age, he’s still the Daddy and you’re still the little boy. If you can accept that and swallow it and feel good about it then there is every reason to believe that you can have a very happy coexistence.”
— From “The sweet smell of succession,” a Q&A with Jack Nessel and Leonard Zweig, February 1990. At the time of the interview, Lauder was the CEO of the company. Five years later, its shares began trading on the New York Stock Exchange.
Marcy Syms, CEO, Syms Corp.
“If you’re not the founder, you’re not the original entrepreneur. Even though I’m the CEO, my father’s imprint is indelibly on the -business.”
— From “At the Helm” interview with Patricia Olsen, Spring 2007.
On creating a sound sibling partnership
John Krehbiel Jr., co-chairman, Molex Inc.
“We learned how to work together, separately. That made a big difference. I was a resource for Fred, but he didn’t report to me, and I didn’t report to him.”
— From “The (second) son also rises,” by Hal Plotkin, March/April 1991. Krehbiel’s younger brother, Fred Krehbiel, also serves as co-chairman of Molex.
On the perils of sibling rivalry
Roger Berkowitz, president and CEO, Legal Sea Foods Inc.
“I think you really have to come to grips with the fact that in many families … issues such as sibling rivalry and natural conflicts evolve. And they are not so easily remedied, and certainly not by the two parties. I mean, actually, what happens to many family businesses, I think they think what they are going through is unique to them. I guess there is a reluctancy to talk about it or acknowledge that there are any problems.”
— From “Family Business Legends” interview with John Resnick, Spring 2008.
On handing the reins to successors
Samuel LeFrak, the late chairman of The LeFrak Organization
“When my son became president in 1975, I said to him, ‘Richard, this is your bend in the river. You have my full confidence. Decisions are now yours to make. You can always use me to fall back on; you can check your decisions with me—or not.’
“… Encourage your children. Go to their strengths, stop criticizing their weaknesses. Parents are too critical. We’re all different. Go to the positive and eliminate the negative.”
— From “Building a dynasty of bricks and blood,” a Q&A with Louis Moscatello, June 1990. LeFrak died in 2003.
On communication
Steven Grossman, CEO, Grossman Marketing Group
“There are seven words that I consider to be the heart and soul of relationships, and therefore of successful family businesses: Thank you, I’m sorry and I love you.”
— From a first-person article entitled “Pushing out the service envelope,” Winter 1993. At the time, Grossman was president of the firm, which was then known as Massachusetts Envelope Company.
Gert Boyle, chairman, Columbia Sportswear Co.
“You have to talk differently to your employees than you do to your relatives. If you talked to the former the way you do to the latter, you wouldn’t have any employees.”
— From “At the Helm” interview with Patricia Olsen, Winter 2009.
On resolving family disagreements
Andrew Ly, president and CEO, Sugar Bowl Bakery
“We know how to yield when disagreement is too intense. I put it aside, and in some cases I try to get it done the next time. When you run a family business, emotions can be high. Since there are high stakes for everyone in certain decisions, I know that you have to do a lot of due diligence about decisions, so that you don’t betray family members or your employees. When emotions are too high, you pull back and wait. As long as you are persistent and believe in -yourself, you will be successful in getting your goal accomplished.”
— From “Investing in the American dream,” by Dennis Jaffe, Winter 2006.
On family business owners’ political clout
Sen. Susan Collins (R-Maine), who comes from a fifth-generation family lumber business, S.W. Collins in Caribou, Maine
“A lot of family businesses underestimate how powerful their voices are. We really need to hear their opinions on issues. Family businesses have great credibility in Congress because they are so connected to their communities. Their insight really makes us better able to serve the people we represent….
“I think the voters see a family business as evidence of a strong, deeply rooted commitment to the state. We’re there for the long term. We’re not going to be here today and gone tomorrow. I’m very proud that our family business has not only survived for five generations, but continues to grow. We want to be there for another 150 years.”
— From “Carrying the torch in the U.S. Senate,” by Mark Fischetti, Winter 1998. Prior to her election, Sen. Collins was executive director of the Husson College Center for Family Business in Bangor, Maine.
On private companies’ advantages
C.F. Martin IV, sixth-generation CEO, C.F. Martin & Co.
“We’re not publicly held, so we can make decisions in the best interests of all our shareholders. Public companies err on the side of the outside shareholder, and I don’t have that pressure. I have shareholders, but we can talk about how to balance the short term and the long term, and how to preserve and grow our legacy.”
— From “At the Helm” interview with David Shaw, Spring 2008.
On the drawbacks of going public
Michael Koss, president and CEO, Koss Corp.
“If you’re not comfortable in the spotlight, this is not where you want to be. You have to have a thick skin and be prepared to have your dirty laundry aired.”
— From “Publicly owned and family-run,” by Deanne Stone, Autumn 2007.
On the upside of public stock ownership
Andrew Murstein, president, Medallion Financial Corp.
“I would rather own 1% of a terrific multimillion-dollar company than have 100% of a small company.”
— From “So you want to go public?,” by Stan Luxenberg, Winter 2003.
On leadership
Howdy Holmes, president, Chelsea Milling Co., makers of Jiffy baking mixes
“To some people. ownership equals leadership. I’m not part of that group. Leadership is something you have to earn.”
— From “Shake-up at the baking mix company,” by Thomas W. Durso, Winter 2008.
On letting non-family managers take charge
Thomas F. Gilbane Jr., chairman and CEO, Gilbane Building Co.
“In a family company, it’s tempting to keep tight control within the family. Gilbane functioned that way for almost 100 years, but moving away from our autocratic roots has allowed us to expand outside of New England and become a leading national builder.”
— From a first-person article entitled “Strength in numbers,” Winter 2006.
Tim Timken, fifth-generation chairman, The Timken Co.
“Family members will play a very prominent role in setting the course, but this isn’t my show…. That just isn’t the role that family members have taken over time. We want to be there with a hand on the steering wheel, wanting to help chart the path, but it’s not a solo exercise.”
— From “Building a family company that lasts,” by Ernesto Poza, Spring 2006.
On innovation
Joe Gallo, president and CEO, E.&J. Gallo Winery
“To endure in business, you have to reinvent yourself every ten years. Opportunities arise every day, but few people recognize them. It takes a certain mindset; my father had it, and I have it.”
— From “The reinvigoration of Gallo,” by Deanne Stone, Autumn 2008.
On career planning
Jim Perdue, chairman and CEO, Perdue Farms
“[T]ake the time in the early parts of your working career to learn. I became prematurely —truthfully, for my experience —the CEO of the company. There is a lot that I would have loved to have learned before I got there [and] I had to go back and fill in the blanks the best I could.”
— From “Family Business Legends” interview with John Resnick, Winter 2009.
On stewardship of a family firm
Friedrich von Metzler, an 11th-generation family member who runs German bank B. Metzler seel. Sohn & Co.
“I always consider myself a link in a chain, of those I followed and those that will be following me.”
— From “A once and future bank,” by Bennett Voyles, Spring 2008.
On investing in the company
Ugo Beretta, 14th-generation majority shareholder of Italian firearms manufacturer Fabbrica D’Armi Pietro Beretta S.p.A.
“My grandfather always said we must have up-to-date machinery. My uncle Carlo said the same thing, and I tell my sons we have to invest a certain amount in new technology each year. If you don’t invest some money every year, after a few years it’s very difficult to catch up…. We have a tradition of investing, and I think this is the main reason we continue to be where we are.”
— From “How to build a dynasty,” by Howard Muson, Summer 1993.
On accepting setbacks
Michael Roberts, chairman and CEO, the Roberts Companies
“Failure doesn’t really exist for us. Failure is one more experience that didn’t have the outcome you were looking for. If you’re using a word like failure, you’re going to be defeated. Instead, our position is, ‘Well, how fascinating. Maybe we could have done something different to change the outcome, but what a great and interesting experience that was.’ ”
— From “Building an empire by intuition,” by Bennett Voyles, Summer 2007.
On retaining family control
Austin Kiplinger, chairman, The Kiplinger Washington Editors Inc.
“All my personal financial decisions are focused on one basic purpose: to keep this company independent.”
— From “They foresee the future and it works for them,” by Louis Moscatello, May 1990.