New Director Pushes Plans for CSUN Family Business Center By JACQUELINE FOX Staff Reporter The board of directors for the Family Business Center at Cal State Northridge has appointed a new director who is preparing to launch a citywide marketing campaign for the center in an effort to boost attendance at its public forums and increase its visibility. Dave Russell, who teaches finance and insurance at the university, was appointed by the board April 1, replacing Daniel McConaughy, also a professor of finance who ran the center since its inception in 1999. Russell met with the board of directors earlier this month in a strategy session designed to lay out a new game plan for the center, which has struggled to attract the level of interest from family owned businesses it had hoped for. It has had low attendance at its seminars, networking events and educational forums. “Clearly there is a mandate from the board that we invigorate our efforts to get more information out about who we are and what we have to offer family business owners,” Russell said. “There is a lot of information about the center that isn’t getting out. Our marketing efforts haven’t been there, and our personal contacts outside of our inner circle have not been tapped.” The center was established to serve family owned businesses in the San Fernando and Santa Clarita valleys, as well as Ventura County. Russell said the center has one staff person on board and he is hoping to add one more. The center, in partnership with the San Fernando Valley Business Journal, held the first Family Owned Business Awards in March, which drew roughly 400 people. Russell said he aims to build on that event and is also preparing a plan for launching the center’s first Family Business Expo in fall of 2004. In addition to offering support groups, networking opportunities and expert advice from family business consultants, the center, with the help of the university and corporate sponsors, has presented monthly forums . Topics include power struggles between family members, the role of women in the family firm and balancing relationships. Russell said the forum’s curriculum for 2003-2004 is being revised to include new topics and the center is working to improve access to resources from the university’s college of business. Barry Gump, a center board member and president and chief executive of Santa Clarita-based Andy Gump Inc., said part of the new strategy for boosting interest calls for meeting with family business owners face-to-face. “I think one of the difficult things for the center has been identifying why greater participation by family businesses wasn’t there,” said Gump. “Since we are a family owned business, I think, like everyone else, we have a shortage of time. But we have to do a better job of convincing people that they have to take time to learn more about the issues impacting their business and I think one of the ways to do that is to meet with them one on one.” Founder Must Share Vision for Company to Succeed in Future By ERNEST A. DOUD JR. Hats off to the founder of the family business. You put it all on the line and created your family’s most valuable tangible asset. In return, you have experienced the satisfactions that come with owning your own business: the independence you always wanted, a better standard of living than if you worked for someone else; and the opportunity for future generations to share the legacy. None of this would have happened without your willingness to take the risks, dedicate yourself to the business, put in long hours, and make many other personal sacrifices along the way. The business is the result of a vision that includes your hopes and dreams for what your business could and should be. But it is usually more than that. Your vision probably also includes personal financial independence, and the expectation that other family members will be involved in the business. Like most founders, you have kept much of your vision to yourself. After all, it is a very personal matter, and it isn’t easy for you to talk freely about personal stuff even with your own family. Although you may find it more comfortable to keep your own counsel, there are some potential dangers involved if you do. Some problems we’ve seen family business founders encounter include other family members developing their own business and personal “visions.” With luck, they may match yours. Then again, they may not. It is very difficult to move a business forward successfully if the “movers” are pulling it in different directions. When was the last time your family discussed their roles in the family’s business? If your answer is “never,” or “not for a number of years,” watch out. Without on-going dialogue, family members often develop their own expectations of what their roles should be, and then start fighting for “position.” The teamwork needed to assure business success never materializes. What about the future of the business? Suppose your vision is to sell out and retire in comfort. That can be a great vision for you, but your children may not be thrilled if they have assumed the business would be there for them. Try an opposite example. You hope to perpetuate family ownership and management, but none of your children are interested and are involved only out of a sense of obligation. Then where is the business in the long run? Our firm has seen businesses and families come unraveled over such misunderstandings. What can you do to avoid that in your family business? Openly share your vision with your family and to encourage other family members to share theirs. Practically speaking, nobody but you has the “power” to get this kind of dialogue started or to keep it going. Every family business we’ve seen that has been perpetuated through two or more generations has used family/business dialogue to create a shared vision. However, there is always an element of risk. After all, some expectations may conflict with others. But that will be true whether you talk about it or not. If differences exist, it is far better to surface them and try to work them out. Ernest A. Doud Jr. is the managing partner of Glendale-based DoudHausnerVistar, a consulting practice that focuses on assisting clients to successfully manage family/business dynamics.
