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In association with

Generation At the heart of family business Official Magazine of Family Business Place





Spring / Summer 2011

We understand family business issues to a T

The dynamics of a family business are different from other businesses. Hazlewoods understands these issues and the impact families can have on the business. Our aim is to help you grow a strong family business and enhance its value and wealth retention. Hazlewoods will bring fresh and creative ideas to your family business. We will work with you to produce viable solutions, including plans for growth, tax efficient structures, corporate governance and succession planning.

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50 opinion


Why family business should be seeking greater recognition

upfront News and highlights from the 06

world of UK family business plus speakers announced for Family Ties conference 2011

meets Life in the family business with

Cover shot by RGB Digital


Stevenson Brothers, Arora Hotels Claritystamps, and Walter Wright

Yorkshire’s finest Delving deep into the heart of 49

the county’s family businesses

focus Insights from the professionals 64

and a discussion on the powers of persuasion

expert The professionals talk 70

narcissism, succession and resolving conflict

prosperity Ethical business practice, 85

philanthropy and alternative investments are all brought under the spotlight

panel Our experts are in the 102

hot seat to answer your burning questions

review Recommended reading from 105

our family business library

24 Under the skin of Giles English


of Bremont watches

new look

CHANGE IS IN THE AIR With the arrival of the warmer weather and the promise of a beautiful summer ahead, there is much more of an air of optimism around the family business scene at the moment. Family businesses continue to make the news headlines and we have taken the time in this issue to add our take on the ‘Royal moment’ with a look at a selection of family businesses that have been granted the Royal Warrant. These include Rigby & Peller, Mosimanns and Maggs Bros, all of whom have delightful stories to share. Keeping the regional focus going, this issue we turn our attention to what has been described by some as the heartland of family business, Yorkshire. Here we have uncovered some hidden treasures to show the diversity of this great County, including Morrisons, Kerfoot Group and Hanson Logistics. For features, we continue to meet some extraordinary family businesses, and this issue is no exception. From the sheer beauty of Walter Wright creations to the luxury of Arora Hotels and the craftsmanship of Stevenson Brothers, we have some real gems. Continuing to deal with wealth and other financial matters remains a priority. Moreso than ever in the current economic climate, where despite the promising signs of growth, there are some calls for restraint too, so family businesses need to consider what steps they need to take to protect themselves for the future. With this in mind, the Prosperity section gives an insight into alternative investments, tailored philanthropy and ethics in business. We are thrilled to bring news of the 2011 Red Ribbon Awards and the Family Ties conference which has some great speakers lined up for what should be a superb family business day, so look forward to seeing you there! Enjoy the summer!

Paul Andrews, Editor-In-Chief

Generation Spring / Summer 2011



















1. Paul Andrews Editor-in-Chief, Generation and Family Business Place 2. Amalia Brightley-Hodges Features Editor, Generation and Family Business Place 3. Patrick Bade Managing Director, Elevo Global 4. Grant Gordon Director General, Institute for Family Business 5. Jeremy Baile Director, RGB Digital 6. Dan Foulkes Partner, Milk No Sugar 7. Anita Brightley-Hodges Managing and Creative Director, Family Business Place and BHA 8. Christopher Kelly Managing Director, Voiceworks 9. Steve Rosenbaum Consultant, Family Business Solutions 10. Peter Leach Managing Director, Peter Leach LLP 11. Simon Webley Research Director, Institute of Business Ethics 12. Juliette Johnson Head of UK Family Business, Coutts & Co 13. Jonathan Lidster Director, Global Partnership of Family Offices 14. Philip Kenyon Divisional Director, Brewin Dolphin 15. Richard Broughton Director, Alexander Associates Group 16. Randi Weaver CEO, Good Giving Global

Subscription and Advertising enquiries: Paul Andrews / Editorial enquiries: Amalia Brightley-Hodges Production enquiries: Anita Brightley-Hodges / Designed by ‘Brightley-Hodges Associates’ Published by Family Business Place


Generation Spring / Summer 2011


“In the UK the DnA for entrepreneUrshIp AnD growIng fAmIly bUsInesses hAs been proven sInce the InDUstrIAl revolUtIon�

FA MILY VA LUE S Patrick Bade on how UK Family Businesses should seek the recognition they deserve.

It is striking how in different countries family businesses and the SME (small and medium enterprise) sector enjoy varying positions of importance, recognition and influence in the overall economy and the political landscape. It is no coincidence that the UK SME sector is currently enjoying a long overdue and well deserved increase in attention from both the government and the wider business community. This newly found political and commercial interest owes to the solid and resilient businesses in the SME sector, which are predominantly family businesses. The people, owning, running and working for these family businesses, now have the opportunity to lastingly underline the central importance of their part of the economy. In doing so, UK family businesses can reshape their role in the overall economy and once again be perceived as the key drivers of the economy they are. In other European economies the importance of the SME sector is markedly stronger. Germany and Switzerland are interesting examples. The current speedy recovery of the German economy is to a large

part fuelled by its SME sector - or Mittelstand - which here too is dominated by family businesses who successfully take advantage of the weak euro and are a key driver in the strongest recovery of any country in the Eurozone. The Swiss economy has more in common with the British. Both retain their own currency, have strong financial sectors and are exceptionally dynamic economies. Yet, in Switzerland the SME sector is forcefully represented among political decision makers and nurtured by the banking sector. The difference is that in both countries SMEs and family businesses are publicly celebrated for providing stability among the ever growing number of multinationals and fast moving financial sector firms. This recognition is mirrored by all those involved in this part of the economy. In the UK, the Institute for Family Business estimates the overall share of family businesses in the UK economy as 65%. Family businesses have already started assuming a leadership role in the re-balancing of the economy back towards more financially sound and resilient business models. Hopefully

they will further develop this important role in the challenging years ahead and help the UK economy better endure financial and geopolitical shocks in the future. Still missing is clear recognition of these efforts by the media and by policy makers. In the raising of this recognition through assertiveness and outspokenness regarding the value of SMEs and Family businesses to the economy, lies a chance that may only occur once in a generation. In the UK the DNA for entrepreneurship and growing family businesses has been proven since the industrial revolution. It is time for the long established to once again be proud of their track record and for the new generation of entrepreneurs to believe that they can grow a business into a strong and solid concern. Together and by engaging in dialogue across business sectors, family businesses can generate the confidence and cooperation needed for family businesses and the entire SME sector to be heard as one single voice, which will be heard.

Generation Spring / Summer 2011



3 MILLION A Royal Presentation UK businesses are family run

Family Businesses and the Big Society The Institute for Family Business (IFB) believes positive action by the Government can unlock the potential of the UK’s 3 million family firms to support the Big Society agenda. In a letter to the Government Adviser for Big Society, Lord Wei, the IFB has recommended tax breaks and funding incentives to encourage greater giving of time and money by family firms for social and philanthropic initiatives by their owners and employees. Grant Gordon, IFB Director General, said: “Family businesses are natural philanthropists and it is part of the ethos of many family-owned companies to support their communities. We believe that if the Government targeted tax breaks and funding incentives towards family firms the impact of the Big Society agenda would be more effective and widespread.” The IFB would like to see tax breaks given to employers who match the charitable donations of their employees and tax incentives to encourage greater giving of time and money to philanthropic causes. Research has shown that within the communities in which they are based, often for generations, family business owners and their firms are more likely to support charitable activities than non-family businesses.[Coutts 2005 Family Business Survey] Many family businesses are also supporters of social enterprise, but the IFB believes more could be done to encourage greater investment by family firms in this area. The association believes that a growth fund for social enterprise, supported by the Big Society Bank, could provide vital seed capital for ventures that serve a social purpose. This would encourage more family businesses to either start social enterprises from scratch or fund the growth of existing ones.


Generation Spring / Summer 2011

Ruling the roost 2011 saw the launch of One Hyde Park, an exclusive development of 86 apartments next to the Mandarin Oriental in London. Brothers Nick and Christian Candy have dominated the corner of Knightsbridge for the last three years and have already sold half of the 86 units. At £135 million, the top penthouse is the most expensive unit and boasts bomb blast-protected windows, fortresslike security, computerised lighting and audio, use of a state-of-the-art gym complete with private exercise and treatment rooms, a 21m ‘ozone’ swimming pool, saunas, steam rooms, squash court, golf simulator, ‘virtual’ games room, wine cellars, business suite and meeting rooms, entertainment rooms, Park Library, underground car park, car cleaning and valet parking. Having started with a loan from their grandmother in 1995, the brothers have gone on to create waves in the property market with an increasing portfolio of extravagant schemes and One Hyde Park is set to top them all.

A perfect harmony of great British quality and expertise come together for our future King and Queen. Roja Dove, the world’s most quoted perfumer, has commissioned Clive Christian, creator of No.1 The World’s Most Expensive Perfume, to create a unique presentation of a matched pair of Clive Christian No.1 Perfumes - his and hers - for His Royal Highness Prince William and Catherine Middleton in honour of their union. This fabulous, truly one-off gift will be sent via the royal household on behalf of the Roja Dove Haute Parfumerie in Urban Retreat, Harrods and Clive Christian Perfumes. No.1 The Worlds Most Expensive Perfume has been chosen for this unique presentation for its beauty and glory. Created with no reference to cost to contain the world’s most exquisite ingredients, when brought together the men’s and women’s perfumes complement each other, representing the perfect partnership. Placed side by side in a piano black case with hand embroidered royal coat of arms the No.1 Perfumes are presented in hand cut crystal bottles with the royal couple’s first name initials etched in gold and the signature No.1 Perfume sparkling white diamond in each collar. This is the ideal and perfect union of fine perfume and British craftsmanship for this nationally treasured occasion.

Flush With Success Pimlico Plumbers, the UK’s largest independent plumbing company, is on course for a record year after it hit six month sales of £7,858,885. Already £502,000 (seven percent) up on the same period in 2009 (June-November), the Central London based company is expected to see sales grow further despite the VAT increase. A very successful November and December 2010, where the company serviced in excess of 4,000 jobs, has been followed up by a busy calendar of scheduled central heating, Dans la famille amaddeo, je demande In the Amaddeo family, I ask bathroom and kitchen installations in the first quarter of 2011. LES FILLES NINa, BIaNCa Et and Pimlico Plumbers serves central and greater London VaLENtINa currently has more than 130 Nina vans, trucks and motorbikes est à l’origine de la première boutique londonienne. C’est le début de l’ouverture sur l’Europe et de la stratégie de développement la marque àin l’international dont elle150 s’occupe aujourd’hui avec on the streets of the With excess of sa mère. Sa jeune sœur Bianca l’a récemment rejoint à Londres où elle highly-skilled plumbers, heating carpenters, suit des engineers, études d’art. Elle intervient sur la partie conceptuelle des Néréides. La benjamine Valentina, encore adolescente, présente un goût prononcé pour la photographie. builders and locksmiths, the déjà company operates a large affaire à suivre… contact-centre in central London, which is operational 24 The daughters Nina, Bianca and Valentina Nina is the force behind the first London boutique - denoting Néréides extension into Europe – as well as being responsible for international brand hours a day, seven days a week. development strategy along with her mother. sister Bianca recently joined her in London to continue her studies in Charlie Mullins, ManagingHer Director ofin thePimlico arts. She is also involved conceptual sidePlumbers, of Néréides. Valentina is the youngest, and although still a teenager shows great interest in photography. Watch this space… said: “If there is a private sector-led recovery then we are LE FILS pIER-paoLo right at the heart of it. Our team have worked exceptionally Des études de marketing de mode en poche, pier-paolo quant à lui hard over the past six monthsest resté to dans notsa ville only maintain the leveldu de cœur, paris. Il collabore à l’ouverture premier concept store parisien le 12 février 2009. aujourd’hui il a rejoint le siège des deux marques où il est en charge de of work we have serviced, but increased it dramatically. Like l’identité visuelle de la marque et de la communication. all these sorts of challenges, The we, and many independent, son Pier-Paolo With fashion marketing studies already in the bag, Pier-Paolo has stayed in beloved Paris. He collaborated on the opening of the first Parisian concept family-run businesses like us,his will have toToday get on theof the two store on February 12th 2009. he has joinedwith the headquarters brands and is in charge of the visual identity of the brand and communications. job in hand. Because of the way we run the business, and with the support of our customers, we are determined this will be another record year.” 86


La famille Amaddeo au complet avec le chien M photographiée par le Bau

Fabulous Fantasies The jewellery brand Les Néréides was established in 1980 in Nice, France by Pascale and Enzo Amaddeo. Every summer and winter, they launch a new collection, each designing and taking inspiration from a variety of curious, kitsch and fantastical influences. Besides their jewellery range, Les Néréides has also ventured into perfume, select ranges of household adornments and other elegant accessories. Over the years the business has expanded rapidly, and now counts Paris, Milan, Tokyo and London as homes to its varied ranges. It has an established outlet on Long Acre in Covent Garden, and recently opened its doors to little sister shop, N2, on nearby Monmouth Street. The shops are both managed by Nina Amaddeo, full-time mum and eldest daughter of the clan. Despite finding success in and

outside the country, the business has remained firmly within the family, with younger daughter Bianca and niece Raphaelle amongst the ranks of the central London floor staff. Previously there had even been a shop on Kings Road in Chelsea, due to the recession has its doors firmly shut. However, business is brimming on Long Acre, with their delicate designs finding their way into the hands of both tourists and regulars alike. In a recent coup, one of their necklaces was featured in the most recent Harry Potter outing, seeing Hermione sport a ‘Violeta’ piece in one of the evening scenes. With so much vibrancy within the company, and such a loyal and inspired clientele, it would seem the future is bright for this tightly knit and much loved family.

Generation Spring / Summer 2011


For all the latest news, views, features, recipes and more besides... • Marcus Wareing, Rick Stein, Michael Caines & Adam Byatt • School food for the future • Sustainability • Seasonal produce such as beetroot and asparagus • New products


A Clear Vision In 1986 Charlie Sharman, his brother William, and their father established Cantifix, a conservatory business. 25 years later, the company is still family run, and has become renowned for experimental and exciting architectural glazing, and its commitment to sustainability and innovation. In 1990 Eva Jiricna Architects asked Cantifix if they would be interested in working on an experimental glazing project in north London. The project involved frameless glass panels, bonded to each other with silicone, with no structural support. They accepted the challenge and after the successful completion of the project Cantifix became “structural glazing experts”. Working closely with architects and structural engineers, Cantifix takes a project from concept through to final installation. It has developed a reputation for problem solving and attention to detail, and now has a customer base of over 2000 architects, designers and contractors, whom it has been involved with on a range of residential and commercial projects. It also offers an online service, Cantifix Direct, which allows self builders to order a range of glass products for self-installation. Cantifix’s manufacturing facility in north London has expanded to accommodate the growth of the business,

but the company is still run by two of its founding directors, Charlie and William Sharman. More recently they have been joined by another brother, Matthew, Charlie’s wife, Fiona, and their sister-in-law, Val. “This continuity and personal approach is partly responsible for the growth of Cantifix; enhanced by the talents of our employees and the loyalty of our customers,” says Charlie. “People like the fact that we are so hands-on, and appreciate seeing a familiar face.”

Motoring Ahead Third generation family business, The Morgan Motor Company, is set to bring the fun and passion back to personal transport by launching a new, modern version of the Morgan 3 Wheeler. Safety is paramount with a reinforced tubular chassis and twin rollbars for driver and passenger. A sturdy V belt provides traction to the reinforced rear tyre. Some things have not changed. The Morgan 3 Wheeler still holds long distance speed records for one litre cars set in the 1930’s so why change the shape? The pronounced bullet shape and the exposed chassis and aluminium tub are accompanied by the aeroplane profile of the car’s sides. The shape is of a gentle yet powerful missile at

the front leading to a beetle back tail at the rear. But above all the Morgan 3 Wheeler is designed for one purpose alone, to make driving fun. A leather padded cockpit complete with aircraft instrumentation adds to the sense of flying on the road. As Charles Morgan explains, “The current focus of the Morgan Motor Company to cut CO2 emissions and low fuel consumption is very much part of the rationale behind the launch of this car. The time is right for Morgan to take a new look at the combination of acceleration, on road performance and economy. The time is right for Morgan to relaunch the 3 Wheeler.”

If you have an exciting piece of family business news just call and let us know. We may feature you in the next issue and on Contact the Editor on 07921 710009 or

Generation Spring / Summer 2011



The Next Generation Challenge In April 2011, Sandy Loder and a group of Next Generation took part in a 300km expedition across the beautiful highland tundra of Norway and Sweden, deep into the Arctic Circle. Generation Features Editor, Amalia Brightley-Hodges went along to find out more about how the Next Generation in family businesses are approaching the leadership responsibilities they now face.


“We learnt hoW to operate as a team, even When the conditions Were against us, to listen, delegate and not jump to conclusions”

“Having worked with family businesses for a long time, particularly the next generation, I have come to realise that those with successful, entrepreneurial parents often suffer from a low self-esteem, find it difficult to focus on a long-term vision and struggle to find the confidence to carve out their own success,” explains Sandy. By taking the group to an alien and potentially hostile and dangerous environment, Sandy’s aim was to stretch the group physically and mentally so that they could learn for themselves their own strengths and weaknesses, and how they could use this information when embarking on business ventures. “Somebody was nominated as a leader of the group each day. It was their job to organise and delegate tasks for the group including feeding and bedding 49 Alaskan Huskies every morning and evening! In the evenings we ran exercises to stretch the team mentally, even when desperately exhausted. One exercise looked at how cognitive dissonance can lead people to misread questions. Another looked at how a group can make a better decision than an individual, and how to

constructively come to a consensus decision.” explains Sandy. Gary Martin who decided to join the expedition to develop his leadership skills says “I think we can safely say that the whole group learnt a lot about themselves and their fellow explorers. We discovered how to operate as a team, even when the conditions were against us, to listen, delegate and not jump to conclusions. The great thing about having a team leader every day was that nobody could hide and rely on someone else, you let the whole team down if you didn’t go your job properly which is a lesson very true in running a business.” If you are the next generation of a family business and want to explore business leadership and entrepreneurship whilst taking in the breathtaking scenery of the Arctic then join next year’s expedition in April 2012. Contact Sandy Loder on 0207 042 9292

Generation Spring / Summer 2011



Bloomin’ Marvellous!

The stories behind the family businesses responsible for making the 2011 RHS Chelsea Flower Show the most prestigious in the world.

Architectural Heritage

species and cultivars, Simon and Dawn propogate over 95% of all the plants they sell and guarantee that their Lavenders are true to type. They carry the most diverse genetic pool of Lavenders on earth, maintaining the plant’s biodiversity. “As a husband and wife team we are both so passionate about what we do which has resulted in a fabulous business producing the most beautiful plants,” ends Simon.

Established for 35 years ago, Architectural Heritage is a family run company with a worldwide reputation for providing fine garden ornaments, bespoke stone chimney pieces and a personal service to discerning professional and private clients alike. Founded by Adrian and Suzy Puddy, the company is now run by their son Alex. Alex was born into the business. After leaving university with art and art history, he spent time dealing in pictures, working as a cocktail barman and travelling around for a year, before making the career choice at 23 of settling into the family business. Now he has taken over the reins while Adrian Puddy has not exactly retired but has left Architectural Heritage. There are no planned changes to the business, dealing mainly in antique garden ornaments, with some fine antique panelling and chimney pieces, along with reproduction fountains, statuary, gazebos and pergolas. “Although nothing is planned, I hope to develop new areas within my personal interest in 20th century and contemporary sculpture and works of art. This year we will be doing Chelsea Flower Show, as usual, and I will watch with interest how the London fair scene pans out over the summer.” Architectural Heritage undertakes commissions to client specifications for garden ornaments and chimney pieces. Delivery and shipping worldwide can be arranged. The full inventory is on display in the galleries and grounds of Taddington Manor.

Downderry Nursery Downderry Nursery is run by Simon and Dawn Charlesworth and has been winning Gold Medal awards at Chelsea Flower Show for years. The husband and wife team specialise in Lavender and their nursery is home to the world’s only Scientific National Plant Collection of Lavender. “Chelsea Flower Show is a great stage for us to showcase our selection of plants and our customers love meeting the faces behind the company.” explains Simon. With a range of Lavenders distilled from over 350


Generation Spring / Summer 2011


Redwood Stone Redwood Stone is a second generation family business now jointly owned and managed by brothers Martin and Tim Redwood. The company is based in the beautiful south west of England in the small Cathedral City of Wells manufacturing classical ornamental stonework and importing associated garden products. In fact, it was the stonemasonry traditions surrounding the Cathedral and its restoration that were an inspiration for the business from the outset and continue to supply both the skilled craftsmen and traditional techniques used today. The business was started in the late sixties by Martin and Tim’s late father, Ken Redwood, gradually flourishing in line with the emerging garden centre trade in the UK. In those early days Ken’s Land Rover laden with stone was a familiar site the length and breadth of the country. As business picked up he added a trailor on the back which increased the amount he could deliver but added to the journey time - the trip to Hayes Garden Centre in Ambleside took 12 hours. When Martin joined the company taking over production in the tiny North Road yard, and then Tim relieving Ken of the driving duties, a force to be reckoned with began to emerge. And where better to stamp your mark as a growing business than at the Royal Horticultural Society’s Chelsea Flower Show in London. In 1991 Tim and his team designed and built probably the most daring structure to be seen at Chelsea, a full scale Gothic Arch Folly which framed that year’s Gold Medal winning Best Garden in Show. Redwood Stone have been ever-present at Chelsea since that year winning RHS merits for outstanding presentation of their own product displays, and contributing to two further Gold Medal winning gardens and numerous award winning displays in the marquee.

Agriframes At the forefront of affordable elegance in garden design. Classical and timeless, renowned for its crafting durability and excellence, Agriframes offers the best of quality garden structures and products designed to provide everything for today’s garden. Agriframes, a family run business for generations, and despite rapid expansion in recent years, not once compromised the trusting close relationship enjoyed by its loyal customers for decades. Their garden structures; a range of exquisite arches, pergolas, and gazebos, are designed to suit the most refined styles of English Garden. Quality is never compromised – their designs are strong and durable, made of a hi-tensile steel tubing, galvanized inside and out to resist corrosion. A heavy thud is the sound you’ll hear when an Agriframes delivery arrives upon your door mat, reinforcing the quality. Agriframes Grow at Home products are at the cutting edge of the trend sweeping across Britain today, making the romantic idle to live the Good Life achievable for all gardeners. They offer a complete range for any kitchen garden frames and supports for your fruit canes, currants and vines plus

supports for brassicas, peas and beans and other juicy veg. The Agriframes fruit cages, which have been Britain’s best for over 30 years, tested for 100% protection in gardens such as Wisley, Rosemoor and Ryton. Summer family lunches, plates piled high with sweet tasting homegrown food, are now a dream realised with Agriframes and one that can be enjoyed by generations to come. Their “Garden Living Collection,” the design collaboration by Jackie and Laurence Llewelyn-Bowen, was launched to huge success at the 2010 Chelsea Flower Show. Each piece has the unmistakable Llewelyn-Bowen signature of style and glamour. The “Garden Living Collection,” is the optimum of designer style without the designer price tag.

Generation Spring / Summer 2011



Knoll Gardens It is the 10th year at Chelsea for the Dorset nursery, and on each of the previous outings the small family business, specialising in grasses, gained a gold medal. Knoll is staffed by a dedicated team headed by owner, Neil Lucas who has spent most of his life working with plants and gardens. Neil is a passionate plantsman and has several gold medals to his name including eight consecutive Golds at Chelsea for his grasses. Neils passion for plants may well be in his genes. His grandfather was heavily involved with the Delphinium society and having accompanied him to many national shows Neil couldn’t wait to start exhibiting on his own. In addition to travelling, especially in the USA, in search of new plants and ideas, Neil is also an accomplished and enthusiastic writer and speaker. He runs regular masterclasses on his grass specialism from the gardens at Knoll, and lectures in the UK and overseas.

Gardeners Boutique The Gardeners Boutique is an established family run business created by Peter, Rita and Jamie Dunstan in the early 1990’s. It is situated in the lovely historic village of Braithwell, South Yorkshire. Specialising in herbaceous perennials, mature and semi mature plants, trees and shrubs. A beautiful nursery with creative displays is a pleasure to visit for ideas and inspiration. Their friendly knowledgeable staff will gladly assist and advise on what would be suitable for your garden, from plants and trees or planting up pots and containers to compliment your scheme. They can deliver larger items locally or there is a new mail order service now available to those not in the locality to source a selection of their plants.

They also offer a planting consultation where a member of their experienced team will visit your garden to give specific advice and information on planting suitable for your garden. Perfect for clients wanting to plant the garden themselves but are unsure on which plant goes where. Alternatively, they can do it all for you either planting up an unused area of the garden or the whole space. This service is becoming incredibly popular with customers who would like an established looking garden in an instant. If your garden needs a complete re-design then their award winning garden designer Jamie Dunstan can even come out to your property for an in-depth garden consultation.

Jigsaw Be part of the summer spirit and purchase the official RHS Chelsea Flower Show jigsaw from the UK’s largest online supplier of puzzles, an established family business run by husband and wife duo Alan and Clare Maclachlan. Available at:


Generation Spring / Summer 2011

Knoll Gardens will be bringing 50 or 60 varieties of grass to Chelsea, including a new blue fescue, ‘Tomales Bay’, equally at home in gravel or containers. Every year the stand is like a kinetic sculpture, with the leaves and inflorescences swaying and shimmying in the fraught atmosphere of the Great Pavillion. “We try to get 5ft or 6ft tall Miscanthus and Arundo, and we come right down to the little ones, like Carex divulsa, another British native. It’s under a foot high.” Lucas admits that his gold-winning displays are unrehearsed. “There is never a plan, certainly not a drawn thing. It’s really a question of letting the plants do all the work. We turn up, I look at the plants and then start putting them together. Usually when we arrive, everyone leaves me alone for half an hour as I go through my panic stage.”


Bulldog Tools Bulldog Tools have been made at Clarington Forge, Wigan for 230 years. The factory has the only full time working forge making spades and forks within the UK, producing over 2000 garden and contractors tools every day. Bulldog Tools currently employs over 65 people, most of whom are multi-skilled. It is quite common for several generations of the same family to have worked for the company with some employees tracing their family ties back four generations. Farmers, contractors and professional landscapers stand as a testament to the quality of product upon which their livelihood depends. The skill and craftsmanship that was the key to the company’s success in years gone by, are still maintained and the same forging process is used to this day.

R. F. Lawrence and Sons R. F. Lawrence and Sons has over 50 years horticultural experience and will again be showing at 2011’s Chelsea Flower Show. The family partnership includes Reg and Joyce Lawrence and their sons Trevor and Nigel. They are the only large-scale producer of Chrysanthemum blooms in the UK. In 2008 Trevor Lawrence, along with Don Wright and Martyn Flint, set up Chrysanthemums Direct to sell young plants direct to consumers. Since its beginning in 1958, there has been a vast transformation of the business. From a County Council smallholding with about two acres of bare land, to now being privately owned by the Lawrence family, the area now totals roughly 35 acres. In the early years, sales were mainly to small local retailers, and to New Smithfield Market in Manchester. Currently, supply is to most major wholesale markets in the North, North West, Midlands and North East. Since

2008 they have been supplying their Chrysanthemum blooms to M&S. Many different varieties of flowers have been grown over the years by

Barlow Tyrie Barlow Tyrie was founded in 1920 by Frederick Barlow and Victor Tyrie in London, England. They quickly gained a reputation for their outdoor furniture, made almost entirely by hand and to the highest standards. In 1967 Peter, son of the founder Victor Tyrie, joined the company and in order to increase production levels relocated to a new factory at Braintree, outside of London. Growing demand for the company’s products has resulted in the steady expansion of this factory, which now occupies 90,000 ft 2. In 1986 the company formed its subsidiary Barlow Tyrie Inc. in New Jersey, USA, to service the large casual furniture market in North America. This subsidiary has permanent showrooms in Chicago and at High Point, North Carolina. In 1992 the company formed its subsidiary P.T. Barlow Tyrie Indonesia to ensure a continuing source of teak from the environmentally sound plantations on the island of Java. This action was in response to a ban, at that time, on the export of sawn timber by the Indonesian government. The factory processes teak logs, kiln-sawn timber and manufactures components and products which are distributed to retail outlets and trade customers worldwide. The company remains a family business and is now in its 3rd generation with Peter’s sons, James and Mark, working in sales and design.

the Lawrence family, including Stocks, Iris and Sweet Williams. However, the main core of the business has always remained with the production of many varieties of Chrysanthemum, and they are now specialists in all stages of production. They are now one of the few remaining bloom Chrysanthemum producers in the country, cutting some 1.25 million blooms annually.

Generation Spring / Summer 2011


We invite you to London’s oldest networking organisation In tough economic times we all need a helping hand The Executive Association of Great Britain are members of the IEA


The Executives Association of Great Britain was founded in 1929 and has established itself as one of the foremost business networking organisations in the UK for businesses of all sizes. Our motto is Creating Business. We meet monthly at The Dorchester in Mayfair, London for lunch, a top class guest speaker and networking. We believe that we can have fun and do business at the same time. If you'd like to see for yourself, contact:

Email or call 01375 893 414 Supported by DESIGN GROUP


Hiring & Firing Regular Generation pundit and business mogul, Charlie Mullins, explains why he finds the current employment laws frustrating for small business owners. The idea that the private sector must grow, and grow fast, and by doing so bail the country out of its current economic woes, seems to have become de facto recession busting policy. The idea is that this growth will not only create wealth but also save us from 1980s unemployment levels, as thousands of civil servants are decommissioned to cut costs. In theory this

“We need far more freedom to be able to fire people Who are unable to carry out their jobs to a satisfactory standard” strategy sounds plausible. So why don’t we get on with the hiring and get the recovery on the road? I’ll tell you why; it’s because when I hire someone I’m obliged after a couple of months to give them an employment contract. The problem being that once said contract is in place getting rid of them (should they not make the grade) without facing a hefty employment tribunal claim, is practically impossible. One of the reasons why the public sector has become so ungainly and inefficient in the first place is because for years it has been allowed to hire endlessly without ever jettisoning those who weren’t up to snuff. Thankfully the government is attempting to sort this situation out, so surely it would make good sense not to allow it to develop in private industry? That’s why I think two years is a much reasonable length of time for someone to be in a job before they must be offered a contract by right. I’m not saying that should be the case all the time, but offering a contract, complete with all the benefits that go with should be the choice of the company paying the wages. In short we need far more freedom to be able to fire people who are unable to carry out their jobs to a satisfactory standard. Now I’ve got that off my chest I’d like to add that if we can radically reform employment law along these lines, so that things aren’t so heavily stacked against the employer, many

more, not less, people would end up in work. The reason being by removing the potential hazards (and costs due to the potential of losing tribunal cases) of getting an employment decision wrong would be far less. And what’s more, the slackers, and everyone’s had a few on their books over the years, who toe the line for a few months, but once over their probation period, become disruptive and workshy, would surely become extinct. Now there’s an environment where we might have a better chance of tackling the recession.

Generation Spring / Summer 2011


Become a FRIEND of Family Business Place for only £50 Take advantage of great savings on our events and publications and much more besides Discounts worth over £150 in the first year alone!

The Family Business Place is a fast growing business aimed at delivering quality publications, events and resources to family businesses and their professional advisers. We already publish the UKs only bespoke family business magazine, Generation, run the Family Ties Conference and present the Red Ribbon Family Business Awards. Help us to continue to champion the cause by becoming a Friend of the Family Business Place and take advantage of the following added value benefits:

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A voice in Westminster The IFB has made it a high priority to raise greater awareness of the family business sector in Westminster and there have been a series of significant events and meetings in recent months. Most notably this spring was the formation of an All-Party Parliamentary Group (APPG) for family business. This will give the UK’s 3 million family firms a chance to highlight their importance to the economy to both MPs and peers.

restriction on Entrepreneurs’ Relief should be removed as it discriminates against family investors. The association was also pleased to see that HM Treasury will review proposals put forward by the Office of Tax Simplification on Inheritance Tax and Trusts. Many family businesses use trusts as a way to ensure stability in management and ownership, particularly during the handing over of the business from one generation to another. The IFB has therefore called on the Government to introduce a ‘family business trust’ to help in the succession process and ensure the continued survival of greater numbers of family businesses. A consultation has also been announced on the role of the Enterprise Investment Scheme (EIS) which the IFB believes at present holds back family business entrepreneurship. The IFB have therefore called for the elimination of the ban on family members qualifying for relief on investment in new family business start-ups.

A role in the Big Society

An APPG is an informal cross-party interest group run by and for Members of the House of Commons and Lords and more than 50 MPs and peers have signed up as members with Chris Kelly MP as chair. The APPG is sponsored by the IFB and will hold a series of events such as site visits and policy discussions to give Parliamentarians a greater insight into how family businesses operate and the barriers to growth. In conjunction with the APPG launch an Early Day Motion (1390) has been lodged in the House of Commons, kindly sponsored by Lindsay Roy MP, which recognises the role of the sector in supporting employment and growth, its importance to nurturing entrepreneurial talent and its commitment to social responsibility. We would urge any family owners who are reading this to contact their local MP to gain their support for the EDM.

Lobbying the Treasury In the aftermath of the Budget the IFB has written to HM Treasury recognising that measures, such as the changes to Entrepreneurs’ Relief for Capital Gains Tax, are directly helpful to family businesses. Nevertheless the IFB suggested that there was more work still to be done and recommended that the ‘working in business’

In another meeting with Government the IFB met with the Big Society Czar Lord Wei to highlight how the family business sector supports many local communities across the UK and already plays a vital role in the Big Society. Former IFB Chairman Andrew Wates told Lord Wei about the Wates Group’s annual community day – a volunteer scheme that encourages the company’s employees to make a difference to other people’s lives – which has donated more than 12,700 hours of work to local communities. The IFB put forward a number of policy recommendations to Lord Wei, including tax breaks for companies that offer matched funding schemes for employee giving.

Women in Family Business On another positive note for the sector a recent IFB survey has shown that family firms are leading the way in the appointment of women to senior positions compared to non-family businesses. It revealed that the total of female directors in family firms is 44% compared to 32% in non-family firms. The figures for female directors in family businesses also compare well with the FTSE 100 where the figure for women on company boards remains at 12.5%. Of the family firms analysed in the survey three-quarters had more than 25% female board directors. It illustrates that family businesses can often be the most progressive type of company in the UK.

Generation Spring / Summer 2011



6 OctOber 2011, the rOyal cOllege Of SurgeOnS, lOndOn Following the success of last year’s annual Family Ties conference, the team at Family Business Place have put together another superb line-up of speakers for Family Ties 2011.

more speakers to be announced

Ross Warburton, Warburtons

June Kenton, Rigby & Peller

Paul Kelly, Kelly Turkeys

Ross is the new Chairman of the Institute for Family Business and was awarded an MBE in 2004 for services to the food industry.

The Queen of bespoke underwear, June is MD of Rigby & Peller - a family business proud to boast a Royal Warrant.

Paul is MD of Kelly Turkeys, a thriving family business supplying award-winning turkeys to people such as Jamie Oliver.

Judy Bell, Shepherd’s Purse Cheese

Sanjay Arora, Arora Hotels

Dr. Neri Karra, Neri Karra

Founder and current Managing Director of the award winning Yorkshire-based cheese makers.

The son of one of the UK’s most successful asian businessmen, Sanjay has high expectations.

Neri has a PHD in family business and has used her education to grow a successful luxury leather goods business with her father.

bOOK yOur tIcKetS nOW at WWW.famIlytIeS2011.eventbrIte.cOm


Generation Spring / Summer 2011

last year’s highlights “Just a quick note to congratulate you on fantastic day yesterday. Well organized and a pleasure to attend. From a personal point of view, I found it invigorating and inspirational. It was fantastic to be surrounded by such talent and variety. A big thank you to you and your team.” Paul Crowley, Winterhalter

“A huge thank you for the most fantastic day at Family Ties last week. We thoroughly enjoyed ourselves and learned so much. We would love to be involved again in the future, however you could have us, and we were honoured to have been able to speak this year too.” Miranda and Roland Ballard, Muddy Boots

6 OctOber 2011, the rOyal cOllege Of SurgeOnS, lOndOn

book Online! Generation Spring / Summer 2011



Family Business Place

RED RIBBON AWARDS 2011 At Family Ties 2011 we will be announcing the winners of the FBP Red Ribbon Awards. These prestigious awards recognise the contribution that family businesses, small and large, have made to the UK. Nominate a family business today – Family Business of the Year award sponsored by RSM Tenon This award is selected based on performance and achievement and their promotion of the family business in the way they operate. The Longevity Award This award recognises the achievement of the family business that has successfully evolved through more than three generations. Small Family Business of the Year This award seeks to recognise the contribution of family businesses with turnover up to £5m.

The Family Business Ambassador Award This award recognises the professional adviser who has tirelessly promoted the value that family businesses bring to the UK economy and has supported the family business community. The Innovation Award sponsored by Pemberton Greenish LLP This award celebrates the business that has shown significant innovation in the way that they work through new products, approach to business or the way they engage with their customers. The Corporate Social Responsibility Award

The Young Gun award This is awarded to a young person who has demonstrated a true commitment to their family business and has had a significant impact since joining. The Lifetime Achievement Award sponsored by Farrer & Co. This is awarded to the family business member who has clearly demonstrated a commitment to the development of the business through a lifetime of endeavour.

This award celebrates the support for the local community through sponsorship and donations as well as recognising the contribution that the family business can make to the environment. For more tickets and info visit

nominate a family business today! 22

Generation Spring / Summer 2011

Your family business is in safe hands If you would like more information about our Family Business services please contact: Nick Love 01202 663606

generating success

patron of



BROS Twin brothers Marc and Tony Stevenson joined forces in 1982 with very clear goals in mind after serving an apprenticeship with their uncle James Bosworthick, the rocking horse man. A shipwright by trade he specialised in making children’s toys and was happy to pass on his skills to his nephews.

aving already founded a successful branding and marketing agency in Bristol, Marc was keen to transfer his skills learnt in business over to the family business and on 20th October 1982, on Marc and Tony’s birthday, Stevenson Brothers was born. Their vision was to become the world’s leading rocking horse makers and from the start, their reputation spread at such a speed that they soon outgrew the family farm and took on their own premises in Bethersden, Kent. For Marc, it was important to return from setting up his own business and try something new with his brother in order to provide a secure future for their families and also to create their own destiny. “I had gone off and done my own thing at quite a young age but had always wanted to create something with my family, a business which could provide for our future generations. With some of our own children now interested in the business, you can’t beat the feeling of being able to offer a secure career path for life.” explains Marc. Talented craftsmen have since joined the team and you only have to visit their Kent workshops to know that it’s not just Tony and Marc who are like family. Many of their carpenters have been with them for 10, 15, 20 years and you can feel a real sense of pride in what they do. Every little detail is agonised over, only the finest materials are used and every member of staff oozes pride when talking about their horses.


Generation Spring / Summer 2011

Photography by Nick Gillott

“As a family business I think we have a great respect from those who appreciate quality, loyalty and personal attention” Stevenson Brothers produce 300 rocking horses every year and boast clients such as The Queen, Joanna Lumley, Ferrari, Harrods, Cherie Blair, Aston Martin and the Sultan of Brunei (who ordered a complete merry-go-round). They are also proud makers of horses for charity auctions


Generation Spring / Summer 2011

including one commissioned by Cherie Blair which sold for £35,000. For the Queen’s Golden Jubilee in 2002, Stevenson Brothers presented her with their 5,000th horse at Windsor Castle. Mounted on a coach spring, with a unique ride and extra long stride, the traditional dapple grey horse is tacked in black leather, fitted with a removable side saddle pommel and saddle cloth in Her Majesty’s racing colours. The cloth bears the Royal cipher hand stitched in gold thread by the oldest heraldic embroiderers in the country. Marc explains their delight in being given this opportunity – “As a family business I think we have a great respect from those who appreciate quality, loyalty and personal attention. We’ve been lucky enough to make horses for some wonderful clients which in turn has given us great profile and

This page Limited edition zebra Opposite Tony Stevenson; the Rocking Horse Hospital; a private commission with Her Majesty the Queen


positioned us as the leading rocking horse manufacturer in the world.” So what’s Marc and Tony’s secret to running a successful family business and still being friends after 25 years of running a business together? “We have completely different skills and talents and so are in charge of different aspects of the business. With a background in marketing and profile building I am always looking for new ways to build upon our reputation and client base and make sure that our brand stays top of mind as a leader in the field. Tony is much more hands-on with the production of the rocking horses and ensures that the story of our family business is consistent with that of the quality of the horses leaving our workshops.”


CLEAR THINKING Amalia Brightley-Hodges speaks to Mum of two and Arts and Crafts superstar, Barbara Gray, about her journey from kitchen table to TV celeb.

Opposite Barbara receives a 2010 Craft Award for her rubber stamp range Right Barbara wth her mother Hilma and daughter Grace

t’s 1993 and Barbara Gray is sat at her kitchen table in sunny California. Not wanting to miss out on her kids growing up for the sake of corporate life, she has decided to start her own arts and crafts business from home. Who would have known that back in the UK nearly 20 years later, she would be a household name in the crafting world, with a team of 15 full time staff running a busy, vibrant workshop and her own prime time slot on the Craft & Create TV channel? “Everybody thought I was crazy to start a business in a field which didn’t match my qualifications,” says the Mother of two, with a linguistics degree tucked safely in her bottom drawer. “I had a great time working abroad, but when my youngest child was born, I realised I wanted to be at home and so needed a business which would allow the flexibility of being a full time mum.” Having been pushed towards an academic degree when she was younger, Barbara was keen to experiment with her creative side and saw a gap in the market for a transparent artstamp. She invented, designed and patented an innovative line of beautiful see-through stamps for creating handmade greetings cards and artwork. “For me the intention was never to pass the business down to my children, it was simply to make ends meet and be able to fund their education, give them a chance in life. It’s only in the last couple of years that things have really taken off and the business has truly become something which the children might want to get seriously involved in.” Barbara’s life-partner, David, works alongside her in the business, and when her daughter, Grace, graduates from University, she will join the business full time. “Dave is my backbone. He is my personal rock. Grace is my daughter. She is brilliant. I know her inside out, back to front. I trust her implicitly and have unwavering confidence in her ability to help me run a successful and expanding business. I have been offered an opportunity to expand

Claritystamps into Germany, which is great, because my Mum is German and I am bilingual, but it’s only because I have the assurance of knowing Grace will manage the UK business whilst I’m away, that I have the confidence to expand.” However Grace isn’t the only young blood in the company. Almost all of Barbara’s staff are under the age of 30, and Barbara takes pride in the fact that she has never had to advertise or formally interview when recruiting. Each person was referred to Barbara through an existing employee. “The single most important thing for me as a Director is to ensure that my staff (including my family members) all have a safe place to work, are well-paid, and have access to training opportunities. It’s my responsibility to teach the team how business works and how to conduct

“When things are going well there’s nobody better to share it with than your own family” themselves in a professional environment. We’re lucky in that we have a young, eager workforce looking at how they can help to grow and expand the business instead of just winding down towards retirement.” Barbara continues. She ends “In a family business there’s no freeloading. Everyone takes responsibility because at the end of the day, it has a direct impact on the life we lead as a family. We all take it personally when things go pear-shaped, but when things are going well there’s nobody better to share it with than your own family.”

Generation Spring / Summer 2011


T: +44 (0)20 7437 5050


OFF! Renowned milliner Philip Wright speaks to Paul

Andrews about the colourful history of his family business through the years.

he hat is the essential prop in assisting the wearer to broadcast what they want to say. Whether it is with family and friends or out and about amongst strangers, according to Philip Wright, the hat can help complete the story. Walter Wright was formed in 1889 on the wedding day of Walter and Minnie-Susan Wright which was a unique union of two long established hat families. Walter Wright was from a felt hat producing family originating from the Huguenots and settled in London after their expulsion from mainland Europe in the 17th century. Minnie-Susan was the eldest daughter of a Hertfordshire family whose origins were firmly established in the local straw hat industry. The combined knowledge of Walter and Minnie-Susan, their experience and attention to detail rewarded them with success and a reputation that led them to become leading suppliers to the larger wholesalers and shops and, eventually, to the new concept of retail: the 'chain store', such as Marks and Spencer and later British Home Stores and John Lewis Partnership.

Photography by RGB Digital


Walter and Minnie-Susan went on to bear seven children and establish seven factories…one for each child! Philip Walter Wright, after serving in the army in India, succeeded his father, Walter, to take charge of the original business. Philip, or Mr. Phil as he was known, carried on the family tradition of volume, quality production, often purchasing the entire annual production of raw material suppliers from England and Italy to satisfy the demands of his English customers. A great supporter of the local Luton football club, 'The Hatters', he became a director of the club in the 1950’s. In the meantime, between his responsibilities to the hat factory and his 1000 staff, his family and his football club, he still managed to find time for his passion for cards, once winning the title deeds of a hat shop in London at a game of poker. (The family still wonder what his stake had been!) Walter Philip, the son of Philip Walter and Charlotte Elizabeth Wright, a dress maker and millinery designer from London, after a successful career in the army, first worked for his Uncle as a director of one of the other family factories, Walter Wright and Sons. In the late 1950’s, when Philip Walter’s health declined, Walter Philip took over the control of his father’s factory at Albion Road. Demand for hats since the 1940s was in decline due to social and life-style changes. Consequently Walter Philip focussed the production of the factory on satisfying the demands and high standards expected by the chain stores of England and Europe, enabling him to minimise production costs with volume orders. Superior quality, craftsmanship and Walter’s ability to react quickly to the ever-changing demand resulted in the continued success of the family firm. During a time of difficulties in sourcing dedicated staff and industrial hardships in the 1970s and 1980s, Walter Wright remained a market leader in UK production. In 1978 a fire totally destroyed the premises at Albion Road and the grand interior of Luton’s first custom built hat factory, along with the historic machinery and artefacts. Walter Philip continued to trade, reducing the output of the firm to correspond with the size of the premises he could occupy until the original factory was refurbished. In 1982, Philip Ian, after gaining experience working in London, joined his father at the Albion Road factory. To satisfy his passion for contemporary design he attended the London College of Fashion under the tutorship of Madame Marie O’Regan, subsequently being presented to his Royal Highness, Prince Charles, Prince of Wales as an aspiring young hat designer. When Walter Philip’s responsibilities as Master of the Worshipful Company of Feltmakers of the City of London required him to direct his attention to


Generation Spring / Summer 2011

“The family appreciate my role and what I bring to the company and the way that I can harness its values.”

his Livery duties, Philip Ian took charge of the running of the factory. In 1999, Philip took formal charge of the family business and in 1992 incorporated the Company. The Future In 2008, Philip, along with his partner and codesigner, Valerie Corona, expanded the client base, designing and making hats for alternative occasions. By using the same skills and professionalism a new market began to emerge, encouraging a wider selection of accessories. The new range evolved into a totally different style from that of the classical Walter Wright label and the brand was formed. Recent years has seen the High Street across Britain become a hard place for British manufacturers but Walter Wright are still finding a high degree of interest in their creations from the public. With the new range, and continued growth in private commissions, the business has remained at the fore in terms of hat making and is continuing to battle against imported products from overseas.

“Anybody who is serious about their business will find BGP well worth the money” Angus Thirwell, MD Hotel Chocolat, BGP 2000, FastTrack 100 company

MAKE SURE YOUR BUSINESS IS IN GREAT SHAPE FOR GROWTH Over 1150 owner-managers have taken part in BGP at Cranfield – one of the top 3 business schools in the country. Many businesses are just like you, and have used BGP to create successful strategies for family succession and long-term sustainable growth. Some have gone on to create national and international brands like Cobra Beer, Hotel Chocolat, Currencies Direct and GoApe! In 2009 no fewer than six of the UK National Business Awards finalists were BGP businesses. To learn more contact Beth Duff 01234 754880 or visit Join us at one of our regular Briefing events and experience how Cranfield can make the difference.


Business Growth and Development Programme @ Cranfield


FLYING HIGH As the only son of one of the UK’s most successful Asian

businessmen, Sanjay Arora speaks to Amalia BrightleyHodges about his aspirations to join his father’s hotel chain.


hat started as one man’s determination to succeed has now become a multimillion pound family business with the next generation already eager to be involved. Surinder Arora arived in the UK from India at the age of 13 and 40 years later now owns a string of hotels around the country and is one of Britain's richest Asians. Despite only being in his second year at university, Surinder’s youngest child and only son, Sanjay, has a firm vision for his role in the business – “I decided to study Marketing at university because I think it will equip me with the skills I need to eventually lead the business one day. Although I’ve worked in our hotels throughout my summer holidays, I don’t want to rush straight in once leaving university. Most people will agree that it’s a good idea to get outside experience before joining the family firm. That way I will be able to bring something new to the table and gain respect from those who have been working for my father from day one.” After leaving school, Surinder Arora spent 11 years at British Airways as a Customer Services Officer during which time he also gained his pilot’s licence. He then went on to become a Branch Manager at Abbey Life and in 1988 was the 2nd top sales person in the country. But what Surinder was really interested in was property


Generation Spring / Summer 2011

development and in 1993 left Abbey Life to follow his passion and began investing in property. Surinder bought a row of derelict houses opposite Heathrow and turned them into bed and breakfasts which in turn became a hotel purely for British Airways' crew members. Although now also open to the public, the hotel still offers great packages for all of the major airlines, something which no other airport hotels offer.

“I am determined to do whatever it takes to ensure my father’s hard work all these years was worth it” Over the years to follow, Arora Hotels began expanding at a steady rate and the portfolio currently comprise of seven directly managed hotels with over 2,500 bedrooms. In order to get BAA onside and guarantee a successful hotel at Heathrow’s Terminal 5, Arora became a franchisee of the Accor group and runs his hotel under the Sofitel luxury hotel brand. So with a father who regularly eats out with Cliff Richard and is part-owner of Wentworth Golf Club along with his billionaire pal Richard Caring, how does Sanjay feel about stepping up

to the mark and taking on the responsibility of one day being at the helm of the Arora ship? “It’s safe to say that over the years I have worked in every single department of the hotel and have a total appreciation for what it takes to be successful in such a competitive industry. Yes, it’s a daunting prospect to think that one day I’ll be up there with my father, making big decisions which will impact the business. But at the same time it’s a prospect I embrace and am determined to do whatever it takes to ensure my father’s hard work all these years was worth it for generations to come.” For Sanjay, the term ‘family business’ not only means working alongside his father and two uncles, but it’s also a reference to the culture of their business – “Our mantra is to treat staff like family and guests like royalty. My father knows the name of every single person who works for him and is a regular sight at all of the hotels, meeting staff and guests.” Family business is in the blood and Sanjay believes that family businesses are a strong force in the UK economy. Like many family businesses he agrees that not enough recognition is given to the contribution that they make. He is proud to have his name above the door, promoting the family cause.

Top Sanjay and Surinder Arora Above and right Spa and bedroom at Sofitel Heathrow

Generation Spring / Summer 2011



BY ROYAL APPOINTMENT Paul Andrews spoke to a number of family business Royal Warrant holders to find out what it means to them.

oyal Warrants signify that a satisfactory trading arrangement is in place between a nominated person within a company, the Grantee, and the Grantor - HM The Queen, HRH The Duke of Edinburgh or HRH The Prince of Wales. Highly prized, it is great to see so many family business recipients as Royal Warrant Holders. Companies can only apply for a Royal Warrant once they have supplied goods or services for at least five years to one of the three Grantors. A Royal Warrant is held for five years and reviewed after four which means that a company must maintain the exacting standards of service, consistency and reliability if it is to retain its Royal Warrant. Those awarded the Royal Warrant of Appointment by HRH The Prince of Wales have for many years had to comply to an environmental and sustainability audit. This has recently been extended to all companies applying for a Royal Warrant, and from 2012 all Royal Warrant holders, both existing and new, will be required to complete the audit. There are just over 800 Royal Warrant holders representing a huge cross-section of trade and industry. They range from traditional craftspeople to global and multinational firms operating at the cutting edge of technology. They all share the same essential qualities through their provision of exemplary service, excellence in terms of products, trustworthiness and reliability. Warrants are granted to named individuals, Grantees, who must personally ensure the Warrant is used correctly. Warrant holders may display the relevant Royal Arms and the legend ‘By Appointment’ on their products, premises, stationery, vehicles and advertising.

In the United States and the Far East the prestige of holding a Royal Warrant is recognised and the perception is that the Royal Family would not allow a company to use their Royal Arms unless that company excelled. As in many spheres, it is easier to be appreciated abroad than in one’s own country and, in the UK some consider it to be elitist and therefore, by

“Holding the Royal Warrant affords family businesses a great opportunity to display the Royal Coat of Arms” association, expensive. In reality, this could not be further from the truth, as all Warrant holding companies represent excellent value for the quality services and products that they supply. They achieved their reputation by serving the general public before supplying the Royal Households and the breadth and diversity of their customer base remains important to them. Holding the Royal Warrant affords family businesses a great opportunity to display the Royal Coat of Arms which many believe provides them with a great commercial advantage. It is great to see so many family businesses on the list of Royal Warrant Holders – a real confirmation that family businesses offer an exemplary service and standards that are clearly recognised in the products and services that they offer.

Generation Spring / Summer 2011



STROKE OF GENIUS A modern company in a traditional world, Kent Brushes has been flourishing for generations.


anufacturers of brushes since the eighteenth century, GB Kent & Sons Ltd is one of the oldest and most established companies in Great Britain. Kent Brushes (as they are now more commonly known) was founded in 1777 by William Kent during the reign of George III. Kent holds a pre-eminent place in the history of brush making, with an unbroken record of excellence in the quality of its production which has been recognised by the granting of Royal Warrants for nine reigns. The Kent family continued to run the company for six generations until 1932, when the last of the three Kent brothers passed away. This is when Mr Eric L.H Cosby, owner of Cosby Brushes Ltd, entered into an association with G.B Kent & Sons. This ushered in a new chapter in Kent's long history, and since then the company has been under the creative and dynamic lead of the Cosby family. Today, Mr Alan H.L Cosby, grandson to Eric Cosby is the Managing Director and Chairman, with his wife, son and one of his three daughters working for the business. The company's headquarters were moved from London to their existing factory in Apsley, Hertfordshire on 6 February 1984. They continue to operate from there there to this day. The company continues to retain the craftsmanship and unprecedented quality that is Kent's reputation. Even in todays fast moving, mass-producing assembly lines, Kent are proud to still be manufacturing many of their original brushes by hand. Nevertheless, Kent Brushes is committed to developing and enhancing its products with every step they take. Kent harness the latest hi-tech manufacturing processes, whilst building on the time-honoured traditional methods to create the world's finest example of each and every brush that leaves their factory.


Generation Spring / Summer 2011


YES, CHEF! Anton Mosimann OBE shares his passion and love of food with his two sons.


nton Mosimann, OBE came from a culinary background and developed a hunger for as much experience as he could gain working in luxury five star establishments throughout Europe as well as Canada and Japan. It was the year that he spent in Japan that was to have the most influence on his style of cuisine. He came to realise the direct correlation between health and food and since then has been on a quest to ensure that healthy eating becomes the norm. He developed a style of cooking that he named Cuisine Naturelle, it was 25 years ahead of its time. By not using salt, butter, fat or alcohol he concentrated on the pure taste of the ingredients, ensuring that they were local and the freshest available. He still adheres to those simple rules, alongside the crucial “that everyone deserves a treat from time to time” motto.

“The Royal Warrant recognises this family business and all that it has achieved” For that reason his bread and butter pudding, a twist on the traditional British dessert has become his signature dish and much in demand in Royal Palaces across Europe. Anton created Mosimann’s, an exclusive dining club in a converted church in Belgravia in 1989 and went on to establish an outside catering company. In 2000 he was honoured with a Royal Warrant of Appointment by HRH The Prince of Wales for catering and in 2004 was presented with an OBE by HM The Queen. Three years ago, both his sons decided that it was time to return to London. Philipp Mosimann had worked in Singapore and then as Operations Director for Movenpick in Europe and Mark had been in Shanghai running an award winning restaurant for 4 years. Both sons had trained at

the Lausanne Hotel School in Switzerland and decided to embark upon careers in the hotel and catering industry, although neither wanted to emulate their father as a chef. Exclusive and discreet, Mosimann’s holds the Royal Warrant which recognises this family business and all that it has achieved, and continues to achieve. Located in the heart of Belgravia, Mosimann’s Club is one of the most prestigious private dining experiences in the world.

Generation Spring / Summer 2011



ROYAL SCENT Purveyors of the Finest Perfumes and Toiletries to a select discerning clientele since the year 1730. loris is now run by the eighth generation descendants of its founder Juan Famenias Floris and 89 Jermyn Street remains at the centre of the business empire. The first Royal Warrant granted to J.Floris Ltd was in 1820 as ‘Smooth Pointed Comb-makers‘ to the then newly appointed King George IV. Today this first Royal warrant is still on display at 89 Jermyn Street together with no less than sixteen others. Ever since that first auspicious day Floris has always held at least one Royal Warrant, and today holds two. In the 18th and 19th centuries, the Floris ledgers of this period detail accounts held by an incredible array of public figures, gentry and includes virtually every European Royal house. Bouquet de La Reine – The Queen’s Bouquet - first appeared in the Floris repertoire in 1860. A contemporary floral and fruity

adaptation was created to celebrate the Golden Jubilee of Her Majesty The Queen Elizabeth II and is available today. The choice for men is Floris No.89 Classic Eau de Toilette, made famous as the fragrance worn by James Bond in the books and a personal favourite of Ian Fleming himself. Edward Bodenham, Marketing Director concludes, “After eight generations, each of us has inherited many legacies to help us move forward, in particular we have learned to take decisions for the long term good rather than short term gain – it has taken us over 278 years to attain the reputation we have and we must continue to safeguard this and to enhance and build on our core values for future generations to come.”

“It has taken us over 278 years to attain the reputation we have”

Generation Spring / Summer 2011



SUPER BOOK WORM From milllion-pound first editions to rare manuscripts and modern literature, Maggs Bros have bought and sold some of some of the world's greatest publications.


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he firm of Maggs was founded in 1850 by Uriah Maggs, who at the age of 25 had left his home town of Midsomer Norton in Somerset to set up shop in London. He ran a general stationer's, newsagent's and bookseller's business in the style of the day. Lending and selling books and newspapers, he built the business into a flourishing concern. The transformation into a specialist bookdealer took place over fifteen years, and by 1870 the main thrust of his business was "Second-Hand Books, Ancient and Modern, in all Classes of Literature." All four of Uriah's sons eventually joined the business, taking over on his retirement in 1894. The initial Maggs Brothers of the firm's title were Benjamin and Henry, later joined by Charles and Ernest. In 1901 the firm moved to the Strand, then the centre of the London antiquarian book-trade. A further move in 1918 led them to 34/35 Conduit Street and 1938 saw the firm moving again, this


time to 50 Berkeley Square, where it still remains. It was to be a lucky move, for the Conduit Street premises were completely destroyed in the Blitz. The 1920's and 1930's were a golden era for bookcollecting and during these years the firm handled some extraordinary material. They sold Napoleon's letters to Josephine (to the French Government), dispersed the library of the Comte de Chambord (King Henri V of France), helped King Manuel II of Portugal form one of the greatest libraries of Portuguese and Latin American books and manuscripts, sold the papers of the Earls of Huntingdon en bloc to the Huntington Library of California and issued a catalogue containing six block-books bought by R.E. Hart of Blackburn, Lancashire for cash, and now at Cambridge University Library. The collection of Napoleonica formed by his doctor, Vignali, and sold by Maggs in the early 1920's, famously included Napoleon's mummified membranum virilis. Ben died in 1935, having been allowed the rare pleasure (shared with Mark Twain and Sabine Baring-Gould) of reading an exaggerated account of his own death earlier in the year, and Ernest continued in the business until his death in 1955. The members of the next generation of the Maggs family were to be Clifford, Frank & Kenneth, now cousins as well as brothers. Clifford was the firm's incunabulist and medieval manuscript expert, a bookseller of the highest integrity. In 1998 the company set a new record for the most expensive printed book when buying for £4,200,000 a copy of the first book printed in England, Caxton's Chaucer. They also handle books at more affordable price levels, hoping to be able to offer something for the enthusiasts of all means. Three members of the family still work in the firm, its chairman John, who like his father Frank is a specialist in travel books, with a particular enthusiasm for cartography; Bryan, one of the world's leading authorities on the history and technique of bookbinding; and Edward, managing director and specialist in modern literature and illustrated books. One of the great assets of the firm has always been its extraordinary loyal staff, among whom have been and still are, many of the greatest experts in their areas. Dr. Ettinghausen who worked closely with Sarah Laredo, largely responsible for the great Americana catalogues; many customers today will remember with affection Bill Lent, who was with the firm over fifty years, but not all realised that his father had spent thirty years working for Maggs before that, making

“Staff turnover is so low that at the last count the 21 employees of the firm had some 340 years of service between them”

over eighty years between them. Indeed staff turnover is so low that in the year 2000 the 21 employees and directors of the firm have between some 340 years of service, making an average of over sixteen years a head. Maggs Bros. Ltd. have been antiquarian booksellers by appointment to H.M. King George V, H.R.H. The Prince of Wales (later King Edward VIII), H.M. King Alfonso XIII of Spain, H.M. King Manuel II of Portugal, and are currently favoured with the Royal Warrant to H.M. Queen Elizabeth II.

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Keeping Memories Precious How many of us have inherited jewellery from relatives, grandparents, our mothers and fathers, but never worn them either because they are old fashioned or simply forgotten and hidden away? At Irene & Jenny we provide an exclusive bespoke service to breathe new life into treasured family gems, by using them to create beautiful and unique rings that will last for generations. Contact us to arrange a private consultation. Visit our website or telephone 07590 830 001 email


TAILORED TO PERFECTION Amongst Savile Row's most prestigious tailors, Dege & Skinner represent fine British tailoring worldwide.


ege & Skinner is one of Savile Row's most distinguished tailoring houses. Established in 1865 and known for its expertise in military as well as civilian clothing, Dege & Skinner is a rarity on Savile Row in that it remains a familyrun business. Current Managing Director William Skinner is the fifth generation of his family to work in the tailoring trade; his father and current Chairman Michael Skinner was at the Queen's Coronation in 1953, when he dressed the Peers of the Realm with his own father William Skinner, or as he was fondly known, Tim. Dege & Skinner currently holds three Royal Warrants:

thimbles, thread and sewing silk to ensure we were able to put things right at the drop of a hat, if there was a problem. I even helped my father and John Dege dress Sir Winston Churchill! During the last 20-30 years we have had the pleasure of making uniforms for members of the Royal Family. We had the honour of making the uniforms for Prince William and Prince Harry when they were commissioned into The Blues and Royals, which can be seen in the double portrait of the Princes currently hanging in The National Portrait Gallery.� Michael says with pride.

By Appointment to H.M. Queen Elizabeth II In 1984 the company was honoured with a Royal Warrant of Appointment to HM The Queen in recognition of many years' work for the Lord Chamberlain's Office culminating in the quincentennial of the Queen's Body Guard of the Yeoman of the Guard in 1985, making new uniforms for the Officers. By Appointment to H.M. the Sultan of Oman Since the Chairman's first visit in 1977 uniforms have played a prominent part of the company's work in Oman; many of the country's majestic ceremonial uniforms are designed and made in the company's workshops. In 1981, in recognition of the work carried out the company was awarded the Royal Warrant of Appointment to HM The Sultan. By Appointment to H.M. the King of Bahrain The company has been supplying the Royal Household of Bahrain for over thirty years with civilian and military clothes. Dege & Skinner have the honour to receive the Royal Warrant of Appointment to HM the King Hamad of Bahrain. Remembering The Queen's Coronation in 1953, Michael Skinner recalls, "After months of preparation the great day arrived! I got up at 4.30am and my father and I went to London by car. We were equipped with spare ribbons, bows, safety pins, needles,

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HAPPY ANNIVERSARY! Whether you have been in business for 20, 120 or 200 years, your success deserves to be recognised. We design and produce spectacular and innovative books that will capture your achievements. The process is simple and enjoyable, we will: • • • • • •

Hear your story and identify special landmarks and triumphs Collate all material including photographs and memorabillia Write or edit your story Design something amazing and unique Use the latest printing, finishing techniques and materials available Present the book in its own presentation box

Our job is to help your business shine.

For further information visit For a private consultation call Anita on 07815 497417 or email

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THE PRIDE OF YORKSHIRE Family businesses can be found in all corners of Yorkshire, in all shapes and sizes. Mike Linter, Head of family business at KPMG investigates the diversity that exists there. Born and bred in Yorkshire myself, I have had the pleasure of witnessing firsthand the development of numerous family-run initiatives in one of the family business heartlands in the UK. Family businesses contribute significantly to the economic wealth of Yorkshire and the prosperity of the community. These organisations not only generate local jobs, they also provide support for charitable and social welfare projects. Here we feature a snapshot of businesses across Yorkshire to represent the diversity of family owned and operated businesses. Despite the challenging economic environment, they are all taking steps to flourish and are clearly proud of their heritage and provenance. With organisations like these flying the flag for family business, there is good reason for Yorkshire to be proud.

Mike Linter Head of Family Business, KPMG

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CRUNCH TIME Bringing in outside industry expertise saw Seabrook put the crunch back into their crisp empire which is now going from strength to strength ow a £20million business, Seabrook Crisps began life as a simple spelling mistake. When Colin Brook returned from the Navy in 1948 he and his father Charles began making crisps at their fish and chip restaurant and they soon flew off the shelf owing to crisps being rationed. The name ‘Seabrook’ stems from a spelling mistake by a photo developing shop in Blackpool who instead of putting ‘Mr C Brook’, actually put ‘Mr Seabrook’. The business involves three family members; Mr Ken Brook-Crispin as Chairman and Chief Executive, Mrs Jane Brook-Crispin as Director and their eldest daughter, Samantha, who after obtaining her BA in


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Business Management at Nottingham University, joined to develop new products for the company. Charlotte, the youngest daughter, is in her final year at Newcastle University reading Marketing. The company has a had a turbulent journey to get to where they are today including a severe drop in sales during Jamie Oliver’s ‘healthy school meals’ campaign. They have faced a constant battle to increase their market share, particularly amongst the big players like Walkers. But there have also been some great success stories such as Charles Brook’s friendship with his next door neighbour Sir Ken Morrison leading to a strong presence in Morrisons supermarkets and Seabrook

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crisps can be seen in Coronation Street’s Rover’s Return and Emmerdale’s Woolpack. A difficult decision for family businesses, Ken saw the need to bring in some outside expertise in order to grow the company – “The old production ethos was to ‘go as fast as you can until it breaks down’ but by bringing in some great industry players such as John Tague from Disney, Phil Devine from 20/20 Mobile and Barry Higgins from Premier Foods, we soon became a far more efficient business going from 12,000 boxes to 20,000 boxes per day without any investment.” But what are the difficulties that come with the responsibility of running a family business? Ken says “It’s hard having to sack or reprimand family to set the example and show that nepotism doesn’t exist. The other huge downside is 24/7, 356 working days

"We like to run a business where decision making is instant and innovation and entrepreneurial spirit lead out thinking" in the year as home is an extension of the business and anyone who says differently is not passionate about their business.” However, like most family business owners, Ken says the positives far outweigh the negatives and he likes to run a business where decision-making is instant, and innovation and entrepreneurial spirit lead their thinking.

Opposite The original Seabrook team Right Ken BrookCrispin and family

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yorkshire's finest

Well Bred Fresh from the farm and a true provenance too from this third generation family business.


Spud You Like Diversification led to one farming family spotting a market niche and they haven't looked back.


he Bannister family have been farming on the Yorkshire Wolds for several generations. Born into an old farming family, it was Ken Bannister who brought the family onto the top of the Wolds where the family farm is now when he expanded the farming business. Through some risk-taking and element of luck, Ken and his son, Rob Bannister then expanded the farm during the 1970s and the mantle gradually passed to Hilary and Rob to carry on the family farming enterprise. In the late 1970’s and early 1980’s, Rob realised that the farming sector was likely to decline and it was important to diversify. Having grown a variety of vegetable crops, as well as potatoes, a packhouse was built on the farm for washing and grading produce. In entrepreneurial spirit, Rob also started some other ventures, some at the forefront of new technology at the time combining electronics, computer games, exercise bikes and BMXs. All slightly barmy but great fun


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all the same! Things were never dull at home for the family. Over a period of time, the business gained a reputation for supplying quality baking potatoes to the London restaurant trade through the fresh vegetable markets at New Covent Garden, Spitalfields, Western International and Borough. Taking note of the increased demand for convenience food with the advent of microwaves and growth of national supermarket chains, Rob and Hilary decided to pursue another venture to add value to the farm produce by cooking and freezing potato products. In 1985, Rob and Hilary founded Farmhouse Potato Bakers Limited. After a lot of perseverance and dogged determination by a strong husband and wife team, the company grew gradually into one of the leading suppliers of baked potato products in the country. Daughters Marie and Zoe joined later and Farmhouse Potato Bakers is now a complete family business in the true sense of the word.

ykes House Farm was founded in the late 60s by Martin Smith and his father. Back then they were livestock farmers, predominantly as pig breeders, but with a couple of hundred Hereford grazing cattle too. The UK farming industry has faced many tough challenges over the years, but through careful diversification and Martin's strong leadership, the farm gradually established itself as one of the best known catering butchers in Yorkshire. The family business is now in its third generation, with Martin's son and daughter, Robert Smith and Rachel Hirst, at the helm. Robert is a retired Army Officer who now has the company and his family to live for rather than a life in fatigues and tours of duty. Rachel is also back in the family business after 12 years in London. From the world of Film and TV, Rachel tries to add a little glamour and sophistication to the line up but is proud to put her years of experience in the corporate world to use in the family business. Just like their father and his father, their first priority is quality - both in terms of the products they supply and the service they provide. But they're determined not to rest on those laurels, as the recently expanded state-ofthe-art production plant goes to show. “Such investment means we can keep step with the modern world while offering competitive prices and unbeatable customer support.” explains Robert. At the same time, finding an edge in the catering industry is a constant challenge for the family business. With their expert advice, they can offer all the support you need. And if you'd like to meet them in person, you're more than welcome. To watch their cutting rooms in action or get inspiration for your menu, just go and visit them on the farm.

ROAD TO SUCCESS Hansons have transformed themselves from a tiny horse-drawn haulage business into an international logistics force to be reckoned with.


he history of the Hanson family's conversion to the haulage business from their origins as Yorkshire farmers, starts with the ambition of a Yorkshire farmer's wife, Mary Hanson, in 1848. Not content with her household chores she realised an unsatisfied need for an organised regular transport service of wool from Huddersfield to the local cottage weavers in the Pennines and their finished textiles back to Huddersfield. She saw the profit potential and did something about it. A 'first' in so many ways. She commandeered some of her husband's farm horses, employed her sons to handle them as pack horses and started in the transport business from the cobbled streets of Longwood, near Huddersfield. Her pioneering local service gradually developed to three times a week using horses and wagons, working as far afield as Manchester and Leeds. It was unusual for a woman to take this step at the time, and it eventually transpired that she had founded the Hanson family international transportation dynasty 154 years ago. An impressive initiative for women. In 1854 the business passed to Mary's eldest son Joseph and assumed the name Joseph Hanson & Son. He ran the business from Botham Hall Farm where he bred Shire horses, reflecting the family's growing involvement in horses and away from farming. With expansion, the number of working horses grew and new stables were built under the railway

arches at Milnsbridge, Huddersfield to handle the general "smalls" haulage to which was added its first contract, with the Longwood Gas Company, to carry coke and coal. By 1886 when Joseph left the business to his son James William, household removals had been added. Transport, warehousing and distribution, namely "logistics", to give the industry its modern name, is an end in itself for the Hanson family and has been since 1848. Logistics is the major forward thrust now for growth and Hanson remains a family business with a leading reputation for providing the highest standard of service and expertise. The caring philosophy fostered by Mary Hanson in the last century is still a cornerstone of the business today. Robert Hanson died in 1973 at the age of 82 and was the major influence in the success of the Hanson family enterprises. He was appointed a Commander of the Order of the British Empire by HM the Queen for his services to industry and to British showjumping. His standards and persistence have become the model to this day for his associates, employees and family, not forgetting his excellent relations with his customer. During his life he had transformed a tiny local horse-drawn haulage business into a concern of international size and repute, seen it nationalized, then started again.

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yorkshire's finest

JUST SAY CHEESE A strong portfolio of award winning cheeses is the key to the success of this Yorkshire family business which is built on strong, traditional values.


t’s hard to believe that Shepherds Purse Cheeses is the culmination of an avid interest by the founder Judy Bell in health food and dairy intolerances. Yet that is exactly the origin of this family-run, North Yorkshire business. Judy Bell set up Shepherds Purse Cheeses in the late 1980s on the family’s 180-acre arable farm at Newsham, near Thirsk when the writing was on the wall for farming and the family knew it had to diversify to survive. A self-taught cheese maker, Judy produces a premium range of traditionally hand made cheeses and developed her own methods from scratch with help from her son Justin, beginning with sheep’s milk products, which were then recognised as a viable alternative to those suffering with food allergies and dairy intolerances. Judy bought her own flock of sheep which provided the milk she needed at that


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time to produce early experimental cheeses in the farmhouse kitchen. The first cheeses were unleashed to the public in 1988 at various farmers' markets and sold in local shops. The big product launch came in July 1989 at the Great Yorkshire Show, under the then Yorkshire Pantry banner. Later that month one of the cheeses took first prize at the Nantwich International Cheese Show, which was a real boost to morale. In 1991 a cheese maker was employed to help expand the business and the workforce slowly grew. In July 1993 the turning point came when the company won the Anchor Foods marketing trophy at the Nantwich International Cheese Show for a display of its products – Tesco immediately approached Judy to supply the cheeses on a limited basis. The first diversion from sheep’s milk blue-veined cheeses

came in the shape of Yorkshire Blue, the company’s first cow’s milk product and now its best-seller. The Bell family take great pride in the quality of their cheeses and believe in doing things properly, without cutting corners. All of their cheeses are hand made, with no mechanical stirrers or cutters and made with locally sourced cow’s, ewe’s or water buffalo milk. The penicillin is added at the start, and after the cheese begins to form it is turned by hand for two days to allow the whey to drain and finally it’s salted. Then it is brought to the ripening store, where high humidity and moderate temperature provide optimum conditions for the blue to develop. For best results, it is eaten at about 10-12 weeks old. The company’s strong portfolio of multi awardwinning cheeses, including Yorkshire Blue, Mrs Bells Blue, Yorkshire Fettle, Byland Blue, Katy’s White Lavender, Buffalo Blue, Olde York, Bells Bluemin White, Ryedale and Basilano, are sold in major supermarkets (either pre-pack or on the delicatessen) or in specialist cheese shops nationwide and via the company’s large wholesaler base. Shepherds Purse is also now enjoying fledgling export success and it continues to innovate year on year with new products, the latest being Bells Bluemin White, the region’s first blue rind brie made with local cow’s milk produced in the Vale of York. Judy Bell commented “Chatter around the dinner table has moved from holidays and the weather to what is on our plates, where it has come from and

"The Bell family take great pride in the quality of their cheeses and believe in doing things properly, without cutting corners" what has been done to it before it was bought. Local and regional food producers are seeing great support from consumers looking for food with real provenance and we are proud, as artisan cheese makers, to celebrate good food, delivering quality every time". Innovation, quality and attention to detail are the foundation of the Shepherds Purse philosophy. By consistently winning accolades for its products, it is proof that some of the best food is made in God’s own land – Yorkshire. Judy has recently been appointed to the Board of directors of Deliciouslyorkshire with the aim of helping all food and drink businesses in the Yorkshire and Humber region to grow, develop and flourish.

Diamond Geezer Find out why Antonio Fattorini and his family business is a jewel in the crown of Harrogate.


orn in Italy near Lake Como in 1797, Antonio Fattorini and his wife moved to Harrogate in 1831, taking up premises at 14 Regent Parade. During the Regency period it had become the practice for families of wealth to rent a house at a fashionable resort such as Harrogate for the summer months. It was to take advantage of this summer trade that Antonio opened his shop ‘The Oriental Lounge’ and advertised in the ‘Harrogate Advertiser’ to attract custom. The winter months he spent in Leeds. Antonio and his wife raised a family, who, as they grew older, moved away from home. Antonio died in 1859. However, one of his sons, Antonio had remained in Harrogate and about 1875, influenced by the growth of the town, decided to move to new premises at No.2 Royal Parade, near to the busy Crown Hotel and Pump Room. The new premises were known as ‘A. Fattorini The Jeweller’. Harrogate itself continued to prosper and expand and in 1884 it was again decided that new premises should be acquired in a more prominent position. ‘A. Fattorini The Jeweller’ moved to its present site 10, Parliament Street. In the same year Harrogate was incorporated as a borough

and A. Fattorini had the privilege of supplying the Mayoral chain. At the turn of the century Antonio, a bachelor, was joined by his sister Maria and her family, her husband being John Tindall. When Antonio died in 1912 his sister Maria carried on the business with her son John who during the Great War of 1914 - 1918 served in the Royal Flying Corps. His son, Edward, joined the business in 1933. Amongst Harrogate’s great assets were the many substantial hotels, capable of accommodating large numbers of people, and the quiet beauty of the town itself, with its carefully tended gardens, and its lovely architecturally interesting old houses. Edward Tindall was joined by his son Charles, who was followed into the business by his brother Anthony several years later. At the present time ‘A. Fattorini The Jeweller’ is being directed by the great, great grandsons of the founder. Today, the aim of the partners and staff remains the same - to sell goods of the highest quality, beauty and finish and to maintain the excellent service to all. They hope that this aim will be achieved for many more years to come.

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07815 497 417

A SPOT OF TEA? After 80 years the identity of Betty still remains a mystery but this is one family business that still does things beautifully.


The history of the Bettys name is rumoured to be steeped in this mysterious little girl


he story of the Betty family business begins with a young Swiss orphan who travelled to England to make his name. After losing his parents at an early age, Frederick Belmont spent his teens in apprenticeships for all manner of bakers and confectioners across Europe. By the time he arrived in England his head was filled with knowledge of their craft – and dreams of his future. In London, Frederick discovered he had lost the address he was travelling to. All he could remember was that the town sounded like ‘Bratwurst’. Through sheer luck he found himself on a train to Bradford. Fortunately the beautiful countryside and sweet clear air reminded him of his native Switzerland – so much so, that he decided to stay. In 1919 he opened his first Bettys Café Tea Rooms in the fashionable spa town of Harrogate. The combination of mouth-watering Swiss confectionery and Yorkshire

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warmth and hospitality in such an elegant setting proved irresistible. Bettys was an instant success and was soon able to boast of ‘Royal and Distinguished Patronage’ on its letterhead. In the 1920s Frederick opened a Craft Bakery in Harrogate, complete with its own orchard. Thanks to the new Bakery, Frederick was able to open Bettys branches in other Yorkshire towns including a flagship café in York, inspired by the magnificent Queen Mary cruise liner. His York tea room became particularly popular during the war years when the basement ‘Bettys Bar’ became the favourite destination of the hundreds of American and Canadian ‘Bomber Boys’ stationed around York. ‘Bettys Mirror’, on which many of them engraved their signatures with a diamond pen, remains on display at the branch today. In the 1960s Bettys joined forces with another Yorkshire family business, the tea and coffee merchants Taylors of Harrogate. The years passed, and the business was handed down the family, who still run Bettys today. In the early sixties the business bought Taylors, a family-run tea and coffee merchant, also based in Harrogate. It proved to be a winning

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Yorkshire Legend It started as a stall in Bradford Market and Morrisons has grown to become a household name


combination. With six Bettys Café Tea Rooms across Yorkshire, their own Cookery School and a home delivery service, the business has certainly grown. But they remain true to Frederick’s founding principles. Bettys are devoted to doing things beautifully, from the cakes, breads and fancies made fresh each day at the Craft Bakery, to the way they look after customers. And this is matched by the respectful manner in which they deal with the people who grow their speciality teas and gourmet coffees. After 80 years the identity of Bettys still remains a family mystery – although over the years many explanations have been offered. Frederick could have named his Tea Rooms after the late Queen Mother, Elizabeth Bowes Lyon, who was born at the turn of the century, or perhaps a former manageress of the Harrogate Spa, Betty Lupton, ’Queen of the Harrogate Wells’. There’s a sentimental tale of young Betty, a doctor’s daughter, who died of tuberculosis and whose father’s practice on Cambridge Crescent later became the first Bettys Café Tea Rooms. The favourite story, however, is the one that tells of a small girl interrupting the very first Board Meeting where the Tea Room's name was discussed.

ir Kenneth Duncan Morrison CBE is the Life President and former chairman of Morrisons, the fourth largest supermarket group in the UK. Ken is the youngest child of the late William Murdoch Morrison and Hilda Morrison, who owned a small grocery chain set up in 1899. Ken was born in Bradford and was brought up by five elder sisters. Whilst at Bradford Grammar School, Ken worked in the family provisions business in the school holidays. By 1956 he was the Chairman and Managing Director of a small group of shops, the embryo of what was to become a formidable retail presence, a household name throughout the UK and the largest public company headquartered in Yorkshire. Whilst the family business was named after his father, Ken’s head office ‘Hilmore House’ is named after his mother. The original Hilmore House was located in

Thornton Road, but moved to larger premises at Gain Lane as a result of the takeover of Safeway. Ken Morrison was the longest serving chairman of a top 100 public company in the UK and despite receiving a CBE in 1990 and being knighted in 2000, he could still be seen on the shop floor, taking comments from customers. In March 2008 Ken Morrison announced that he would relinquish executive control of the company and take the honorary post of Life President. His three eldest children all work for the business – his son, William, is Director of Retail Marketing and his nephew Chris Blundell has recently stepped down as one of the directors. Who would have thought that a stall in a small Bradford market could provide the catalyst to innovate and lead the way in supermarket retailing.

The girl’s name, of course, was Betty.

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LIQUID GOLD From the spare room to a multi-million pound operation that recognises the values associated with being a family business.


tarted by husband and wife David and Elizabeth Kerfoot in 1980, the Kerfoot Group has grown from a business started on £300 in their spare room to a £40million turnover business with David receiving an MBE in 2008 for his services to business and the community in Northallerton. The Kerfoot Group has now established itself as the UK’s leading provider of specialist oils to the food and cosmetics industries and is the only independently owned firm in its field. Along with his wife as Executive Director, David also works alongside his son, Thomas who is Commercial Director of Speciality Oils and his daughter, Jennifer who is Commercial Director of Packed Oils.


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For David it was always important that his children got their hands dirty from an early age and that they didn’t expect to be handed a job on a plate. Both siblings had worked with the business in their school and university holidays and therefore were known and more importantly, respected, for their hard work by other members of the team as David explains: “We have a very open culture within the business where everyone has an opportunity to progress so it was important that we weren’t just handing jobs over to family members without any previous work experience. When they eventually joined the business it was not at the ‘top’ but a question of

Above David Kerfoot receives an MBE for his services to business in Northallerton

"It’s always important to ensure that giving something back is intrinsic to the culture of the business." proving their worth and earning their present positions on merit.” Although the Kerfoot Group is the only independently run company in its field, it wasn’t until his children joined the firm that David began to see the value in promoting the business from the family perspective. He soon found that people appreciated the certainty in heritage. He acknowledges that people appreciate the story of coming from a small and humble husband and wife duo to the great story of success that they are today. In fact they have become far more involved in other family business networking including attending events and entering the Coutts family business awards. So what does David believe is the secret to running a successful family business? “Firstly we take great pride in working closely with the local community in our social entrepreneurship promise. It’s always important to ensure that giving something back is intrinsic to the culture of the business. Secondly, you need to be well prepared when considering what to do with the business once it reaches a certain size. No matter how many top class managers you have in place, the whole business needs to embrace the fact that the business is run by you and your family, on a daily basis.”

The Face of Britain Meet James Potter, the face of British Food Fortnight, and discover his family business journey.


ames Potter not only runs a Yorkshire-based egg supply company, he was also named the face of British Food Fortnight for his dedication to the British farming community. Yorkshire Farmhouse Eggs is a family business that has been producing the finest quality free range and organic eggs for over 30 years and is now run by son, James Potter. They have always had a passion for taste, freshness and welfare that still holds true today. They are proud of their policy of only ever handling free range eggs,

which means that all of their hens are free to roam outside in woodlands and on fresh pasture. The family’s history with poultry dates back to the 1920’s when granddad George Potter would often win top prize with his hens in the National Laying Trials. Today, their two farms in the idyllic surroundings of the Vale of York, provide some of the most up to date production and packing facilities in the country. This is a far cry from when James’ mother, Susan Potter, first decided to buy 200 hens in order to have a supply of fresh tasting eggs. Still, they have stuck to this philosophy. In April 2010, Managing Director James Potter was named the Face of British Food Fortnight. James was awarded the prestigious title after a long hunt for a person who encapsulated all that’s best about British food and farming industries, and a person that exuded characteristics such as wholesomeness, hard, work, integrity, tradition and healthiness. PR agent to the stars, Max Clifford, said “James is, in my opinion, the perfect person to be the Face of British Food Fortnight 2010 as his face has all the characteristics that I believe people would expect to be embodied in a farmer.”

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COMPETENCE NOT BLOOD Everyone needs to get noticed. Developing, creating and maintaining your family business presence is crucial. Steve Rosenbaum interviews Nigel Southey.


ith a background as an accountant and foreign exchange dealer, I was thrilled to start working in my own family’s family office which consists of an operating business, management of our family’s investments and a medical research charitable trust. My experiences there convinced me that the route to achieving an overall balance of health, wealth and happiness in a family enterprise is to ‘get organised’. I know that multi-generational wealth creation and transfer is very challenging and that the scale of the challenge can overwhelm the desire to do anything about it, but doing nothing is fraught with danger. For many family-run businesses, the journey to where they are today has been complicated, difficult and, at times, heartbreaking. But today’s leaders are perfectly positioned to learn from their predecessor’s mistakes and implement secure structure and governance ensuring the commercial success of their family business. Meeting Nigel Southey for the first time I was struck by the easy air of calm and confidence that comes only from running your own business successfully for many years. Nigel is the Managing Director of Colyer London, a business he owns and manages without any other family members, but with a compelling connection to his grandfather and both his father and uncle. Despite Nigel’s opening gambit that his default position always remains firmly “anti-family business”, we started to trawl back to 1919 a time just after the first World War and relive the start of Ernest Southey’s business who was Nigel’s grandfather. “The Company offered photographic reproduction and duplication services and was located just around the corner from the Law Courts so there was great demand for copying documents, contracts, maps and plans.” Nigel describes in an animated way how the business grew from humble beginnings to become a tremendous success up to and including the 1960’s as the second generation collaborated with his grandfather.

Opposite Ernest Southey in the original shop

Fresh Start When Nigel’s father died at the early age of 50 from a prolonged battle with cancer and the subsequent death of the founder in 1970, Nigel’s uncle took over the leadership of the business. During the 1970’s with the advertising revolution, the business continued to expand

as cousins from the third generation also started to create new roles including Nigel who worked in Colyer Graphics a subsidiary of the main firm. I enjoy hearing these fascinating rags to riches stories but even without knowing how this particular story will end, I start to sense that the narrative of this tale will change direction. However this is not the cautionary tale of how family dynamics and a lack of governance destroy a family business. Moreover technology changed overnight by the early 90’s with the advent of the Apple Mac resulting eventually in bankruptcy for Colyer & Southey in 1996. Nigel could see how the market was changing and transacted a management buyout of Colyer Graphics in 1994 providing much needed cash to the family holding company. Nigel describes how he believes that his uncle and cousins missed the impending technological detour that destroyed the company and speaks without the pathological and very personal blame I often see when family businesses implode. “We simply had the wrong process when we determined who would be employed in the family business. In hindsight, we should have selected on competence not blood.” Looking Forward Despite the change of fortunes for all the family shareholders split between the two sons of the original founder, the family remain close and have not let the events of 1996 dictate the future mandate of their family harmony. Today Nigel is the age at which his father died. He is philosophical about the past and the future. He enjoys recalling his close relationship with his colourful uncle and remains curious about his father who died when he was only 10. In many ways Nigel is even more determined to be the best version of himself as boss of his own business and spends much of his time on development leadership courses and second guessing where his business marketplace may change in the future. I finish by asking Nigel if he would ever consider working with his 25 year old son who has been successful in his own right. Nigel subdues his initial anti family business stance and ponders, “You never know, it’s not impossible.”

Generation Spring / Summer 2011



Its not just what you say that counts. In today’s dog eat dog world, how you say it and the way you present yourself and your family business needs to make that all important emotional connection in order to tip the scales in your favour and win that bid or bigger share of the market. Our experts Anita Brightley-Hodges, Chris Kelly and Dan Foulkes reveal how to make the most of your family business brand.


t’s easy to fall into the ‘Me, Me, Me’ Trap when it comes to submitting credentials and tenders for business contracts and pitches, so its not a bad idea to do something different and more importantly to put your clients first, by mirroring their values and their culture, without losing your own identity. From the content, language, photography to the layout of the pages, every detail needs to be thought through. Successful tenders need to be designed exquisitely and crafted to reflect the quality of the client with whom you would dearly like to do business. Its all about that ‘first impression’ and considering the hours of unpaid time, hard work and resources dedicated to putting that all important tender together, it simply amazes me that the last thing on anyone’s mind is often the presentation! Imagining Ones Self Those of you who are savvy know, that when price and proposition are pretty much like for like, the ONLY differentiator is the way the document is presented. Bespoke presentations are a must if you’re not able to go in and make the pitch in person, not a nice to have. No one can afford to leave a stone unturned when it comes to putting your best foot forward. So imagine the impression your document makes when no one is talking or turning the pages. An outstanding bid can shine more brightly if it makes that first impression and looks great, the content and the proposition can then sing from within. We all know how powerful the right image is.


Generation Spring / Summer 2011

Once this is addressed we are then ready to listen. In the competitive world of bidding on line via RFI and RFP frameworks there is still the opportunity to design and produce digital responses which can make that all important impact. The document can be well branded, imaginatively designed with a very high end result, which is a pleasure to receive and read. You just have to be clever about how you approach what is often just a huge almighty mine of information. Put yourself in the shoes of the Purchasing Manager who has to wade through any number of documents in response to his tender - whose would you much rather spend time on and read? Great design produces a positive emotional response in all of us. It’s persuasive, taps into our subconscious and makes an impression, good and bad. Ignore this creative intelligence approach at your own risk, but in this hugely competitive market, the big wins count.

“Great design produces a positive emotional response in all of us. “ Anita Brightley-Hodges helps businesses have the confidence to adapt the way they have been doing things to stay successful in these extraordinary times.



urprisingly still the greatest authority on the subject of persuasion is a man who died over 2000 years ago. The Greek philosopher Aristotle declared that you could never find anyone persuasive unless you trusted them first and I think we’d all still agree. Aristotle said trust comes from a combination of Ethos, Pathos and Logos – which could be interpreted as Empathy, Passion and the Facts. It stands to reason that if you’re able to build an empathic relationship with another person, inevitably they will trust you – as you’ll be able to determine not only their feelings but also know what to say to them as well as how best to say it. More recently psychologists Ferris & Mehrabian (1969), noted that we form impressions of one another not only from what’s said, but from how we appear and sound - which fits rather nicely with Aristotle’s view. So rather than wonder what we should be saying to win others over, perhaps we should start by encouraging them to do the talking and empathise first with how they’re feeling and thinking. Looking in the Mirror We’re all self-interested. How will we benefit from supporting your cause? In my experience it’s often the case that speakers omit to tell us what they are. Don’t take that risk. Don’t leave your audience guessing how they’ll benefit from your proposals; spell them out. Open your talk with what’s in it for everybody and you’ll grab their attention, “listen up everyone, I’ve had this great idea that’s going to make us all rich...” The benefits needn’t only be financial; we’re susceptible to flattery too – but only clever people will understand what I’m talking about now. In addition we attach an absurd amount of importance to consistency. Just look at how the grand inquisitors on radio and television will savage any politician that dares to change their mind. However we’re all a mass of inconsistencies and will often hold conflicting views and opinions, By simply showing someone how their views are inconsistent, they’ll be forced to abandon one view or the other.

“Do we ever make decisions and choices in a cool, clear rational way? We’d love to think we do.”

Decisions, Decisions Shopping online continues to grow massively. My major client is the John Lewis Partnership with their John Lewis Direct website attracting a huge amount of customers. It attracts more shoppers than their three London stores put together. What’s driving this interest? Is it the wide range of their assortment? Well, no; there’s far more to choose from in-store than on-line. It’s usually not any cheaper to buy on-line either, but it’s definitely more convenient. Who wants to struggle home on the bus with an ironing-board

when you can get it delivered to your door? If you can show how supporting your proposal will reduce the everyday effort and stress we all endure, you’ve got a highly persuasive message. Do we ever make decisions and choices in a cool, clear rational way? We’d love to think we do and at one time psychologists thought we did. They thought we assembled a list of pros and cons in our head and weighed them up. But it seems we’re influenced by all sorts of hidden factors, not least by our emotions. Motor car enthusiasts will tell you all about engine sizes and performance data, but I suspect what they really love about cars is their brand, colour and styling. We’re also heavily influenced by the schemas we carry in our heads. Schemas allow us to make sense of the world without having to evaluate every situation anew. Something huge and bright red, thundering towards us we need to run to and not away from; it’s our bus and we’re late for work! Without schemas we’d probably collapse from information over-load. If we don’t have to think, we won’t; which makes us vulnerable to manipulation. For example, we listen and respond unquestioningly to the demands of those in charge, like doctors, teachers, parents and policemen. Invariably they’re right and we should obey, but we’re also liable to do the bidding of anyone who has an authoritative manner. Try developing yours and see what you can get others to do. Make It Happen Too frequently we hope to persuade and influence others by saying ‘I suggest you do this’ or ‘I propose you do that, or even ‘I advise you do the other’ forgetting that what we’re actually saying is closer to ‘you can if you want to, but you don’t have to’. The only way that you will ever give these sorts of words any strength is to bluster i.e. adopt threatening body language, a gritted jaw and use lots and lots of volume! So next time you’re making an appeal to the board, the bank manager or just your errant teenage son or daughter, remember to use your emotional intelligence. Vocalise what you suspect they’re thinking and feeling; spell out what’s in it for them for complying to your demands; adopt an authoritative manner (complete with appropriate tone of voice) and then risk saying exactly what you want them to do. According to the experts, they’ll be putty in your hands. Chris Kelly runs a Talking Persuasively one-day workshop both in London and Birmingham. If you are interested in becoming more influential and persuasive please visit the web site and enrol on the next course.

Generation Spring / Summer 2011


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“Men of a certain age look in the mirror and see a smiling George Clooney. What is it that a family business has more of than other businesses, and how do you turn it into a competitive advantage? Copywriter Dan Foulkes of Milknosugar reveals how creating the right brand language can empower a family company.

The rest of the world sees Andrew Lloyd Webber.”


aaaazup? How do you do? How’s it going? Wotcha. Hi. Tone of voice. Register. What we say and how we say it. These are the things that we take for granted when we talk to each other. We know it and feel it instinctively. All branding is a dialogue. It’s a conversation between brand and audience. We believe that language is the single most influential factor in the success of that dialogue: talking in a way that is appropriate and uniquely you, to engage and seduce people into listening and responding to what you have to say. Sometimes a term becomes jargon because it’s a useful shorthand. That’s why marketers in achinglynow glasses constantly discuss brand DNA: the art of capturing, distilling and communicating a brand’s essence. Nothing could be a more apt analogy than DNA for a family business. Its literal DNA represents a unique brand asset, endowing a family-run company with a more real and discernable personality than any faceless corporation could ever hope to have. Accentuate that difference in the right way and you stand out, giving you the potential to connect more memorably with your audience. Without the evolution of an authentic brand language, things don’t convince, they simply jar. Imagine NatWest asking you to ‘Just Do It’, or Levi’s saying ‘Exclusively for everyone’. It immediately sounds the wrong gong. We’ve all seen marketing material that is woefully off-tone or is just trying to piggyback on another brand’s success. So many clients want to be ‘Innocent’, even when they operate in sectors that are a galaxy far, far, away from feel good smoothies. Men of a certain age look in the mirror and see a smiling George Clooney reflected back. The rest of the world sees Andrew Lloyd Webber. Being honest, objective and truly understanding what your business is, and what it has the potential to become, is where it begins. Ask most clients to define their business in five words and you’ll get variants on: innovative, passionate, dedicated, expert and responsive. Even if those terms are more aspirational than accurate, how they’re manifested in brand dialogue is the key. Imagine if we all used the same phrases whenever we talked. Memorable? Worth listening to? Engaging? No. It’s so disappointing when you cover the logo of a business, read the words that surround it, and realise that they could have been written for any company. But insipid, identikit corporate communication is not simply the

fault of the creative and strategic work. Frequently its root cause is clients who excel in their business but lack experience in branding. This can dilute the communications’ content, and who likes weak? Embrace your flavour. Strength comes when the brand is in focus and the language that supports it is allowed to work hard. ‘It does exactly what it says on the tin’. That’s the aim: words that are so powerful that they invade our conversations beyond the brand leaving us powerless to resist. We forget the power of language even though we encounter it every day of our lives. Words can shock, as doing a Naughtie demonstrates. Jeremy Hunt may never recover. Think of a word that embodies Nelson Mandela. Freedom. Think of a word that embodies Fred West. Evil. Values are not hard to articulate. Words are tools. They can clarify, conjure and convince. Our job is to empower a brand’s personality and frame that character in language. One of the greatest assets that a family business has is its idiosyncratic identity and its genuine desire to safeguard its reputation for generations to come. Having the insight to embrace and recognise that brand language can genuinely elicit differing emotional responses has to be a central consideration for any company serious about its future. Family members may literally embody the organisation, so they live and breathe its values. Staff beyond the family may not have such an acute awareness. That’s why talking to yourself is so valuable. Create brand guidelines that champion the spirit and detail of your business in a memorably inspiring read, and your people will understand your corporate values, and project them appropriately. Articulating brand DNA in the right way can add market value to any organisation. A family business is uniquely placed to make more of that than most companies. We’ve worked in many sectors for scores of clients and witnessed the impact that language, married to design, can have on the bottom line. Our message to family businesses in three words? Mind your language.

Generation Spring / Summer 2011



TOXIC NARCISSISM It’s not always happy sailing for family businesses. Steve Rosenbaum explores the effects of having a controlling owner and what that means for the next generation waiting in the wings.

Types of Controlling Owner Broadly there are three types of controlling owners:

not for the child but only for the childas-ornament, a self adorning flower in the narcissist’s lapel”.

1. “The Ambassador” who wants to do the right thing for his family

Narcissism begets narcissists. Viorst describes, “such narcissitic parents unconsciously use and misuse their children. Do well. Be good. Make me proud. Don’t aggravate me. The unspoken deal is this: If you bury the parts I don’t like, then I will love you”.

but does not know how to and will welcome help in governance, succession planning and any other tools to help organise the family better.

There is a growing body of knowledge in the world of family business consulting that is collating and decoding the complexity and anxiety that surrounds successful enterprising families. It explains that conflict is natural, and needs to first be understood, processed and then eventually rebalanced. Advisers to family enterprises should give consideration to the issue of narcissism before going on a major mine sweep of the underpinning issues that lie latent within a client system. Narcissism is almost a prerequisite for success within family businesses but extreme versions of the narcissitic personality or “toxic” narcissism can have implications for the succession of the business and the health and happiness of other family members. Indeed this article outlines the pathology and traits of these grandiose egocentric individuals, explains the impact they have on the next generation and suggests some strategies for next generation who have to live and cope with this behaviour.


Generation Spring / Summer 2011

2. “The Jedi” who believes he will live forever and will put off any succession or governance until a later date. 3. “The Toxic Narcissist” who does not like or seek other peoples advice, knows better than everyone else and will do whatever suits him or her personally as extended family are merely extensions of their own personality and pawns in their game of power. Both “The Ambassador” and “The Jedi” may display some healthy narcissistic traits but not at the dangerously poisonous levels of toxicity. How did Controlling Owners Become So Toxic? At the heart of toxic narcissists are, as Judith Viorst describes, “experiences with unempathetic parents; parents who could not or would not be available for their offspring; parents who were rejecting or disapproving or disappointing or simply uninterested. Sometimes the troubled narcissist had parents who did offer love, except this was the wrong kind. Their love was

“A TOXIC NARCISSISTIC PARENT DEMANDS CERTAIN BEHAVIOUR FROM HIS OR HER CHILDREN BECAUSE HE SEES HIS CHILDREN AS EXTENSIONS OF HIS OR HERSELF” In a successful family business this can translate as “Do what I want and you can have the money but only if you do what I say”. The stakes are high and it is risky not to conform. Children brought up by narcissistic parents perceive themselves as being bad. As a result, they have a lack of self-esteem and at their core is the heavy weight of shame. To cope with this intolerable condition children develop what Sandy Hotchkiss describes as “by-passed shame” which looks like shamelessness or the absence of a conscience, hiding a protective barrier of denial, coldness, blame or rage. It can never be “my fault” and the shame must be directed outward.” In terms of early child development, a mother’s love by its very nature is unconditional.

Erich Fromm says “she is the natural soil, the ocean and provides stability and order. The father represents the other pole of human existence, the world of man-made things, of law and order, of discipline.” His love is more conditional and with socio-economic development and the ability to pass assets and businesses to the next generation by way of an inheritance, fathers seek their own expectations to be fulfilled.

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Fatherly love has to be deserved and can be lost. Obedience is a virtue and its punishment, the withdrawal of fatherly love. Since his love is conditional, children may be inclined to do something to acquire it, maybe compromise their own aspirations but above all they must be obedient to receive the inheritance of the toxic narcissist. In an ideal world, a father’s love should be guided by values; it should be patient and tolerant, rather than threatening and authoritarian. It should give the growing child an increasing sense of competence and

eventually encourage autonomy. Children born from these extreme toxic narcissistic parents often follow their parent’s footsteps with this learned behaviour. They become didactic and totally myopic. Eventually, they will look to recycle their childhood onto their children. In the business they look for a clone of themselves within the next generation so that change is not necessary and the dynamics can continue into another generation.

Traits of the Toxic Narcissist within Family and the Family Business A toxic narcissistic parent demands certain behaviour from his or her children because he sees his children as extensions of himself or herself, and needs the children to represent him or her in the world in ways that meets his or her emotional needs. For example, a narcissistic father who has a family enterprise may demand that his son, who

Generation Spring / Summer 2011


‘I was suicidal and ready to give up on life.’ Shakita, 16 young runaway

We all know how important our families are to us – our rock, our safe place, our springboard to success. But what happens when family life becomes intolerable? Each year, 100,000 young people run away from home because of abuse or neglect, crises like divorce or broken relationships. Where they end up can be a frightening place. Vulnerable to sexual exploitation, violence and drugs, their young lives can be scarred forever. The Children's Society gives fractured families intensive support to tackle their problems, find practical solutions and transform their lives. We helped Shakita and her mum when they needed it most. Our expert one-to-one support got Shakita back home, strengthened relationships and found a way through to hope. Shakita is now at college – and is looking forward to her future. Contact us today to find out how you and your business can work with us to create a better childhood – for every child. Partnerships Team 020 7841 4400 Visit for more information about our work with young runaways. Charity Registration No. 221124 | Photograph modelled for The Children’s Society | © Laurence Dutton | 7902/04/11

A better childhood. For every child.


had always been treated as the “favourite” in the family, enter the business as well. If the son chooses another career, the father may reject and disparage him. The children are punished if they do not respond adequately to the father’s needs. This punishment may take a variety of forms, including physical abuse, angry outbursts, blame, attempts to instil guilt, emotional neglect, and criticism. Whatever form it takes, the purpose of the punishment is to enforce compliance with the parents’ narcissistic needs. Within the business the toxic narcissist may react to any criticism from peers or workers, but especially family, with feelings or rage, shame or humiliation. They are often extremely difficult to work with in a constructive manner for this reason. To achieve financial success narcissists may take advantage of others to achieve their own goals and therefore compromise the values of the previous or next generation. Sometimes they have a preoccupation with fantasies of unlimited success, power, beauty, intelligence, or ideal love, which can have disastrous consequences in their love lives and business transactions. In their personal lives, narcissists use their charm and the allure of their grandiose fantasy lives can offer a delicious illusion, which is often incredibly seductive. They maintain that they are wonderful lovers, great in business and would make wonderful parents. In reality once married, they prove to be unempathetic and selfish. Their relationships invariably end in divorce. If there are children from the marriage, the narcissists will see them as an extension of their own ego and there may be problems ahead for the relationship between children who themselves are intrinsically self-centred and the narcissist.

Narcissism breeds other narcissists in some cases and so in their personal sibling relationships it is possible that there are other such toxic individuals. The conversation between two self-centred sisters is a short one and pathological rivalry is a common feature of the narcissistic sibling paradigm. If the narcissist has siblings that are not narcissistic, it is likely they will still be at odds as their value system has little to no overlap. This may result in a deep family feud. As well as poor family relations, high friend turnover may be prevalent as they are unable to recognize and experience how others feel. This can result in deep envy of others. They hold a belief that their problems are unique and can only be understood by other special people. They require constant attention and admiration and have a grandiose sense of selfimportance. If the narcissist is running and controlling the family business, it can be quite literally unbearable for siblings, children, spouses and friends. Their health and happiness is at risk but how can they cope? Strategies for Coping – The Next Generation Next generation need to understand themselves, their feelings and what buttons are being pressed, how the narcissist’s behaviour is being used to manage shame, remain detached and don’t retaliate or project back. Even if the world of the narcissist is alluring understand the reality of situations, see people for what they are, do not feel that you are special because you have been invited into this world, understand what goes around comes around, don’t try and change them and finally understand you are ok and they are a narcissist.

Think and plan ahead of meetings so you are in control, enlist allies, understand the power play and what both parties want, work through any anger issues and don’t expect to get your own way.

“IN THEIR PERSONAL LIVES NARCISSISTS USE THEIR CHARM, AND THE ALLURE OF THEIR gRANDIOSE FANTASy LIVES CAN OFFER A DELICIOUS ILLUSION” Try and establish reciprocal relationships by spelling out each other’s part to play in the relationship, understand when it’s time to give and take and be valued, respect each other’s boundaries and do not keep score of who is doing more. If the narcissist’s behaviour is more than mildly irritating but manageable you are coping. Ultimately however, if it feels unbearable, it may be time to cut off and protect yourself. Life is not always perfection and your health and happiness are your worldly riches. If nothing else these coping measures can work to keep a healthy check against your own manifestation of any inherited narcissism. The Second World War generation and their children have transcended a parenting style and a legacy of many toxic narcissists who have led their family businesses with disastrous consequences. The current therapy generation of parents with their more nurturing style seek to right the wrongs of the past and perhaps in future generations we may see the demise of the toxic narcissist and the creation of another hideous monster.

Generation Spring / Summer 2011



DEALING WITH CONFLICT Having worked with many multi-generational family business clients, Juliette Johnson, Head of UK family business at Coutts & Co., is in the perfect position to advise on resolving conflict within the family business.

differences of opinions are inevitable, and indeed can often be a positive influence. A healthy dialogue is often necessary before families come up with their best work: it leads to a sort of creative sparring through challenge and discussion. Creative conflict can ensure that different points of view are aired and approached by family members in a healthy manner.

Family conflict is a perennial problem for family businesses and a key reason why many do not survive from one generation to the next. Yet few family businesses in the UK believe it’s important to have procedures in place to deal with family conflict should it arise. Squabbling siblings, problems between the generations, succession planning, nepotism, remuneration and perks for family members working in the company: there are many different sources of conflict in the family business. Despite its prevalence, it is surprising how few families have put in place measures to resolve conflict, should it occur. A certain amount of conflict is natural. Where you have more than one person involved in a decision,


Generation Spring / Summer 2011

Yet many families in the UK are clearly uncomfortable with the need to address these differences, and their instinct is to ignore it. Indeed, some family businesses can be prone to sweep issues under the carpet and hope they’ll go away. And companies that don’t experience family conflict can feel ‘its not a problem for us, why do we have to do anything about it’, but this isn’t an ideal attitude. It is important that the family continually forecasts and plans for problems that might arise tomorrow. Proactively considering how to manage potential differences of opinion and disagreements will pay dividends. Ignored problems can build up and become much more difficult to address if not nipped in the bud at an early stage. It is rare that family businesses don’t face some form of conflict at some point in their lifespan so families need to think about how they are going to deal with conflict even if it hasn’t reared its head. If

there are different family perspectives which aren’t discussed and catered for, problems can arise when it comes to major decisions, such as launching a new brand or recruiting senior people to the business from outside the family. Power in Numbers Businesses that are able to listen to and respect all the different views within the family have a real advantage. Many of our clients have cited having everyone on board emotionally as key when making really important family business decisions. Letting every family member express their own view in their own way means everyone on board feels accounted for and valued. Poor communication is at the root of a lot of family conflict: if a family doesn’t get its communication right the chances are that sooner or later they will end up in conflict. Good communication is particularly important when it comes to third or fourth-generation family businesses, with cousins who are less likely to know each other well, have grown up in different households with different values and tend to be more geographically dispersed. Say It Right Communication is an area that can fall by the wayside in family businesses



and it is vital that family shareholders are not taken for granted. Family businesses need to communicate with their shareholders, make sure they have enough knowledge, information and understanding and feel included. A key part of this family communication process is being able to acknowledge and address family issues and create forums to deal with them. It’s important for families to make space and time to have these discussions, be it at the family council or family assembly or in family meetings. It isn’t always easy, but the more families can create a safe environment, which promotes openness and honesty, the more prepared they will be to deal with whatever issues arise. There is one other aspect that can help conflict – success. It’s much easier for the family to cause arguments if the business is doing badly but it is harder for shareholders to feel disenfranchised if they are part of successfully building the business.

What family businesses can do: » Recognise that differences of opinion are not necessarily a bad thing; how they are dealt with is more important. » Communication protocols can help establish ground rules so that the family knows what they can expect in terms of communication and vice versa. » Families should strive to reach decisions by consensus as far as possible and consistently aim for a win-win situation. The aim should be to create a cohesive family able to speak with ‘one voice’. » Training and education can help prepare family members to act as stewards of the business. » Differences should be addressed proactively where possible. It is better for families to ask in advance how they would deal with potential conflict, even if they are not currently experiencing it. » Family Constitutions, Shareholder Agreements and other similar agreements, either legal or moral, can remove potential for conflict by defining rights and responsibilities, managing expectations and creating clarity.

Generation Spring / Summer 2011


FAMILY CONSTITUTION BOOKS Bringing together all of the family’s thinking, plans and aspirations that will stand the test of time, The Family Constitution Book is the critical point of reference for: • • • • •

Employing family members When the inevitable happens: Rights and Responsibilities The unanimous principals of the entire family Greater harmony Inspiring future generations

For further information visit For a private consultation call Anita on 07815 497417 or email

THE KEy TO SuCCESSION Peter Leach explains how careful planning and following some key steps can help keep the succession process smooth and pain-free. issue, decide that avoiding the subject is the best course for them. So, it is no surprise that less than 24 per cent of family businesses survive through to the second generation and only 13 per cent make it through to the third. The following article describes some of the critical issues that need to be considered when thinking about succession in your family business, both in terms of leadership and ownership.

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The key to successful succession is careful planning. By anticipating challenges before they arise and agreeing how they should best be handled, succession need not be a fraught process and the family and business can live harmoniously together for generations to come. Succession presents families with a complex set of practical commercial options that have to be considered against a backdrop of bewildering psychological, emotional and cultural pressures. Many business owners, reluctant to give up control and preferring not to confront this difficult

Structure The relationship between family and business is not always a smooth one and this relationship can be placed under even greater pressure whilst succession is in the air. Notwithstanding difficult personalities and business problems, if the structure of the family and the business are carefully planned and considered, the family and the business should be able to handle most eventualities. Structure defines the boundaries between family and business and makes it far easier to manage the expectations of those involved in succession. Key to

structure is ensuring each individual gains a clear understanding of their roles and responsibilities, as a family member, shareholder, employee or all three. There is however no ‘one size fits all solution’. What is important in creating structure is that the buy-in and commitment of all those affected is obtained. This will ensure that any governance mechanisms created are acceptable to all and meet their requirements. “what we leave in our children should concern us more than what we leave to them.” GALLO Unity and Values A family’s values show themselves in all sorts of ways: customs, anecdotes and unwritten codes of conduct that influence how and why things really get done. They are handed down through the family often without anyone even recognising that this is occurring. Even though values pass down subconsciously, spending time with one another and articulating and exploring common values is essential as a business passes

Generation Spring / Summer 2011



down through generations of family ownership. The more a family grows and disburses geographically and culturally, the more shared values are called upon to act as the glue binding them, giving the members of the family a compelling rationale for staying together as one. It is essential for family members, regardless of their involvement in the business, to explore the extent to which they share a set of common values and decide whether they have the desire to work together going forward. The family who are left will be a group of owners fully committed to each other and supportive of the family enterprise long-term. “To improve communications, work not on the utterer, but the recipient.” PeTeR DRUCkeR Communication Communication between family members is often taken for granted. Frequently key issues are swept under the carpet as they are considered too difficult or sensitive to address. In ensuring successful succession, families must be encouraged to communicate openly and frankly, and not leave discussions ambiguous and vague. Creating an open and safe environment for communication is essential for any issues to be tackled. Empowering the family to discuss the ‘undiscussable’ in a professional manner will help put an end to unrealistic assumptions. It should also help to manage expectations and address any questions that arise. Successful families are those that spend time with one another and learn to communicate openly, even away from the business. A family that plays together, stays together. “They always say time changes things, but you actually have to change them yourself.” ANDy WARHOL


Generation Spring / Summer 2011

Change Many family businesses are reluctant to change the way they do things. We often hear people saying, “Grandfather would turn in his grave if we did it like that”. However, in today’s dynamic business environment, change is essential for growth. The only alternative is failure. When a family business is passing from one generation to the next, it is important for both generations to recognise that they each will inevitably have different ways of doing things. In order to create a smooth and successful transition, a balance must be found that gives the younger generation the feeling they can influence and moderate the way things are done whilst ensuring that respect for the older generation’s traditional ways and values are maintained. Good process, transparency and open communication will prevent feelings of frustration and conflict arising and should guarantee that necessary changes are implemented in a systematic, controlled manner, securing the success of the company, the financial security of the older generation and empowering the younger generation who view the business as their future. “Education’s purpose is to replace an empty mind with an open one.” MALCOLM FORBeS education and development Preparing the next generation to take over the mantle of the family business is a process that is too often taken for granted by a family. Overlook it at your peril! To ensure smooth succession, careful consideration needs to be dedicated to developing the next generation. This is to ensure that they can make informed decisions about their futures as responsible owners and if appropriate, even as potential managers of the business at the suitable time.



If the next generation join the family business, they are often entering what is a much bigger and more sophisticated business than the generation before them. The skills needed to run it change from the initial entrepreneurial skill set exhibited by a founder. In addition, responsible ownership and stewardship can only be achieved with a full understanding of the roles and responsibilities that accompany a shareholding. The best way this can be achieved is through education. A philosophy of learning in a family will provide the edge that helps ensure longevity and succession. Shares When planning succession, significant consideration needs to be given to the future ownership of the business. This often presents parents with difficult choices. How can they treat their children fairly? Is that achieved by giving them equal shares or should the business remain only in the hands of those working in it? Should the shares be placed in trust? Should the votes be split from the economic benefit? The wider the shares are dispersed, both in terms of number of people and geographical location, the more complex the long-term ownership of the business becomes. The succession of ownership of the business may have complex tax and legal implications and therefore it is best to plan well in advance to allow ample time for efficient plans to be drawn up and enacted. Most important however is to discuss and explain those plans with your successors to ensure they understand your vision and your plans and ensure they are properly prepared to take over at the appropriate time. “we don’t inherit the world from our parents, we borrow it from our children.” SIOUx INDIANS Stewardship The long term vision for many families is to keep the business within the family, for each generation to be stewards of the ‘family silver’ for

future generations. If this is the case, the family must discuss and articulate this vision clearly so that everyone understands his or her responsibilities towards it and so that expectations are carefully managed. Successful succession from one generation to another is vital for the stewardship model to be perpetuated. Only 13 per cent of families make it past the third generation yet it can be achieved with careful planning. Consider Hoshi Ryokan in Japan, now in the 46th generation of the same family. A Family Constitution may be useful as it can help a family codify their vision and practices for the future. “The highest reward for man’s toil is not what he gets for it, but what he becomes by it.” JOHN RUSkIN Incentives Many family businesses enjoy a high degree of staff and family loyalty, a tremendous strength for the longterm success and sustainability of the family firm. In planning the succession of the business it is important to consider the financial incentives on offer to those working within the business, both family and non-family, to ensure that they are being correctly rewarded for their efforts. This may not only take the form of basic salaries but also includes sharing in the success of the business. Depending on the family’s long-term vision, equity ownership may not be an option, in which case other forms of reward should be considered such as phantom shares or participation in a profit related bonus scheme. It is also important to ensure that there is no confusion between the rewards that family members enjoy by virtue of their ownership of the business (dividends) and the salary that they earn for the work that they do. Family members should be paid on merit and receive a market rate for the role they perform in order to gain the

respect of other employees within the company. Any other form of income should be dealt with privately by the family, away from the business. “I advise people never to give advice.” P.G. WOODHOUSe Outsiders Outsiders can play a pivotal role within the family business, particularly during the succession process/ Their importance should not be underestimated. Their involvement can range from professional senior management within the business, non-executive directors or trusted professional advisers. Outsiders can bring a wealth of experience and objectivity to the table. They can help bridge the gap between generations, acting as a ‘caretaker’ if the younger generation are not yet ready to take over the reins. They can act as mediators when conversations between the generations become difficult and they can help to mentor the next generation, in what can often feel a lonely and isolated place to work. For outsiders to be able to play a meaningful role in the succession process, they must be trusted by both generations. It is thereful helpful if both generations have a hand in their selection. “Coming together is a beginning, keeping together is progress, working together is success.” HeNRy FORD Next Steps It is important to recognise that all family businesses are unique and, in a given set of circumstances, there are rarely ‘right’ or ‘wrong’ answers. Saying that it is also important to learn from the experiences of others. There are guiding principles, approaches and problem-solving techniques that can help you through your succession planning process. You don’t need to face this alone.

Generation Spring / Summer 2011


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TAKING THE LONG vIEW mANAgINg THe weALTH oF FAmILy FIRmS With family business in his blood, Philip kenyon of Brewin Dolphin is well placed to advise family businesses on managing their wealth. Paul Andrews explores further.

Experience counts for a lot in fund management and I think clients recognise that.

Both sides of Philip’s family have had a long tradition of running family businesses, with the firms on his father’s and mother’s sides being founded in 1664 and 1781 respectively. Although the families are no longer involved in either concern, the firms were at one stage amongst the oldest family businesses in the country. What similarities do you see between how your company and a family-run firm does business? Just as a family business will generally have its sense of heritage and tradition, so at Brewin Dolphin we also recognise the importance of continuity and taking the long view. The origins of the firm go back two and a half centuries, and we are proud of our rich heritage. In many instances, we manage money for clients and their families for generation after generation – there is a sense of longevity about our business. We want clients for the long term and we want them to want us for the long term.

The stockmarket goes through cycles, and clearly someone who has lived through several of these may be a more reassuring person to have running your portfolio. If you are, say, in your 60s and have £1m to invest, money which you have carefully built up through your efforts at your family business, you will probably want an experienced hand at the tiller of your portfolio – a few grey hairs can therefore be appreciated! Of course, luck (or lack of it) also plays its part - both in business and fund management - it is always easy with hindsight to be critical of previous generations who may have had to make difficult decisions, or for whom economic or political circumstances became more challenging on their watch. Are there other values that your company and a typical family-run business share? There are several other parallels. The identity of a family-owned business is often linked to the identity and personality of that family. There tends to be an emphasis on personal service and that is a core aspect of how we look after our clients at Brewin Dolphin. In our business, the investment manager and the relationship manager is the same person (even though the investment manager is of course supported by a wider team who assist with administration). When choosing an investment manager, the client will

want to go with someone they like and trust – and the way that their portfolio is managed will often reflect the personality of the investment manager. In many ways, we at Brewin Dolphin have a like-minded approach to business to a family-run firm, in terms of the relationship we have with our clients and the bespoke nature of our service. What are the challenges for a family running its own business in terms of looking after their money? Building wealth through a family business is ‘raw capitalism’ – if all of your capital is still in the business, and the business goes wrong you can lose all of your money. It is like having all of your portfolio in one stock. The bottom line is that if the money has been passed down through a family business to the next generation, the beneficiaries only get this money because their predecessors have looked after it. This money has been earned and accumulated through the generations through hard work and risk taking. There is often an emotional connection as well – if the money passed on is what your family has built up you will not want to be the generation that loses it. Another challenge is what might be termed the ‘multiplier effect’. As the number of family members expands down the generations, so there are a greater number of people who may be relying on the family business for its financial largesse, and this

Generation Spring / Summer 2011


experts experts


Generation Spring / Summer 2011


can sometimes put unreasonable demands on its coffers. School fees spring to mind, but there are plenty of other cash absorbers, not least the Inland Revenue! How can you help such families manage their wealth? In our role as investment managers we are trying to tackle these types of issues by preserving the buying power of the family’s wealth or growing it in such a way that all of the demands on the capital can be met. The bespoke portfolios that we offer enable us to manage the money in accordance with the client’s aims and objectives. Rather than the family having ‘all of their eggs in one basket’ the wealth generated from their business can be put into a general portfolio which will be diversified to reduce risks to the capital – for example using different types of assets such as company shares and government bonds. The great thing about Brewin Dolphin is that, whilst we have substantial in-house research and analysis departments, and indeed different portfolio risk categories to suit different clients, ultimately we can still run our clients’ portfolios in a bespoke manner, and are not obliged to follow house models. Dependent on the mandate, I have absolute discretion over the timing of investing new funds, which is crucial in today’s volatile market. For example, if I have a new client entirely in cash and I feel the market is looking too high, I can wait until prices ease back before starting to invest, rather than simply investing a chunk straight away for fear of being outside the benchmark. The same is true in reverse for established portfolios which are fully invested– if I feel the market is too high, I can sell or reduce holdings substantially without being restricted by artificial benchmark limits.

My own investment style is a fairly conservative, long-term one, and I am a great believer in direct long-only investment in the shares (or bonds) of companies or general funds (unit or investment trusts) which one can understand. I am not a huge fan of investment ‘products’, and I tend to steer well clear of derivatives and other financial magic tricks which can sometimes upset an otherwise perfectly solid portfolio. The importance of income return should also not be underestimated - over the past decade, for example, cumulative income return has formed the largest component of total return on many portfolios. Having said that, in the very long term the stockmarket has yielded substantial capital (as well as income) returns for many investors, often outperforming property despite dinner party reports to the contrary! How involved is your company in managing money for family businesses? I manage a number of portfolios for family companies, i.e. where the portfolio is part of that company’s assets. If the company has a healthy balance sheet, the owners often prefer to have some of their cash invested in a portfolio rather than just sitting in the bank. Most of the other portfolios I run are for private individuals, though the funding for many of these portfolios originated in family businesses somewhere along the line. At some point they may have sold the business, or at least decided to diversify – a hard choice perhaps, but sometimes one must follow one’s instinct, or perhaps my own family motto Nunc aut Nunquam, which Latin scholars will know means Now or Never.

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GIVE BACK As family businesses become more successful, some feel compelled to find a way to help make their local communities and the world a better place, either through charitable giving, projects or giving circles. We can help design and produce publications that showcase good giving and help you to: • • •

Identify your philanthropic purpose Design a brand to encapsulate your purpose, commitment, values, vision and actions Produce a tailored and beautifully crafted book, diary or website

“Be the change you want to see in the world” Mahatma Gandhi

For further information visit /philanthropy For a private consultation call Anita on 07815 497417 or email



A MATTER OF TASTE Richard Broughton and Dipak Patel



A CLASH OF VALUES Simon Webley, Research Director at the Institute of Business Ethics, explains how family businesses that consciously consider their responsibilities and ethical practices often have a competitive advantage in business.


Generation Spring / Summer 2011

stipulated that the ownership should remain in the family and shares had been allocated to immediate relatives. Charles owned 10%. Fred’s policy had always been conservative and he had kept bank borrowings as low as possible and was reluctant to increase Silverdale’s liability in order to finance his son’s European marketing campaign. He felt that the original values of the company were being undermined in some way. He

their way of doing business without question. The reticence to speak up about standards in business life is partly due to uncertainty about the business case for insisting on high moral standards in ‘the way we do our business’. If a link could be established between doing business ethically and good financial performance, then the issue of how we do our business would be more openly discussed. Doing business on the basis of agreed

“comPaRing the PeRfoRmance of comPanieS With anD Without coDeS of ethicS oR theiR equivaLent, thoSe Who have one financiaLLy out-PeRfoRmeD the otheRS” suspected that a culture of greed was usurping the core values he had always lived by and tried to promulgate: quality, integrity and service. Fred wanted to slow the pace in order first, to be more certain of the competency of the new technology and second, to build up a firmer financial base on which to move forward. He knows Charles would disagree. He was worried that what he had created and Silverdale Electronics’ reputation as an ethical business may be in jeopardy. This example of a potential clash between family values and a more ‘hard headed’ approach to the way of doing business is not unusual. Family businesses tend to assume that the next generation will adopt

core values such as honesty, integrity, fairness etc. is an essential place to start in instilling a culture of integrity in organisations of any size. Employees at every level of an organisation, however large or small. are entitled to guidance on how to resolve ethical dilemmas that they may encounter in the course of their day-to-day business life. This guidance is normally found in a code of ethics. But can the time and effort put into implementing such a code be shown to make a difference? In other words, does business ethics pay? Research has provided a positive answer to this question. The Institute of Business Ethics in London has shown that in comparing the performance of companies with

Illustration by


red Adams could see that all was not well at Silverdale Electronics, but did not know what to do. He had set up the company in the mid 1990s to provide consulting services in the field of solar powered energy. From its start the business thrived. Fred built up his technical team and more recently he introduced two marketing people. In all, Silverdale now had twelve well qualified younger staff who knew the technology and were enthusiastic for Silverdale to continue its success. Among the twelve was Fred’s son Charles. Charles shared his father’s enthusiasm for applying contemporary technology to worthwhile purposes. As commercial director and a family member he had negotiated an ambitious research agreement with the engineering faculty of a local university. The objective was to find a way that would enhance capture of solar power on cloudy days. The resulting methodology had been applied with some success. The contract for its marketing gave the university twenty five percent of the profit from any sales of products using this application. Charles now spent most of his time negotiating contracts with manufacturers throughout northern Europe but the response was slow. However he made no secret of his expectation that “we are all going to be rich”. When Fred set up the company he used an inheritance from his father. He

and without codes of ethics or their equivalent, those who have one financially out-performed the others. The methodology developed for this project was used in a more recent study by researchers at Cranfield University in the UK and De Paul University in Chicago. They came to a similar conclusion. What is apparent from this research is that the leadership of consistently well-managed companies accepts that having an ethics policy is an important part of their corporate governance agenda. It is noteworthy that companies with such policies and codes are consistently recorded as more admired by their peer group compared with those with are not explicit about ethics.

In other words a high standard of ethical behaviour has to become an important part of any company’s long term business plan. Indeed, having an ethics policy and programme can be said to be one hallmark of a wellmanaged organisation. But there are a considerable number of corporate leaders who do not yet understand the importance of encouraging consistent ethical behaviour throughout their organisation. In the absence of this type of leadership, there is likely to be an unacceptably high risk of what has been described as ‘integrity failure’. There are few companies, especially the smaller ones, that will survive such a reputation ‘knock’.

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Illustrations by Andrew Mavin

For most people, investments are figures monitored on a graph. For others, it’s about investing in a love and a passion. Richard Broughton and Dipak Patel explore the world of alternative investments.

Dipak Patel, CEO of Venturescape, explains why it’s sometimes important for investments to be ruled by the heart, and not just by the head.


t goes without saying that I am passionate about food, wine and rare books– pretty essential for someone who runs a single family office that is increasingly focusing on investing in alternative assets such as Bordeaux fine wines and rare books/ manuscripts. And like anyone with a consuming interest, I am always quick to spot references to my passion in the most unlikely contexts. My long-suffering friends and family are now used to conversations which, no matter what the starting the point, always conclude with food and wine. My only excuse is that the occasion is usually lunch or supper at my place – and naturally, it never pays dividends to argue with the chef. At a recent gathering, the guests made a concerted effort to spike my conversational guns by going for literature in a big way in the mistaken belief that fiction and food and wine do not mix. A bad move - Because, as you may have noticed for yourself,

fiction is not only about food and wine, it’s practically addicted to it. No wonder avid readers devour books, even the e-type. There is nothing like a mouth watering description of a meal to get your gastric juices into gear – especially when the reader is trapped on a rush hour train with the buffet car closed. My theory is that books are sold at railway stations and airports not to while away the tedium of the journey, but as a cunning marketing ploy to persuade us to buy the stuff that passes for food/wine on the move. A really hungry person will eat anything. Fortunately most fictional food and wine is good. Comforting, nostalgic, erotic, satisfying – a kind of wish-fulfilment. A novel without food/wine is thin and unhealthy and our love for the written menu starts early. If you are a fan, you will know that Harry Potter and friends, food is crucial, no not the plot but certainly to the characters

“imagine getting to a fantaStic PLot, onLy to Be infoRmeD youR Device iS aBout to Shut DoWn Due to LoW BatteRy oR technicaL eRRoR” well-being. Hogwart’s grand feasts, wizard sweets, days filled with ice cream sundaes and butterbeer – our heroes have the gift of being able to overload on indulgence, with no ill effects. Pity real life has consequences. In fiction, unless your choice is social realism a la Irvine Welsh, everybody gets to gorge, and no one feels sick afterwards. For those deliberately in search of a good foodie read titles can be helpful – Chocolat is certainly abounding in chocolate. But treat book covers with caution, Oranges Are Not the Only Fruit is certainly about

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appetite, but not the fictional diet of your average fruitarian. Conversely, even the most unpromising texts may conceal a juicy gem. Crime fiction may not leap out as a food/wine lover’s ideal, but if you can wade through two pages of last week’s last supper in the pathology lab, you may find yourself joining the sleuth for revelations across the dinner tables. In my pre-pescatarian days, I discovered the delights of Bradenham ham, still available in Harrods’s Food Hall, via a 1930’s Dorothy L Sayers mystery. My one note of cautions goes with science fiction. Yes, there is food and wine out there, but not as we know it. It generally comes in italics and a stream of unpronounceable consonants. But whatever they call it, it’s still coffee – the only true pan galactic gargle blaster. I can recommend at least one book

without a single reference to any kind of food or wine whatsoever. Its big, it’s bulky and The National Rail Timetable is available now. The buffet car symbols? Ignore them – they’re all out to lunch. Collecting rare books and fine wine has always been a hobby (cunningly disguised as investments to be perfectly honest). Recently I have been trying hard to imagine what it would be like to join the new generation of the digital reading revolution? Amazon and its mediocre competitors have arrived en masse with their digital fodder. In the UK alone, e-books still only account for a small percentage of the entire book market. However, a quick recce on the rush hour train, confirms that’s changing quickly though. One part of me thinks, why on earth do we need a solution, when there is clearly no problem? And the other suggests, perhaps e-books

will sharpen our appreciation of literature, and therefore crucially, the real-thing? I’m sure you’ll agree with me, technology is great when it works. Imagine, getting to a fantastic plot, only to be informed your device is about to shut down due to low battery or technical error. I subscribe to the real thing every time. Whilst I embrace technology, and Venturescape focuses heavily on the technology markets, I do find it difficult to muster any form of enthusiasm for e-books. I cannot overcome the feeling that the advent of digital reading age with e-books will be like drinking fine wine from a plastic cup. Technically, the same kind of pleasurable experience, but surely missing a fundamental ingredient. Quite a sobering thought.

Richard Broughton, director of Alexander Associates Group, gives a professional viewpoint on alternative investments, including rare books and fine wines.


ome have called it exotic; others have termed it an emotional investment, the 2010 World Wealth Report by Merrill Lynch/Capgemini termed it ‘An Investment of Passion’. Whatever you call it, interest in fine wine as an investment, is growing. The savvy

buyer of fine wines has long been buying more than they needed. But now, as investors look to anticipate the inflationary effects of Quantitative Easing, fine wines are attracting more investors. Traditionally, investing into fine wines means the best vintage Bordeaux wines, including SaintEmilion and Pomerol. The best known Chateaux are Lafite Rothschild, Latour, Haut-Brion, Margaux and Mouton Rothschild. The climatic conditions of this region are perfect for producing consistent quality vintages. Historically, returns from fine wines have been solid and the price-volatility has been low (less than 5% per annum*). Also, the market is not subject to changes in fashion or fads; the same wines that were popular 200-years ago, will be popular in 10-years time. Nowadays, however, the investor is attracted to the fact that the market is

“With BRokeR feeS in exceSS of 10% Wine iS a meDium to Long teRm inveStment” less likely to be affected by systemic or contagion risks and the fact that, unlike paper-money, one characteristic of this asset class is its perfect inverse supplycurve. However good the vintage, once bottled, the quantity of wine can only reduce thereafter due to consumption. This is particularly the case now given the quantity of wines consumed in the Far East and the recent trend since 2009 of en premiers being consumed, especially by the nouveau rich in China. “Decanter” Magazine has calculated that the returns form fine wines over the last 25-years is 8.7% per annum. Nevertheless, wines should be held as part of a well diversified

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portfolio and it has been shown that superior returns are achieved when the Fine Wine 50 Index and the FTSE 100 Index are combined and outperform portfolios of only equities. There are downsides. As Simon Berry says “It is not a bullet proof market”. With broker fees in excess of 10% wine is a medium to long term investment. It’s not the place to invest monies needed for school fees! In recent years the market is more susceptible to conditions in the financial markets as bankers placed their bonuses there and withdrew them in the downturn of 2008. There have been scams, with one notable case, a company called 1855, in the last twelve months. It is because of such cases that Petrus has a uv pattern on its label and subtly changes the bottle shape and colour each year. In addition, the IMF reported in January 2011, that fine wine is not as uncorrelated to other assets as was previously thought to be the case. The IMF showed that the oil and wine prices between 2002 and 2010 “showed remarkable similarity with a


ollecting books is as old as the libraries of the monasteries. However, investing into this asset-class is really confined to first editions or very rare titles, preferably with provenance. If this provenance can demonstrate who the book was previously owned by or which collection it was part of or has an inscription that personalises the book in a unique and historic fashion this is vital. Every year there are fewer rare books available as private collections are sold or passed to institutionals like university or national libraries. The global rare book market was estimated at $400 - $500 million in 2000 but the ownership of this type of asset can be highly illiquid and dealing and carrying costs can be high. The market can be erratic and there are currently few trends. You really need

90% correlation”. Given the potential pitfalls, your chosen investment medium is obviously paramount. Some prefer to buy physical wine in crates held in bond whilst others invest via monthly ‘cellar plans’. Some investors prefer specific wine funds either open-ended funds or funds with a defined term. In 2010, Ingenious launched an EIS (Enterprise Investment Scheme), called Vindemia, which invests in EIS qualifying companies trading in fine wines. We at Mallory Scott Alternatives don’t believe that there is particularly correct way to invest into this market, except to say, that it is personal and very much depends on your particular circumstances and preferences. Indeed, we have often suggested a combination of approaches.Some commentators advice against funds because they are costly while a number of advisors caution against investing with a merchant who may have a conflict of interest between shifting stock and recommending investments. But there are some good funds with FSA authorisation

(The Wine Investment Fund, for example) and good open-ended funds such as Wine Asset Managers LLP. Also there are companies that specialise in only advising clients for investment purposes. In our experience, winemerchants such as Berry Bros & Rudd, Edward Parker Wines and Bordeaux Index all give good investment advice. If you are investing yourself, don’t buy anything produced before 1980, unless it can be verified to have been stored in perfect conditions. Also, as fine wine can take 10 to 15 years to mature, it makes sense to buy it early in the cycle. To guard against scams, always check this website first before purchasing - It is a fascinating area with some interesting global dynamics and call it what you will – exotic, emotional or an investment of passion - smart investors recognise that this alternative investment is likely to compensate them for the losses in bonds, shares and property in the years to come and keep pace with inflation. If it doesn’t, then, as they always say, you can drink it!

to have a passion for collecting rare books to enter this market. Growth predictions are difficult largely because the rare book market is so diverse and so growth figures can be very selective. Calculating an index which might include first editions of Ian Fleming’s Casino Royale and of Benjamin Franklin’s Experiments and Observations on Electricity is somewhat problematic. Ed Maggs, the Managing Director of Maggs Bros. (est 1853) has said that “We would advise that if you are considering looking at this area, you should ‘invest’ firstly out of enthusiasm for owning a rare book. This is an investment-area that is notoriously difficult to pull-off. Investors tend to be swayed by material which has increased in recent years and not look at the underlying driving forces of the

“you ShouLD ‘inveSt’ fiRStLy out of enthuSiaSm foR oWning a RaRe Book” market which can be affected by one or two high-level collectors. If you care about the material itself you are likely to make better judgements. These markets are notoriously thinly-traded and opaque.” This is definately a long-term hold and therefore a passion and an interest for your rare book is essential. Indeed, Catherine Porter of Sotheby’s and author of ‘Collecting Modern Books’ (2003), states “There is perhaps no better advice than to simply collect from the heart.”

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WHEN PHILANTHROPY ISN’T FUN Randi Weaver breaks down the uncomfortable barriers of charitable giving on a personal, and corporate level. plan for your business and all begin with an activity that you will recognise as essential to your commercial success: proper research and planning. There are three main decisions which will take you from reactive giving to focused philanthropy, from random and often uninspiring giving to donor satisfaction: Giving Vehicle, Favoured Causes and Amount.


o on, admit it. There are times as a family business owner that you feel uncomfortable and, on occasion, even harassed, by the many requests for donations from friends, employees, clients, suppliers and other business associates. It is not that you do not want to be supportive, but the sheer number of requests can be overwhelming and you can find yourself in awkward situations, expected to make a commitment there and then. It is especially at times like these that you can see the clear link between business and charitable giving. But, where do you draw the line? How much should you give and to what causes? How do you make the decision? Is it ever right to say “no”? It is not easy to give away money in a way that is enjoyable and supports both business and personal goals, and yet those must be your aims. There are actions, activities and tools that can untangle and streamline the process and help you be a strategic giver: donating proactively, rather than reactively. And to be more systematic: operating with set decision-making criteria and process. And, at the end of it, to find real satisfaction in your charitable giving. There are several paths to developing a strategic giving


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Giving Vehicle The first step in developing and formalising your charitable giving is creating a conduit for corporate giving. For many medium and large family businesses, this will likely be the establishment of a tax-efficient charitable trust or foundation. All requests for donation of money, time or goods and services can be directed to the charitable trust, eliminating the need to respond to personal approaches from friends, customers, business contacts in either a business or social setting. This also shifts the decision-making, and the focus, from the individual family member or executive to the trustees. The family member can remain involved in the process as a trustee, should he or she desire, but as one voice, not the only voice. To control costs and avoid overcomplicating the process, smaller family businesses, with a modest budget for charitable giving, may consider setting up a “charity council”, a working committee without a legal structure, whose activities mimic those of foundation trustees in establishing grant-making guidelines and making decisions on all requests submitted at set times during the year. Creating a conduit for charitable giving presents another opportunity to become more thoughtful in your philanthropy. In a

very natural fashion, it prompts the narrowing of philanthropic focus and the identification of favoured causes, eventually leading to specific project areas to support. Favoured Causes In formalising a charitable giving programme, a family has a tremendous opportunity to identify causes and projects that mean the most to them. Naming favoured causes facilitates decision-making about organisations and projects to be supported by providing a rationale for selecting among many worthy causes, making the process more logical and objective, and less emotional. It also creates a situation where the family and the family business have the chance to make more of a difference by focusing their efforts: “giving more to fewer”. Monitoring outcomes and other follow ups are made much more manageable activities when concentrated on one or a few causes.

“the Size of the DonationS WiLL Be DiRectLy LinkeD to the Size anD SucceSS of the famiLy enteRPRiSe anD ShouLD Be kePt unDeR annuaL RevieW” The focus can be marketing-driven, directly linked to the business to strengthen the corporate message, as a baker who supports food education programmes in local schools. Or it may be unlinked to the business and based entirely on causes important to the family. Having a narrower and stated focus on one or a few causes also allows for


Focused philanthropy in family business can: Reinforce the family’s values and provide an opportunity to demonstrate shared values. Reinforce relationships. Philanthropy is unifying. Retired family executives, or family members not involved in the business, may find a role here. Likewise, by participating in family business philanthropy, younger family members can learn, alongside other family members, about investing and financial returns, decision-making, policysetting, effective communications and other areas of good governance. Philanthropy is often a useful stepping stone to direct involvement in the business. a wider involvement with beneficiary organisations which can include the giving of time (social, intellectual and leadership capital) by family members and employees and, in some cases, valuable donations of goods and services too. How Much Should You Give? Although family businesses can and do donate more than cash to their favoured causes, the charitable giving budget is usually the first and most significant measure of involvement and commitment to philanthropy. Agreeing the amount to designate to charitable giving is a financial decision and can be determined in several ways, but family members should ensure that they arrive at it together and in an informed fashion. The three most common approaches are:

Illustration by Andrew Mavin

» A fixed amount, for example, £1000, £10,000 or £50,000 p.a. » Pre-tax profits from a specific product line » Or, to emphasise the importance of overall business profitability and add extra incentive, the charitable trust is funded by a formula based on profitability, say 1% of pre-tax profits.

The size of the donations will be directly linked to the size and success of the family enterprise and should be kept under annual review. Many businesses will find it helpful to check their plans with their tax advisor at this point in their planning. Those businesses not setting up a charitable trust or foundation may consider opening a charity bank account to segregate these designated funds. Outcomes The first motivation for reviewing Giving Vehicle, Favoured Causes and Amount, and establishing a formalised charitable giving programme, is often the need to centralise the function to save time, eliminate awkward situations for family members and provide a rationale for selecting among the worthy causes. The impact, however, goes far beyond roles and responsibilities, operational procedures and timelines. That the recipients of the donations should benefit is a given. That the family and the business itself can benefit so significantly from adopting a strategic and systematic approach, and maximise their satisfaction as donors too, makes the case for focused philanthropy. Author’s End Note For all of this, when possible and practical and without undoing all the good which comes from a structured, strategic approach to charitable giving,

Reinforce relationships with employees, customers, and others with reputational benefit and job satisfaction. Establish or strengthen relationships with beneficiary charitable organisations, providing scope for collaboration. Build family pride. And perhaps, most relevant of all in this piece, provide real enjoyment via donor satisfaction.

family business philanthropy, more than any other category of donors, should strive to retain an element of flexibility. There must be some scope for ‘exceptions to the rule’ on limited occasions. There will be times when it pays to be a little more reactive and a little less regimented when responding to urgent appeals for donations of money, time and possibly, inventory, from your key stakeholders: customers, employees and the community you serve. Or simply seeking sponsorship in running a marathon. While there is much to be gained from establishing a formalised charitable giving programme that is run both systematically and strategically, part of the joy of philanthropy will always be saying Yes. Just because you can.

Generation Spring / Summer 2011





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21st century coach building, the latest BMW Drivetrain technology and class leading aluminum chassis technology provide an unrivaled experience. Proof of this is the performance of the most beautiful car in the FFSA GT Racing Championships. It is a celebration of our love of cars and the romance of travel and was a fitting model to announce during Morgan’s Centenary year.”

Car shown LIMITED EDITION !"#"$%&'()*#)+(',)-./('-/,'&0)123#4555")6,'789)'897():',;)13<4=>=)(?):8@&,'A),9)& Q?&'8)L'M89)>!"#)G#"2J)P)=N"O)G!"<J")R,;M%9(C)3="!)G22"2J)P)!="=)GO"3J))RD3)(;%00%,90)3O<)P)2>

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MIXING FAMILY AND BUSINESS Financial disagreements are often at the heart of a family business demise. Jonathan Lidster addresses this all too common problem.


hey say blood is thicker than water, but money, and its potential for strife & conflict, may be thicker than both. While many conflicts in family business have their roots in clashes of personality, strategy and leadership, disagreements over financial shares are all too frequent. The Media recount stories of the breakup of successful family-owned businesses arising from irreconcilable disputes over money. How do these conflicts come to this sorry end? How can we secure our business and ownership quarrels without enriching lawyers and accountants? What is needed is a structured approach to not only avert conflicts in the first place; but, when they do occur, to minimising their impact and, importantly, their financial and emotional cost. Successful families need two key things - to stay together as a close family group and to manage their business interests as an integrated and cohesive unit. They define, and conform to an agreed vision of what they want to achieve as a family. This vision must set out not only the means by which the family goals are to be attained but lay down some clear


Generation Spring / Summer 2011

standards of measurement. To avoid conflict, successful families compile an inventory of all family assets. The aim of this exercise is to identify the key financial goals of the components that make up a business family: the family as an integrated unit, those within each distinct family group and each individual family member. This creates a clear and agreed valuation of the underlying business assets, an essential staring point for the family. Threats It is often said the greatest threats to a family fortune come not from poor management of the underlying assets but from the family itself. The avoidance of family-induced “entropy”, or erosion of wealth, and the slower disintegration of capital over successive generations must be based upon a well-defined “road map”. This involves structures and governance to guide the process. Agreeing from the start on common goals and a clear road ahead is only a small part of the process. Just as important is the need for consistent evaluations of the family structure, strategy or agreement. None will

remain effective unless it is regularly assessed to objective standards accepted by all those involved. As family circumstances change and differing needs emerge from each successive generation, the family ‘plan’ must be capable of evolving to fit the new realities. If no such plan exists the likelihood of conflict is high. Conflict But what happens if family members are already in conflict? Attempts at reconciliation are unlikely to succeed unless the family agrees to return to these first principles. It may be necessary to restart the entire process from scratch. Before all of this however, the family needs to undergo a period of self-examination. The catalyst for this is often a singular event; the demise of the patriarch or a realisation that the business is in trouble. This time of examination and realisation is a unique opportunity to consider what is important to the family as a whole and to the individual family members. The family has to decide whether the family itself or the business is ultimately more important. Put another way, the family should


ask itself whether it is a family in a specific business or a family in business together. The people in this process have to determine if their current business is the only activity that should involve the family. If so, can the family reach a conclusion that the business can keep the family together? For that to occur, family members may have to seek outside advice on compromises needed to reach that goal. Future To avoid conflict in the future, families and individuals must set goals. Setting goals, individual and collective is one thing, deciding on whether they are achievable, and how, is another altogether. And , to stick to it thereafter, despite the pressures. However with the best will in the world all this may still not be enough to avoid conflict. Family members must be committed to fully examining the causes of a particular conflict. If attempts at resolving the conflict have failed, they must be evaluated and the reasons analysed. Sometimes the situation may very well require the help of professional

outsiders who are specifically brought in to help resolve family conflicts, they should have a set of governing principles under which they operate, and at all costs independent and impartial. Advisers should treat the family itself as the client – not the patriarch, nor some faction within the family. To be engaged by one particular family member or group will create an immediate presumption of bias that will undermine success. A high degree of co-operation from all family members involved is required, with their acceptance to dedicating a significant amount of their time to the exercise. Disclosure The family’s consent to confidential full disclosure is paramount. Facts, not estimates. Advisers need to be given the scope to challenge and confront any preconceived ideas, either collective or held by any single family member, however dominant their personality or important their position. The entire family has to totally commit to any agreed compromise that is finally reached. It is essential

“it iS often SaiD the gReateSt thReatS to a famiLy foRtune come not fRom PooR management of the unDeRLying aSSetS, But fRom the famiLy itSeLf” all family members understand the economic consequences, or penalties. It is important to periodically evaluate or monitor the family structure, strategy or agreement, reached when the family is in harmony. It is even more essential to do so at times of family conflict. We all think that there will never be conflict in a business, but family life and the pressures associated with it can add dramatically. The hardest thing can sometimes be admitting the situation, acknowledge the problems and being open to discuss, even without side professionals, and independent advisors. They can certainly save a world of heart ache.

Generation Spring / Summer 2011


10 1 3


Ten things every entrepreneur should consider before establishing their family business…

Starting with the intangibles

Communication becomes a vehicle for building trust and cooperation when your goal is to truly understand what the other person is saying, especially when you disagree.


Decide who’s the boss

Some businesses adopt a majority rule process, others assign decision making responsibility for particular areas to each partner, others advocate for a negotiation process.

Divorce-proof the business

This applies regardless of whether the business is owned by a husband and wife team or not – a partner’s divorce from a spouse uninvolved in the business can still have disastrous consequences. Proper planning can minimalise the impact of divorce.


Eyes wide open

Passion for the business and trust between family members and their advisers are crucial starting blocks.

Communication is key



Don’t lose it all to Uncle Sam

More than a third of family business owners have no plan in place to deal with estate taxes, which can hurt a family’s ability to continue the business and can also erode inheritance. Develop relationships with knowledgeable financial professionals who have experience of working in the family business sector.


Set up boundaries between work and non-work activities. Make sure you have defined spaces for personal time, family time an work time.

Decide who’s the boss

Clear definition of roles and responsibilities is critical, enabling the business to run efficiently and ensuring that it avoids paralysis due to confusion over leadership.



Strike a balance

When working with family the line between work and home is often blurred, but as long as communication and effort are put into the relationships, it seems to work for most.

Who’s next?

Most family businesses have inadequate or inflexible succession plans. It’s essential that a long-range, strategice business planning process identifies where the business is going over the next 5 to 10 years.


Exit this way

Most owners say they don’t think a legally-documented buy-sell agreement is necessary, even though such agreements can be an effective way for owners to smoothly transition the business should something unexpected happen to one of the owners.

Generation Spring / Summer 2011



T H E P RO F E S S I O N A L S Whether it be legal, financial, sales or marketing, our experts are here to guide you and your family business in the right direction.

Jeremy Baile Director

Matt Brennan IFA

RGB Digital Specialism: Photography

The Penny Group Specialism: Finance




Many family businesses underestimate the power of using images of the family behind the business, and the competitive advantage it can give them. When family businesses do this, an enormous amount of trust is placed in the integrity of the business. On a purely visual level, this is clearly displayed when we are shown images of a family. They speak of unity, cohesion, trust and cooperation. All the traits of any successful business. It shows a stability necessary for a family to exist. It also shows progression and development as one area of the family work with the other. The crucial thing about this, is that the communication is being done through images. Images have an extremely strong and immediate effect. We look at images before we read text, and when it comes to images, we look at faces first. The family is underpinning the message to its customers. Stock images put the viewer off. They, by their very nature, have a generic look and thus leave us feeling that they are not the whole picture. Images of the members of a family business, give a reassurance of exactly who we are dealing with. When we see ‘real’ people, it is much easier to approach the business and feel confident working with them. Using this image gives a key advantage to the family business, and it is something that should be exploited to the full.


We’re putting together a new brochure for our family business and whilst some people have told us to keep images of the family out and just use stock images, others think it would be a good idea to include some. Do photographs of people help?


Generation Spring / Summer 2011

I run my own family business and I’m a bit unsure what I am obliged to do, as an employer post 2012 to meet the compulsory pension reforms set out by the government and Pension Act 2008. How will it affect my family business?

From 2012 through to 2016, thanks to the Pension Act 2008, all employers will have to provide each one of their eligible employees with a pension scheme and then contribute to it. They will also be responsible for identifying who is eligible, when they become eligible and then Auto-enrol them into the scheme. If they deem that an individual is ineligible they have to explain to the pension regulator why and prove that the employee isn’t eligible. However, this can be turned into a positive! As an employer it is likely that you currently offer a company pension scheme to your employees and if not, I imagine you will be planning to in order to meet approaching legislative deadlines facing employers from 2012. It is possible for an employer to reduce their Tax (more specifically National Insurance) liability through a company pension scheme and make up to 12.8% rising to 13.8% from 6 April 2011 (in the pound) savings on their current pension contributions. By implementing a salary sacrifice approach to their company scheme every pound that an employee pays into the scheme reduce the employers NI bill by 13.8% (from 6th April 2011), it also reduce the employee NI cost as well. This is possible because the payments are taken before either party pay tax as a gross expense. In some cases it is possible to make changes to an existing scheme and benefit from the savings. In others a simple change of scheme provider achieves this.


Anthony Thomas Senior Associate

Paul Andrews Director

Curry Popeck Specialism : Employment

Family Business Place Specialism : Next Generation


In a family business it can sometimes be uncomfortable approaching family members about their conduct. What do I do if a family member commits misconduct or is performing poorly?


I am next in line to take over the reigns of the family business but I have my own plans and want to do other things. I don’t want to disappoint my parents and am worried about talking to them. What do other people do?


The next generation in family businesses face a huge dilemma as many will not want to enter the family business. Instead they will also need to come to terms with what they often perceive as ‘letting their parents down’ at the same time. All too often next generation members express fear of being honest with their parents. Yet the one thing that all parents want is to see their children happy, fulfilled and pursuing what they want in their lives. The most important thing for the next generation is honesty and being true to ones self, and of course, you need to communicate with your parents. In many cases, parents are not surprised by the ‘announcement’ that the next generation want to follow their own path but what is important is that they know sooner rather than later so that they can make alternative arrangements. With the right planning and forethought it can be a win-win situation where the business plans for the future and the next generation do too, and at a time when plans can be made properly, and in the future, if the business remains in the family, there may come a time when the next generation are ready, willing and able to step back into the fray too. Above all, open and honest dialogue is needed to move individual and business objectives forward.

There will probably be a tendency to be lenient towards family members in relation to conduct or performance issues. I suspect that the employees that are not related to you are treated differently should they not meet expectations. If this sounds like you, you are exposing the business to potential claims of constructive, unfair and/or wrongful dismissal. What you must do is apply your disciplinary rules and performance standards consistently across the workforce irrespective of their relationship to you. The ACAS Code of Practice on Disciplinary and Grievance Procedures (“the Code of Practice”) places an If you would like to be obligation upon you to comply with its provisions when you are a part of the panel, considering taking disciplinary please email the Editor: action. Although the Code has no legal force its provisions can be for more information taken into an account if an Employment Tribunal considers them to be relevant. If you unreasonably fail to follow the Code, an Employment Tribunal may increase the compensation that it awards an employee by 25%. It is naturally more difficult to criticise a member of your family. However, provided that you act on a fair and consistent basis, you will eliminate the risk of claims from any employees whether or not they are family members.


Generation Spring / Summer 2011


FBProud stands for all of the values that are common throughout family businesses including loyalty, trust, heritage and integrity.

The FBProud marque has been developed by the Family Business Place to be awarded to those companies who have been proud ambassadors and supporters of the family business community. With over 65% of the UKâ&#x20AC;&#x2122;s private sector being family run, these businesses make a significant impact on the UK economy and deserve to be recognised.

FBProud can be used on any marketing tool including: Letterhead, Business cards, Internal communications, Website (with reciprocal link back to, Corporate brochure, Packaging, Vans/lorries, Signage

FBProud lifetime license - ÂŁ495 Please contact Family Business Place for more information â&#x20AC;&#x201C; paul@familybusinessplace.con 07921 710 009


Party PeoPle How we make millions from having fun – and still care Most people will know David Jamilly from his appearance on C4’s ‘Secret Millionaire’ when he left behind his luxury lifestyle in London and travelled to Redcar in Yorkshire to experience a week with some of the great charities working in Teesside. His book ‘Party People’ tells the journey of how he reached the priviledged position of being able to give away hundreds of thousands of pounds on ‘Secret Millionaire’ through building a successful party planning business with his sister Kim. Now the UK’s leading party planning and prop hire company, Theme Traders has been running since 1989 and ‘Party People’ takes the reader on an amusing journey through some of the highs (working on the Queen’s 80th birthday party) as well as the lows (hiding in the toilet whilst a party to honour and celebrate F1’s Nigel Mansell goes horribly wrong). The book begins with a fascinating insight into Victor Jamilly’s (David’s father) store called Laurence Corner at London’s Euston station and David and Kim’s time there learning the ropes and soon branching out to be one of the first players in the party planning business. What’s refreshing about David’s autobiography is the consistent philanthropic thread running through the book. In a time where most people just have their heads down, buried in their own world of riding out the recession. David really steps up to the mark. He makes sure that his parties for children in hospitals are just as important as organising a £200k celebration for a wealthy Arab client. Read ‘Party People’ on your Kindle, iPad or even better pick up a copy from a bookshop and be inspired by one of the UK’s most successful family businesses. ‘Party People’ is available in advance from and and then major book shops from 4 June 2011. Written by David Jamilly and Tammy Cohen Reviewed by Amalia Brightley-Hodges for Family Business Place

Generation Spring / Summer 2011



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Generation Spring / Summer 2011


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Generation Spring / Summer 2011





GILES ENGLISH Was joining the family business always your plan? No it was by chance, my father was against it and his interests were spread over several different businesses but growing up I always wanted to work with my father because I had such admiration for him. Following his death, both Nick and I fell into working with each other because we had a business that needed some sorting out.

What values have you learnt from working with family? I have learnt more working with other people, that bond of trust can never be underestimated between family. What we have learnt to do however is to not bring work home and bore our wives too much!

Who inspires you? My father everyday.

Does money motivate you? I think to be a businessman to an extent it has to motivate you but if that was the only driver in life I would be working in the City.

Describe your typical day in the family business? There is never a typical day for me and my wife hates that but when I am in the UK – 6.30am wake up and give the kids breakfast and if I don’t have to travel abroad I will leave for Henley to be at the office by 9am. My morning consists of manufacturing, marketing and sales issues in no particular order. Nick and I have never been good at splitting our roles so we normally do it on a project basis. 12am I might head to London for a press interview or meeting with a retailer, I generally avoid lunch meetings as it goes on too long but try to pack meetings in.

What’s the best bit about working with family? I think in my case it’s that we both have the same interests I want Nick and his family to be happy and visa-versa

And the worst? I see too much of my brother in a work environment and work is always on our mind in a social environment!

How do you spend your free time? I am lucky and have lots of hobbies; flying and building things have always been high up on my list but I am getting very into gardening as I love the artistic nature of it.... quite worrying and showing signs of old age.

What would you advise someone thinking about joining their family business? Go for it if you feel that as an individual you can grow as a person, if you have the balance right it is like working for yourself but with a fantastic support network.


Generation Spring / Summer 2011

6pm If I don’t have an evening event (once or twice a week) I head back home and will get back by about 7.30 where I will say good night to the children and if I am not playing tennis or football will sit in the kitchen with a large glass of wine listening to my wife talk about her day, by that stage I am normally talked out. 11.30 bed time, I have never been good at going to bed early and I normally have a few emails and conversations to be had with the US before my head hits the sack for another day.

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

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Generation Spring/Summer 2011  

Latest issue of Generation Magazine. Great features on Walter Wright, The Stevenson Brothers, Royal Warrant Holders and Family Businesses in...

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