A partnership in misunderstanding

By Frank M. Butrick Managing Director Manufacturers' Institute Oxford, Michigan

ITANY of the problems which lUlarise within a family business, particularly between father and son, are the outgrowth of too many assumptions about each other.

The roots usually go back to the son's teen years, a time when young' sters and their parents frequently become out of phase. In struggling from childhood to adulthood, young people rebel against everything: teachers, the rules - and their parents.

It is a perfectly natural process, but the businessman-father is particularly vulnerable to this rebellion, simply because he is so often at the business: and when he is home he is preoccupied, tired, and has little patience for adolescent behavior. Too many sons are totally lost to the family business, just because father and son became strangers and do not (or cannot) talk during those years.

Four years at college, or service in the military, and banishing an employee-son to the bowels of the firm to "start at the bottom" merely intensifies the loss of communication.

This inability to talk together (and say something) is all important because it is too often unrecognized as a problem area. And it glosses over a situation which lies, unresolved and hidden away like a time bomb, capable of blowing up years later: the father assumes that he knows why his son is working for him - and the son assumes that he knows why his father wants his son working for him.

All too often, both men are wrong, simply because they never discussed the subject. The eventual results of a solid misunderstanding can be disastrous to the father-son relationship and to the business alike, and is normally irreparable.

cAsE HISTORY #l

This son received his MBA and then moved into his father's lumber yard to assume sales management. Almost from the beginning he made frequent and disparaging remarks and comparisons between their family company and "big business," grumbling' about the firm's employees, brand lines, the style of their promotion, their inventory, supplier arrangements, floor layout, and not even stopping at his father's overall management.

Story at a Glance

Some of the problems existing between fathers and sons in the family business are examined in this well-thoughtout article. .case histories demonstrate some problem areas and possible solutions.

At first his father overlooked the remarks, realizing that his son's education had not prepared him for the realities of management in a medium-sized firm. But then he began to wonder if they were indications of frustrated ambition - if his son was urging him to grow and expand. The more he thought of this, the more it seemed logical and desirable - and that with his son to help, he could push the business to new heights of accomplishment.

The firm had ample cash reserves and excellent credit, so the father busied himself in analyzing competitors. One day he announced to his son that he had agreed to buy a much larger but faltering competitor, a 3-store chain in another city, which after being turned around under his son's management, would better than triple their business.

The father was somewhat disappointed by his son's mild reaction, but nonetheless, the son went off to begin the overhaul of their new acquisition. Within six months the son quit, announcing he was joining a (Please turn to page 30 )

Preliminary results of a plywood assn. survey of mills to determine the impact of a 25% reduction in public timber (which could happen if the forest products industry looses the Monongahela fight) finds the supply of specialty plywood products would be severely affected

Of 33 specialty plywood mills responding, l2 estimated a 25% reduction in public timber would result in ultimate closure, 12 see substantial curtailments National Forest Products Assn. is backing H.R. 15069 (intro'd. by Rep. John Melcher (D-Mont) as best of present bills to relieve Monongahela problems

Latest housing start figs. continue to confound the optimists July starts declined 9'/o from June, to I ,387,000 on a seasonally adjusted annual pace; lower rate was still 15% above the same time ayearearlier brigltt spot : permits for future construction rose 67a, highest annual rate in morethan2years...

The multi-family sector of housing continues as the weak spot, with no early upswing in sight most experts now see total '7 6 housing starts between 1.45-1.55 mil. . . . housing starts in July in the West were 359,000, down 3%, permits were up almostl5V...

Money rolled into the s&ls in July at a record rate (more fuel for the hotrsing machine), a reversal of the past 3 mos. trend . prime lending rate is now 7% home loans closed in Ca., Az., & Nv. in lst half '76 by s&ls were at nearly twice the volume of the same period '7 5

New wholesale companies include: Midland Coast 14/holesale Co., Santa Rosa, C8., Roy M. Wessels, gen. mgr.; Parr Lumber Co., Orange, Ca., Pete Parrella; Fair Oaks Lumber Co., Sacramento, Ca., Brian & Kay Eggiman; West Coast Lumber Sales, Portland, Ron Thompson;' Uni ted International, Inc., Portland, Jack A. McCleskey; Shaw Lumber Co., Orange, Ca., Grant Shaw . American Intenrutional Forest Products' has a new subsidiary, Western International Forest Products, Dave Gambel.

Closures include Doud Lumber, San Jose, discontinuing operations "after 3 I great years in the Bay Area," according to Lee Doud Griffin Forest Products, San Mateo, Ca., has closed its doors; it began in'67 . . liquidation of its 25 storechain of Thunderbird Home Centers continues following a decision by stockholders of the parent co., Columbia Corp., to liquidate all corp. assets

All-Coast Forest Products, Whittier. Ca., has been named exclusive sales rep. for Reedsport Mills, Inc., Reedsport, Or., selling their production into the Ca., Az. and Nv. markets United Pacific Plywood & Lumber, Yancouver, Wa., is the new sales agent in the Pac. N.W. for Sand Door & Plytuood, Los Angeles . .

Embezzlement of between $200,000 5500,000 from Welstt & Bresee, Inc., Oakland, Ca., a bldg. mtls. wholesaler, has been revealed by the arrest of a former employee on grand theft charges; the accused worked for the firm for 5 years as a counterman Bloedorn Lumber, Torrington, Wy., has purchased Riverton Lumber for an undisclosedamount...

U.S. Plytvoocl has been fined $1000 for "poor housekeeping" at their Anderson, Ca., particleboard plant which had a sawdust explosion Mar. 23, that resulted in the deaths of 7 workers and caused $20 million damage; the state Div. of Industrial Safety levied the fine, county officials didn't think USP was at fault, no decision yet as to rebuilding

After loosing $ $ for l-l l2 years at its Oakridge hardboard operation, Pope & Talbot now wants to sell, says price is below $5 million book value . Slaughter Bros., Dallas, has a new Denver sales office . . Builders Emporium's newest store is in Venice, Ca., in a former W.T. Grant.

Masonite sold it's Cloverdale, Ca., Preston mill to Jack Davies and Don Richardson for an undisclosed amount, theyore operating it as Preston Lumber Co. . Farm Discount Lumber has moved to a new site in Issaquah, 'Wa., Georgia-Pacific is now operating its new sawmill at Fort Bragg, Ca., hiking complex capa- city...

J.E. Higgins Lumber, San Francisco, plans to expand its distribution from no. Ca. and Nv. to national and international markets H. Paul Herrfeldt, Jr. has bought out "Pete" Sharp's holdings in Colifornia Redwood ,Sales, Santa Rosa, for an undisclosed amt. of $$, Pete's now a consultant and planning some traveling.

MacBeath Hardwood Lumber, San Francisco, has acquired the stock and assets of Brush Industrial Lumber Co., Los Angeles, and will operate it as a subsidiary under the Brush name.

Lumber Citlz opened its lOth store. in West Van Nuys/Reseda, Ca., firm is owned by Bob Reed and Bob Nieman . . H&E Home Builders City is bldg. a 85,000 sq. ft. store in Redlands, Ca.