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　　As the oldest continuously owned family prepress company in the USA (115 years and going strong), we have had our share of challenges and adventures.  My goal today is to address the challenges that directly related to our family business journey, and impart a few ideas to make the potholes few in number.  I will not suggest scenarios for the monetary succession of generations, as this is a financial planner’s world, and will be different for every family.

 　　Mandel/Screentech has been involved in prepress production since our inception. From wood engraving for letterpress to, ultimately, digital files for direct to screen, we have traveled the gamut of print technology. I am the fourth generation. Mandel started with my great grandfather in 1892, and he enlisted two sons (one was my grandfather). The second generation brought in three sons, which meant Mandel had three families involved in the business. Each Dad brought in a son for the fourth generation. In 1982, we started the Screentech Division to serve the screen-printing industry. 

 　　Now we are up to date. My goal today is to isolate a number of the rifts that will pop up as succession takes place in family businesses, and give you ideas to deal with the challenges.

 　　The challenges that face the family business are as follows: finance and compensation, responsibility and expectations, and knowledge and education.  Each challenge has business and family ramifications. As we delve into my experiences, I will address each topic from both the business side and family angle. Before I jump head first into this very sensitive topic, I would like to preface my remarks by saying that I believe family takes precedence over business, though business must succeed for a solid family experience. Does this sound contradictory?  For argument’s sake, I will also interject that success is equally profitability and continuation of the family business.

 　　The key to a family succeeding for generations is pre-planning. The word “succeed” and “succession” come from the same root, and the pre-planning will create emotional successes. Who will run the business and which area of the business (production, sales, or finance)? 

 　　Knowing who will run the business is vital to continuation of the family business. Remember, the next generation does not need to be president and call the corporate shots. The choice of leader can come from outside the family ranks. As you would with all employees, utilize their talents, and do not put people in a position for failure. Staff who are put in positions where they will not succeed will eventually be demoted, let go, or will quit. The family member will step in and deal with the position and not be able to create a successful company. A family member in the wrong position creates stress for everyone, and this has potential to cause family confrontations. Most members of the older generation will tolerate and provide plenty of excuses for the negative performance (especially if they are the parents of the leader).

 　　As someone who is the son of a boss (a very successful one at that), the following are recommendations from the heart and soul.

 　　Recommendation One: Evaluate the talent of the sons or daughters, and create a path that is good for them. Managing people is a very exclusive skill, and I believe it is difficult to teach. Managerial techniques can be refined, but tough to evolve from scratch. Allow the younger generation to be involved in many parts of the business, and the cream will come to the top. Top sales people may not make great leaders or innovators. Choose carefully, and take your time.

 　　Recommendation Two: Treat the next generation as an employee, albeit a key employee that you are committed to grow and to be of special value to the business. There must be expectations, projects to complete (projects that make the company stronger or unique), and work day hours, etc. You are attempting to get to know their strengths and weakness. They will gain the respect of co-workers by adding to the company versus having the silver spoon. This is where business is business.

 　　Recommendation Three: I have a very strong conviction on this one. The next generation must work somewhere else for at least three years. Every person must bring value to a business, whether they are family or not. We all expect experience from our new hires, and family should be no different. Experiences outside the family business are invaluable if the older generation keeps an open mind to alternative ideas. To be honest, the job does not have to be related to your business. There is a product, a client, a payroll, and expectations. I was a pharmacist. Life experiences may not always deal with ink and Adobe. Let the younger generation first gain confidence in business, and then take advantage of those new found wings.

 　　If secondary education were in the cards, I would even go out on a limb and recommend not steering the young adult towards a degree that directly affects your business. I believe that school is school, and education is education.  Kids learn how to learn in secondary schools. What I mean is that the student will figure out how and where to find the answers, and develop logical approaches to challenging ideas. The journey within the education is the goal, not specific answers to questions. Now if the son or daughter wants to go to the University of Clemson’s School of Printing because there is a passion, I am just fine with that.

 　　Recommendation Four: Mentor the next generation in the art of networking.  Networking does not always relate to sales, but are we not all selling something? Where do you network? Get involved in organizations. Whether it is SGIA, your local church or synagogue, marketing clubs, services clubs (i.e. Rotary International), or charities. People like to work with people they know, and what better way to gain confidence in others than work on committees.

 　　The textbook definition of networking is this: “building up or maintaining informal relationships, especially with people whose friendship could bring advantages such as job or business opportunities.” That about puts it in a nutshell. The most fantastic part of the networking is developing life long friends. I know many from my SGIA involvement.

 　　Coming from a company that was afflicted with SOB’s (sons of bosses), let me just say that you need to run your business succession as a business. Require the next generation to have education and experience before arriving on your doorstep. The world of entitlement need not be at the family business. Create expectations and follow through. Require involvement in outside activities and organizations to learn the art of networking. And last, please objectively evaluate the next generation “talent”, and allow them to take the path less traveled. Your future business will thank you.