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January 2010
 Special Edition:
 Family Business Wiki's 2010
Family Business City of the Year
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A Familiar Story with a Surprise Happy Ending
Jared Kaplan
Sister is running the business, brother wants to be bought out, and Mom is in the middle.  Between price negotiations, taxes and becoming highly leveraged -- it's not pretty.   
Making the Transition from Family Business to Family Office Without Scrambling the Nest Egg
Steven Thorne
A liquidity event can be a good thing -- but it can also create rifts within the family, erode work ethic, and cause dramatic changes in lifestyle.
Is the Family Business Leader Born or Made?  Follow the Rattle? 
David Spitulnik
When it comes to selecting the next generation leader, for some family businesses "the first baby rattle is the key to the executive suite".
David Spitulnik poses some important questions for the current generation and the next generation -- which can be a bit more effective than "the first baby rattle" in preparing for a transition of leadership.
Greetings!

Family Business Wiki is proud to announce our 2010 Family Business City of the Year -- Chicago.
 
Why Chicago?  Chicago has always been a great family business city.  It has three university-based family business centers (Loyola University, Northwestern University, and the University of Illinois at Chicago); distinguished family business researchers and thought leaders; and many prominent family businesses.
 
But 2010 is special.  This year Chicago is hosting the two largest and most prominent international family business conferences -- the Family Business Network (FBN) International Summit and the Family Firm Institute (FFI) Annual Conference.  These conferences will bring to Chicago members of family businesses from around the world, and family business advisors and consultants from around the world.  This will make Chicago "the center of the family business universe" -- and our 2010 Family Business City of the Year. 
 
In this special edition of the newsletter, all of the blogs have been written by family business professionals in Chicago.  Two of the bloggers have special connections to the conferences:  Jared Kaplan is the Chair of the FFI Conference Chicago Advisory Committee, and Andrew Keyt is the Chair of the FBN Program Committee.  We thank Jared, Andrew and all of the contributors to this special edition for taking the time to share their insights -- and helping the world to see the depth of family business expertise in Chicago.
 
Thought Leader Blog:  John L. Ward
The Ten Subtle Secrets of Successful Family Businesses
 
John L. Ward
Mounting research documents the superior profitability of family firms, even over widely held public firms. My research of the 1,000 largest public firms worldwide suggests those controlled by families earn a 30+ percent higher return on capital.

What helps these firms thrive?

Beyond an independent board of directors, regular family meetings, and a family constitution, I have observed ten subtler capabilities and lessons for continuity.  (Read more from John Ward and add comments.)
Family Business Center Director:
Lloyd Shefsky 
Even Happy Families are More Unalike Than Thought 
  
Lloyd Shefsky"Happy families are all alike; every unhappy family is unhappy in its own way."
- Leo Tolstoy, Anna Karenina, Book 1, Ch. 1

Perhaps the word most frequently used by those of us who consult on family business matters is "generation," although sometimes it is referred to by its lead letter, "G," as in "G-1," "G-2," "G-3," etc. There always have been and will be differences between generations. However, while the generations' numbers (G-1, G-2, etc.) are always self-evident, the impact of generational differences are not.

For those who own, manage and work for their family's business, and for those of us who advise and coach them, it is critical to understand those differences, what's behind them and what impact they can have. Failing that, issues and problems may be misdiagnosed, preventing proper treatment and even causing hazardous side effects.  (Read more from Lloyd Shefsky and add comments).
Family Business Center Director: 
Judy Hogel
No Longer Lonely at the Top
 
Judy Hogel
What are the benefits of joining a Family Business Center or Council?  As a member of a Family Business Council I think about the tremendous impact the organization has had on my life and our business. Being a family business owner adds a unique layer of complexity to any business - the goals are the same, but our focus and roles are different. In our family business my husband is my boss. From the start we understood that we needed better tools and new practices to communicate with each other professionally and personally. When the UIC Family Business Council came into our lives, we both learned what an invaluable tool it could be. We could never have imagined the role it would play in our lives, our family and our business.  (Read more from Judy Hogel and add comments.)
Family Business Center Director: 
Andrew Keyt 
Communication is the Key
 
Andrew KeytThe stories that are most often told about family businesses are about the fights and conflicts. When people are faced with the question of would they want to work with their family members, you often hear the response, "I could never work with my family, we'd kill each other." These stereotypes about family businesses obscure the vital role that family businesses play in their communities and the marketplace. Research tells us that family businesses are the cornerstones of most economies.

So what is it about the most successful family businesses that allows them to get along, work towards a common set of goals and objectives, and have such a tremendous impact in our world today?  (Read more from Andrew Keyt and add comments.)
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