USD Magazine, Winter/Spring 1997

charge? How does the family business pass from one generation to the next? How are family members who are not involved in day-to– day operations kept informed? The difference is that most business owners don't know how to answer these questions - often to their peril. "As many as 60 percent of the businesses in America are family owned or dominated; if one-person organizations are included, it goes up to 90 percent," says Scott Kunkel, USD business professor and the Family Business Institute's executive director. "Unfortunately, less than 30 percent of those businesses successfully make the tran– sition to the next generation. The families either sell out or the businesses fail. We want to understand why this happens and help families prevent it." Educalion is lhe Cure A large part of preventing problems is educating members about how to resolve conflicts before they threaten the business or the family. Each month, Family Business Institute members gather at USD to learn from experts and discuss issues unique to family busi– nesses. An advisory board develops the monthly programs, which

have included topics such as management and ownership succes– sion, estate planning, training and compensation of family and non– family members, conflict resolution and creating a family business culture. The institute, which was formed in 1991, also brings in corpo– rate sponsors who offer advice in areas such as banking, law, accounting and insurance. The sponsors provide financial support, expert speakers and perspectives on planning and management of family business, and on other general business topics. But members, who pay an annual membership fee, often comment that the experi– ences of their peers are the most important resource. "The speakers are valuable, but discussing these issues with other family business owners really offers new perspectives for ana– lyzing and thinking through different things," says Charles Wax of Waxie Sanitary Supply, a company that has belonged to the Family Business Institute for several years. "The interaction makes you aware of resources and solutions you might not have considered." Resources for family businesses have been limited or nonexistent, because understanding family businesses has only recently become a topic for discussion at most business schools. In fact, when Kunkel

...

15

N E

M A G A Z

U 5 D