Keys to a Successful Family
Business
Laura Bechard`s passion is to help
family business succeed.
An academic award winning, top
graduate MBA, and Chartered
Professional Accountant, she is the
creator of the innovative ProVision
Coaching System, promoting the
effective, fulfilling union of family and
entrepreneurial life. Laura now proudly
joined ActionCoach, the premier
business coaching firm worldwide.
As a certified change management,
learning, and performance
management professional, Laura
coaches business owners through a
transformation of financial and life
results.
Sharing co-ownership with her
husband of a century-old grain farming
operation, she is now masterminding
an extensive crop diversification,
venturing into health and wellness
botanicals, along with managing the
specifics involved with the eventual
transitioning of the business over to
her children.
Undoubtedly, this savvy visionary
knows her way around running a
family business.
© Business Expert Press 978-1-63157-799-4 (2018)
www.businessexpertpress.com
Laura Bechard
Abstract: Family businesses have a significant ­positive
impact on the economy. They face unique challenges
that come from combining family with business. A ­ fter
­interviewing individuals involved in11 family b ­ usinesses,
this article shares their strategies for success in overcom-
ing the challenges that come with ­combining business
and family. The study asked respondents about their
successes, their lessons learned, current challenges, and
plans for succession. This article provides the fi ­ ndings of
the study and shares the keys to ­success identified by the
respondents: communication and change management.
Keywords: communication, family business, family
business change management, family business study,
family business success, family business transition,
family enterprise, family leader
The Family Business Challenge
Many surveys and research into the challenges ­facing
family businesses focus almost exclusively on s­ uccession
planning. This is not surprising given that only 57 ­percent
of family firms have succession plans in place, with
12   percent of them making it to the third generation
and a mere 3 percent to the fifth (PWC 2016). The prov-
erb “shirt sleeves to shirt sleeves in three g­ enerations” is
quoted across the globe, adapted for ­cultural meaning.
In Scotland, they say, “The father buys, the son builds,
the grandson sells and his son begs.”
The challenge may be partially due to lack of succes-
sion planning; however, there may be additional factors
at play that can be influenced much earlier in the life
cycle of the business. More recent research is point-
ing to lack of innovation as a significant contributor
to the d­ emise of the family business (Sauder School of
­Business 2013).
Individuals want to experience both the spirit of dis-
covery and desire for stability. When someone becomes
Expert Insights
1
 Keys to a Successful Family Business

curious, possibilities open up and other
options are explored. However, being
­ tive respondents of anonymity in their
­curious is a catalyst for change. To try some-
thing new requires a founder/leader to look
at underlying assumptions and ­paradigms,
evaluate the way things are done, risk think-
ing differently, and put something untried
into play (Pentland 2015). Our first key to
family ­business success is implement-
ing change m ­ anagement methodology.
The respondents identified effective
communication as one of the most criti-
cal factors to successfully overcoming the
challenges of combining a family with a
business. Being vulnerable, setting clear
boundaries, and clearly delineating respon-
sibilities were some best practices cited.
Significant breakdowns in communication
can cause irreparable harm to family busi-
ness relationships and ultimately lead to
family members walking away from the
family business, putting it up for sale, or
closing the doors.
ProVision Coaching Network’s 2016 F ­ amily
Business Study found that family businesses
face these challenges:
of the data collected. It reassured prospec-
participation.
Over 5 months in 2016, we interviewed
17 individuals connected with 11 family
businesses.
Sectors and Generations
In 2016, we spoke with 11 family firms in
Ontario, Saskatchewan, and Alberta. Ten
family firms were in the founding gener-
ation, while one was second generation
firm. One family firm started by purchas-
ing existing businesses and now operates
as a family business in succession to the
second generation. The sectors repre-
sented were manufacturing/construction,
business services, and retail (See Figure 1).
Respondents
As seen in Figure 2, the majority of respon-
dents (67 percent) were either founders or
Figure 1: Study Participants by Sector

1. Communication
2. Managing Change
3. Routines and Systems
4. Succession

The Study
Our Approach
ProVision Coaching Network (PCN) con-
ducted telephone interviews with the
­majority of the respondents; one interview Figure 2: Respondents by Relationship
was conducted face-to-face. Respondents
were referred to PCN through its network
of business service firms and family firms
in their networks. The trusting relation-
ship between the family firms and the
referral partner created a trusted relation-
ship with PCN interviewers. PCN benefited
from the halo effect of these preexisting
relationships.
Our process began with an invitation to
participate in the study that outlined the
nature of the study and the intended uses

2 © Business Expert Press 978-1-63157-799-4 (2018) Expert Insights

www.businessexpertpress.com
 Keys to a Successful Family Business
cofounders. In only three cases were our re-
searchers able to speak with more than one
individual. The family members who par-
ticipated in our study included spouses (2),
siblings (1) as well as nieces (1) and neph-
ews (1). One respondent was the cofounder
of the business and is now an employee.
Unfortunately, our requests to speak with
children who were named as potential suc-
cessors were not granted. Approximately
50 percent of the children were over 18 and
working in the business.
Respondents included family members in
each of the three circles of the F ­ amily Busi-
ness Model: Family, Owner, and ­Employee.
Figure 3 illustrates the membership of the
respondents in each of the three circles.
We were unable to interview ­family ­members
who were not involved in the b ­ usiness, and
in many cases, the ­respondent (founder) did
not allow access to a­ dditional family members
who were working in the business or were
cofounders. When ­respondents were invited
to ­provide contact details for additional
­family members, four respondents readily
did so, but the other seven were reluctant
for several reasons:
1. Children were minors
2. Cofounders were not fluent in English
3. Other family members were not aware
they had agreed to participate in the study
4. “You don’t need to talk to them. They will
tell you exactly the same thing.”
Figure 3: Respondents by
Family Circle
© Business Expert Press 978-1-63157-799-4 (2018)
www.businessexpertpress.com
What Works?
The first question respondents answered,
“What has contributed to your success in
balancing family and business?”, elicited
responses such as “clear delineation of
duties based on strengths,” having “no go
zones,” having an outside perspective us-
ing experts, having systems to rely on,
and getting experience outside the family
business.
Other themes that emerged included the
following:
■■ Having someone play an active “Family
Leader” role regardless of gender
■■ Clearly communicate the role, family or
business, being engaged. Which hat are you
wearing in the context of the conversation?
■■ Clearly identify who is accountable and
responsible for making the decision and
who is being consulted or informed
■■ Being vulnerable with each other
■■ Remembering the common purpose
■■ Intentional plan for succession
■■ Family members working in the business
by choice
■■ Not working from home
■■ Alone time
PCN Commentary
Effective communication, specifically to
ensure that assumptions are stated, is a
routine that works. Valuing both the family
leader and the business leader role helps
align family purpose and keeps the family’s
goals in sync. People who have effective
interaction skills ask clarifying questions
about content but also about process. Tak-
ing the time in a conversation to clarify the
intended outcomes, the decision or task at
hand, and the role you are playing helps
promote a culture of accountability and
empowers decision makers.
What Have You Figured out along
the Way?
The second question, “What lessons have
you learned along the way?”, provided
­opportunities for the respondents to reflect
Expert Insights
3