Case: Adrian - Are we family?

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Adrian - Are we family?

The case organization was founded in the late 19 th century in New Zealand and, as noted earlier, is now
in its fourth generation of family ownership and management. It is a small, tightly connected retailing
business within the arts industry. Since its founding, it has played a significant role within its industry and
the arts for the various groups it serves. In the course of its existence, the business has changed its
ownership structure (in the second generation it had outside shareholders), its product offerings, and the
degree of family involvement. However, many aspects of its business conduct, such as contributing to the
wider arts community, have remained constant. Figure 2 summarizes the main milestones of the
organization. The business had recently shifted to new premises which allowed a focus on retail as well
as the continuation of hosting industry events, which had been the main activity of the business
in the past. The business employs several people in both retailing and training roles of the business, as the
service part of the family business has grown under the watch of the third and fourth generations. During
the succession of ownership between the third and fourth generation, the business shifted to a sole
proprietorship with a family trust structure to ensure that intergenerational succession could take place
without compromising the longevity of the family business.
Furthermore, the involvement of the fourth generation in the training aspects of the organization have
enabled the business to foster additional growth and to prepare it for the future.
Most members of the family had not been actively involved in the business beyond their early years, but
the business nevertheless presented a central aspect in their self-categorisation. This can in part be attributed
to the use of the family name as the business brand, creating an immediate link between the family and the
business. Christian highlights that he is:
… just building on what my predecessors have done. They laid all the groundwork and all I’ve
got to do is build on that as strongly as possible.
And this just becomes an extension, because the longer the business is in business
the more powerful that name and brand becomes in a sense.
Furthermore, Matthew, the youngest brother, related this tendency to their upbringing and the
close relationship between the family and the business:
What we were taught was always directly related to the family business at all times because it had
been around for so long.
Mary agreed that family members’ close identification with the business was the result of Henry’s and her
children having had constant exposure to the business. This was particularly shown by the family’s tradition
of hosting events at their home, which was driven by the family’s passion for the arts as well as the nature
of the industry:
It [the business] was always a part of their [the children’s] life because we had those [events]
and so they always had the knowledge of that happening around them and that happened
for many years.
Christian, the current owner-manager, stressed that both the business and the family aspect were
very important and strongly interconnected. He argues that for him there is:
… a split focus – yes we are a business and need to be able to make money and survive,
but at the same time we feel very strongly about supporting the community.
Case: Adrian - Are we family?
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An important aspect that he highlights is a dual objective. While he acknowledges that the business needs
to be profitable, Christian also indicates that there is a more caring component that feeds back into the
community. Furthermore, the use of the inclusive ‘we’ – even though he is the only family member formally
employed in the business at this stage – suggests that he perceives a wider circle of the family to be included
in the business category.
Family members consistently indicated that both their upbringing and engagement within the business from
an early age, and the length of existence of the business in relation to the history of NZ – the business was
established about 50 years after the Treaty of Waitangi in 1840 – had a strong impact on the self-
categorisation of the individual family members. The fact that the family and business category were closely
related to each other, due to the family’s hosting many events at which both family members and customers
were present, and the fact that the family name was used as a brand, also contributed to the
development of a family business identity.
Direct descendants of the founding family shared many memories from the childhood that related not only
to the family business, but also to the family unit. For example, Christian – like other members of the family
– constantly referred to events that took place in their childhood that highlighted the intersection of the
family and business activities. For example Christian recalls:
The positive aspects of the business, the way the business supported the local communities
[in] a lot of the things that they did, the [events] that they used to put on, they used to do a lot of
[these events], which is also linked back into the business. Those were the aspects that I remember
from growing up.
These additional activities were born out of passion and enthusiasm for the industry, not primarily from
financial motivation. Lauren, Christian’s wife, highlighted that part of this emotional connection is due to
the type of industry they are in, and the passion that the family has for these activities:

I suppose [it] is an emotional thing too, you can’t sit up there and consider it a cash cow,
because you are not going to make money out of [that kind of] business – that’s not going to
happen.
The emotional connection to the business was also highlighted when Christian decided to enter the business.
Before making this decision Christian had been involved with a variety of businesses he started, but a
personal crisis made him reconsider his professional and personal life, resulting in the decision to enter the
family business at the side of his father. While it had long been unclear whether the business would continue
to the fourth generation, all members of the family welcomed it. Matthew emphasises that:
Any one of us children would have been sad to see that it would have come to an end. All of
us were separately hoping that [Christian] would take over. We have all been supportive
about that, it’s nice to see.
Interestingly, as a result of this succession process, Christian decided to put in place a trust structure to
ensure that the business would continue without the risks resulting from finding an appropriate successor.
Overall, while the various family members did not exhibit particularly strong interpersonal ties, there was
an indication of a strong emotional attachment that resulted from the business’s community involvement,
their shared experiences during childhood, and the combination of passion, personal life, and business. A
difference was observed with regards to Lauren, who has started to develop a sense of emotional attachment
Case: Adrian - Are we family?
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through her marital links to the business and her involvement in the business and associated activities.
However, because she did not grow up in the family and therefore did not experience the same situations,
it is understandable that her emotional bond is less strongly developed.
Questions:
1. Discuss the family business dynamics of the case.
2. How does the degree of involvement impact the degree of integration between the family and the
business identity?
3. How does the length of time of the business existence affect the family?
4. What can be attributed to the economic dependence of the business?

Figure 1. Overview of family relationships of the Adrian family