R unning a family-owned business is tricky .
Transitioning from one to the next generation is even worse . Company leadership is , first and foremost , expected to do the necessary planning that will protect the overall health of the organization and its employees , while at the same time insulating their own family life from internal strife .
It ’ s a delicate balancing act with potential longlasting repercussions both professionally and personally .
Bob Jacquart , whose family founded Jacquart Fabric Products and now owns the fabled Stormy Kromer fashion brand , is well aware of this balancing act and has planned accordingly using outside consultants , with clear communications to employees and family members and taking steps to ensure the company ’ s stability after he leaves the company .
Bob ’ s primary motivation is to be confident in the fact that his life ’ s work is secure for the future of his family and employees .
“ I will not consider myself successful if , on my deathbed , somebody in my family is still angry at me and isn ’ t there with me because of something that happened within the business ,” says Bob .
He advises other business owners to rely on the guidance of outside consultants , corporate attorneys and accountants . But most of all , start planning early and often .
“ I really would encourage that people go find companies or consultants that do this for a living ,” says Bob . “ And don ’ t be afraid of telling that consultant your dirty laundry because , if they do it for a living , they ’ ve seen every jealous cousin or dysfunctional son or whatever .”
The consultants helped Bob understand the importance of transitioning the assets of the company which now , for Stormy Kromer , live in a trust . Working with the consultants , they developed a sophisticated plan to transfer and manage the assets but then it was up to Bob to make decisions on leadership and other personnel .
For that , he turned to his two daughters , Gina and KJ . Gina Thorsen returned to the company in 2009 and currently serves as President . She will step into the CEO role when her father makes his exit and will work with her sister as part of the leadership team . Gina says she and her sister complement each other well .
“ We managed to make that decision , that Gina will be the CEO and we had very few problems ( because of that decision ), so we ’ re in fantastic shape ,” says Bob .
Having a congenial and collaborative transition from one generation to the next doesn ’ t always happen . In fact , it ’ s the exception to the rule .
Donna Russell-Kuhr , President and CEO of PTM Corporation in Fair Haven , had to force the issue with her dad , Charles T . Russell , who founded the prototype , design and metal stamping manufacturer in 1972 . Charles initially oversaw all aspects of the
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business running a one-person show . He remained heavily involved in operations throughout his years at the helm . So , when it finally came time to look to the next generation , the conversations were challenging .
... Sometimes you have to be pushy , respectfully pushy . It ’ s essential to the company ’ s success to have those hard conversations .
— Donna Russell-Kuhr , President and CEO of PTM Corporation , with her team including husband Steve Kuhr
“ I was the one who said [ to my dad ] ‘ Hey , can I sit in on that bank meeting ? Can I sit in with the accountants ?’” says Donna , the 2019 winner of the MFG Woman of the Year Award . “ There was a lot of reflection when my dad passed away , and sometimes you have to be pushy , respectfully pushy . It ’ s essential to the company ’ s success to have those hard conversations .
“ I would tell people who are somewhere in that food chain that sometimes you ’ re going to have to have those hard conversations .”
Donna strongly advises those in a similar position to be careful around egos and not let your emotions get in the way .
“ I think if we can put our egos and emotions aside and really listen to our people , I think we can be better leaders ,” says Donna . “ With my dad , it was just his way or the highway . I ’ ve heard this from so many family businesses that argue and fight . It can be disastrous .”
Patrick Curry , President of Fullerton Tool Company and the recipient of the 2014 John G . Thodis Michigan Manufacturer of the Year for small tier , faced a similar situation in transitioning the family-owned solid carbide tool maker . The company is now under third-generation management but it took hard work and tough conversations directed by him .
Patrick ’ s dad and uncle , who co-owned the business , had no succession plan in place and even balked at discussing their own eventual exits . Patrick , who has worked at the company in one capacity or another since his teens , was advised that he