16 MiMfg Magazine May 2021
needed to force the issue or it may be disastrous for the business . So , he did .
“ I started working together with our corporate lawyers and accounting firm to design a buy out ,” says Patrick . “ It took about two years to work out the game plan .”
Patrick ended up buying his dad out , and his cousin , Mat Curry , bought out his dad . Now they run the business as a 50 / 50 partnership , same as their parents and , by designing a sound and effective transition strategy , they have been able to grow the business starting immediately after the sale while also taking care of their parents in retirement .
“ Because they were able to work with us on a good plan , we can afford to pay them for years to come but we can also afford to reinvest in the business ,” says Patrick .
Like Bob Jacquart , Patrick also recommended to work with outside consultants , corporate lawyers and accountants to make sure all scenarios are vetted and the right documentation is in place . Going through that process was arduous , he admits , but well worth it .
“ Planning is so critical ,” says Patrick . “ I think that the generation of my dad and my uncle , they just thought they would work until they die . Work was their life . So even starting to talk about that transition , those were difficult conversations .”
I think one of the things that my father always said is that he would love for family members to ascend to wherever is possible for them based on their skillsets and their competencies relative to the organization .
— Christina Keller , President and CEO of Cascade Engineering , with father and company founder Fred Keller
Working from the Outside In
Some companies have training and internship programs in order to cultivate family members for leadership positions . That was one of the requirements for Christina Keller , President and CEO of Cascade Engineering , who is the daughter of company founder Fred Keller .
The Grand Rapids-based plastic injection molding company has a long-standing policy in place that family members must work outside of the company for at least five years and , when they join the business , they must rotate between core aspects of the business for six months . This includes time working on the production floor .
So , after completing her education , undergrad at Boston College and an MBA from Cornell , Christina worked outside of the company for five years and returned in 2008 to start her rotational program . Having Christina take over the company one day was never enshrined in a formal plan . Instead , Fred Keller , recipient of the 2017 MFG Lifetime Achievement Award , gave his daughter the freedom to decide for herself .
“ I think one of the things that my father always said is that he would love for family members to ascend to wherever is possible for them based on their skillsets and their competencies relative to the organization ,” says Christina .
Donna and her husband Steve Kuhr from PTM Corporation have a similar , albeit less formal family integration policy . Helping to lead the company in various leadership roles for more than 30 years , Donna has learned valuable lessons about how to integrate family into the business .
“ We made a rule ,” says Donna . “ Through your college years or the intern process , you can ’ t work for us . You need to go and work for somebody else .”
It comes down to having passion for the job , says Steve . Having family members work outside of PTM helps to establish that passion — or not .
“ It doesn ’ t matter what your last name is , we ’ re going to give you the same opportunity as everybody else ,” says Steve . “ And if you don ’ t have a passion for what you ’ re doing , then we don ’ t want you here .”
What Not to Do
Sometimes effective succession planning can happen accidentally — but it ’ s not advisable . Take the case of Jeff Koeze , president of Koeze Company which has been producing gourmet nuts , chocolates and other foods since 1910 . Jeff says his father , Scott , who ran the company from 1968 to 1997 , had no plan for succession as far as he could tell and Jeff ’ s integration into the business was rarely , if ever , discussed .
That being said , Jeff says his father did several “ smart things ” in order to ease the transition when the time finally came . His father had already put together a good management team , and had stepped back from day-to-day operations . Additionally , a few years before Jeff had officially taken the reins ,