Welcome to Grit & Growth’s masterclass on the complexities and opportunities of running a family business, featuring Peter Francis, Stanford Graduate School of Business lecturer. Peter provides practical strategies, tactics, and firsthand experiences of effective family business management.

Peter Francis’ expertise in family businesses goes far beyond the theoretical — he invests in them, teaches a class on them, and is also the former CEO of a sixth-generation family business. So he understands both the advantages and complexities that come with families working together and transitioning from one generation to the next.

Peter believes, and the statistics confirm, that family businesses have some significant advantages over their public counterparts, namely patient capital, speed of decision making, the ability to pursue unconventional strategies, and pride of ownership. But the complexities of family relationships and emotions can be challenging.

Creating a culture that encompasses both family and business is essential. “ It's not what you say with your mouth, it's what you do with your feet. And so early on family leadership needs to make it crystal clear that that's the way it's going to operate, and then they need to operate that way. And I will tell you, what you do will outweigh what you say.”

Top Six Masterclass Takeaways

• Make sure to understand your ownership model, clearly defining who are your active vs. passive owners (you want more of the former.)
• Education, transparency, and communication are the top three “universal” antidotes for handling many of the issues that show up in family businesses, especially during times of transition.
• Separating business and family is essential — don’t bring business problems home and try to solve them in the “family room”.
• Bringing in an outside voice/advisor can be a huge help in matters of transition, especially when things get emotional. Which they almost always do.
• Getting independent directors is key to growth and success. Actually listening to what they have to say is even more important.
• Thinking ahead, before you’re actually ready for a transition, will be a big help, especially in the event of an unintended consequence, such as the death of a founder.

Listen to Peter’s insights, advice, and strategies to help manage everything from success to succession in your family-run business.

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