Rob Sligh

Family-owned businesses account for almost three-quarters of global GDP, generating annual revenue of $60 to 70 trillion. They are responsible for three-fifths of global employment. In scale, they range from large companies like Mars, Penske, Fidelity, Enterprise, SC Johnson, and Perdue Farms to small mom-and-pops throughout our communities. Over the long run, family-owned businesses earn better returns on average than either private equity-owned companies or public companies. By any measure… Show more

Family-owned businesses account for almost three-quarters of global GDP, generating annual revenue of $60 to 70 trillion. They are responsible for three-fifths of global employment. In scale, they range from large companies like Mars, Penske, Fidelity, Enterprise, SC Johnson, and Perdue Farms to small mom-and-pops throughout our communities. Over the long run, family-owned businesses earn better returns on average than either private equity-owned companies or public companies. By any measure, family-owned businesses have an enormous impact on their communities and the world — and that impact is, on balance, enormously positive. This article explores how family ownership drives enduring success and the many ways it matters for employees, customers, suppliers, communities, and the world. Show less

Companies deal with risk differently depending on the structure of their business and the marketplace in which they operate. But a common thread is that boards can start by understanding owner goals. The board can consider alternatives, their risks and returns, the probabilities and potential impacts, and the priorities and plans for moving forward.

Risk and risk management are much broader than the familiar ways of thinking about risk relating to how fast the company should try to… Show more

Companies deal with risk differently depending on the structure of their business and the marketplace in which they operate. But a common thread is that boards can start by understanding owner goals. The board can consider alternatives, their risks and returns, the probabilities and potential impacts, and the priorities and plans for moving forward.

Risk and risk management are much broader than the familiar ways of thinking about risk relating to how fast the company should try to grow or how much debt it should take on. The board can inspire company leadership to think broadly about risk and risk management. Ultimately, all board members are responsible for seeing that potential risks and returns are considered and the highest priority risks with the greatest potential impacts are mitigated and regularly monitored. Show less

Finding the right independent directors helps power boards toward high performance. Top leaders that serve on at least one outside business board broaden their horizons and skills. When business boards and candidates find the right fit, it creates value for boards, candidates and the organizations they serve.

How to harness the power of a high-performing board to gain insight, build a competitive edge, and create value for family enterprise owners and leaders.

Establishing a board with independent directors can be one of the most important decisions family business owners make. It can create better performance and improve the potential for a family enterprise to prosper for generations.

When you think about it, teamwork and accountability are as applicable for directors as they are for CEOs and their leadership teams. This article describes teamwork and accountability and questions that individual directors and the CEO can ask themselves to help build accountability.

Board diversity can take a lot of forms. It should be noted diversity is not a political term, but rather a means of creating value. Diversity broadens board perspective, reveals additional alternatives and improves business value for owners and the value of the board for leaders. In its best form, diversity adds strength to a company board. Its criteria consider the future through the lens of the company’s customers, employees, suppliers and communities. Diversity produces new ways of looking… Show more

Board diversity can take a lot of forms. It should be noted diversity is not a political term, but rather a means of creating value. Diversity broadens board perspective, reveals additional alternatives and improves business value for owners and the value of the board for leaders. In its best form, diversity adds strength to a company board. Its criteria consider the future through the lens of the company’s customers, employees, suppliers and communities. Diversity produces new ways of looking at problems and opportunities, adds alternatives and creates value. Overall, diverse directors with skills and experiences that support an envisioned future help increase board effectiveness. That boosts company performance. Better company performance serves the needs of shareholders and everyone associated with a business. Show less

For owners of private companies, the best returns for the risk undertaken often come from taking into account the returns for other stakeholders including employees, customers, suppliers and the communities where they operate. In a sense, it’s a new day for businesses and boards. Family businesses are particularly well-suited to a stakeholder perspective. Families existed before their business, and most families want to see their business enterprise prosper for generations. Increasingly… Show more

For owners of private companies, the best returns for the risk undertaken often come from taking into account the returns for other stakeholders including employees, customers, suppliers and the communities where they operate. In a sense, it’s a new day for businesses and boards. Family businesses are particularly well-suited to a stakeholder perspective. Families existed before their business, and most families want to see their business enterprise prosper for generations. Increasingly, business owners, boards and leaders are doing well by playing a role in making the world a better place. Show less

The most important reason why family businesses create a Board with independent directors is better company performance in the long run. Better performance allows families to build wealth inside and outside the business, contribute to their community and causes that are important to them and create opportunities for NextGen ownership and leadership development. No wonder many business-owning families say years later that creating a Board with independent directors was one of the best decisions… Show more

The most important reason why family businesses create a Board with independent directors is better company performance in the long run. Better performance allows families to build wealth inside and outside the business, contribute to their community and causes that are important to them and create opportunities for NextGen ownership and leadership development. No wonder many business-owning families say years later that creating a Board with independent directors was one of the best decisions they ever made. Show less

Furniture manufacturing, its genesis in the greater Grand Rapids Michigan area and Rob Sligh's reflections having grown up in a furniture family and working full time in a furniture business for almost three decades until 2012.

Years after creating a board with independent directors, family business owners often say that it was one of the best decisions they ever made. It stands to reason that it’s important to keep the board vibrant and well-equipped to help the family enterprise prosper in the future. Regular board evaluations are an important means toward that end. The purpose of board evaluations is to help in recruiting and maintaining directors who can help the company prosper in the future and to build a… Show more

Years after creating a board with independent directors, family business owners often say that it was one of the best decisions they ever made. It stands to reason that it’s important to keep the board vibrant and well-equipped to help the family enterprise prosper in the future. Regular board evaluations are an important means toward that end. The purpose of board evaluations is to help in recruiting and maintaining directors who can help the company prosper in the future and to build a high-performing team that sees that the business is well led in line with the owner’s vision, values and expectations for business performance. Those purposes can be advanced through a regularly updated board matrix, interviews and board surveys. Show less

Family businesses with boards that include independent directors perform better in the long run. It often starts with owners identifying skilled directors who in turn operate in a manner that engenders owner trust and confidence. An effective director has the competencies, experiences and savoir faire to see that leaders successfully carry out owner-values and goals for the company. By understanding the different governance responsibilities, ownership can build a board to help the family… Show more

Family businesses with boards that include independent directors perform better in the long run. It often starts with owners identifying skilled directors who in turn operate in a manner that engenders owner trust and confidence. An effective director has the competencies, experiences and savoir faire to see that leaders successfully carry out owner-values and goals for the company. By understanding the different governance responsibilities, ownership can build a board to help the family business grow and prosper now and into the future. Show less

This is the story of an actual business culminating in these enduring lessons learned: Establish and nurture a Board with independent directors; Maintain shareholder agreements with clear valuation and buy-back processes; Make sure potential investors share your values; and Plan ahead for ownership and leadership succession.

Management presentations can act as a natural warm up for the board by allowing directors time to get their head into a business where they do not regularly work. But too much show and tell can rob the board of precious time to deal with major issues. To help identify issues, the chair may invite input or employ deliberative models to help establish priorities. There is no right or wrong answer for how the board should prioritize and deal with the issues that come up in their family enterprise.… Show more

Management presentations can act as a natural warm up for the board by allowing directors time to get their head into a business where they do not regularly work. But too much show and tell can rob the board of precious time to deal with major issues. To help identify issues, the chair may invite input or employ deliberative models to help establish priorities. There is no right or wrong answer for how the board should prioritize and deal with the issues that come up in their family enterprise. But there is a practical need to prioritize the use of the board's time: put the most important issue on the agenda first. Show less

It’s hardly an exaggeration to consider the successful transition of ownership and leadership from one generation to the next as two family business miracles. Yet families can overcome the odds, be active owners and lead for the long run. It’s important for each generation is to ask and answer: What is the purpose of our proactively engaging as an extended family? Of staying together as family enterprise owners? To what extent, if any, will family members be engaged in business leadership?… Show more

It’s hardly an exaggeration to consider the successful transition of ownership and leadership from one generation to the next as two family business miracles. Yet families can overcome the odds, be active owners and lead for the long run. It’s important for each generation is to ask and answer: What is the purpose of our proactively engaging as an extended family? Of staying together as family enterprise owners? To what extent, if any, will family members be engaged in business leadership? Business can be a means of achieving family purpose, but it is not the purpose itself. How wonderful for communities, employees and families when a family business enterprise finds a way to succeed for generations and enjoy doing so in the process. Show less

There is a practical need to prioritize use of the board’s time. Structurally, board committees can help protect time in full board meetings. Families can create a council that interacts with the board though their family council chairman. Chairs can see that board books, distributed in advance, go beyond details to also frame the most important owner, business and leadership issues. In the agenda, the chairman can put the most important issue or opportunity first, reserving ample time for… Show more

There is a practical need to prioritize use of the board’s time. Structurally, board committees can help protect time in full board meetings. Families can create a council that interacts with the board though their family council chairman. Chairs can see that board books, distributed in advance, go beyond details to also frame the most important owner, business and leadership issues. In the agenda, the chairman can put the most important issue or opportunity first, reserving ample time for discussion and letting the board know specifically what the chairman would like from them. This article outlines methods for creating board agendas that focus discussion on the most important issues. Show less

Holland Furnace was founded in Holland in 1906 by J.P Kolla and A.H. Landwehr. Within a decade, Holland Furnace laid claim to being the largest furnace installer in the world employing 5,000 people. After 20 year old Paul Landwehr and his cousin John were killed in a boating accident, the founders were never the same. A.H. Landwehr had a nervous breakdown. In and out of mental institutions for years, he died in a sanatorium in 1937. Katie Kolla married Ted Cheff in 1931. Ted joined the board in… Show more

Holland Furnace was founded in Holland in 1906 by J.P Kolla and A.H. Landwehr. Within a decade, Holland Furnace laid claim to being the largest furnace installer in the world employing 5,000 people. After 20 year old Paul Landwehr and his cousin John were killed in a boating accident, the founders were never the same. A.H. Landwehr had a nervous breakdown. In and out of mental institutions for years, he died in a sanatorium in 1937. Katie Kolla married Ted Cheff in 1931. Ted joined the board in 1933. By 1935 Holland Furnace posted a $400 thousand profit. Foundry men readily called Cheff by his first name and Ted knew the foundry men by name. Holland Furnace recruited movie stars to speak to top salesmen and participate in Tulip Time prior to WWII. The Company set up a pavilion where Rocky Marciano trained for a championship fight in 1953. In some sense, this was Holland Furnace Company at its height – sports and movie stars in Holland - a major employer that was an integral part of the community. Yet decline was already underway. Holland Furnace lost the lead in the marketplace as oil and gas furnaces and air conditioning became prominent. Sales practices that emphasized risks of fire or asphyxiation with old furnaces and pressured homeowners to buy new furnaces would see the Company brought to court all across the country. In 1965 Ted Cheff exhausted appeals relating to the FTC conviction for criminal contempt. The Company was fined $100,000 and Ted was sentenced to six months incarceration. He entered prison in 1966 and was released for good behavior after two months. Holland Furnace Company drew its last breath in 1968. Holland Furnace was a great company for most of its 62 year life. The Company, its people, products, factories and other enterprises had a profoundly positive impact on Holland, Michigan. For that reason we must still consider the Holland Furnace Company our warm friend. Show less

The big news around Holland Michigan in 1963 was the opening of a new ski area in the hills between Macatawa and Castle Park in West Michigan. The founder was Norm Archer and his resort, Carousel Mountain. Carousel’s business model was probably flawed from the beginning. It was typically too warm for too much of the winter in that area to support a ski area, even with snow making equipment and Laketown Township wasn’t ready to give Carousel a beer and wine permit to help support its fine dining… Show more

The big news around Holland Michigan in 1963 was the opening of a new ski area in the hills between Macatawa and Castle Park in West Michigan. The founder was Norm Archer and his resort, Carousel Mountain. Carousel’s business model was probably flawed from the beginning. It was typically too warm for too much of the winter in that area to support a ski area, even with snow making equipment and Laketown Township wasn’t ready to give Carousel a beer and wine permit to help support its fine dining concept. In a 1964 Laketown advisory election, 2/3 said no to beer and wine. At that point, the writing was probably on the wall for the resort. For the kids in Holland of skiing age from 1963 to 1973, Carousel Mountain had a huge impact. It broadened horizons, turning kids into skiers who travelled up north in Michigan and out west to Colorado and Utah. The development of Carousel Mountain helped spur local businesses including Reliable Sport Haus on River Avenue and Main Auto’s Ski department on 8th Street. And it paved the way for the Scenic Shores housing development albeit by other people and at a later time. Show less

For the first 65 years of US history there were no immigration laws. In 1840, about 8 percent of free settlers in the United States were foreign born. During the 1880s, immigrants numbered over 5 million with the largest numbers coming from Germany and the UK. From 1850 to 1920 period 31 million mostly European people immigrated to the US and the foreign born percentage of the American population rising to 15%. That period was tarnished by its laws against East Asian immigration and the high… Show more

For the first 65 years of US history there were no immigration laws. In 1840, about 8 percent of free settlers in the United States were foreign born. During the 1880s, immigrants numbered over 5 million with the largest numbers coming from Germany and the UK. From 1850 to 1920 period 31 million mostly European people immigrated to the US and the foreign born percentage of the American population rising to 15%. That period was tarnished by its laws against East Asian immigration and the high levels of European immigration triggered a national origins quota system. By 1965 the foreign born percentage of the US population plummeted from 15% to fewer than 5%. The Hart-Celler Act of 1965 dismantled the national origin quotas and began a preference system that emphasized family unification. In the 1980s the US expanded admissions for refugees granted amnesty and permanent residence to 3 million undocumented aliens. The foreign born percentage of the US population bounded back to about 11 percent. Unauthorized or illegal immigrants come most prominently from Mexico. Most economists agree that the impact of well-educated immigrants is significantly positive. The evidence is mixed as it relates to immigrants with low education and low skill levels.

If America provides a legal means for more immigrants, history suggests we’ll have fewer unauthorized immigrants and total immigration will relate directly to the jobs available. We need to keep trade with Mexico open and free and otherwise encourage progress so the economic attractions, property rights and rule of law in Mexico comes much closer to the US. Congress should provide a pathway for legalized workers already here to pay taxes, learn English and take their place in line after those legal immigrants already waiting for citizenship. On the whole, immigrants are an asset to America. Show less

Grand Rapids furniture burst onto the national scene at the centennial furniture exposition in Philadelphia in 1876. By 1900, 40 percent of everyone employed in the Grand Rapids area was working in the furniture industry. Grand Rapids was known as “The Furniture City.” For 50 years, until the mid-1920s, Grand Rapids was the center of home furniture manufacturing in the United States. A furniture recession began in 1926. The depression that followed wiped out most of the home furniture… Show more

Grand Rapids furniture burst onto the national scene at the centennial furniture exposition in Philadelphia in 1876. By 1900, 40 percent of everyone employed in the Grand Rapids area was working in the furniture industry. Grand Rapids was known as “The Furniture City.” For 50 years, until the mid-1920s, Grand Rapids was the center of home furniture manufacturing in the United States. A furniture recession began in 1926. The depression that followed wiped out most of the home furniture manufacturers in Grand Rapids. By the 1930s, Grand Rapids lost its dominant position in the industry. The new centers of home furniture manufacturing were North Carolina and Virginia, which enjoyed lower labor rates, ready timber, and newer plants and equipment. Nowadays the furniture manufacturing industry is going through another era of dramatic change with production shifting to furniture plants outside the United States, in places like China. History teaches us that free trade brings prosperity, growth, and higher living standards, benefiting both rich and poor. In the US, those falling below the poverty line only stay there an average of four months. Ninety percent of Americans belonging to the poorest one-fifth in 1975 had moved up to the wealthiest two-fifths 20 years later. Trade barriers like anti-dumping tariffs erected by the US have proven ineffective in protecting American jobs and they harm US retailers and consumers. What's necessary now is what's always been necessary. Any plant – in Grand Rapids or elsewhere – must be world competitive and continually improving in order to survive and thrive. In reality, free trade is by nature fair trade. Free trade means we each decide where to buy our goods, without extra costs being imposed from on-high just because the goods cross an international frontier. Our job is to change, adapt and provide customers with superior value in a way that delivers a competitive financial return. I have no doubt that the challenge will be met. Show less

Most people agree that the thick forest lands that build up over many years create dangerous conditions that are bound to result in a catastrophic wildfires. But there is not agreement about what should be done about thick forestlands. Beginning in the 1940s, Smokey the Bear was the symbol of government policy to suppress forest fires. And it worked. Tree densities in federal forests increased five to tenfold. Trouble is, the denser forests became dangerous. Then the government employed… Show more

Most people agree that the thick forest lands that build up over many years create dangerous conditions that are bound to result in a catastrophic wildfires. But there is not agreement about what should be done about thick forestlands. Beginning in the 1940s, Smokey the Bear was the symbol of government policy to suppress forest fires. And it worked. Tree densities in federal forests increased five to tenfold. Trouble is, the denser forests became dangerous. Then the government employed controlled burning that simulated the natural result of a lightning strike and cleared out large areas for renewal. Sometimes those fires burn out of control, devastating huge areas. Logging can be done in a responsible way such that trees are harvested in a manner that maintains soil fertility; balances human and animal needs; maintains large, beautiful areas for recreation; and clears brush and fallen logs to the degree appropriate for fire safety. Mature forests are not only susceptible to insect infestation; they also absorb much less carbon dioxide than younger trees. Young tree forests are the key to maintaining oxygen in our atmosphere. Wood is not only a renewable resource, but regular logging can help both the health of our forests and our atmosphere. Wood processing requires very little energy. For example, from raw material extraction to finished product, the energy input is 70 times higher for a ton of aluminum than for a ton of lumber; 17 times higher for steel and 3 times higher for brick and concrete. Wood is an environmentally preferable material because it is natural, organic, renewable, recyclable, and biodegradable. If we care about the environment, we’ll encourage increases in responsible logging. By boosting logging, we will not only improve the environment, but we’ll help reduce both housing prices and wildfires. Show less

School choice is great for kids. It's not that all traditional public schools are bad or all charter public schools are good. Or that all private schools are good. It's that competition inspires schools to improve or if not, they fade away. Charter public schools are helping kids accomplish more than traditional public schools in Michigan. Yet some charter public schools in Michigan have not succeeded for kids and they are no longer operating. Traditional public schools that fail the kids… Show more

School choice is great for kids. It's not that all traditional public schools are bad or all charter public schools are good. Or that all private schools are good. It's that competition inspires schools to improve or if not, they fade away. Charter public schools are helping kids accomplish more than traditional public schools in Michigan. Yet some charter public schools in Michigan have not succeeded for kids and they are no longer operating. Traditional public schools that fail the kids should also be closed. It's not important which schools succeed or fail. Rather, it's important to give each individual student the opportunity to choose a great school that will help them reach their full potential. Traditional public schools and charter public schools in Michigan are required to meet all of the same State laws and requirements except two: (1) Charter authorizers (typically a public university) elect charter public school board members and general public voters elect traditional public school board members and (2) Traditional public schools are allowed to raise money for facilities from taxpayers through a millage election and charter public schools are not. Charter public schools have an advantage in attracting and retaining talented and dedicated board members. Despite a substantial capital funding disadvantage, charter public school students typically perform better. The main point: school choice is great for kids. Show less