Page 14 - Food & Drink Business Jan-Feb 2020

INDUSTRY INSIGHT
Keeping it in the family
Family businesses are some of the most successful but also have their challenges. Professor John Davis from MIT Sloan School of Management was recently in Australia to talk on the topic with the World Business Forum’s World of Business Ideas program. He outlined guidelines for success for family businesses in the food and beverage sector for Food & Drink Business.
FAMILY businesses present unique operating intricacies that need to be navigated successfully for growth and sustainable leadership. At times it can be difficult for families to make tough decisions within a business, especially if a certain decision might impact a family member working within.
protocols in order to establish who makes what decision within the business. Through establishing such a protocol, it can help the family business somewhat maintain momentum and create synergy among all members.
Highlighting distinct roles and job titles is a great way of developing a strong, cohesive
goals for all employees. Once this has happened, specific job responsibilities and performance goals must be documented for all employees and communicated effectively throughout the business.
Family unity is also one of the keys to a lasting family enterprise, and it needs to be consistently worked on. Achieving common ground when it comes to decision- making between family members can help the business’ success and longevity.
The key is communication. All conversations, including the difficult ones, must be handled civilly and remember that communication has two dimensions – what is being said, and how it is being said – and it is important both are done well. Be sure to draw boundaries around business and family conversations, and always show appreciation for family members when doing so.
Preparing for succession and
“ The key is communication. All conversations, including the difficult ones, must be handled civilly and remember that communication has two dimensions – what is being said, and how it is being said.”
Family unity is also one of the keys to a lasting family enterprise
the future direction, in which the family collectively would like the business to take, is extremely important. When planning to pass on leadership to the next generation, it is important for family business to be non biased in their decision making, and ensure that they are choosing the right person for the job at hand to lead the business into the future – whether that be a
Many families will often try to avoid conflict or raise sensitive issues, which can in turn have a negative impact on the longevity of the business.
For this reason, it is crucial that family businesses put in place decision-making
team. It is important to be clear about where each member sits within the business, both family and non-family members.
Be sure to add structure to job functions, reporting relationships and performance
✷ AGILITY WITH RESPECT & COMMUNICATION
THE BROOK BOND FOR SUCCESS
ABOVE: The Brook family now have a third generation in the wings.
L-R: Eddie, Pam, Eva, Will (holding Cassius), Jess, Noah and Martin Brook.
The Brook family have worked together for 30 years. Back then the family business was hand- bagging muesli at the kitchen table and selling it in the local markets.
Sons Will and Eddie were pulling out lantana in the undergrowth as the family set about rehabilitating the run-down dairy farm in the Byron Bay hinterland. They planted more than 30,000 trees to regenerate the native rainforest.
Today, their business Brookfarm makes 780 tonnes of products including cereals and snacks a year and produces 50 tonnes of macadamias.
Pam and Martin are still very much involved, but their eldest son, Will, is now CEO and Eddie heads up the family’s new venture, Cape Byron Distillery.
Food & Drink Business asked Will Brook for the family’s top tips on a successful family business: • Agility and implementing key
decisions quickly is a significant strength of family business. Utilising this ability to change or pivot allows a family business to bring products to market faster, capitalise on market changes, purchase machinery or even adjust strategy.
14 | Food&Drinkbusiness | January-February2020 | www.foodanddrinkbusiness.com.au