April Newsletter

Message from the Program
Dear Friend of the University of Connecticut Family Business Program: We're off with a bang this year! After a summer of careful planning, and a fantastic start to our Executive Forum on Succession, we are pleased to offer our constituents programming that reflects the needs of today and tomorrow - without dwelling on the past. And so - we look ahead and put the foot to the pedal! To this end, we offer events that will focus on issues ranging from partnership agreements to philanthropy; estate planning to employment of family members; ownership structure to outside counsel; legacy to leadership; taxes to trust(s); succession to sibling rivalry; compensation to competition; values to valuation; ethics to expectations - and everything in between. We have developed a curriculum through our focus groups (some new, others revamped to reflect the environment of today) - intimate gatherings where family business stakeholders can discuss common issues in an environment that is confidential, supportive, and progressive. Advanced Curriculum in Excellence (ACE) Focus Group: Guiding Principle: Survival through Strategic Management Dates: September 23, October 21,December 2 Location: UConn @ Hartford; 100 Constitution Plaza; Hartford, CT The ACE Focus Group focuses on relevant business strategy that owners, entrepreneurs, non-family executives, successors and co-preneurs face today - survival. Discussion & case-based, this group addresses issues related to managing labor, pricing, innovation, acquiring market share, operational efficiency, sales, and professional services relationships. Executive Forum on Succession Guiding Principle: Transition Dates: September 29, October 27, December 8 Location: Kostin, Ruffkess & Co; 76 Batterson Park Road; Farmington, CT The Executive Forum provides a unique opportunity for leading generation family members and owners to meet with other family business owners, non-family executives and industry professionals to talk about succession, estate planning, retirement, mentoring, conflict resolution, children and rivalry, boards of advisors, business growth, and more. Fairfield County Focus Group Guiding Principle: Best Practices Dates: October 7, November 19 Location: UConn @ Stamford; One University Place; Stamford, CT The Fairfield County Focus Group focuses on the particular business and socio-economic needs of Fairfield county’s family business community. Topics include succession planning, skill set development, non-family executives, boards of directors/advisors, ethical business practices, social responsibility, and change management. Forum for Leadership & Team Development Guiding Principles: Executive Coaching & Technology Dates: September 18, November 13 Location: Online & Various To be effective in current or future positions, business leaders must acquire, maintain,and improve the abilities and potential of themselves and their employees. Utilizing technological applications and assessment tools, family business members to identify their own capabilities, understand the competencies required for leadership, and work to develop these competencies in order to govern and lead effectively. Relationships Management Group Guiding Principle: Harmony Dates: October 30, December 18 Location: Various The Relationship Management Group helps family firms thrive by maximizing the potential of their people. The forum gives family business members tools and strategies to best manage family/nonfamily/shareholder relationships through discussions of various topics including tools for better communication, moving through difficult conversations, work/life balance, group dynamics, wealth psychology, managing diversity, preparing for transitions & retirement, managing conflict, building trust, assessing personal and professional values alignment, gender roles, and fulfilling personal and professional goals. Focus groups are forums to exchange information, so having a wide spectrum of participants is ideal. Forums, while following an outline, are not structured in a way that prohibit new members from joining the group and participating at a later month. Membership will be required for participation, yet non-members may participate in a session before making a decision on membership. For more information, please contact Priscilla Cale at priscilla.cale@uconn.edu or 860.486.5628. Hope to see you soon!
In This Issue
The Compensation Conundrum: Articulating a Compensation Philosophy in your Family Firm by Priscilla M. Cale \| University of Connecticut Family Business Program Developing a sound and “fair” compensation structure in family businesses is one of the most difficult minefields to navigate. Oftentimes, parents choose to compensate their children equally without regard to the different contributions in terms job function or performance. However, “equal” isn’t always “fair” and “fair” isn’t always “equal”. The challenge of compensating equally is such that those who are in job functions with increased responsibility may feel that they are unfairly carrying the burden of those who are in job functions with little to no responsibility – and they feel taken advantage of and manipulated. Those who are in positions with little to no responsibility, but are the recipients of compensation that is equal to their siblings who have more responsibility, may feel that they are in a “golden handcuff” situation – one where they “have it so good” at their family firm in terms of compensation that they can never leave, knowing that they wouldn’t earn the same salary elsewhere doing the same job function. Perpetuating a culture where compensation and bonuses are awarded irrespective to contribution and performance is a mistake that undergirds a culture of entitlement, low self-esteem and decreased motivation. Click here to read more
Trust Trumps Skepticism in Family Businesses by Alan Lovins, PhD \| Lovins & Associates Consulting Often, we teach our children to be wary. There are people in the world who are primarily self-serving and all too willing to betray an associate or even a friend. Maybe we do need to give a message about the importance of being skeptical and self-protective. However, most of us would also agree that the message of "trust no one" can build barriers to intimacy, harmony, cooperation, and a sense of safety in relationships. Most of us do not want that for ourselves or our children. Trust is one of the greatest advantages that family businesses have in the marketplace. In the 18th century, the five sons of Mayer Amschel Rothschild fanned out to five European financial capitals and built a banking empire that survives to this day. They were able to do this, because it was efficient to work collaboratively, trusting one another without the necessity of second-guessing or worries about dishonesty or fraud. Click here to read more

UConn Family Business Program Briefs
UConn Family Business Program offers a Complimentary Seminar on Innovation & Asset Management Coming out of the most devastating financial crisis since the Great Depression, no doubt owners of closely-held firms are interested in how they can manage and build the value of their asset(s). However, most stakeholders begin to focus their attention on managing their investments when all or part of the company is sold to the next generation, resulting in the need to develop an asset allocation strategy for the proceeds. For many family business owners and stakeholders (past, present, and future), the largest component of their wealth over the course of their lifetime will be the business itself, even after ownership or management has been transferred. Yet, ensuring that the value of the business endures and grows is directly correlated to how innovative the firm is: innovation in product/service offerings, innovation in distribution, innovation in business processes, innovation in strategic partnering, and innovation in terms of how the business itself is positioned. Recent data from the 2008 Connecticut Family Business Survey suggests that only 36% of business owner feel that innovation is not a challenge in their firm - leaving the vast majority of business owners to question how they can best capitalize on opportunity. Further, nearly 70% of business owners admittedly do not take full advantage of modern advances in information technology. Exacerbating this issue is the fact that so few businesses have an outside advisory board to contribute new ideas to the firm (9%), have a written strategic plan (36.6%), and experience changes in top leadership positions to acquire outside skills to manage in a rapidly changing competitive environment. Join us on Friday, October 16th for a complimentary seminar discussing how business owners can manage their innovation to build the value of their asset(s). This session will be held from 8 - 10:30 a.m. at the University of Connecticut's Downtown Hartford Campus at 100 Constitution Plaza. Please contact Priscilla Cale at priscilla.cale@uconn.edu to register. Seating is limited. Joint UConn Family Business Program and CBIA Connecticut Family Business Survey ...for 2009 is off to a great start! The University of Connecticut Family Business Program, in conjunction with CBIA, continues its efforts to understand the most compelling issues facing Connecticut's family firms and deliver programming and content that is relevant and timely. We are proud, once again, to develop and sponsor the 2009 Connecticut Family Business Survey – and we thank you for your participation! To date, over 500 businesses have offered their perspectives on key family business themes. This year's survey will highlight issues relating to philanthropy, estate planning, ownership, major challenges, sources of conflict, external influence(s), general management strategy, succession strategy, international positioning, and ethics. The data we've collected thus far is exposing some interesting trends and bringing to light the competitive environment in which Connecticut's family firms operate. The 2009 Family Business Survey is an important assessment in understanding the economic and strategic status of Connecticut's family firms. The survey is an effort to provide opportunities for family firms to benchmark their business in relationship to businesses of similar size and scope while providing the University of Connecticut School of Business Family Business Program and CBIA valuable information for future programming. Stay tuned for the results and full analysis to be released on December 3rd at the 2009 Connecticut Family Business of the Year Award. To receive a hard copy of the analysis, please e-mail Priscilla Cale at priscilla.cale@uconn.edu. Thank you for your participation! Facebook - Not just child's play Facebook is an excellent way to deliver information in a way that promotes social connectedness. We have set up a Facebook page for your children interested in the UConn Family Business Club - a forum for college students interested in working in their family's firm. However, we have also set up a Facebook page for our friends and members! Search for "University of Connecticut Family Business Program" to access our page and receive updates about events and upcoming programs. About the UConn Family Business Club: The Family Business Club at the University of Connecticut is a confidentially facilitated forum for undergraduate UConn students involved in their family businesses to share common concerns, experiences and challenges; uncover core management strategies; seek advice & support; learn a common vocabulary and dialogue; and find solutions to complex family business issues. This group meets regularly during the semester and is open to all UConn undergraduate students or full-time MBA students. For more information, call 860.486.5628 or e-mail priscilla.cale@uconn.edu. Students interested in joining the UConn Family Business Club may get updates on meetings by visiting the club’s page on Facebook at http://www.facebook.com/home.php#/group.php?gid=53394820065, or by searching for the “UConn Family Business Club."
Research Focus
Exploring, Explaining the World of Online Commerce by Kate Farrish \| UConn Today The world of online commerce is endlessly fascinating to Sulin Ba, an associate professor of information systems in the School of Business. Her research has explored how retailers provide online services, build brand recognition, and set prices online, and how sellers on eBay develop trust among their customers. One of her most intriguing subjects may be the virtual marketplace that takes place in Second Life, a virtual society started in 2003 that allows users to create 3-D avatars who lead lives that include buying, selling, and trading virtual property. Click here to read more
Member & Sponsor News

Kudos to Acme Wire Products for Donating Xenith X1 Helmets to Stonington High School! Acme Wire Products Co., Inc., a local custom fabricator, announced they are donating Xenith X1 football helmets to local Stonington High School. The X1 features Xenith Adaptive Head Protection - TM, a system which provides an adaptive fit and a suspension of adaptive shock absorbers. The X1 is designed to reduce the sudden movement of the head that may cause traumatic brain injury and has been called the "greatest advance in helmet design in at least 30 years" by a leading concussion expert. Acme Wire Products manufactures the wire guards used in Xenith helmets. Acme President, Mary Fitzgerald commented, "Acme Wire Products is proud to be the primary facemask provider to the most protective football helmet on the market and wanted to express our support of the local community through this donation." Stonington High School Football Coach A.J. Massangale added, "Safety is the #1 priority, we are excited to be receiving the X1 helmets this season. Click here to read more... Share your current events in the Member News section! Tell us about your company's achievements and we will share them with your peers. Write us at familybusiness@uconn.edu. Watch Scott Livingston, President & CEO of Horst Engineering on Connecticut Newsmakers! Source: www.youtube.com Scott Livingston, CEO of Horst Engineering is interviewed by Tom Monahan of "Connecticut Newsmakers" a weekly program that highlights state issues and government leaders. They talk about the history of the third-generation Connecticut company, the importance of diversification, and Horst's recent addition of solar panels to reduce power consumption in its manufacturing process. Horst Engineering is a contract manufacturer of precision machined components for aerospace, medical, and other high technology industries. Click here to view Scott's interview.

Upcoming Events at the UConn Family Business Program
Forum for Leadership & Team Development \| Friday, September 18, 2009 \| Online Advanced Curriculum in Excellence \| Wednesday, September 23, 2009 \| UConn Hartford Executive Forum on Succession \| Tuesday, September 29, 2009 \| Kostin & Ruffkess Headquarters, Farmington Fairfield County "Best Practices" Focus Group \| Wednesday, October 7, 2009 \| UConn Stamford Complimentary Seminar on Innovation & Asset Management \| Friday, October 16, 2009 \| UConn Hartford Advanced Curriculum in Excellence \| Wednesday, October 21, 2009 \| UConn Hartford Executive Forum on Succession \| Tuesday, October 27, 2009 \| Kostin & Ruffkess Headquarters, Farmington Relationships Management Group \| Friday, October 30, 2009 \| UConn Hartford Forum for Leadership & Team Development \| Friday, November 13, 2009 \| Online Fairfield County "Best Practices" Focus Group \| Thursday, November 19, 2009 \| UConn Stamford Advanced Curriculum in Excellence \| Wednesday, December 2, 2009 \| UConn Hartford 2009 Connecticut Family Business of the Year Awards \| Thursday, December 3, 2009 \| UConn Storrs Executive Forum on Succession \| Tuesday, December 8, 2009 \| Kostin & Ruffkess Headquarters, Farmington Relationships Management Group \| Friday, December 18, 2009 \| UConn Stamford For information on registering, e-mail pcale@business.uconn.edu. Visit our website at business.uconn.edu/familybusiness to view our upcoming schedule of events.

Message from the Program

Dear Friend of the University of Connecticut
Family Business Program:

We're off with a bang this year! After a summer of careful planning, and a fantastic start to our Executive Forum on Succession, we are pleased to offer our constituents programming that reflects the needs of today and tomorrow - without dwelling on the past. And so - we look ahead and put the foot to the pedal!

To this end, we offer events that will focus on issues ranging from partnership agreements to philanthropy; estate planning to employment of family members; ownership structure to outside counsel; legacy to leadership; taxes to trust(s); succession to sibling rivalry; compensation to competition; values to valuation; ethics to expectations - and everything in between. We have developed a curriculum through our focus groups (some new, others revamped to reflect the environment of today) - intimate gatherings where family business stakeholders can discuss common issues in an environment that is confidential, supportive, and progressive.

Advanced Curriculum in Excellence (ACE) Focus Group:
Guiding Principle: Survival through Strategic Management
Dates: September 23, October 21,December 2
Location: UConn @ Hartford; 100 Constitution Plaza; Hartford, CT
The ACE Focus Group focuses on relevant business strategy that owners, entrepreneurs, non-family executives, successors and co-preneurs face today - survival. Discussion & case-based, this group addresses issues related to managing labor, pricing, innovation, acquiring market share, operational efficiency, sales, and professional services relationships.

Executive Forum on Succession
Guiding Principle: Transition
Dates: September 29, October 27, December 8
Location: Kostin, Ruffkess & Co; 76 Batterson Park Road; Farmington, CT
The Executive Forum provides a unique opportunity for leading generation family members and owners to meet with other family business owners, non-family executives and industry professionals to talk about succession, estate planning, retirement, mentoring, conflict resolution, children and rivalry, boards of advisors, business growth, and more.

Fairfield County Focus Group
Guiding Principle: Best Practices
Dates: October 7, November 19
Location: UConn @ Stamford; One University Place; Stamford, CT
The Fairfield County Focus Group focuses on the particular business and socio-economic needs of Fairfield county’s family business community. Topics include succession planning, skill set development, non-family executives, boards of directors/advisors, ethical business practices, social responsibility, and change management.

Forum for Leadership & Team Development
Guiding Principles: Executive Coaching & Technology
Dates: September 18, November 13
Location: Online & Various
To be effective in current or future positions, business leaders must acquire, maintain,and improve the abilities and potential of themselves and their employees. Utilizing technological applications and assessment tools, family business members to identify their own capabilities, understand the competencies required for leadership, and work to develop these competencies in order to govern and lead effectively.

Relationships Management Group
Guiding Principle: Harmony
Dates: October 30, December 18
Location: Various
The Relationship Management Group helps family firms thrive by maximizing the potential of their people. The forum gives family business members tools and strategies to best manage family/nonfamily/shareholder relationships through discussions of various topics including tools for better communication, moving through difficult conversations, work/life balance, group dynamics, wealth psychology, managing diversity, preparing for transitions & retirement, managing conflict, building trust, assessing personal and professional values alignment, gender roles, and fulfilling personal and professional goals.

Focus groups are forums to exchange information, so having a wide spectrum of participants is ideal. Forums, while following an outline, are not structured in a way that prohibit new members from joining the group and participating at a later month. Membership will be required for participation, yet non-members may participate in a session before making a decision on membership. For more information, please contact Priscilla Cale at priscilla.cale@uconn.edu or 860.486.5628.

Hope to see you soon!

In This Issue

The Compensation Conundrum: Articulating a
Compensation Philosophy in your Family Firm

by Priscilla M. Cale | University of Connecticut Family Business Program

Developing a sound and “fair” compensation structure in family businesses is one of the most difficult minefields to navigate. Oftentimes, parents choose to compensate their children equally without regard to the different contributions in terms job function or performance. However, “equal” isn’t always “fair” and “fair” isn’t always “equal”.

The challenge of compensating equally is such that those who are in job functions with increased responsibility may feel that they are unfairly carrying the burden of those who are in job functions with little to no responsibility – and they feel taken advantage of and manipulated. Those who are in positions with little to no responsibility, but are the recipients of compensation that is equal to their siblings who have more responsibility, may feel that they are in a “golden handcuff” situation – one where they “have it so good” at their family firm in terms of compensation that they can never leave, knowing that they wouldn’t earn the same salary elsewhere doing the same job function.

Perpetuating a culture where compensation and bonuses are awarded irrespective to contribution and performance is a mistake that undergirds a culture of entitlement, low self-esteem and decreased motivation.

Click here to read more

Trust Trumps Skepticism in Family Businesses

by Alan Lovins, PhD | Lovins & Associates Consulting

Often, we teach our children to be wary. There are people in the world who are primarily self-serving and all too willing to betray an associate or even a friend. Maybe we do need to give a message about the importance of being skeptical and self-protective. However, most of us would also agree that the message of "trust no one" can build barriers to intimacy, harmony, cooperation, and a sense of safety in relationships. Most of us do not want that for ourselves or our children.

Trust is one of the greatest advantages that family businesses have in the marketplace. In the 18th century, the five sons of Mayer Amschel Rothschild fanned out to five European financial capitals and built a banking empire that survives to this day. They were able to do this, because it was efficient to work collaboratively, trusting one another without the necessity of second-guessing or worries about dishonesty or fraud.

Click here to read more

UConn Family Business Program Briefs

UConn Family Business Program offers a Complimentary Seminar on
Innovation & Asset Management

Coming out of the most devastating financial crisis since the Great Depression, no doubt owners of closely-held firms are interested in how they can manage and build the value of their asset(s). However, most stakeholders begin to focus their attention on managing their investments when all or part of the company is sold to the
next generation, resulting in the need to develop an asset allocation strategy for the proceeds.

For many family business owners and stakeholders (past, present, and future), the largest component of their wealth over the course of their lifetime will be the business itself, even after ownership or management has been transferred. Yet, ensuring that the value of the business endures and grows is directly correlated to how innovative the firm is: innovation in product/service offerings, innovation in distribution, innovation in business processes, innovation in strategic partnering, and innovation in terms of how the business itself is positioned.

Recent data from the 2008 Connecticut Family Business Survey suggests that only 36% of business owner feel that innovation is not a challenge in their firm - leaving the vast majority of business owners to question how they can best capitalize on opportunity. Further, nearly 70% of business owners admittedly do not take full advantage of modern advances in information technology. Exacerbating this issue is the fact that so few businesses have an outside advisory board to contribute new ideas to the firm (9%), have a written strategic plan (36.6%), and experience changes in top leadership positions to acquire outside skills to manage in a rapidly changing competitive environment.

Join us on Friday, October 16th for a complimentary seminar discussing how business owners can manage their innovation to build the value of their asset(s). This session will be held from 8 - 10:30 a.m. at the University of Connecticut's Downtown Hartford Campus at 100 Constitution Plaza.

Please contact Priscilla Cale at priscilla.cale@uconn.edu to register. Seating is limited.

Joint UConn Family Business Program and CBIA
Connecticut Family Business Survey
...for 2009 is off to a great start!

The University of Connecticut Family Business Program, in conjunction with CBIA, continues its efforts to understand the most compelling issues facing Connecticut's family firms and deliver programming and content that is relevant and timely. We are proud, once again, to develop and sponsor the 2009 Connecticut Family Business Survey – and we thank you for your participation!

To date, over 500 businesses have offered their perspectives on key family business themes. This year's survey will highlight issues relating to philanthropy, estate planning, ownership, major challenges, sources of conflict, external influence(s), general management strategy, succession strategy, international positioning, and ethics. The data we've collected thus far is exposing some interesting trends and bringing to light the competitive environment in which Connecticut's family firms operate.

The 2009 Family Business Survey is an important assessment in understanding the economic and strategic status of Connecticut's family firms. The survey is an effort to provide opportunities for family firms to benchmark their business in relationship to businesses of similar size and scope while providing the University of Connecticut School of Business Family Business Program and CBIA valuable information for future programming.

Stay tuned for the results and full analysis to be released on December 3rd at the 2009 Connecticut Family Business of the Year Award. To receive a hard copy of the analysis, please e-mail Priscilla Cale at priscilla.cale@uconn.edu.

Thank you for your participation!

Facebook - Not just child's play

Facebook is an excellent way to deliver information in a way that promotes social connectedness. We have set up a Facebook page for your children interested in the UConn Family Business Club - a forum for college students interested in working in their family's firm. However, we have also set up a Facebook page for our friends and members! Search for "University of Connecticut Family Business Program" to access our page and receive updates about events and upcoming programs.

About the UConn Family Business Club: The Family Business Club at the University of Connecticut is a confidentially facilitated forum for undergraduate UConn students involved in their family businesses to share common concerns, experiences and challenges; uncover core management strategies; seek advice & support; learn a common vocabulary and dialogue; and find solutions to complex family business issues. This group meets regularly during the semester and is open to all UConn undergraduate students or full-time MBA students. For more information, call 860.486.5628 or e-mail priscilla.cale@uconn.edu. Students interested in joining the UConn Family Business Club may get updates on meetings by visiting the club’s page on Facebook at http://www.facebook.com/home.php#/group.php?gid=53394820065, or by searching for the “UConn Family Business Club."

Research Focus

Exploring, Explaining the World of Online Commerce

by Kate Farrish | UConn Today

The world of online commerce is endlessly fascinating to Sulin Ba, an associate professor of information systems in the School of Business. Her research has explored how retailers provide online services, build brand recognition, and set prices online, and how sellers on eBay develop trust among their customers.

One of her most intriguing subjects may be the virtual marketplace that takes place in Second Life, a virtual society started in 2003 that allows users to create 3-D avatars who lead lives that include buying, selling, and trading virtual property.

Click here to read more

Member & Sponsor News

Kudos to Acme Wire Products for Donating
Xenith X1 Helmets to Stonington High School!

Acme Wire Products Co., Inc., a local custom fabricator, announced they are donating Xenith X1 football helmets to local Stonington High School. The X1 features Xenith Adaptive Head Protection - TM, a system which provides an adaptive fit and a suspension of adaptive shock absorbers. The X1 is designed to reduce the sudden movement of the head that may cause traumatic brain injury and has been called the "greatest advance in helmet design in at least 30 years" by a leading concussion expert.

Acme Wire Products manufactures the wire guards used in Xenith helmets. Acme President, Mary Fitzgerald commented, "Acme Wire Products is proud to be the primary facemask provider to the most protective football helmet on the market and wanted to express our support of the local community through this donation."

Stonington High School Football Coach A.J. Massangale added, "Safety is the #1 priority, we are excited to be receiving the X1 helmets this season.

Click here to read more...

Share your current events in the Member News section! Tell us about your company's achievements and we will share them with your peers. Write us at familybusiness@uconn.edu.

Watch Scott Livingston, President & CEO of
Horst Engineering on Connecticut Newsmakers!

Source: www.youtube.com

Scott Livingston, CEO of Horst Engineering is interviewed by Tom Monahan of "Connecticut Newsmakers" a weekly program that highlights state issues and government leaders. They talk about the history of the third-generation Connecticut company, the importance of diversification, and Horst's recent addition of solar panels to reduce power consumption in its manufacturing process.

Horst Engineering is a contract manufacturer of precision machined components for aerospace, medical, and other high technology industries. Click here to view Scott's interview.

Upcoming Events at the UConn
Family Business Program

For information on registering, e-mail pcale@business.uconn.edu. Visit our website at business.uconn.edu/familybusiness to view our upcoming schedule of events.