Nepotism Gone Bad

A friend of mine started a very successful business as the exclusive distributor of a special baking ingredient from Europe that he sold to bakeries and manufacturers of snack foods.

He was able to buy a beautiful house and send his kids to private school. However, his business was a sneeze away from going bankrupt. He hired too many brothers, sisters and friends, and put them in key positions. There was no accountability.

His wife, who did the books, tried to tell him about some of the abuses: sales reps expensing high performance tires on their high performance late model company cars; sister-in-law with high-salaried position who barely came into work; expenses through the roof.  My friend said “you’ve never liked my family,” and shut off any discussion with that one statement.

Needless to say, my friend lost his business.

Bringing a Family-Run Business into the 21st Century

I know this is an extreme example, and there are millions of successful family-run businesses that have stood the test of time. But are the days of family-run businesses numbered? In this data-driven world of the 21st Century, are the traditional practices of businesses that have been passed down from father to daughter, mother to son, enough to survive in this hyper-competitive marketplace?

It depends.

Another friend of mine, Michael Shapiro, is helping another family-run business survive and thrive for the 21st Century as Vice President at attorney services firm Professional Civil Process (PCP).

The owner, who is nearing retirement, realized he had to do something to convert his company from a traditional business into a modern, information-based company. He reached out to Shapiro, who has advised, founded or co-founded several successful technology startups, including Power Computing, the first Macintosh clone company, to implement processes to make PCP more nimble, competitive and data-driven.

The company is currently in a period of rapid growth and change.

Practical Steps

With the risk of being accused of leaving you hanging, I’m not going to reveal what Shapiro did (just yet). But I am going to invite you to hear, from his own mouth, what he is doing to turn the company around.

On July 27th, at 11am CDT, Shapiro will be our guest during the 2nd installment of our Expert Webinar Series. He will share practical information about the processes he implemented, the key performance indicators he tracks, and the tools he uses to turn his company around. You are welcome to join us for this one-hour webinar, where you’ll also get a chance to ask Shapiro questions about his experience with PCP.

However, I will leave you with this: despite Shapiro’s pedigree as a company founder and management consultant, the processes he has implemented are not rocket science. If you’re afraid that what he shares will go over your head, don’t be. The steps he has taken will provide you with practical ideas you can implement right away in your business.

So please register for the webinar “How a Family Owned Services Company Uses Data to Compete in the 21st Century.” We look forward to seeing you there!

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