Family businesses have to face many challenges in order to survive and prosper over multiple generations. At the Family Enterprise Center we try to address these issues with programs on leadership and ownership succession as well as on communication and conflict. But there is another huge challenge common to all businesses that can be especially problematic in a family business: innovation and change.

Just about any industry or product has a natural life cycle that requires business owners to adapt and utilize different management and marketing approaches as time goes by. The common product life cycle stages are introduction, growth, maturation, and decline. In order for a business to survive and prosper over multiple generations, it is crucial that a family business be aware of this life cycle and plan and adapt accordingly.

Joe Dickinson and his two sons, Alan and Kevin, are embracing the challenge of change together at Preferred Office Products, a family business in its third generation. Realizing that changes in office machine technology are occurring at an ever-increasing rate, Joe and his sons are working on a strategic plan that will guide the business in the future by identifying new threats as well as new opportunities in their industry.

“The changes in our industry have been remarkable over the last ten years with the advent of digital technology. The industry today is nothing like the days when my father star ted this business, and the future that my sons will have to deal with will be totally different. As companies integrate copying with digital imaging, transfer, and storage, the way we interact with our customers will have to change as our machinery becomes a bigger and even more crucial piece of their operations,” Joe recently stated.

“My sons and I are working together to identify new opportunities for our business and making sure we remain a viable player in this industry by embracing this change and establishing ourselves in the digital imaging and storage market. The strategic planning process we initiated has helped not only to guide us through this process, but it has also helped to instill in my sons the importance of creating a vision for the future of our company.”

Family Enterprise Center A learning community ser ving the needs of the family in business.

Dave Rober tsonDirector

Phone:(479) 788-7931

E-mail:dave.robertson@uafs.edu

Website:uafs.edu/cob/fec

Mailing Address:Family Enterprise CenterUAFS5210 Grand AvenuePO Box 3649Fort Smith, AR 72913-3649

Location:Business and Industrial InstituteRoom 200AUAFS College of Business Corner of North 50th Street and Grand AvenueFort Smith, AR

The mission of the Family Enterprise Center is to be an educational and informational resource center for family and closely held businesses. We want to develop long-term relationships that support transgenerational leadership and wealth creation in families.

FamilyMattersQuarterly Newsletter of the FECVolume 2 Issue 2

Need for Innovation in Family Business

Kevin, Alan, and Joe Dickinson from Preferred Office Products

Trust is a factor in every relationship we experience. Be it within our family or with our employees, customers, or vendors, trust, or the lack of trust, can enhance our relationships or detract from them. Having a high level of trust can pay a “trust dividend” while a low level of trust can create a “trust tax.”

Stephen M.R. Covey authored a book called The Speed of Trust that explores the idea of how trust affects the trajectory and outcome of our lives, both personally and professionally, and what we can do to change it.

The book begins with a look at self trust and the principles of credibility. It describes how personal credibility is the foundation of all trust and how to create it. Next, the book explores the arena of relationship trust and behaviors that can help build trust. Final chapters present ideas for creating organizational trust to increase speed, lower costs, and to maximize the influence of an organization.

The concepts presented in this book are thought-provoking and can be a framework for leaders who want to establish or enhance their own credibility. These same concepts can also be utilized by organizations to foster a reputation of trustworthiness that will appeal to customers. Other benefits that can come from fostering trust are increased speed of transactions and lowered costs.

“Stephen M. R. Covey has done it! He has ar ticulately zeroed in on the leadership challenge of the new millennium - the ability to cultivate and leverage trust. This is a ‘must-read’ for all aspiring leaders,” said Douglas R. Conant, President and CEO, Campbell Soup Company.

Join us for an in-depth look at these concepts with Micki Voelkel, an Instructor with the Center for Business and Professional Development at UAFS, as she leads us in a presentation and discussion of how to implement them in our personal lives and in our businesses.

This event is Wednesday, September 21 at 7:30 a.m. - 9:00 a.m., and is free for FEC members and only $10 for guests.

Please RSVP by Friday, September 16, by calling the FEC at (479) 788-7931 or by e-mailing dave.robertson@uafs.edu.

The Speed of Trust:The One Thing that Changes EverythingFall 2011 Quarterly Breakfast

Welcome New Members!

Arkansas Glass & MirrorDanny & Kathy Glover, Grant Glover, Genia Smith, Jeff Cabe

Belle Point BeveragesDavid McMahon, Sr., Rick & Susan Taylor, Tim & Kathleen McGuire, Matt Holland

Travis Lumber CompanyGilbert Travis & James Travis

Peer Group MeetingsAll meetings take place in the David L. Bond Conference Room in the Business and Industrial Institute on the UAFS campus (unless noted below).

Executive Group I2nd WednesdaysSeptember 14 October 12November 9 December 14

Executive Group II2nd ThursdaysSeptember 8 October 13November 10 December 8

Executive Group III1st ThursdaysSeptember 1 October 6November 3 December 1

Executive Group IV4th TuesdaysSeptember 27 October 25November 22

Non-Family Manager Group I1st WednesdaysSeptember 7 October 5November 2 December 7

Non-Family Manager Group II1st TuesdaysSeptember 6 October 4November 1 December 6

Women in Family Business 12nd TuesdaysSeptember 13 October 11

Women in Family Business II3rd ThursdaysSeptember 15 October 20

Micki Voelkel, UAFS Business Instructor

Young Professionals Quarterly MixerSixteen young professionals met at Second Street Live in July to work on “The Elevator Pitch,” a short summary used to quickly and simply define a product, service, or organization and its unique selling proposition.

A great elevator pitch should havefour components:

• Introduction/AttentionGetter: Start with a statistic, state of the industry, or recent change in the industry.

“80 – 90% of U.S. businesses are family owned.”

• NeedsYouCanMeet:Show the listener that you understand their needs. All family businesses face the same three major challenges: - Identifying and Preparing the Next Generation of Leaders - Transferring Ownership of the Business to the Next Generation - Conflict and Communication Issues

• UniqueSellingProposition:What qualifies you to meet the customer’s needs? The Family Enterprise Center is a learning community where families can

come to a safe and supportive environment to learn about these issues without having to reinvent the wheel.

• TheTake: If you’ve effectively shown that you understand the customer’s needs and are uniquely qualified to meet those needs, hopefully you will have piqued their interest, and they’ll want to learn more. Ask for a business card and offer to follow up. Leave them with a business card and invite them to visit your website.

At our next meeting we’ll see what the young pros have come up with and practice our elevator pitches on each other.

Upcoming Events

September 21, 2011Fall Quar ter ly BreakfastTrust - The One Thing That Changes Everything Discussion of The Speed of Trust by Stephen M. R. Covey

Micki Voelkel

7:30 a.m. – 9:00 a.m.

Latture Conference Center in the Business and Industrial Institute

October 12, 2011Post Familie Winery Tour Tour, Tasting, and Dinner 6:00 – 10:00 p.m. ($30 per person)

October 17 or 18, 2011Marketing Your Business on Facebook and Twitter CBPD Workshop ($39 per person)

To enroll, contact Karen Harmon to (479) 788-7742 or karen.harmon@uafs.edu.

Choose from two sessions:Oct. 17 8:00 a.m. - 12:00 p.m. orOct. 18 4:00 p.m. - 8:00 p.m.

October 27, 2011Lunch and LearnWills, Estates, and Trusts - The BasicsGain a baseline understanding of the basic tools for protecting assets. This is a great opportunity for all ages.

Drew Harmon - Attorney

11:30 a.m. – 1:00 p.m.

Latture Conference Center in the Business and Industrial Institute

Visit the FEC website at uafs.edu/cob/programs-and-events for complete information on upcoming events.

Thanks to Ameriprise Financial for sponsoring this event and to Shannon Wurst and Ed Carr for providing entertainment during the evening.

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