Family Business Alliance Presentation Sustainable Programs


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To provide background on family business centers including survey results
We surveyed family business centers, got 23 responses out of 100.

A framework to analyze sustainability of family business centers from a capitalization perspective. Frames includes political, social, intellectual and financial capital

Suggestions to create, maintain or enhance sustainability. For each of the frames, we will provide advice on how to enhance sustainability

Professional Development - Suggestions on how to enjoy personal success from building sustainability

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  • The faculty/staff preparing this presentation have at least the same family business center experience as the audience – from planning to start-up a center to running centers with the most experience and resources. This program was created because I am trying to plan to create a self-sustaining center, went to Andrew and Joe for help.At SBU , we don’t have a center yet but as it is conceptualized it appears that three themes will come together: entrepreneurship, social entrepreneurship and family enterprise.We’ve offered entrepreneurship courses for nearly a decade and received grants for funding social entrepreneurship and execs-in-residence. Last year we added family business courses and the advisory board has formed a subcommittee on this topic. Now we have been awarded a $1 M grant for social entrepreneurship.At Loyola and Kennesaw, they have XXX years of combined existence, have produced dozens of articles and books, served hundreds of families (mostly large – sales of XXX), run hundreds of programs, advised other center directors and teach in family business courses and have most recently developed graduate programs in family business.Why is this topic important? In our study of family business centers, ½ told us that they had SIGNIFICANT pressure to be self-sustaining.And ½ also indicated that the economic climate is impacting centers including membership declining, delayed membership payments, loss of sponsors, lack of interest in programming.
  • Goals: To provide: Background on family business centers including survey resultsWe surveyed family business centers, got 23 responses out of 100.A framework to analyze sustainability of family business centers from a capitalization perspectiveFrames includes political, social, intellectual and financial capitalSuggestions to create, maintain or enhance sustainabilityFor each of the frames, we will provide advice on how to enhance sustainabilityProfessional Development Suggestions on how to enjoy personal success from building sustainabilityAndrew will now present 1-3 and I’ll tag on to 3 and cover 4.
  • HistoryLittle Research done on family business centers and their efficacyKaplan Et al – Customer satisfaction surveyFinding: Program effectiveness is more about relationships than programs offered. Desire from families for Information / Interaction / Access to Family Business Experts / Opportunity to get help in dealing with family & business issues Field of family business still in its infancy and seeking academic legitimacyWharton ->Kennesaw/OSU ->Loyola – Explosion in the early 1990’sCenters in our survey were on average 14 years old – not that old!Multiple Stakeholders: Families, sponsors, University, Community, FacultyThe question of sustainability is one that has not been addressed. We’ve seen many programs struggle after an individual leaders leaves, a dean changes, etc. with some programs actually being shut down because a new dean does not see it as a priority.Multidiscipline field
  • ExternalMembers – need many members and the larger the better (the business) for sustainabilitySponsors – big decision – if you have them you may need to cater to themAdvisors – many advisors, accountants and attorneys, are family firms, they can provide lots of advice but need to be careful about solicitationBoards – very important, family firms provide the majority of philanthropy so they have lots of clout w/ administrationAlumni – important resource as many are family businesses and they can help promote the centerInternal and Structural Dean/supervisors – need to have the support of the dean to existFaculty – faculty don’t always respect the family business disciplineNeed support of Deans/Administration to existPredominant model of a Staff Director for center limits political capitalDebate: does being a part of a specific school (eg business) hurt or help?
  • Structure Most are in the business school. Some are in other schools such as continuing education. Some are part of a collaboration with other agencies such as economic development. Some are a completely separate organization.
  • Social CapitalGoodwill – this consists of the level of stakeholder satisfaction and interest.Externally – members, sponsors, alumni, those interested in family businessInternally – faculty in school of business, faculty in other disciplines, students, academic administrators and external affairs/development staffsBrand and Communications – this consists of how well known and respected the center is and how it defines the family business field – inside and outside the organization and to what extent there are ongoing communications vehicles and efforts (example of Loyola research reports, web emails, newsletters, etc)Staff – this consists of the capability, dedication, charisma, synergy and continuity of the center staffNetworks – this consists of all the various affinity groups that can support the center and especially networking of members in various affinity groups – give peer group example at Loyola.
  • 3. Intellectual CapitalKnowledge – in order to be sustainable over the long run the Center must have sufficient intel capital to meet the needs of stakeholdersProgramming – to what extent are programs rich, unique, attract diverse audiences, provide for networking and invite feedback?A word about programming – research from center directors said that two most important factors were information and interaction. So offering workshops vs lectures, and having websites and libraries w/ resources available is value added. Describe how NGLI was designed, the 18K fees and total revenues per year.Niche – centers can have a niche – Loyola it’s multigeneration and sales of …… Research – there has to be a structure and talent to conduct and publish research to keep the center in high respect and for them to be able to offer relevant and recent research.
  • Financial Capital – most centers are not self-sufficient which can cause them to be vulnerable in bad times, and a revenue source for universities in good times. Either way – there’s no reinvestment.Sources – where do funds come from and what power influences accompany them?Members – can see fee for service organization vs. educational organization.See list from survey on next slide.Control – what expectations come from funding sources? What level of control do others have over the centerCan a new dean eliminate funding/staff?Uses – how are financial resources used to invest in the center? Those who have influence over the budgeting process (university and board), will monitor past uses and future expectations. It is important to invest in high quality services which can be significantly more costs (speakers, programming) than that for other areas in the university.If surplus is achieved it is most likely lost at year end vs. being reinvested.Let’s take a look at survey results related to revenues
  • Revenue Survey ResultsDuesTo run a center with a budget of $250K – survey mean -- you would need 116 paying members (families???). Those are low fees!EndowmentMost have no endowment at all making them very vulnerable.Current Revenue SupportMost have revenues from dues and sponsors. Few have revenues from endowment, fundraising or grants.
  • More on Revenue Sources:Grants – most centers do not have endowments nor receive grants.The question is – are they pursuing them? What kind of support does the university provide?Events – average of more than once a month! Majority not break even.
  • Building SustainabilitySo we know that being financially independent is a good thing (although too successful and school expects subsidies), how do we get there?
  • Building Political Capital:Internal Support – build collaborations:Supervisors – from dean through president (always go through channels…); keep them informed, attend dept/faculty meetingsColleagues – in the center – use good management skills and succession planning/professional development plans to keep staff engagedFaculty – know the faculty in the school and make sure they are aware of your projects, attend their meetings, ask for advice, ask if they’ve thought about how their field intersects with family business; if possible, provide grants for them to explore such researchStudents – offer courses and clubs. Give a survey – one article stated that over 30% of
  • Building Financial Capital:In general, centers must keep in mind the accounting cost-benefit principle that costs should not outweigh benefits in the long-run. Centers do not typically remember this when it comes to events. Some are mission-driven but for the most part revenues should cover expenses.4 hour workweek principles:--Outsource what you can to experts (such as events)--Get rid of small or high maintenance customers (fundraising 90% of gifts come from 10%) – all donors are not =.
  • Internal FundingBudgeting processesStudents/tuition & student activities Other programs - if you work with other divisions, split costs and share revenues – often times works in reverse because entrepreneurship and family business is so easy to raise funds for.Endowment – this is key – if you can get the board to support a campaign/efforts to raise permanent funds, that will secure the center on all four capitals.External Funding – individuals or organizationsPrivateKauffmanColemanLoweFamily Foundations – can search on fc searchFamily Enterprises – ask alumni office for lists w/ titles like owner, pres, even vp and see who has a family business, pursue them.Alumni – individually, families and clubs/alliances (Wharton)Corporate gift match Corporations/sponsorsPublicEconomic development – during a rough economy a funding approach is to become a leader in offering programs related to economic growthLocal, state and federal fundingIn all, remember the Empathy factor
  • In the long run, what successes will benefit the center and your career?Networking – there is no question that dream jobs come from connectionsProgramming & service – you will learn a great deal and gain a reputation of organizing worthwhile programsRelevant Research – you can establish yourself as a thought leaderResource Development Success Record – establishing yourself as someone who can bring in funds is significantFulfillment – being able to look back and review measurable successes is awesome
  • Family Business Alliance Presentation Sustainable Programs

    1. 1. Building Sustainable Family Business Programs • Andrew Keyt, Loyola University • Carol Wittmeyer, St. Bonaventure University • Joseph Astrachan, Kennesaw State University
    2. 2. Goals To provide: I. Background on family business centers including survey results II. Framework to analyze sustainability of family business centers from a capitalization perspective III. Suggestions to create, maintain or enhance sustainability IV. Professional Development suggestions
    3. 3. I - Background • New and fledging discipline – Multidisciplinary • Complexity of stakeholders with various goals
    4. 4. II – Sustainability Framework 1. Political Capital 2. Social Capital 3. Intellectual Capital 4. Financial Capital
    5. 5. 1. Political Capital External Internal and Structural • Members • University • Sponsors Administration • Advisors • Faculty • Boards • Alumni Debate: does being a part of a specific school (eg business) hurt or help?
    6. 6. Political Capital Cont’d Organizational structure: • 64% in business school • 18% not in bus school • 18% separate 501c3
    7. 7. 2. Social Capital • Goodwill – stakeholder satisfaction • Brand & Communications – internal and external center awareness; frequency and relevancy of communications • Staff - capability, dedication, charisma, synergy and continuity • Networks – affinity groups internally and externally
    8. 8. 3. Intellectual Capital • Knowledge – thought leadership – Programming – relevant programming • Niche – particular expertise • Research – future thought leadership
    9. 9. 4. Financial Capital • Sources – where do funds come from and what power influences accompany them? • Control – what expectations come from funding sources? • Uses – how are financial resources used to invest in the center?
    10. 10. Survey - Revenues Dues: Current Revenue Sources: • Average $2,145 • Dues – 50% • Range $385-$6,950 • Sponsors – 33% Budget: • Events – 10% • Average budget: $250K • Endowment Grants & • Range: $57K - $800K Fundraising – 3% Endowment: • University – 2% • Average: $800K • Other – 2% • Range: $0-$3.5M
    11. 11. More on Revenue Sources Grants: Events held: • 4 received grants • 13 per year on average ranging from $1K to – Range 4-35 $300K • Only 11% covered by – 3 were from private event fees sources
    12. 12. III – Building Sustainability 1. Political Capital 2. Social Capital 3. Intellectual Capital 4. Financial Capital
    13. 13. 1. Building Political Capital • Internal Support – build collaborations: – Supervisors – Colleagues • Center, other divisions – Faculty • Business school • Other disciplines – Students
    14. 14. Building Political Capital Internal Staffing – is the center one person? What options do you have? • Full-time vs. part-time • Joint appointments w/ other departments • Visiting appointments • Executive-in-Residence
    15. 15. Staffing Survey Results • Full-time staff 2 • Full-time faculty 1 – Range 0 – 7 – Range 0-12 • PT staff 1 • Part-time faculty 1 – Range 0-4 – Range 0-4 • Student workers 1 • Director Tenure – 9 yrs – Range 0-4 – Range 1-17 • Contractors 3 • Total # directors – 1 – Range 0-9 – Range 1 – 4 • Average members 59 – Range 22-125
    16. 16. Building Political Capital • External Support – build collaborations: – Board – Members – Alumni/Volunteers – Sponsors/Donors – Other Centers/Orgs – Media – Networking Groups – Funders
    17. 17. Board Survey Results Board of Advisors: • 92% have one • 12 members on average – 70% have family members – 65% have sponsors – 57% have administrators – 30% have faculty – 13% have nonsponsor advisors
    18. 18. 2. Building Social Capital Building the right relationships & building the center reputation around thought leadership. • Networking • Communications
    19. 19. 3. Building Intellectual Capital • Partnerships • Sponsors • Communicate importance, significance and relevance of research • Internal funding sources/grants – Collaborate w/ other faculty
    20. 20. 4. Building Financial Capital • Cost-benefit principle – Events • Institutional • External – Events
    21. 21. Funding Sources • Internal • External – Budgeting processes – Private – Students/tuition and • Kauffman student activities • Coleman – Other programs • Lowe • Family Foundations – Endowment • Family Enterprises • Alumni • Corporate gift match • Corporations/Sponsors Don’t forget about planned – Public • Economic development giving • Local, state and federal funding
    22. 22. Professional Development • In the long run, what successes will benefit the center and your career? – Networking – Programming & service – Relevant Research – Resource Development Success Record – Fulfillment
    23. 23. In Sum…. To become self-sustaining, or enhance your position, you should create and monitor a business plan which addresses the four types of capital and is widely distributed.
    24. 24. Questions? Thanks! • Andrew Keyt – 312.915.6490 – • Carol Wittmeyer – 716.375.2363 – • Joseph Astrachan – 770.423.6045 –