The document discusses the complexities of partnerships in family businesses, highlighting the importance of shared goals and communication to prevent conflicts. It emphasizes the risks of misalignment between family and business objectives, and recommends the use of independent advisors to help navigate these challenges. Best practices for effective partnerships include clear job descriptions, open communication, and defined conflict resolution strategies.

1. Working TogetherWithout Killing Each otherPresenter: Jan Triplett, CEO Business Success Center1©2011 Business Success Center,

2. Partners ShareResponsibilityLiabilityControlIn order to create the future of the business together or with shared agreement2©2011 Business Success Center,

3. Family Businesses Large & SmallLargeSamsungHyundaiLGTrump Organization — Don & the kidsGolfsmith & Whole Foods before going publicSmaller, LocalHastingsChez ZeeHayes SoftwareBSCAny business owned by someone who’s married & lives in a community property state3©2011 Business Success Center,

4. Padre noble, hijorico, nietopobre.What can happen. Translation: “Father, founder of the company, son is rich, grandson is poor.”• The founder works and builds a business• The son takes it over and is poorly prepared to manage and make it grow but enjoys the wealth• The grandson inherits a dead business with an empty bank account.4©2011 Business Success Center,

5. From the wonderful people who brought us pizzaPartnership laws originated in the Middle Ages from Italian merchants. • US Partnership Act (1890) • Uniform Partnership Act (UPA, 1914) • Uniform Limited Partnership Act 19165©2011 Business Success Center,

6. Partners ContributeMoneyPropertyLaborSkillsAnd argue about all of these, too!6©2011 Business Success Center,

7. Why Problems AriseDifferent goalsDifferent stylesDifferent ethicsDifferent approachDifferent priorities7©2011 Business Success Center,

8. When Problems AriseChoosing a PartnerWorking with a PartnerAt business crossroads: expansion, contraction, dissolution, cashing out8©2011 Business Success Center,

9. Family Business ProblemsBusiness’ purpose, system, goals & timelines are not Aligned with the goals of a family memberCompatible with the family as a groupIn sync between family members Hard to solve yourself. An independent advisor can see what’s happening and move the members through the problems while keeping the business on course.9©2011 Business Success Center,

10. When Good Partnerships Go BadFinancial Partner/ Sweat Equity Only PartnerSpouses, siblings, friendsHush, hush meetings – uninvited consequencesSimilar skills & abilitiesSmall vs. large org experienceTwo bosses too manyYour issues?10©2011 Business Success Center,

11. Best Partner PracticesAvoiding ProblemsBest Partner Profile™Compatible Vision & Desired OutcomeAgreement on transference strategy & timelineSystematic approachJob descriptions for allPartnership agreement in placeOpen communicationReducing ProblemsIdentify areas of difference or disagreementSet up rules of engagement/ how to fight fairAbide by rules, adjust as necessarySupport each other; avoid one-upsmanship11©2011 Business Success Center,

12. Stuff Happens … Conflict IDCharacteristics— why is this a problem?Manifestations — what happens when this conflict happensCauses — triggersBrainstorm Solution OptionsArrive at Agreed Upon Ground Rules12©2011 Business Success Center,

13. Vision — the Place to StartRank for you & your partnerGood working conditionsTime off for family or selfPersonal growthTactful correctionsGood wagesBalancing life and workIn chargeLoyaltyAppreciation of WorkHonestyStaying focusedProfitability13©2011 Business Success Center,

14. CommunicationHow is this done?DecisionsNew InformationProblemsFuture PlansRegularlyImmediatelyWheneverIn secret14©2011 Business Success Center,

15. Leadership…Who’s in Charge of What Who decides

16. Who acts

17. Who authorizes