‘No boundaries between the boardroom table and the kitchen table’

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Owning a private business can become complex when succession planning means passing on certain expectations to the next generation.

When both business and family responsibilities are at stake, the younger generation can feel intimidated, which might stall a succession plan and put the family legacy at risk. With these complexities in mind, programs such as EY NextGen– a global leadership platform in EY Private (a division of consultancy EY for entrepreneurs and private businesses) for next-generation C-suite and board members in family enterprise and private capital – are designed to be useful for families to broach and navigate these subjects.

Consultancy KPMG and Ivey Business School have also developed programs to support executive leadership development and the growth of entrepreneurial businesses in Canada (QuantumShift) as well as FamilyShift, to support families with succession.

The programs also offer networking opportunities with similar next-generation professionals around the world.

We talk with EY and KPMG about the thinking behind these programs, as well as participants: a mother and son who have planned succession successfully.

Rita Felder, Founder and CEO, Petrolia, Ont.-based Field Farms Marketing Ltd., and her son, David Felder, Founder and president

David Felder

What were the benefits of the KPMG-Ivey FamilyShift program?

“There were definitely several. One of the most valuable sessions of the course was about … being aware of mental-health issues and the fact that we are a family at the end of the day. The session also reminded us to make sure we have mentors in our life and people that we can rely on – and what better way than to build those relationships than within the family in the business?

“It wasn’t an MBA course. We didn’t learn accounting. That’s not what it was about. We learned tangible, valuable things that are very specific to family businesses. For instance, making sure that people have their wills in order, building a multigenerational enterprise, and having a board in place.

“I learned about the three circles of family enterprises – shareholders, employees and family members – and the relation between these groups of people. For me, that was a huge learning. We took a lot of those learnings and implemented them in our business. We now have regular shareholder meetings that involve only family member shareholders. We also have family gatherings that involve all members of our family. Learning how to segregate that and properly plan for the future was very important to us. Building a network with people who are going through the same thing is very valuable.”

How important was sharing peer experiences about working in a family business?

“It was very refreshing for me to hear other people at the program and what they’re going through. I was able to see other people and learn about their personal experiences, which can be different from my experiences – for example, a sibling stepping into the family business and being competitive with them. I don’t have that particular issue in my family. But at the end of the day, we’re all going through many of the same things as a family business.

“You’re in this business together with your family and need to make sure you can separate from the business. If you make your entire life about work, your personal relationships can fall by the wayside. You want to make sure you spend time with family and build those bonds, which is so important. We are a family at the end of the day. Family comes first, business comes second. It can easily slip to be the other way around.”

Rita Felder

What did you come away with based on your experience with KPMG-Ivey’s QuantumShift program?

“I was aware that being a CEO – especially in rural Ontario in a very unusual business model – is a lonely place. I was never too bothered by it. Going through QuantumShift and doing the exercises, I realized there are similar businesses that may deal with a completely different commodity or a different industry, yet have a similar business model, the same issues and the same constraints. That was refreshing to see. There are people that may not be in your industry but actually have the same business model and some of the same challenges.

“It was surprising to see right away that everyone had the one same issue – we cannot find people, employees. We saw that constraint across the industries – a 2022 problem.

“As David mentioned, networking is very helpful and will be helpful down the road. At first looking at the list of businesses, I didn’t expect to get that level of support and peer mentorship.”

How did [an] awareness of mental-health issues translate in terms of the workplace?

“What I realized during QuantumShift is that this situation is not over. We have to continue our focus on employees, on leadership and mental health. Our customers, suppliers and employees are still in a very fragile place. We are not resilient yet, as businesspeople and as a society. QuantumShift made it clear that we aren’t there yet. A few years ago, I might have thought: ‘Please don’t bring that issue into work,’ but today we will say: ‘Let’s take some time and sit down and really talk about it.’”

Tina Di Vito, Partner, Canadian Family Enterprise Leader, EY Private

How did the EY NextGen programs come to be founded?

“EY [set] up our EY NextGen Academy programming in 2008. Through our work with some of the most innovative family businesses around the world, we noticed there was a great need and demand for the next generation of owners to develop their skills as professional owners as they plan for succession. In principle, to balance the expectations of the family with the expectation of the business, and to better understand the interdependences with both as the families prepare for a future shaped by innovation and change.

“Through this, we saw that most of our clients found value in uncovering best practices in an international setting – while also networking with their global peers. Many practices are very universal as major family businesses operate beyond borders. So, EY made the decision to set up our NextGen programming on a global level. Fast forward to this point, we’ve had more than 850 NextGen leaders from 75 countries go through our executive programming.

“Today, EY NextGen is built on three pillars: the EY NextGen Academy, an executive learning program; the EY NextGen Forum, in-person and virtual events and activities; and the EY NextGen Network, a global membership community for peer-to-peer connectivity and professional insights. Each of these aims to provide academic knowledge from top international executive education institutions, professional experience and insights from EY professionals, and leading practice sharing between global peers in a trusted environment.”

How do the NextGen programs aim to support Canadian family businesses?

“The Family Firm Institute found that, while 70 per cent of family businesses would like to pass their business on to the next generation, only 30 per cent will be successful. We have to remember that hardwired skills don’t just happen. NextGen leaders need to develop skills like business transformation or professional governance frameworks through a mix of formal and on-the-job learning – which is what our programs aim to do. Ensuring the success of NextGen leaders is vital to driving social and economic growth in Canada and fostering our innovation economy to build competitiveness on the global stage.”

Why is global networking important?

“Businesses of tomorrow will look very different. Having a global lens and a global network will allow for better collaboration.

“Plus, we’ve learned that sharing thoughts in a secure environment with peers makes a difference. If they lack the peer community, it’s very difficult for the next generation to discuss matters of ownership, as their circle of friends usually is not only linked to families with business wealth. We also see that having an open dialog in an international context is easier, since family-owner circles tend to be small in local context and these matters are appreciated to stay private.”

How do the programs aim to help next-generation members of Canadian family businesses ensure that they experience a successful transition within their family business?

“A successful business transition is something current and future leaders need to work hard at – it’s a process that takes time and may require a few tweaks along the way. It’s important that next-gen leaders remain agile and keep an open mind, as the business that exists today may look very different in the future.

“At EY, we understand that future leaders are at different stages of their careers and there are interdependencies of both leadership and ownership. That’s why we offer a range of programs to meet the different needs of family members as they progress to C-suite and board roles within the enterprise.”

Pat Madden, vice-president, KPMG Enterprise

How did the KPMG QuantumShift and FamilyShift programs come to be founded?

“In 2004, KPMG Enterprise and Ivey Business School co-founded QuantumShift to support executive leadership development and the growth of entrepreneurial businesses in Canada. This five-day, intensive, live-in program is about strengthening private company businesses, through both structured and peer-to-peer learning. QuantumShift now has an alumnus of over 800 Canadian entrepreneurs.

“In 2017, we were driven by requests from our QuantumShift alumni to co-found FamilyShift with Ivey, our academic partner. Our goal with FamilyShift is to support next generation leaders and family members with succession and help ensure a successful transition from one generation of a business family to the next.

How does the FamilyShift program aim to support Canadian family businesses?

“Participants learn from Ivey business school faculty and guest speakers, but the content is less academic than a traditional MBA program. We aren’t simply teaching FamilyShift participants about business or management. Participants attending FamilyShift are drawn together by similar unique and complex circumstances of being a part of a business family. We really get to know them and their needs through the program and focus more on planning and working through these issues.

“The Ivey faculty, guest family speakers and the overall curriculum create a framework for some really frank and productive discussions. FamilyShift participants are often surprised to find out that others face the same challenges they do – issues that simply aren’t there for their peer or friend groups who work for unrelated businesses or corporations. Their friends can sign off at the end of the day and separate work and family life. The reality is that having no boundaries between the boardroom table and the kitchen table is something that is pretty unique to business families and can be quite a challenge. FamilyShift provides a roadmap for successful communication, structure and, ultimately, succession, while preserving family harmony and values.

What challenges do next-generation members of Canadian business families face?

“[Next-generation members] don’t tend to have the same peer networks their elders do. In fact, one of the most valued aspects of the program is the opportunity for peer-to-peer networking and interactions with people just like themselves, who are also working through the more challenging aspects of being involved in a family business. The sessions offer a powerful, open forum for people to get peer support and ongoing mentorship afterward they finish the program, through the FamilyShift alumni network.

“We discovered that first-generation founders in business families tend to focus on the business. Second and third generations tend to have more family members and more family issues to deal with. They encounter issues their parents didn’t, such as how to deal with siblings and spouses inside and outside of the business. Often there’s a need to define the purpose of the business, achieve harmony and confirm the values of both the business and the family.

“Our next generation entrepreneurs often leave the program with a clearer appreciation of how to tackle the challenges, complexities and opportunities of succession – and success – in a business family.”

Responses were lightly edited for clarity and length.

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