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Family Business Success Story - Flanagan Foodservice Inc.

by Rick Baker
On Mar 15, 2012

Flanagan Foodservice Inc. is another local family business success story. 

The members of our Centre For Family Business, CFFB, got to learn some of the amazing Flanagan story when Dan Flanagan, Flanagan's President, spoke at our February breakfast event.

Here are some of the Flanagan-facts that caught my attention when Dan spoke:

Dan showed the most-amazing sales chart I have ever seen. The Flanagan family business has had 34 consecutive years of sales growth and profitability! From zero to almost $400,000,000 in 34 years! The Flanagan's sales chart spoke loudly about growth...direction...consistency...planning and perseverance. 

Dan talked about the early days when his father Joe left a secure position at a local grocery store called HiWay Market in 1977 and started his own business.  Joe worked at expanding his business within north Waterloo and Woolwich township...he added trucks and vans.

Flanagan's moved its main operation to Kitchener in 1983. That's where the Flanagan family business story gets really interesting. In order to finance the building of a 2,500 square foot freezer at its new location, the company sold shares to its employees and selected outside investors. The company sold blocks of 20 shares at $50 per share and the new shareholders could appoint a board member.

A progressive action...and, a successful one.

The shares have been re-valued every year. Each $1,000 invested in 1983 is worth over $37,000 today! In addition, the company has paid out regular annual dividends to its shareholders. [a spectacular ROI]

Perhaps it was that set of 1983 actions that solidified a bond between the Flanagan family and the people who work with them at their company? Perhaps, that set the stage for 3 decades of growth and profitability? I am sure the progressive 1983 actions were an important aspect of the Flanagan magic.

"People serving other people."

"Our team is our greatest asset."

That's the way Dan described his family's business.

And, it is clear the family doesn't just talk that talk - it walks that walk.

Here is a summary of The Ingredients of Flanagan's Success:

  • Think/Plan Ahead
  • Democratic Decision Making
  • Treat People Really Well
  • Employee Share Program/Profit-Sharing
  • Community and Industry Involvement/Support
  • Grow Sales
  • Own Your Property
  • Customize Your Software
  • Open Branches Close to Your Customers

Business success is all about people working together: thinking together, serving together, and succeeding together. 

Flanagan Foodservice Inc. is a terrific example of how to achieve family-business success.

Thank you for sharing the Flanagan's Family Business Success Story with us, Dan.

 

PS: Here is a picture of the Flanagan brothers. It strikes me that 4 brothers working together and achieving such family-business success must be quite rare. 

The Flanagan brothers: Rick, Murray, Dan, & Jeff

Tags:

Family Business and CFFB | INSPIRE PEOPLE - GROW PROFITS! | Succession

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Mark Weber visited our Centre For Family Business again

by Rick Baker
On Mar 2, 2012

Mark Weber is a 'regular' guest speaker at CFFB...he has spent time with us once a year for a number of years now.

At this year's February breakfast meeting, Mark's topic was: 'Leading & Motivating'...a topic near and dear to pretty much all of us.

One of Mark's Key Messages:

"If you have to bet on the outcome...considering people and situation...put your money on situation."

The point is: Situations have a major impact on People. "When the situation is strong people with very different personalities will behave in similar ways or even exactly the same way." Mark provided an example of research performed on this topic: the Good Samaritan study. 

Mark put it another way, "Situation is an overwhelmingly powerful influence over what people do." And he added, "Human beings don't have a lot of bandwidth so they develop habits of behaviour to deal with that lack of bandwidth."

About Goals, Mark talked about research that confirmed, "Aggressive goals lead to unethical behaviour".

About running a business, Mark explained, there are skills and habits for starting a business and there are different skills and habits for leading. This, of course, has implications in family business. For example, the founder had certain skills and habits and as the business grows [or transitions to the next generation] different skills and habits are needed to ensure sustainable growth and leadership. 

Here is a great piece of Mark Weber wisdom: "Good leaderhsip is highly motivating. Bad leadership sucks the life out of all you do."

About good leadership - "...it is hard to pin it down and define it but you know it when you see it. So try to be a good leader but if you can't manage that, at least, avoid being a lousy one".

Mark outlined 6 Leadership Tasks:

  1. Define reality1: "good appreciation has has the same characteristics as good constructive feedback"
  2. Appreciate your people [this was Mark's Dad's #1 Rule]
  3. Have and communicate a Vision ...and having the Vision is easier than doing the work to make it reality
  4. Model the desired behaviour
  5. Focus on Learning2: "reward effort; knowledge, even after failure, endures"  [another terrific quote by Mark]
  6. Don't blow it: avoid behaviour that kills motivation3
Mark closed his excellent presentation with some advice he received from his uncle:
 
"People care how they feel about themselves when they are with you. How do you make people feel about themselves?"
 

Footnotes:

  1. A Leader's reality can be defined up front: in terms of Values and Master Rules
  2. More about Life-Long Learning 
  3. More about Motivation

 

Tags:

Family Business and CFFB | Habits: Good Habits, Bad Habits, & New Things | Leaders' Thoughts

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Do Family Business People Have Better Work Ethic?

by Rick Baker
On Jan 4, 2012

Here is the thought behind that Question...

Recently, I read Jim Estill's CEO blog1 about work ethic. It reminded me of the stinging little Thought Post I wrote last year to address claims about attitudes of entitlement around the workplace. [Snakes & Ladders...and Entitlement]

Since reading Jim's blog, I followed his advice and I read the book 'Reviving Work Ethic'.

And, I re-listened to the short version of Napoleon Hill's 'Think and Grow Rich'. [I do that quite regularly]

I like many of the points Eric Chester made in 'Reviving Work Ethic'. Particularly, I like his views about of Work Ethic Markers:

Positive Attitude

Reliability

Professionalism

Initiative

Respect

Integrity

Gratitude

Those definitely are facets of a good work ethic.

And, Leaders ought to lead by example as they promote and encourage those facets of good work ethic.

Here is another way to look at it - the Napoleon Hill way...

QQS

Napoleon Hill taught:

  • we must over-deliver on Quantity of service,
  • we must over-deliver on Quality of service, and 
  • we must render that service with an enthusiastic Spirit2.

That, in summary, is Napoleon Hill's QQS Formula ["QQS"].

We can use QQS as the guide for good work ethic.

And, we can quickly see how the institution and practice of QQS provides tremendous benefits, ranging from workplace harmony to differential advantage.

That said, the question remains:

Do family business people have better work ethic?

 

Footnotes:

  1. Jim Estill's blog
  2. Spirit, as in Spirited Leaders

Tags:

Attitude: Creating Positive Attitude | Family Business and CFFB | Optimism & Pessimism | Questions?: The Art of Asking Good Questions | Values: Personal Values

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Communitech's Iain Klugman visits our Centre For Family Business ["CFFB"]

by Rick Baker
On Dec 13, 2011

"Family business is intertwined with our community."

That's one of the first things Iain Klugman, Communitech's CEO, said when he spoke at CFFB's October breakfast. He talked about the strong legacy of family business success in our community. We enjoyed hearing about how our community showed entrepreneurship from the outset...being off the major trade routes - that's how it all got started.

For many of our members, this was their first visit to the downtown-Kitchener 'Communitech Hub'...and they enjoyed the morning. Terrific venue, a great tour of the facilities, and the opportunity to be updated about our vibrant tech community....a key part of the  entrepreneurship cluster that makes Waterloo Region such a special place.

Iain explained, "Communitech helps tech companies start, grow, and succeed". And he added, "Homegrown economies are made more durable over time" and "This community has a strong history of bootstrapping".

Some Communitech facts:

  • A National mandate...the plan is to be in every major community in Canada
  • A broad mandate...not just helping tech companies, also helping schools
  • An advocate for our community...recently opened an office in Ottawa
  • A champion for digital media...raised $107Million over the last 3 years
  • Currently house 40 companies and help 400 companies
  • Serve as a mentor for other communities: Niagara and Guelph, are examples
What has Communitech learned?
 
Iain's answer, Communitech has learned the most-important things are:
  • Intentionality,
  • Hard Work,
  • Pulling Together,
  • Thinking Big, and
  • Being Relevant and Valuable to the Customer
[Great lessons and great advice.]
 
In closing, Iain answered the question,
 
How can family businesses get involved? 
 
His advice to family business was: do the best you can do at your business and get involved in community events.
 
Thank you, Iain!
 

 

 

Tags:

Leaders' Thoughts | Community | Family Business and CFFB

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Baby Steps

by Rick Baker
On Nov 22, 2011

When babies learn how to walk they make all kinds of mistakes.

I don't remember making mistakes when I learned how to walk but I do remember our boys making walking-mistakes when they were about a year old. And, I know this is common because I have seen every one of my friends' and relatives' babies do it.

Sometimes babies' little legs give out and they fall straight down, onto their little behinds. Sometimes they trip over the smallest of obstacles. Sometimes their little feet just slip right out from under them...and down they go. Sometimes their little hands cling to things like tables, they walk a bit while they are holding on then fall down as soon as they let go of the tables.

Babies fall down a lot.

And while that is going on people applaud them...especially parents and grandparents and other close relatives. They don't mind it at all when babies make all those baby-step mistakes. In fact, many of them seem to derive great joy from these experiences. Often, people carry on in celebration of the failed baby steps...encouraging all the babies to keep on taking more and more baby steps.

I suspect this is a world-wide phenomenon...a baby-step pandemic.

Why?

Why do people put up with let alone derive great joy out of all these baby-step errors?

Perhaps, the answer lies in a 200 year old quote from William Drayton, American politician and author:

"Change starts when someone sees the next step."

Maybe people see the baby's next step?

Maybe, when people see that next step it is a fine step?

Maybe people always see a fine next step?

Maybe it doesn't matter if the baby makes a mistake...it is always a fine step?

Maybe babies, who illustrate to us just how challenging a baby step can be, help interested people see Change before it happens? 

Tags:

Change: Creating Positive Change | Family Business and CFFB

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Robin Todd visits our Centre for Family Business [CFFB] - “Confessions of a Bad Boss”

by Rick Baker
On Nov 15, 2011
Robin Todd, President/CEO of Marks Supply Inc., was the special-guest speaker at CFFB’s October breakfast.
 
Description: Robin Todd, CEO/President - Marks Supply Inc.
 
Robin shared her family-business story and she shared her ‘boss’ experiences. That title “Confessions of a Bad Boss” send many messages. Here are some of the thoughts that went through our minds as we listened to and talked with Robin:
  • No Boss is perfect…all Bosses make mistakes
  • Owning up to those mistakes…that involves self-awareness, courage, and a desire to improve
  • All Bosses can learn…it starts with self-monitoring
  • Bosses can learn from their mistakes
Robin has a habit of testing herself with tough questions…here are a few samples:
  • What if you impede the success of your company?
  • Great people have options: how do I find them? Entice them? Keep them?
  • What did you do wrong to allow this person to leave?
Robin’s key message was:
 
How much better would your company be if you were a better boss?
 
About Marks Supply Inc. – a local Family Business Success Story.
 
Marks Supply is a wholesaler of top-quality Plumbing, P.V.F., Hydronics and HVAC products.
 
Recognizing their products, to some degree, are viewed as a commodity, Marks Supply strives to out-service its competition.
 
Robin joined the family business when she finished schooling. That required an adjustment on the part of her Dad. He wanted to separate family and business. None of Robin’s 3 older sisters worked at the family business. Robin was the first and only to join her father. They agreed to a one-year period. After the year, when her Dad agreed to keep her full time he provided this piece of advice:
 
“Show up earlier, stay later, work harder, and be happier than everyone else.  Don’t embarrass me.”
 
What clarity and candour of advice. What valuable Father-to-Daughter advice. Particularly the part about being happier, what a way to lead by example: working hard and being happy while you do it!
 
Working for her father, Robin moved through a number of jobs…as her career unfolded and her responsibilities grew.
 
In 1995, when her father decided it was time to sell, he sold the business to Robin. That was a surprise to Robin and others in her family and her business.
 
At this ‘transition’, Robin’s Dad provided another excellent piece of advice:
 
“Don’t be trapped…make sure you have money…there will be surprises that require money.”
 
Robin followed her father’s advice. She repaid her ‘buy-out’ debts in 5 years.
 
During the last 16 years, Robin has led Marks Supply to impressive growth - from $8Million to $71MM.
 
Robin was very candid. She plans for continued growth.
 
Why?...
 
”Because you grow or die!”
 
It was very clear to all of us…Robin isn’t a Bad Boss…Robin balances the numbers side of business [impressive growth of revenue] with the personal side of business [the Human side]. She thinks a lot about the people who choose to follow her at Marks Supply. She has learned from the people-mistakes she has made. She takes full responsibility for her errors…and her self-development.
 
Robin closed with:
 
“If you care about your people, you should let them know”
 
***
 
Congratulations on your personal and business achievements, Robin!
 
THANK YOU for sharing your Family Business Success Story with our CFFB.
 
PS: Robin Todd was recently has selected as one of Canada’s 100 Top Women Entrepreneurs in the 12th annual PROFIT W100 ranking. This, of course, is far from the first time Robin’s leadership has been recognized…and there’s no question – it will not be the last.
 
Link to Marks Supply
Link to CFFB

Tags:

Entrepreneur Thinking | Family Business and CFFB | Leaders' Thoughts | Succession

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Copyright © 2012. W.F.C (Rick) Baker. All Rights Reserved.