Family Business Leadership Lessons from the Top of the World.

There is perhaps no singular human feat that pushes the individual so close to the brink of survival as summiting one of the world’s highest peaks. Yet ask many family business leaders and they will likely tell you that leading a family business is often a similar survival experience. I recently had the pleasure of hearing David Breashears (www.davidbreashears.com) speak at the Family Firm Institute’s Annual conference in New York City. Remarkably, David had just come off K2 (the world’s second highest peak) in Pakistan five days earlier. Feeling somewhat physically weak and perhaps even more emotionally drained, David still had the ability to inspire and captivate, especially me.

While not an extreme climber myself, I’ve marveled at the many tales and books that exist on high altitude climbing and survival in the most remote reaches of our planet. While many in the audience seemed nonplussed at David’s accomplishments (countless “professionals” were busy punching their palm toys with their fingers), I sat in awe as he spun first hand tales of climbing the planet’s highest peaks and surviving unfathomable feats. He’s ascended Everest four times and is most known for leading the expedition that filmed the IMAX film on Everest.

David’s talk was couched in “Leadership in Extreme Situations.” David made every attempt to relate high altitude climbing to the family business context, and in this regard there are a number of eerie similarities. There was a strong parallel between spending countless days in close quarters with people that you may or may not have chosen to be with and with whom you will entrust your life to in numerous unforeseen scenarios. The most striking similarity however was David’s observation that what kills teams and plans is ultimately ego and selfishness.

The most critical element to successful mountaineering is planning. Consider attempting to climb the world’s highest mountain with 50-75 people, many of whom you do not even know, and then film that experience at the same time. The IMAX camera used on Everest weighed over 40 pounds; the tripod and head weighed an additional 75 pounds. When this was filmed in 1996, each roll of film weighed 10 pounds and lasted all of 90 seconds. In an environment where climbers are known to shed objects as small as a pencil to save on weight, imagine planning to haul all that equipment, feed all those people and still return home safely.

In climbing, as in family business, often violent storms arise. When I saw Breashears, he was still physically weak from having spent 40 days at the Base Camp of K2 waiting out the melting snows so he and his team could photograph glacier movement and retreat; an endeavor that he has been documenting over the last 20 years. The original plan was to spend 15 days there. Reflect for a moment on the resources, coordination and legalities that come into play when your project runs more than three times over the original plan. Always allow for “wiggle room” as David called it. In extreme situations, leaders implore their cohort to never lose site of the goal and to continue to take care of each other. Breashear’s team accomplished what they set out to do with the necessary photos and data collected on the glaciers of K2. David then trekked 30, 29 and 31 miles on successive days to make it back to NYC to deliver the keynote on time that evening.

The IMAX mission intercepted with that fateful summer on Everest when eight climbers lost their lives. The events that unfolded on the mountain are chronicled in harrowing detail in Jon Krakauer’s book “Into Thin Air.” Within sight of the summit at the South Col, Breashears and his team noticed approximately 60 climbers and four teams making their way towards the pinnacle. Fearing this onslaught would jeopardize their own goal of filming the summit in its pristine beauty, Breashears ordered his crew to retreat to Base Camp to let the rush of “tourists” pass. While this may have struck a temporary blow to the morale of his team, Breashears reminded them of their commitment to the ultimate goal, and how momentum can often be a dangerous thing if not balanced from time to time with a good dose of reality.

The lasting and most important message that was shared that evening was the need for humility and respect. In extreme climbing, people die because they do not know their limits. While on Everest at the South Col just prior to the summit push, David was faced with having to tell one climber that she would have to turn back because of her deteriorating condition. Reaching the summit, many climbers fail to remember, is only half of the climb. Getting up the mountain is optional, while getting down is mandatory. During the IMAX expedition, the team was able to complete the mission and send back amazing footage of Everest that is still being viewed today. The ability to complete the task despite the hardships endured was tantamount to claiming a small moral victory amidst the devastation that had been witnessed.

The lessons that David shared continue to resonate for me when viewed through a family business and leadership lens. First, clearly state the goal and stick to it. Communicate that goal throughout the team incessantly to keep everyone moving in the same direction. Next, know your limits; how many succession plans are never written because the owner has no plans to leave or better yet, die? Momentum can be dangerous; often planning is a nonissue when business is thriving or people are young and healthy. Getting up the mountain is optional, getting down is mandatory; to this end I would argue that transitioning the business is ultimately more important than keeping the family in it. Too often the goal of preserving the family legacy outweighs the more important goal of business continuity. Finally, selfishness is what eventually kills teams and derails goals; humility and respect will take you further in your climb than arrogance and hubris. Asking a fellow climber to turn back within sight of the summit is akin to tackling those difficult family discussions which deal with critical decisions, family legacies and ultimately our own mortality.

“The Art of Business” in Vermont – Where benefits are for the dogs and the pizzas are flat.

Vermonters and their businesses have long been innovative, creative and thrifty. Artful even. Samuel Hopkins received the first patent in 1790 for making potash required for the production of soap. Thaddeus Fairbanks and his scale company in St. Johnsbury changed how the world weighed it wares over 150 years ago. And “Snowflake” Bentley revolutionized micro-photography during many a long Vermont winter. Today the stories of global icons Ben & Jerry’s, Burton Snowboards, Simon Pearce, and Green Mountain Coffee Roasters are familiar to many.

Vermont people and businesses continue to lead their respective industries. At the 2008 Vermont Business and Industry Expo (www.vtexpo.com), a rare assembly of seven business leaders gathered to discuss what “the art of business” means to them today and why it matters. Brought together by the popular 7X7X7 panel at the Vermont Business and Industry Expo, each panelist shared a tip that demonstrated how they incorporate creativity in the workplace and what the tangible benefits were. These business owners and leaders each shared one common trait: passion for their fellow employees.

Not all of the creativity is reserved entirely for humans however. Don Mayer of Small Dog Electronics struggled with a name for his business at first, but his love of dogs culminated not only in the current title of the business, but how they do business. Dogs possess the ability to make people slow down, smile and relax. Dogs are a welcome part of the culture for employees and customers at SDE and they even receive health insurance. As well every customer receives two “small dogs” with each purchase. Sorry, no cats yet.

How does a business that sells creativity remain creative at home? Kelliher Samets Volk has found that a creative work environment is integral to the creative design process. Tim Volk indicated that employees often spend the greatest part of their day at work and therefore creating a space that inspires and comforts them is vital. Transforming an abandoned warehouse into a 1950’s era diner, complete with a soda fountain and pool table was no easy task, yet earlier site improvements began with a simple trek to IKEA. Today KSV helps clients such as ESPN, Nike and Chittenden Corp. to remain creative in their highly competitive industries.

Healthcare may not illicit images of “the art of business” for some, but John Canning of Physicians Computer Company rises to the challenge of the ever changing industry by insisting on embracing change. Creativity takes on the form of a video library with over 500 titles for all employees to share, cultural food explorations and nights out at the theater. Volunteering in the community also brings along the rewards of service, humility and continuous learning. For their minimal investment of less than $500 per employee it seems to be working: PCC was acknowledged as one of the Best Places to Work in Vermont in 2006 and continues to receive industry awards for service excellence.

Eric Friedman of Mad River Glen compares his marketing director job to being “the groundskeeper at Yankee Stadium” (if you are a Yankees fan of course, all others insert your favorite team’s ballpark here). It’s all about the passion you share with your employees and customers. The very co-op ownership of Mad River Glen demonstrates this dedication to the place and business. Faced with replacing an archaic yet iconic single chair lift, the business turned to its customers to fund the construction and installation of a new one. They eagerly responded and surpassed its $1.5 million goal. They have already reached the $1.7 million mark and raised an additional $270,000 by selling off the old single chairs.

Wanting to avoid the difficult task of explaining why an imminent lay off might be necessary, John Wall of Wall Goldfinger turned to opening the company books to all employees. The staff rallied and began to understand why forecasting, budgeting and delivering promised goods on time were so critical. Today, Wall Goldfinger creates distinguished board room furniture for such clients as the White House Situation room, Bank of America, Harvard and The Federal Reserve. When the rising cost of fuel was projected to cost homeowners an extra $750, John cut each employee a check for $750 to help defray the increase. In return, his average employee has been working at Wall-Goldfinger for nearly 10 years.

“In larger companies, there seems to be an inflection point where creativity is often squelched in favor of growth,” states Dave Logan, Chairman for Autumn Harp, a custom manufacturer of personal care products. Through the many small businesses he has been involved with he has noticed that growth often spurs creative problem solving and forces innovation. To this end, Autumn Harp insists upon cross-training each employee in all facets of production as well as screening for creativity in the hiring process. Under his direction, Autumn Harp has doubled in annual sales and number of employees, and just opened a new manufacturing facility in Essex Junction.

George Schenk now has ovens large enough to cook his American Flatbread pizzas, but his early attempts at good pie did not seem to fit unless the dough was flattened just so. As AF has grown into three franchise locations and a national distribution of frozen pizzas, employees are encouraged to consider a three-month sabbatical after 10 years. Borrowing from academia and the Old Testament, sabbaticals offer individuals respite and an opportunity to immerse in the pursuit of rediscovering themselves. The result is resilient employees who pull together, cross-train and rise to the task of filling the temporary void. They also discover a new found appreciation for their fellow workers as well.

Veronica Williams, owner of HMC2 in Stowe and moderator for the panel stated in closing, “It all comes back to how you personify your brand and each owner does just that.” In a state that values its connection to community and environment, it’s no wonder that creative individuals continue to create thriving businesses for all. As George Schenk of American Flatbread so aptly stated, “We’re ALL in the business of humanity.”