USD Magazine, Winter/Spring 1997

"OHen what is good for the business

researched the potential for the program, the more they realized how much it was needed. "We couldn't find anyone who tracked family businesses or had any data on them at all," says Freiberg, who left USD to form a consulting business with her husband but still serves on the Family Business lnstitute's advisory board. "We could see, however, the number of family businesses with ties to USD and the potential for USD to differentiate itself in the field." Slow But Steady Growth By the measure of its founders, the Family Business Institute is a resounding success. USD had one of the original institutes, and now there are about 40 more across the country. This year, the institute added a monthly newsletter to the list of member benefits. The board constantly re-evaluates its program offerings based on feedback from members. "USD is still considered among the top five family business insti– tutes in the country in programming," says Jodi Waterhouse, who manages USD's continuing education programs in business. "We're unique in San Diego, so we fill a niche in the community while cre– ating relationships between local businesses and the university." Those relationships are expanding this semester. For the first time, School of Business Administration students will be offered the opportunity to work as interns in Family Business Institute member organizations. "Most of USD's graduates will end up working in small or family– owned businesses," Kunkel says. "These internships will help them develop the skills necessary to do that." Kunkel expects that knowledge about family businesses and the unique issues they face will eventually increase to the point where many business schools offer majors in family business. But he also acknowledges that research on family businesses and understanding of the need for family business institutes is progressing slowly, often because of resistance from the families themselves. "The Family Business Institute is sometimes a hard sell, because it is difficult to convince families they need help until a crisis

isn't necessarily good for the family, and

vice versa. But the family is the reason

the business exists. H becomes difficult

to differentiate between the famil y

system and the business system."

arrived at USD in 1992, nobody mentioned to him that the insti– tute was housed just a few doors down Marian Way. It was only during the course of his own research on family businesses that Kunkel happened upon the institute. He started attending the insti– tute's meetings right away, became an active participant and later was named executive director. Part of his mission now is to change existing attitudes about family businesses. Mom and Pop Go Modern Family business as a field of study is still brand new, perhaps because there is an underlying idea that family firms are unsuccess– ful 'mom and pop' operations," Kunkel notes. "In fact, 175 of the Fortune 500 companies are family businesses, and research indi– cates that family businesses are generally more successful than their non-family-owned counterparts." Although family businesses can be very successful, Kunkel notes that they often have more obstacles to surmount than other organi– zations. Traditional business principles may be of little help when those obstacles appear. One example is the issue of who works in the family business. By establishing schooling and experience requirements for family members, each person is evaluated accord– ing to objective criteria and accusations of favoritism can be elimi– nated. Family members then know they won't automatically be en– titled to a place in the business. "Often what is good for the business isn't necessarily

hits," Kunkel says. "Then it is too late to avert that crisis. We help families avoid conflicts before they occur."

good for the family, and vice versa," Kunkel says. "But the family is the reason the business exists. It becomes difficult to differentiate between the family system and the business system." Without formal programs to address these issues, the only people who recog– nized and addressed unique family busi– ness issues were consultants. In fact, two consultants started the Family Business Institute at USD. Recognizing the need for an organiza- tion to educate families in business and to offer new strategies for helping fami- ly businesses succeed, financial planner Peggy Eddy brought the idea to USD and corporate and professional programs manag– er Jackie Freiberg. The more the duo

For those who have successfully avoided such conflicts, no sales pitch is needed. Members say the Family Business Institute is a key element in ensuring that their businesses succeed and their families stick together and prosper. "The Family Business Institute has helped me grow our business without having to worry about family conflicts," says Caster. "All our fami- ly members come to the programs and find that their reservations and fears can be resolved. Not all our family members are able or want to work in the business. But we can all share in its success."

For more information on the Family Business Institute, please contact Jodi Waterhouse, manager of corporate and professional programs, at (619) 260-4231.

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