FAMILY BUSINESS ASSOCIATION A FAMILY AFFAIR Catherine Sayer, CEO WWW.FAMILYBUSINESSASSOCIATION.ORG
FAMILY BUSINESS ASSOCIATION A FAMILY AFFAIR AT A GLANCE FAMILY BUSINESS ASSOCIATION WHAT: T he peak body for family businesses helping them to grow and thrive through family business specific education and events, Forum Group Program, a community of like-minded peers, member-only discounts, and Accredited Advisors. WHERE: Australia and New Zealand WEBSITE: www.familybusinessassociation.org 1 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09
Family businesses have long been the unsung heroes of the global economy, making significant contributions to employment, economic stability, and community development. This reality is especially pronounced in Australia and New Zealand, with 70% of businesses being family-owned and over 50% of the workforce employed by these enterprises in Australia and 75% of businesses and 75% of the workforce in New Zealand. However, despite their prevalence, family businesses are often CHAMPIONING CONTINUED GROWTH FOR FAMILY-OWNED ENTERPRISES Photo Credit: Shon Productions, www.shonproductions.com.au 2 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09
less visible and receive less recognition than they deserve. Family Business Association (FBA), founded 26 years ago, is on a mission to change that. It is a powerful advocate for these businesses, understanding their unique needs and providing them with the necessary resources to succeed. GUIDING PRINCIPLES Family Business Association was created to be the voice of family businesses, advocating for their unique needs and helping to navigate the challenges of being family-owned. As Catherine Sayer, CEO of Family Business Association, explains,“We are highly regarded as a champion of the family business sector, supporting family businesses to thrive and maximize a positive economic and community impact.” This mission is reflected in FBA’s strategic plan, which was recently launched under Sayer’s leadership.The plan focuses on four key areas: growing membership, increasing brand and advocacy, ensuring business sustainability, and fostering a high-performing team, which ensures FBA’s effectiveness in its mission. FBA’s mission statement is clear and direct: “To support families in business to grow and thrive.” This mission is supported by a set of values that the association lives by: “One family, supporting our members to thrive, being authentic, and having a learning mindset.” These values are not just words on a page but are actively integrated into the organization’s daily operations. Sayer emphasizes this: “In our team meetings, I’m always asking for examples of how we’ve lived these values, and it’s been an excellent piece of work as a team to ensure we’re aligned in what we’re doing.” MEMBERSHIP, ADVOCACY, AND SUSTAINABILITY Most of FBA’s recent strategic planning focused on increasing membership and raising the organization’s profile. Although many family businesses in Australia and New Zealand, FBA has traditionally had a relatively low profile.“We are the only organization representing small, medium, and large family businesses with their specific nuances and issues,” Sayer notes. The association has around 2,000 members, but the goal is to increase that number to over 3,000 in the next three years. This growth is vital for FBA to continue providing value to its members and advocating on their behalf. Increasing brand awareness and advocacy is inextricably linked to membership growth. Sayer explains,“If you’re building the brand and increasing brand awareness, and doing some advocacy work, which covers many activities, then naturally the membership will grow.” FBA’s advocacy efforts ensure policymakers consider family businesses’ 3 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09 FAMILY BUSINESS ASSOCIATION
includes developing a high-performing team to deliver on FBA’s values, vision, mission, and strategy. EDUCATION AND NETWORKING One of the key services FBA provides to its members is education. Succession planning is an essential area in which FBA offers support.“Family businesses often don’t think or plan their succession until something dramatic happens, and that can lead to a lot of tears and poorly planned and executed succession,” Sayer unique challenges and needs when making decisions. “Policymakers don’t necessarily consider family businesses when they make policy decisions, and the nuance of a family business is generally that they survive longer than any other type of business,” Sayer points out. Internally, FBA is focused on business sustainability and ensuring that the organization is here for the long haul to support family businesses. This focus Photo Credit: Shon Productions, www.shonproductions.com.au 4 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09
explains. FBA offers education programs specifically tailored to the needs of family businesses, including courses on governance and directorship, strategic planning, and family business essentials. Another unique FBA program is the Forum Group Program, which provides peer-to-peer networking opportunities for family businesses. The program consists of 10 annual meetings facilitated by accredited family business advisors and often includes retreats.“Some people have been in forum groups for over 20 years,” Sayer notes, highlighting the strong bonds and trusted relationships formed through this program. The forum groups offer a safe space for family business owners to share their challenges and receive guidance from their peers, often becoming like an advisory board. In addition to these programs, FBA hosts annually The Family Business Conference: Asia Pacific’ which brings together family businesses from across the region. Sayer recalls her first experience at the conference, saying, “I walked in and could not believe the positive vibe, warm, friendly, inclusive. I knew that we were in for a great few days.” The conference provides a unique opportunity for family businesses of all sizes to connect, share experiences, and learn from one another. FBA also organizes the Family Business Insights State Conference, which are state-based half-day conferences as well as other networking events throughout the year to keep members engaged and connected. COLLABORATING FOR SUCCESS FBA’s approach to partnerships and collaborations is strategic and intentional. Rather than viewing other associations as competitors, FBA seeks to collaborate with them to fill gaps in its services. “We’re not competing with them because we do family business-specific education or the forum program,” Sayer explains.This collaborative approach allows FBA to reach more family businesses and provide them with the support they need. In addition to partnerships with other associations, FBA has strong relationships with several key partners, including KPMG, Gallagher, EWM Group, Pronto Software, ANZ, Jackson Russell and Business Action.These partnerships are vital for FBA’s advocacy 5 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09 FAMILY BUSINESS ASSOCIATION
Photo Credit: Shon Productions, www.shonproductions.com.au 6 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09
efforts and for providing additional resources and support to its members. For example, the University of Adelaide runs FBA’s advisor accreditation course, which helps ensure family businesses access advisors who understand their unique challenges. Advocacy is a critical component of FBA’s work, and Sayer has been proactive in raising the profile of family businesses in the media and with policymakers. “Some media members are now starting to ring me if they’re writing an article on family businesses, and I can put the family business perspective on it,” Sayer says. FBA is also working with KPMG on a series called “Why Family Business Matters,” highlighting medium and large family businesses to challenge the perception that all family businesses are small. One of the FBA’s key advocacy initiatives is National Family Business Day, held on September 19th each year. FBA has developed materials to encourage members and other stakeholders to promote family businesses today.“Every year we are promoting the family businesses on National Family Business Day,” Sayer says, emphasizing the importance of raising Photo Credit: Shon Productions, www.shonproductions.com.au 7 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09 FAMILY BUSINESS ASSOCIATION
awareness about family businesses’ contributions to the economy and their communities. NAVIGATING SUCCESSION AND NEXTGENERATION ENGAGEMENT Despite the many strengths of family businesses, they face significant challenges, particularly in succession planning and next-generation engagement. “Succession planning is difficult in multi-generational families,” Sayer acknowledges. “It’s costly to transition a business from a succession point of view because of tax consequences, and that presents a real challenge for family businesses,” Sayer notes. Engaging the next generation is another significant issue that family businesses must address. Sayer stresses the importance of early succession planning and open communication among family members.“There’s a lot of communication involved in succession planning because if you’ve got a next generation with two, three, four family members, you’ve all got to be on the same page,” she explains. 8 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09
Photo Credit: Shon Productions, www.shonproductions.com.au 9 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09 FAMILY BUSINESS ASSOCIATION
Without proper planning and communication, the transition can become chaotic, leading to conflicts and even the dissolution of the business. FUTURE OF FAMILY BUSINESSES: TRUST, COMMUNITY, AND RESILIENCE Family businesses are significant economic contributors and are crucial to their communities. The Edelman Trust Barometer, an annual survey, consistently shows that family businesses are the most trusted type of business. “Family businesses make an unbelievable contribution to the community, whether it’s the local football club or a charity helping homeless children,” Sayer says. This trust and community involvement are key factors in the resilience and longevity of family businesses. Looking ahead, FBA remains committed to supporting family businesses through education, advocacy, and networking. Reflecting on her first year as CEO, Sayer is optimistic about the future. “We want to be here for the long haul, supporting family businesses,” she states. With its new strategic plan, FBA is wellpositioned to continue championing the family business sector, ensuring these enterprises succeed and endure for future generations. As Sayer emphasizes,“We are the voice for the family business sector,” and that voice is more essential now than ever. 10 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09
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