Family businesses get guidance from the outside

Part three in the e-glass Special series on family businesses. Read part one and part two.

Whether they identify company weaknesses, develop growth strategies or create a succession plan, outside consultants or business coaches provide help to many family businesses in the glass industry.

“Outside consultants are always important for any businesses,” says Kris Vockler, vice president of ICD High Performance Coatings in Vancouver, Wash. “For family businesses, specifically, [consultants] serve as an outside source to get through the family dynamic—to see the company from a different angle.”

ICD uses a few consultants to identify weaknesses within the company. However, other family businesses use the outside sources to help company executives develop a succession plan—a difficult endeavor for many family-run businesses, Vockler says.

John Heinaman, president of Heinaman Contract Glazing in Lake Forest, Calif., says his company has worked with several consultants and business coaches during the past six years. He agrees that consultants provide a critical outside viewpoint.

“Sometimes we get so involved in the trenches that we forget to look at the big picture,” Heinaman says. An outsider can also identify and help deal with issues such as people problems that can be difficult to see and act on by in-house personnel, he says.

Bob Trainor Jr., president and chief executive officer of Trainor Glass Co. of Alsip, Ill., says because his company doesn’t operate like a family business, it doesn’t rely on consultants in the same way as many family businesses. The company of about 420 employees—only three of whom are members of the Trainor family—instead looks to its eight-member board of directors to make major decisions.

“We have a board to set the directive of the company,” Trainor says. “We meet quarterly, go over the financial statement and past performance … and the board gives their input.” The company always follows the majority board vote on future initiatives, he says.

Trainor Glass formed its board of directors more than 10 years ago. Former company executives Bob Trainor Sr. and Jim Trainor continue to sit on the board.

Since the board’s inception, Trainor Glass has added 11 locations, and its annual revenue has grown from $8 million to $120 million.

“We started out as a conservative-minded glass and glazing shop, with a good leadership direction,” Trainor says. “In 1996, we made a change in ownership, and that changed the direction of the company to more of a growth strategy, while keeping conservative values instilled.”

See the upcoming July issue of Glass Magazine for an article about succession plans in family businesses.

— By Katy Devlin, e-Newsletter Editor, e-glass weekly