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n e w h a v e n b i z . c o m | N o v e m b e r / D e c e m b e r 2 0 2 0 | n e w h a v e n B I Z 19 FAMILY BUSINESS enterprise more successful. According to Bienemann, fami- lies need to discuss whether to keep or sell the business. If they decide to keep it, they need to determine who is available, interested and able to lead it. If the next generation doesn't meet these criteria, a later genera- tion might, Bienemann notes. "e outside executive can run the business until a family mem- ber is ready," Bienemann said. "Sometimes, no one wants to run the business, and the family moves more into a board of directors role." Families also need to consider what they want for the business, and if an outsider can be brought in to execute the family's vision, says Bienemann. "If the family business has made a thoughtful hire, the CEO can bring in another viewpoint that is not tied to family dynamics," she said. "ey know how to run com- panies. It can be a real win-win." Robert Albright, professor and chair of the management depart- ment for the University of New Ha- ven and a business strategist, says many families may have a strong emotional attachment to the way things have always been done. "If you don't constantly change, you won't maintain your competi- tive advantage," Albright says. He likes to use the analogy: "If you are a fish in the fishbowl, you can't see the water." "Someone outside the fishbowl can see if the water is dirty," Al- bright says. "Changes that are called for are not always visible to you." Jalbert advises companies that are hiring an outside CEO to iden- tify skills and criteria they want, cast a wide net, then look at all available candidates. Words of caution What are the potential disadvan- tages to bringing in a non-family member to lead the company? "Even if it helps with the business strategy, it can be disruptive to the culture," Albright says. One of the reasons family businesses thrive is because of their culture and customer service, he notes. "If an external CEO doesn't accurately assess the culture, they can inadvertently disrupt a culture that has been beneficial," Albright says. "If customers and long-term employees don't like it, then it can be negative." Albright recommends new CEOs take 90 days to "look, listen and assess," what is good about a company and needs to be kept, and what needs to change. Bienemann says a family needs a common vision for the compa- ny's path to make the outside CEO arrangement work. "When it doesn't work well, is when the family doesn't agree on where they want the business to go," Bienemann says. Jalbert said it can be difficult for family members to relinquish re- sponsibility, but he's been given the necessary latitude to lead and manage the organization. He was hired be- cause the company needed someone to reduce the business' dependence on weather, as rainy years adversely impacted crops and guest visits. e wet 2018 caused the company to experience its worst financial performance ever. At the time, 70 percent of Lyman Orchards' revenue was from on-property efforts, such as golf, the Apple Barrel store, and pick-your-own, while 30 percent was from wholesale bakery sales at grocery stores. e board wanted to increase off-property revenues. "One of Gary's strengths and experience was in the retail grocery and bakery arena," Lyman says. e business had its best financial performance ever in 2019, as Jalbert boosted the wholesale business by 30 percent. Now, a rainy year isn't as much of a threat to the bottom line. Jalbert also realigned Lyman Orchards' team and reduced expenses to improve profitability. He regularly meets with everyone to review the performance of each business unit. Lyman said it's important to make sure you not only hire the right person, but also allow them to do the job. "We need to allow Gary to lead the company and make the right decisions for the business and not worry about if someone doesn't like whatever, Lyman said." Grooming future leaders Another family-owned company, Laticrete International in Bethany, just recently hired an outside CEO. Founded in 1956 by the late Henry M. Rothberg and his wife, Lillian Rosenstock Rothberg, the company makes construction-related materi- als for the building industry. Patrick Millot joined as CEO Aug. 10, taking over for sec- ond-generation family member David A. Rothberg, now board chairman. Rothberg started at the company 42 years ago, working alongside his parents and brother, Henry. While four third-generation family members are involved in the busi- ness, Rothberg said they are young and not yet ready for the CEO role, but they are potential future leaders. "In our case, finding a new CEO was a momentous decision," Rothberg said. "We looked at many people and wanted someone who would fit with our culture, which stresses a work-life balance. It's not all about money and we wanted a CEO who would understand that. We support a couple thousand families around the world." In making the pick, Laticrete's leadership cited Millot's experience in running a Fortune 500 company, France-based Saint-Gobain. While Millot has only been in the role for about three months, the Rothberg family is hopeful his global experience will propel the company forward. "If you decide to bring in a new CEO, be open to new ideas," Millot said. n Patrick Millot, CEO of Laticrete Lyman Orchards draws visitors year-round for activities such as golf, pick-your-own fruit, and a corn maze. The business has been expanding its wholesale distribution of food products to diversify and increase its ability to prosper even in years when the weather adversely impacts crops and visitation. Courtesy UCONN School of Business

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