Empowering the enterprising strength of families€¦ · xchanging ideas fall 2016. empowering the...

XCHANGING IDEASFall 2016

EMPOWERING

THE ENTERPRISING

STRENGTH OF FAMILIESFall 2016

James A. Burton, ICD.D

Chair, Family Enterprise XChange Foundation

FEX PRESENTS:JAMES A. BURTON, ICD.D

CHAIRMAN AND CEO, PPI

CHAIR, FAMILY ENTERPRISE XCHANGE FOUNDATION

WHAT WE DO MATTERS

FAMILY ENTERPRISE MATTERS

Private/family enterprises in Canada1

Contribution to Canada’s GDP by family enterprise2

of Fortune 500 companies are family controlled3

Employed by family enterprise in Canada4

Annual contribution from private Foundations in support of social programs, art, hospitals, and other charities5

880,000

60%

35%

6 Million

$1.5 Billion

1 CAFE estimate based on 80% of Employer Businesses in Statistics Canada, Business Register, December 2012

2 PWC publication “Securing the Future: Family Business Survey 2014”

3 Astrachan and Shanker, “Family Business Contribution to the US Economy”, 2003

4 Deloitte study “Are Canadian Family Businesses an Endangered Species”, 1999

5 CMG research report “Business Families: Building a Better Future”, 2014

OUR ECONOMY RELIES ON FAMILY ENTERPRISE

FAMILY ENTERPRISE-CENTRIC ADVICE MATTERS

• 80,000* Advisors in Canada(investment, insurance, banking, lawyers, accountants, facilitation)

• Historically: linear training and transaction-based approaches

*Source: PWC and Advocis study “Insights into Canada’s Financial Advice Industry”, July 2014

TRANSFORMING THE APPROACH TO ADVICE

• 80,000 Advisors in Canada

• Role of the “trusted advisor” is pivotal in the success of family enterprise

• Family Enterprise-centric advice has a positive impact on outcomes

• IFEA and their designates have already been advancing the field in this regard

WHAT WE DO MATTERS

WHAT WE DO MATTERS

*IFEA estimate of portion of 80,000 advisors who focus on family enterprise

880,000Family Enterprises

550CAFE members

14,000Advisors*

224FEA Graduates

FEX IS LEADING A MOVEMENT

The Family Enterprise XChange has been created to lead a major movement for Family Enterprises in Canada because they matter so much to the country’s economic and social well-being.

We bring the best knowledge, globally recognized best practices, creating a safe environment, and educating advisors so Family Enterprises can lead Canada’s future.

And, we’ll be a voice that is heard. Canadian families and advisors will want to be part of such a positive movement.

TRANSFORMING FAMILY ENTERPRISE

The Family Enterprise XChange will:

• Provide every family with the knowledge and wisdom they need to propel their enterprise to greatness

• Provide every family looking for a trusted community of like-minded peers with the best practices, tools and resources to navigate their journey

TRANSFORMING THE APPROACH TO ADVICE

• 80,000 Advisors in Canada

• Historically: linear training and transaction-based approach

TRANSFORMING THE APPROACH TO ADVICE

The Family Enterprise XChange will:

• Empower every advisor who wants access to the best practices and knowledge in the field of Family Enterprise to become a trusted advisor of choice

• Help advisors differentiate themselves in the highest professional manner with the most respected designation in a community of like-minded peers

• Help families become aware of the advice they need, of advisors who understand that need, and of the value that an FEA designated advisor can bring

FEX IS UNIQUE

Inspiring enterprising families

FEX IS UNIQUE

Inspiring enterprising families:

• With clarity and unbiased, focused support

• A unique combination of shared experience, and the world’s best knowledge and practices

• In every walk of life, from affluent to start-ups, a service model that scales depending on your entry point

INSPIRING

• Families join because they love their families AND their businesses and believe both should be valued, enjoyed and preserved

• Advisors join because they believe they can help change the outcomes and lives of their Family Enterprise clients for the better

STRUCTURED FOR UNPRECEDENTED SUCCESS

FEX goals 2016 – 2019

Number of families will grow from:

Number of FEA graduates will grow from:

FEX goals 2026

Number of families:

Number of advisor members:

Number of FEA graduates:

550 2,000

224 500

10,000

4,000

2,500

GROWING FROM A COTTAGE

INDUSTRY TO A MOVEMENT

GLOBALLY RESPECTED EXPERTISE

• Leading in research and knowledge

• Curating, funding and developing the best available education, knowledge and materials for members

• Creating a Global Advisory Council

ANNOUNCING

• New research initiative with Conference Board of Canada and the Family Enterprise XChange Foundation

• Phase 1: Valuing Family-Owned Enterprises in Canada

• Phase 2: Creation of the Centre for Family-Owned Enterprises in Canada

THE CONFERENCE BOARD OF CANADA

BEING THE VOICE

We’re causing a commotion

• A fast-growing membership of enterprising families and advisors that together form a vocal community

• A message that stands apart from the crowd, gets noticed and inspires people to become engaged

• A key advocate with political communities and economic conversations in Canada

THE FEX EXPERIENCEFall 2016

GLOBAL RESOURCES – DELIVERED LOCALLY

VICTORIA

VANCOUVER

KELOWNA

CALGARY

EDMONTON

REGINA

SASKATOON TORONTO

OTTAWA

LONDON

WINNIPEG

HALIFAX

GLOBAL RESOURCES – DELIVERED LOCALLY

VICTORIA

VANCOUVER

KELOWNA

CALGARY

EDMONTON

REGINA

SASKATOON TORONTO

OTTAWA

LONDON

MONTREAL

HALIFAX

FREDERICTON

WINNIPEG

ST. JOHN’S

LEARN FROM EXPERTS, LEARN FROM EACH OTHER

• The best education in the dynamics of family enterprise

• The best peer advisory group model for family enterprise

• The best conference for the family enterprise community

• Pioneering research in the field of family enterprise

PREPARING FOR A LONG JOURNEY

“If your plan is for one year,

Confucius

plant rice.

If your plan is for ten years, plant trees.

If your plan is for one hundred years, educate children.”

INTRODUCING THE FEX LEARNING CONTINUUM

• Continuous learning path

• For both enterprising families and their advisors

• Build skills, gain knowledge, and improve capabilities to...

• operate

• govern

• transition a family enterprise throughout the lifetime of the family

ADVISOR

MEMBERS

THE FEX LEARNING CONTINUUM

Four Levels of Learning

Mastery

Interdisciplinary

Intrapersonal

Fundamental 1

2

3

4

FAMILY ENTERPRISE

MEMBERS

Advancing

Knowledge and Skill

Mentor/Guide

Integrative

Generative

Fundamental1

2

3

4

Wealth

Relationships

Philanthropy

Ownership

Leadership

Intrapersonal

Governance

Business

DOMAINS OF LEARNING

Building Capacity and Capability

in every Member over timeAdvancing

Knowledge and Skill

THE FEX LEARNING CONTINUUM

The key characteristics of the FEX Learning Continuum include:

• Supports learning and development for both members of a Family Enterprise and the Advisors who serve them

• Identifies learning across groups and cultures:

Individual

Family

Peer Groups

Non Family Employees

Board Members

Trustees

Beneficiaries

Professional Disciplines

THE FEX LEARNING CONTINUUM

The key characteristics of the FEX Learning Continuum include:

• Identifies learning by stage of family enterprise (entrepreneur/sibling/cousin, dynastic) as well as level of complexity

• Offers a multitude of learning delivery platforms including:

Audio

Video

Podcast

Print

Instructor-led online

Classroom

Conferences

PAGs

Self-directed online/apps Community events

THE FEX LEARNING CONTINUUM

The key characteristics of the FEX Learning Continuum include:

• Assumes partnering with existing organizations who are already delivering education and training in the marketplace

• PLUS new program development wherever necessary

THE FEX LEARNING CONTINUUM

The key characteristics of the FEX Learning Continuum include:

• Embraces a global and multi-cultural perspective

• Encompasses a broad spectrum of core knowledge, skills and abilities, as well as, academic and professional expertise

• Applies a multi-generational lens honouring a range of experiences, learning styles and motivations

• Invites families to enter the learning continuum at the level that best suits their needs and/or stage in their journey

ADVISING WITH CONFIDENCE

IN ADVISING

CONFIDENCE

CONFIDENCE

KEY COMPONENTS TO DRIVE SUCCESS

• World-class experts providing input and direction

• A single high-impact, high quality annual conference

• Expanded Family-only programming + Advisor-only programming

• Refinement and expansion of Peer Advisory Group program

• Funded brand and media strategy to build profile

• Financial responsibility, stability, sustainability

• Clear governance and effective management

FEX PEER GROUP ENHANCEMENTS

The key enhancements of the FEX Peer Group include:

• Focused/Dedicated PAG Support

• A national PAG Coordinator will champion ongoing PAG development, administer and support Chapter PAG Coordinators, and work with our national PAG Committee

• We will execute on CAFE’s PAG Taskforce recommendations

FEX PEER GROUP ENHANCEMENTS

The key enhancements of the FEX Peer Group include:

• Provide Access to Professional Facilitation and Training

• Identify and train a pool of professional facilitators to work with PAGs on a fee for service basis

• Work with and train moderators in newly formed PAGs for 1 year

• Perform annual PAG health checks for existing PAGs

• Conduct periodic regional PAG Training Sessions

FEX PEER GROUP ENHANCEMENTS

The key enhancements of the FEX Peer Group include:

• Develop better PAG Resource Materials

• Update and digitize the PAG manual

• Create professional training videos for PAGs to access as part of a full e-Learning platform specifically designed for PAGs

• Develop and issue PAG toolkits

FEX PEER GROUP ENHANCEMENTS

The key enhancements of the FEX Peer Group include:

• Build and connect the PAG community

• Ongoing PAG-centric communications

• Create regional PAG moderator roundtables

• Incorporate a national PAG conference into our annual Family Enterprise Symposium

In summary – develop a fulsome PAG Curriculum

KEY COMPONENTS TO DRIVE SUCCESS

• World-class experts providing input and direction

• A single high-impact, high quality annual conference

• Expanded Family-only programming + Advisor-only programming

• Refinement and expansion of Peer Advisory Group program

• Funded brand and media strategy to build profile

• Financial responsibility, stability, sustainability

• Clear governance and effective management

BEST KEPT SECRET

Approximately what our family enterprise community has collectively spent on marketing, promotion, and awareness building activities over the past 3 years:

$50,000

MOVING FORWARD

The minimum to spend on our integrated marketing and awareness campaign over the next three 3 years:

$1,000,000

MOVING FORWARD

What we have spent to date on building the brand and developing the enhanced vision of FEX:

$238,000

FEX LAUNCH

FEX roadshows and promotional campaign

FEX launch

September - November

January 3, 2017

FEX LAUNCH

January 3, 2017

• All existing members of CAFE and IFEA will be migrated into and welcomed as members of FEX

• Those paying less than our $795 annual fee will be grandfathered into FEX and those paying more will be given some options as compensation

FEX LAUNCH: SEPTEMBER – NOVEMBER

First series of FEX roadshows and promotional campaign

Winnipeg

Edmonton

Calgary

Toronto

London

Ottawa

Thursday, September 22 – Canadian Museum for Human Rights

Thursday, September 29 – The Westin Edmonton

Thursday, October 6 – Sheraton Suites Eau Claire

Thursday, October 13 – Living Arts Centre (Mississauga)

Friday, October 14 – Delta Hotels by Marriott, London Armouries

Wednesday, October 19 – Fairmont Chateau Laurier

FEX LAUNCH: SEPTEMBER – NOVEMBER

First series of FEX roadshows and promotional campaign

Vancouver

Kelowna

Saskatoon

Regina

Wednesday, November 2 – The Westin Bayshore

Thursday, November 3 – Kelowna Golf and Country Club

Wednesday, November 16 – Sheraton Cavalier Saskatoon Hotel

Thursday, November 17 – DoubleTree by Hilton

FEX IS BORN

FEX six step consolidation process:

• Step 1 Boards of CAFE and IFEA jointly approve the creation of FEX (Completed)

• Step 2 FEX board proposes purchase of assets from IFEA, CAFE Canada

on agreed upon terms and conditions

• Step 3 IFEA, CAFE, and each CAFE Chapter to vote on FEX proposal

(2/3 support required in each case)

• Step 4 Upon approval the FEX proposal, IFEA, CAFE, and each CAFE Chapter

will use existing cash to pay outstanding liabilities

• Step 5 Purchases take place under one omnibus agreement

• Step 6 Final step is to effect the dissolution of IFEA, CAFE, and each CAFE Chapter

FEX LAUNCH: FALL 2016 / WINTER 2017

FEX pre-launch activities:

• Secure Staff

• Build Programming and Member Experience

• Set Up Operations

• Relaunch website

• National Marketing and Awareness Building

• Continue Fundraising

SUPPORTING THE FEX MOVEMENT

• Offering Founder, Legacy, and Charter Memberships in FEX to

• generate seed funding to drive growth and program development

• protect our “safe harbour” concept (i.e. no sponsors)

• recognize foundational families and corporate partners that share and support the FEX vision

• Each level of membership corresponds to a specific level of financial support

• Commitment can be spread over 5 years; flexible payment terms

SUPPORTING THE FEX MOVEMENT

• Annual FEX Membership = $795 / $66.25/month

• 5 year FEX Founder Membership = $50,000/year / $4,167/month

• 5 year FEX Legacy Membership = $25,000/year / $2,084/month

• 5 year FEX Charter Membership = $5,000/year / $417/month

THE FEX DIFFERENCE

Summary

THE FEX DIFFERENCE

• A Safe Harbour

• Sponsor-free zone

• Engaged and supportive community, nationally and locally

THE FEX DIFFERENCE

• A Safe Harbour

• World-Class Learning Continuum

• Family enterprise experts comprise program development group

• Members can progressively build knowledge and skills

THE FEX DIFFERENCE

• A Safe Harbour

• World-Class Learning Continuum

• Research that drives excellence in the field

• FEX Foundation sponsors, develops, curates FE research

• Trends, data, economic impact and best practices

• Partnerships with Canadian researchers and universities

COUNT ME IN...

• Founder, Legacy, and Charter Memberships are available - please ask us for details

• You’re invited to join us!

Check out the FEX website at:

family-enterprise-xchange.com

More to come...

THANK YOU

• Family Enterprise matters

• What we do matters

• This movement will change lives