What are the Secrets of Wealthy Families' Success?

SadaNews - From inside a cheese factory in Wisconsin, where young Joshua Gentin played "hide and seek" among the machinery, a long journey began towards leading one of the largest family food companies in America. Today, after becoming a consultant for wealthy families, Gentin reveals the secrets of managing family members within companies... and how kinship can become a burden threatening the stability of the organization.

Joshua, the grandson of Leonard, the founder of Sargento Foods, which achieved sales exceeding $1.7 billion last year, did not easily reach the company's board of directors. Before being granted this position, the family constitution set complicated conditions, as he had to obtain a master's degree in business administration and work outside the company for at least three years.

Joshua's big shock came after establishing his own company "Bench Consulting", which provides consulting to wealthy families on how to manage their members within companies and investment offices. He told CNBC: "I realized that most families had not put such important rules in place to organize their companies."

Politeness and Collapse

Gentin warned against ignoring the necessity of setting clear rules for employing family members, emphasizing that the absence of transparency leads to retention issues, especially in family offices that experience high turnover rates.

He said: "When managers do not feel empowered, and the culture of equality between family members and other employees is absent, the best talents will leave."

To address the poor performance of family members, Gentin suggests setting clear development plans, including measurable goals, and external support for making tough decisions such as promotions or terminations. At Sargento, there is an independent committee of managers that evaluates family members and makes recommendations about their professional future.

From Inheritance to Empowerment

Gentin points out that establishing these standards is not only aimed at protecting the company but also gives family members a sense of security and legitimacy in their positions, alleviating their feeling that they "inherited the job" without merit.

He noted that many heirs feel they received the job simply because they are family, which affects their self-confidence and the culture of the organization as a whole.

Gentin believes that successful family businesses are those that treat their members like any professional institution, setting clear performance indicators, development plans, and separating family ties from management decisions.