Published
Articles
Originally
Published in
The Knoxville News-Sentinel (Final Edition February 28, 1999)
Consultant's
Suggestions Rearrange, Revitalize Furniture Firm
Passing
it down
Nearly half
of all family-owned businesses are expected to change hands in the
next five years. Only a third will survive into the second generation,
and less than half of those into the third. The key to survival,
experts say, is succession planning.
One of the best
things about a small family business is everyone pitches in to do
what needs to be done, One of the worst things can be that employees
don't know exactly what their duties are or who is in charge.
That's one of
the dilemmas the owners of Ross Furniture discovered after they
began working with a family business consultant to prepare for the
day when Ross Birchfiel Jr. retired. Among his most important roles,
he has helped the family to communicate.
Working with
Dennis Hoppe of Change Management Implementation, Inc. in Rochester, N.Y., the family
decided that Birchfiel, 62, would remain active in the business
as chairman and senior adviser, while his daughters would be responsible
for day-to-day operations. Nancy Webber, 34, serves as vice president
of operations and Tammy Wilkerson, 33, as vice president of sales
and marketing. Titles and job descriptions for most of the company's
other 20 employees were developed, too.
"What employees
told (Hoppe) is that when all the family members were here, they
didn't know who was in charge. This gives everyone a structure to
know who to go to with questions or problems, " Wilkerson said.
Coming up with
the division of duties was natural for the sister. " Nancy
was a Beta Club member, I was a cheerleader," Wilkerson joked.
Webber, who
practiced law in Florida, naturally took to bookkeeping when their
mother, Linda, tried to teach the sisters, she remembered. Wilkerson
enjoyed being on the sales floor.
Both women grew
up in the business, as their father did. Also like their father,
who practiced law for 12 years before joining the business, both
women explored other careers. "Each went out into the world
and decided that after all it was better to be your own boss, "
Birchfiel said.
The original
Ross Furniture opened 62 years ago on Harper Avenue in Maryville,
which was then a major route connecting Atlanta and Knoxville. Ross
Birchfiel Sr. called it Calamity Corner because of the accidents
between wagons, buggies and the first motorized vehicles at the
crossroads. He sold whatever furniture he could find, both new and
used.
In 1990s, the
family opened a second store, Ross Furniture Galleries Showroom
near Foothills Mall.
In addition
to redefining the roles of employees, the transition also provided
the opportunity to define the roles of each of the two stores. The
Harper Street store focuses on discontinued items, closeouts, bedding
and other value-oriented merchandise. The Foothills store features
mid-priced room settings and gallery showrooms, plus vignettes by
local interior designers.
Wilkerson said
the family plans to compete against the large chains in the same
way it has for years - through customer service. She also thinks
it helps that she and her sister "are our demographics. Women
say, 'Don't just show me a recliner. Show me what it will do for
my life.'"
| The
consultant's services have been an expensive investment,
one that Ross Birchfiel Jr admits "scared me to death."
Hoppe started in February 1998, spending two days a week
at the store, but now spends one day every other week.
Webber says the investment has paid off - sales are up
30 percent over last year. |
|
Seeing things
done a new way or different way has also been tough to Birchfiel.
The fact that he and the consultant share the same generation made
the changes more palatable.
"Some of
the things were hard to give up, " Birchfiel said.
Dennis Hoppe is President of Change Management Implementation, Inc. in Brockport, NY. He has been a small business advisor to owners of hundreds of companies since 1989. Visit his web sites at www.dhoppe.com and www.hmcexecutivecoaching.com, or call him at 800-724-3525.
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