The organization was founded in 1996 at the University of Tulsa. Its mission is to help family businesses grow and succeed from generation to generation by offering programs and services that address issues unique to family businesses.

Our member companies represent a wide variety of market sectors — what ties them together is the unique experience of working with family members. There is a wonderful sense of stewardship as one generation seeks to preserve the health of the business for the next generation. At the same time, there are many challenges that can arise when business and family expectations conflict.

2. If someone wants to become part of the institute, how would they go about joining? What are the benefits of membership?

The FOBI is open to all family businesses in Oklahoma. We defi ne a family business as one with at least two family members, and where the family either has controlling interest or manages the firm. We currently have members who are spouses, siblings, parents and children, and even in-laws.

Membership benefits include monthly events featuring speakers, roundtable discussions of best practices, and social events. We publish an e-newsletter that focuses on topics unique to family businesses. We are currently gearing up to establish forums — small, personal groups — for the purpose of confidential topics that members would not want to discuss at an open

I encourage everyone who is part of a family business to visit the Web site, accessible at www.tulsaworld.com/fobi. It provides information on membership dues and upcoming events, and houses current and past issues of our e-newsletters. Prospective members should attend an FOBI meeting to talk to our members to see if our organization fits your needs. If you are part of a family business, our organization will offer you an opportunity to explore the joys and challenges unique to such enterprises.

3. What are some of the more pressing challenges facing family- owned business today, as well as into the future?

Family businesses face all of the same challenges as other companies, such as competition, technology, globalization and diversity, to name just a few. In addition to those challenges, it can be tricky to manage the history, relationships and expectations of family members who are involved with the business. When the needs of the family conflict with the needs of the business, tensions can arise. The intensity of those family relationships can impact how business owners communicate with, mentor, reprimand, compensate and promote family members. How business owners choose to manage their family sends a very clear message to non-family employees about opportunities and the fairness of business practices.

We explore various management practices that promote the longevity of family businesses — issues such as governance, succession planning, conflict resolution, sibling rivalry, policy guides for hiring family members, etc. We address ways to handle tensions that allow the business to operate smoothly while providing family members with mechanisms for expressing opinions in a constructive manner.

4. How is globalization changing or affecting family-owned businesses?

Increased competition resulting from globalization has forced family businesses to operate as “business first” entities rather than “family first” operations. This shift in perspective requires that governance policies and other operational practices place a priority on protecting the health of the business. Only then can a company provide security for current and future generations.

5. What is succession planning, and why is it so vital to a family company’s survival?

Succession is the orderly and timely transition of family business leadership and ownership. Tom Peters, the management guru, has said that succession is the final test of greatness. We emphasize that succession is not an event, but a process. It can take years to carry out a successful succession plan.

If done correctly, succession is almost a non-event because the current CEO has established a retirement plan that addresses activities and financial stability. The skills of the new CEO have been developed over time; family members, business advisors and other important stakeholders have witnessed the evolution of the new CEO as a business leader, and assets have been slowly transferred to diminish economic burdens.

While it may be difficult to choose among siblings to take over the firm, the worst thing that a current owner can do is to not make that decision to protect the family and the business. It’s the responsibility of the senior generation to develop a clear succession plan — now. It’s never too early.