Executive Search for the Real Estate and Construction Industries

Hot Candidates

Real Estate Analyst - Candidate experience includes lease analysis, valuations, budgeting and forecasting for life sciences properties on a national scale. Candidate also has had experience carrying out financial modeling and market analysis for potential company acquisitions ranging in up to $600 million in size.

Senior VP, Facility Management - Experienced Sr. executive with P+L responsibility, managing administration, operations, business development, and account management in the service industry. Candidate has strong interpersonal, analytical and implementation skills, with a record of achieving organizational goals.

Construction Manager Healthcare - 10 plus years experience with numerous healthcare projects up to $25 million in construction. Candidate is in Chicago and salary is $110K

Senior Property Manager - 20 years experience. Candidate has a stable work history, MBA, and has managed properties close to 2 million square feet in size.

Senior Estimator - 20 years experience. Project experience includes large retail big box and commercial construction jobs. Candidate is in the Chicago area.

Construction Manager - 20+ years experience with schools and government projects. Extensive project experience with CALTRANS and other local agencies. Candidate is in the Los Angeles area.

For more information about one of more of these candidates, contact John Kreiss at jpkreiss@morgansullivan.com.

Emphasize ‘business’ in a family business By John P. Kreiss, President, MorganSullivan

A small contracting company is about to bid on its largest project ever. The owner’s son, who is being groomed to take over the business, is put in charge of the bid process. Hours before the bid is to be submitted, company officials realize that the son has not posted a bond for the bid.

The CFO saves the day by using money slated to meet the next payroll to cover the bid. The firm wins the project, and the cash is released in time to meet the next pay period. How does the owner react? Not only does he not discipline the son for a fire-able offense, he praises his “initiative” in front of the entire staff. The lesson: Even in business, blood is thicker than water.

Working for family businesses, whether you are a family member or an outsider, poses unique challenges. Too often, family rivalries, a sense of entitlement among family members, and an informal management style hold back or even derail many family businesses. Dissension caused by feuding family factions, favoritism, and poor decision-making can wreak havoc. Key personnel may leave, the business may miss opportunities, and it may even fail to follow through on projects. To realize its full potential, eventually a family business needs to run like a business, not like a family.

Nobody’s business but mine
Commonly, a family business is founded by one person. The founder has entrepreneurial drive, and molds the business in his or her image. All major decision-making is made by the founder. This model may work fine at first, but after the business grows and/or the next generation starts getting involved in management decisions, autocratic management can cause decision-making gridlock and hard feelings among the ranks.

While autocratic management is problematic in many small companies, in a family business, the added element of family ties complicates matters. What happens when the favorite son is promoted beyond his abilities, or squabbling siblings put non-family employees in the crossfire of their feud?

Letting go
The first step to professionalize a family business is for the founder to come to grips with the need to change. “The owner has to be willing and able to relinquish some authority,” says Nick Martorano, a strategic business planner and principal with Nicholas B. Martorano & Associates (www.martorano-assoc.com), based in Melrose, MA.

That’s typically the hardest thing for an entrepreneur to do. An outside adviser can be a catalyst for change and smooth the way.

Guidance council
When relationships are strained, a non-family councilor can give objective advice. This person can come from different walks of life—an attorney, a banker, a small business consultant—for instance. The important thing is that he or she have some business sense and not be beholden to any factions within the firm.

“A trusted neutral is somebody that both sides know and have confidence in,” Martorano says. “This person needs to have good judgment and be good at personal interaction.” He or she should have a good rapport with the key players and the gravitas to tell different parties things they may not want to hear, and convince them to take recommended actions. With solid credentials, the adviser earns respect, and is able to legitimize difficult choices.

Another option is to create a board of directors with several respected outsiders who make major decisions. Board members from outside the family and outside the firm can give valuable guidance to help the firm chart its course.

For non-family members, the firm’s willingness to take steps to professionalize management can be a real morale-booster. When employees begin to be rewarded on the basis of merit rather than family ties, it becomes much easier to retain key non-family personnel, even if the family retains ownership.

A new leaf
One of the key issues to tackle in establishing a more professional management charter is to firmly define roles for key players. Clear job descriptions, especially for managers, establish areas of responsibility and accountability.

Family members often have a sense of entitlement when working in a family business. Ground rules should be set so that expectations are clear, and everyone knows that they must pull their weight.

These changes can be wrenching, especially for family members involved in the business. In the long run though, making them is well worth the effort, because a business that flounders due to misplaced family ties or feuds benefits no one.

John P. Kreiss is President of MorganSullivan, an executive search firm serving the real estate and construction industries.