Sibling
rivalries are tough enough
when they play out over
family get-togethers
and holiday dinners,
but the stakes are even
higher when the family
reunion is every day
from nine to five.
Despite the risks, families
all over the world chose
to set those rivalries
aside and go into business
together. According to
the Boston-based Family
Firm Institute, family-owned
businesses make up 80
percent to 90 percent
of all enterprises in
North America. They employ
62 percent of the U.S.
workforce and contribute
64 percent of the gross
domestic product.
But for most, keeping
kin together for the
long haul is difficult:
Only 30 percent of family
businesses survive into
the second generation.
Just 12 percent make
it to the third generation
and 3 percent into the
fourth.
Central Ohio is home
to family businesses
of all shapes and sizes.
Columbus C.E.O. talked
with the owners of six
of them-from fourth-generation
Ray Insurance to the
husband-and-wife team
who run Signature Worldwide-about
their successes and struggles.
For these business owners,
working with family can
sometimes be challenging,
but it's always rewarding.
Converse Electric
After growing up in a
family business, venturing
out into nonfamily spheres
can be exhilarating,
but also frustrating.
For siblings Chris Converse
and Laura Haines, the
experience only emphasized
the advantages of working
for third-generation
Converse Electric.
"It was something,
as a young kid, that
I took for granted because
the company was always
around and I didn't realize
the true value of it," says
the 32-year-old Chris,
vice president of operations. "It
wasn't until I got outside
of the company. É I
did work in a corporate
structure and I saw what
that's like, and it makes
you realize the value
of working in family
business."
"I think you can
get more out of the day-to-day-even
the little victories-in
a family business than
you can in a corporate
setting. You can high-five
anyone in this building
about getting that small
job, because we're all
family," says Laura,
34, warehouse manager.
Converse was founded
in 1960 by Chris and
Laura's grandfather,
Clark Converse, who had
worked for another contractor,
the now-defunct F.A.
Davis & Sons Electric,
for 27 years.
Clark's son Jerry, now
the company's president,
came on board in 1967
after a stint in the
U.S. Army. At the time,
the company employed
just one other person.
By the end of 1974, when
Clark retired to Florida,
the company had 17 employees.
Some workers were looking
to take on more responsibility. "That
was one of the main reasons
I grew, because I didn't
want to lose good people,
so I could move them
up," Jerry, 63,
says. But, "My dad
didn't like me growing,
so we came to an agreement
and I bought him out." Today,
Grove City-based Converse
employs about 100.
Both Laura and Chris
worked with their father,
Jerry, throughout childhood
and high school. Laura
did payroll and receptionist
work after college, then
worked in customer service
at Mettler Toledo for
five years before returning
to Converse in 2006.
Chris moved to Dallas,
working as a cameraman
and editor for Video
Works and a manger at
Borders bookstore. He
joined Converse in 2000,
working his way up the
ranks. "I was an
electrician. I was a
foreman. I was a project
manager. I was a field
supervisor. And I think
I still have all those
business cards. I worked
my way through the company," he
says.
Recently, Jerry transferred
substantial control of
the company to Chris-a
transition the elder
Converse says has been
fairly easy. "Chris
worked in the field and
worked his way up, and
he earned the respect
of all the field people
and he earned the respect
of our clients," Jerry
says. "In fact,
I didn't even know what
jobs he was on because
I didn't assign him.
Somebody else did."
"He had a well-thought-out
succession plan, and
starting me off and letting
me work my way up was
really the right way
of doing it," Chris
says. "I understand
why people respect him
and it's through work
ethic and hard work. É There's
probably not a major
decision that I make-professionally
or personally-that I
don't think, 'What would
my father do?' "
Jerry credits Chris for
helping the company evolve
into newer technologies. "My
son brought us into the
21st century," Jerry
says. "Our project
managers take their computers
out into the field now
and they can be out there
getting information right
on the job site, which
was never imaginable
to me."
All three Converses prefer
the warm, family atmosphere
to a corporate workplace. "Laura
greets me with a hug
and a kiss every morning.
She's always got a smile
on her face, and it just
perks up my day from
minute one," Jerry
says. "Having Chris
take over É puts
a smile on my face from
ear to ear. I'm very
proud of both of them.
I can't imagine not working
in that type of environment."
Dianne Lutsko, office
manager and controller
and a 15-year Converse
employee, says she can't
help but feel like a
part of the family, too: "[Jerry]
doesn't just hire people,
he adopts them. Our well-being
is very important to
Jerry, and that's a mindset
he has now passed on
to his kids."
Heinzerling Foundation
Otto and Mildred Heinzerling
launched the Heinzerling
Foundation in 1959 after
learning that the state
of Ohio did not provide
care for children under
age 6 with severe and
profound mental retardation.
Hoping to meet the needs
of those children and
their families, the couple
mortgaged their home
and opened a 12-bed facility-then
called Peck O' Wee Ones-on
East Broad Street in
Whitehall.
"That's how Otto
and Mildred got the organization
off the ground, because
in Franklin County there
was that immediate need
for some families that
had children whose needs
were much more than they
could handle at home," says
Robert E. Heinzerling,
the founders' grandson
and executive director
of the foundation.
Demand quickly proved
greater than the Heinzerlings'
space and resource limitations.
Still, they managed to
make room for 30 people.
The couple hoped to build
a larger facility, but
they passed away-Mildred
in 1967 and Otto in 1973-leaving
that task to their son,
Dr. Robert A. Heinzerling,
who was appointed executive
director after Otto's
death.
The nonprofit's board
of trustees had a decision
to make: Would they take
the organization to the
next level or close the
doors? "They decided
to do some fundraising
and develop plans to
open the building we're
in now," says 43-year-old
Robert, the son of Robert
A. Heinzerling.
Today, the foundation
operates from a 22,400-square-foot,
104-bed facility on Heinzerling
Drive in southwest Columbus.
In 1982-three years after
that building opened-the
foundation opened a second
site across the street
for adult care services,
also licensed for 104
beds.
"We're full almost
all the time, but we
do have the occasional
turnover. And there's
always a small waiting
list of individuals waiting
to receive services," Robert
says.
While Robert is the only
family member still involved
with day-to-day operations,
his mother, Kathryn Heinzerling,
and sister Linda Heinzerling
both sit on the board
of trustees.
Kathryn, 76, a trustee
since 1963, served as
executive director from
her husband, Robert A.'s,
death in 1989 until her
retirement in 2001. In
the organization's early
days, Kathryn-a former
nurse and nursing instructor-and
Mildred often made rounds
together, discussing
residents' medical situations
Linda, who works part
time as a nurse at Nationwide
Children's Hospital,
says their medical experience
can be an asset. "You
understand when staff
members come to talk
to the board about issues. É As
a nurse, it's helpful
to have that background
to discuss these issues
and be able to troubleshoot
some things or help design
new policies or procedures
they may want to use
on a day-to-day basis," Linda,
46, says.
In the past, the board
was more family-dominated.
In addition to Kathryn
and her husband, it included
the founders' two daughters,
Judyth Heinzerling Clarkson
and JoAnn Heinzerling
Buya, and JoAnn's husband,
Wallace Buya.
Robert says the board
has changed over the
years to incorporate
different perspectives. "It's
very diversified, meaning
we have a well-balanced
professional group, and
each individual has something
to offer the board from
his or her own professional
experience," he
says.
Despite growing and changing
over the years, the foundation's
fundamentals have remained
the same. "It's
a wonderful place for
the residents, with nurses
and staff just devoted
to their care," says
Dr. Willard Fernald,
the foundation's medical
director for 50 years. "A
number of the nurses
have been here for 25
years, and we all know
the children very well.
It's a joy to be able
to work here."
That dedication to children
started with Otto and
Mildred, Kathryn says. "When
[Otto and Mildred] started
Peck O' Wee Ones, the
only time we ever saw
them was when we went
out there on weekends. É [They]
would stay out there
overnight on weekends
and they had cots in
the closet they would
pull out and sleep on," she
says.
Their compassion has
passed from generation
to generation, Linda
says. "I just remember
that they loved my grandfather
and he was always there-he
really did care for those
kids-and they would hold
his hand or kiss his
hand," she says. "Now,
I'm seeing that with
[Robert]. I think that
a lot of the families
feel comfortable leaving
their children here because
they know that the people
here really care about
them. It's not just a
job, it's a calling."
Robert agrees: "Everyone
who works here, especially
those with a long tenure,
are really grounded by
family and have roots
here. Everyone kind of
feels like this is a
family organization because
we're taking care of
people. We're taking
care of other families'
loved ones."
Northstar Cafes
Plenty of college students
have pie-in-the-sky dreams
about what their futures
hold. Kevin and Katy
Malhame, the husband-and-wife
team behind Columbus's
Northstar Cafes,
took what could have
been just idle chitchat
and made careers of it.
The two met as freshmen
at Washington University
in St. Louis. Kevin studied
English literature; Katy,
a Columbus native, majored
in management and human
resources. "Everyone
has dreams in college,
and we'd have conversations
about loving food and
making it a career," Kevin
says.
A few short years-and
a wedding-later, they
did just that. Post-graduation,
both worked in the food
industry; in 2004, shortly
before turning 27, they
opened their own restaurant,
Northstar Cafe,
in the Short North. "It
took a certain amount
of youthful stupidity
to do this kind of thing," says
Kevin.
Soon, they were joined
by Kevin's brother Darren,
who left a position as
a corporate litigator
at a Washington, D.C.
law firm. "Being
a hired gun É wasn't
something I was passionate
about, and this is something
that, four years on,
I'm passionate about," he
says.
Darren, 34, now serves
as the business's executive
director; Kevin and Katy,
both 32, hold the title
of founders. Another
family member-Katy's
sister Chelly Montgomery-served
as benefits administrator
until going on maternity
leave late last year.
"The best thing
about working with family
is that it's easier to
get candid, honest opinions.
There's a level of understanding
and trust that's unparalleled," Kevin
says. "The biggest
challenge may be-for
me, at least-is that
sometimes the way in
which we communicate
feels more like a family
dinner table than a work
environment. Defining
the boundaries between
work and pleasure is
tough for us."
Darren says he enjoys
being part of a family
business "because
I spend most of my working
hours working with not
just colleagues that
I love, but family members
that I love-that's a
great feeling."
The downside, Katy says,
is that they have to
make a concerted effort
to stop the shop talk. "Sometimes
it's hard to turn it
off, but that's OK. We
just agreed we have to
stop talking about work
right before going to
sleep."
The Malhames' extended
family has helped model
how family businesses
can operate successfully,
Darren says. His and
Kevin's father, John,
has long worked with
their aunt Renee Merhige
at MJM International,
an insurance company;
their older brother,
Michael, also works at
the company, which is
Northstar's insurance
provider. And Katy's
mother, Betsy Fahrbach,
helped out at the offices
of her father, Jim Fahrbach,
an orthodontist. Seeing
such examples of success "gave
me confidence that it
works," Kevin says.
In the five years since
opening their first restaurant,
the Malhames have opened
two more and will soon
add a fourth. A Clintonville
Northstar debuted in
2007; Third & Hollywood,
a more sophisticated
concept, opened in Grandview
Heights in May. A third
Northstar is in the works
at Easton.
The restaurants employ
about 150 people, including
20 or so at the management
level. "Really,
the vision of the business
initially came from Kevin
and Katy, and trying
to improve on their vision
really drives things
and helps us to direct
the day-to-day operations," Darren
says. "They had-and
continue to have-the
guts to be unconventional
in their thinking." For
instance, the Malhames
put a high priority on
local, organic, sustainable
and artisan-made food,
categories that represent
about 60 percent to 70
percent of what they
serve; Darren is board
president of the Ohio
Ecological Food & Farm
Association.
The Malhames are nearly
as well-known for the
aesthetic sensibility
of their eateries as
they are for the food
being served up. Design
of the Short North's
Northstar was one of
the first projects Andrew
Rosenthal, principal
of Gieseke Rosenthal
Architecture + Design,
took on when he set up
shop. "It seemed
super-exciting. It seemed
cool. They seemed really
smart and energetic,
and it seemed different
than things I had seen
or heard of," he
says.
Working with the Malhames
is a "vigorous exercise É in
a good way," says
Rosenthal. "They
are the most detail-oriented,
hardest-working clients
I've ever come across
in 15 years of working
as an architect," he
says. "At this point,
the results are so consistently
good, it's hard to critique
the way they run their
business."
The Malhames say it's
the people who push squeegees,
make and serve the food,
and ensure the restaurants
run smoothly who deserve
credit for the business's
success. "It is
truly a team," says
Kevin. "Our kitchen
and service are second
to none; they're really
amazing people with passion
and enthusiasm." Says
Katy: "Our No. 1
value as an organization
is optimism. I think
that helps, having a
positive attitude."
Ray Insurance
The importance of client
relationships is indisputable
in the insurance business.
But for Ray Insurance,
an independent, fourth-generation
agency in Upper Arlington,
family relationships
are even more important.
Started in 1923 by Joe
Ray Sr., a former branch
manager for Traveler's
Insurance, Ray Insurance
began as a simple, one-person
concept, says Joe Ray
III, vice president and
grandson of the founder.
The agency expanded when
Joe Ray Jr. joined in
1946, selling primarily
personal, commercial,
property and casualty,
life and health insurance.
The business has grown
steadily over the years,
adding depth with each
new family member. Joe
III joined in 1966, and
his two sons came on
board after college-Joe
Ray IV, president, in
1995 and David Ray, a
salesman, in 2005. Today,
the agency has 10 employees
and $7 million in annual
premium volume.
"Because it is a
relationship business,
when you bring in producers
and those producers have
relationships, that helps
to promote growth," Joe
IV, 37, says.
Joe Sr. and Joe Jr. mostly
operated independently,
but today the agency
is more collaborative. "It's
much more of a team approach
now because you have
to leverage your time
and your energies. As
you add people, it becomes
less of an individual
effort," Joe III,
66, says.
Joe Sr. continued to
work into his 80s and
retired in the 1970s,
while Joe Jr. retired
at age 70 in 1991. Their
descendents' career paths
were influenced by the
examples these first
two generations set. "I
looked at my father and
I thought, 'Oh, this
is a good job. He plays
a lot of golf, he goes
on vacation and he seems
to make enough money
to pay his bills,' " Joe
III says.
"I could say the
same thing," Joe
IV says. "I wanted
to be an available father
for my kids. I wanted
to be able to coach Little
League and participate
in my kids' school activities.
Working for yourself
allows you the freedom
to do that."
Might a fifth generation
one day take over Ray
Insurance? "I think
when that time comes,
we will have a good business
here still if they want
to choose this path," Joe
IV says.
Even in the Internet
age, the Rays believe
clients continue to value
a strong, personal relationship. "Studies
show that most people,
even people of the younger
generation, still prefer
to buy from an agent," David,
27, says.
"To actually buy
insurance without someone
there who you trust to
help you make the right
decisions and the right
choices-it's probably
too scary for most people
to just go online, push
a button and hopefully
you made the right picks," Joe
IV says.
Receptionist Sally Moore,
a 10-year Ray employee,
worked for 25 years as
an insurance agent with
Koch Insurance Agency.
When her father, John
Koch, died, she sold
the business to the Rays.
Two years later, her
doctor advised her to
get out of the house
and find a job. "I
came back to a familiar
occupation and people," Moore
says. "Family businesses
are unique, there's a
lot of camaraderie. It's
more relaxed than a big
company where nobody's
related to anybody. É It
just makes us a little
closer."
David agrees. "I
think a family-operated
company sort of instills
family values in everybody
who works here. We're
flexible with employees'
needs when they have
a family issue arise," he
says.
"I think as bosses,
because we appreciate
the value of those things,
we're sympathetic and
flexible with our employees
in the same way. I think
people who work here
would say that we create
the kind of atmosphere
that values family," Joe
IV says.
Signature Worldwide
Becky Wolever didn't
plan to stay at Signature
Worldwide for long. Instead,
she intended to work
at the company co-owned
by her husband, Steve,
and then-partner Don
Farrell as a stopgap
arrangement while she
coped with her own job
loss and the illness
of a family member. That
was in 1994. "I
just ended up staying," she
says. "I was enjoying
what I was doing."
Signature was founded
by Farrell in 1986 as
a sales and marketing
consulting company for
the hotel industry. Steve
came on board in 1990.
When Farrell left in
2007 to start Fresh Revenues,
a consulting company
for entrepreneurs, the
Wolevers bought him out
and became majority shareholders.
Steve, 63, is president
and CEO and Becky, 61,
is chief operating officer
of the 250-employee company.
Today, Dublin-based Signature
provides customer-service
and other business solutions,
including "secret
shoppers," to clients-nearly
70 percent of whom are
in the hospitality industry.
The company's big break
came in 1995, when it
landed a contract with
Hampton Inns to provide
sales and customer-service
training. That snowballed
into relationships with
other hotels and extended
Signature's reach across
the globe, to eight licensed
offices in 56 countries.
Certified public accountant
Matt Yus-kewich has worked
with Signature since
1990. He says the Wolevers
have been good about
not just listening to
advice, but acting on
it-such as hiring executive
staff who can run the
business in their absence
and bringing on an outside
advisory board. "A
lot of businesspersons,
entrepreneurs don't want
to let go of that," Yuskewich
says.
"We wanted to create
the kind of company we
could be proud of, and
I think our children
benefited from watching
that," Becky says.
However, she always discouraged
the five Wolever children-sons
Mike, 43, Brett, 32,
and Christopher, 25,
and daughters Amber Kellner,
35, and Heather Syrett,
34-from working there. "I
tell them, 'If you work
for us, you'll have to
work twice as hard as
anyone else in the company-I
don't know why you'd
want to do that to yourself,' " she
says.
Becky once fired Heather
when the then-college
student overslept for
a training session. Undeterred,
Heather applied for another
job with the company.
After college, she worked
at a health insurer before
coming back on board. "Just
working at another business
made me appreciate how
nice it is to work at
Signature," she
says.
Heather worked for the
company full time until
giving birth to daughter
Gretta, now 8, and continued
to work part time until
2008, when she earned
a master's in school
counseling. Her husband,
Brian, 35, is an account
executive who has worked
for Signature since 1996,
when the two were dating.
What's it like to work
for his in-laws? "There's
a unique culture at Signature
where I think a lot of
the employees feel closely
connected with the company,
so I don't know that
it's much different for
us," he says.
Signature's employee
roster also includes
siblings Amber, who works
part time in the information
services department,
and Mike, the director
of sales who's worked
there since 1990. Ultimately,
all of the Wolever children
but Brett have worked
for the company, though
his wife, Phyllis, a
school psychologist,
is a part-time secret
shopper.
"The last job I
applied for [at Signature],
I didn't even tell my
parents," says Amber. "We've
been brought up to understand
it's our choice, but
it's going to be harder
because we're family." So
why do it? Credit a belief
in Signature's mission.
Emphasizing customer
service "is either
something you get, or
you don't," Amber
says. "It's just
a better way to treat
people and businesses."
Mike agrees. "I
have pride in what we
do. It really offers
a great product and a
great service, and the
culture here is good.
It's kind of hard to
walk away from that."
Becky and Steve say their
relationship has been
a complementary one both
in and out of the workplace.
Steve manages Signature's
international growth,
business development
and some areas of sales;
Becky handles operations,
overseeing the company's
training program, client
relationships, client
delivery and human resources
strategy.
Despite different responsibilities,
the Wolevers "have
a very common vision
and a clear vision of
how we wanted the company
to be," says Becky.
Steve credits her as "pretty
much my counterbalance," he
says. "She fills
in where my weaknesses
are; and then you've
got somebody you know
absolutely you can count
on."
The Wallick Companies
Nearly 15 years have
passed since Jack Wallick's
death, but his influence
on the company that bears
his name remains strong. "He
was someone of great
integrity, who was hardworking
and cared deeply about
what he did," says
Wallick's daughter, Julie.
Wallick formed Wallick
Construction Company
in 1966 to uphold the
commitments of his former
employer, an out-of-state
contractor who had stopped
working in Ohio. Soon,
Wallick and colleague
Sanford Goldston built
a business that found
its raison d'tre
in the world of federally
subsidized affordable
housing construction,
management and development.
Today, the Wallick Companies
operates three divisions:
Wallick-Hendy Development,
Wallick Construction
and Wallick-Hendy Properties.
Julie and her brother,
Howard, worked for Wallick
for decades-he got started
in property management
special projects in 1979,
while she joined in 1982
as a property supervisor.
However, they didn't
become owners until May
2006, when a trust that
controlled the company
stock was dissolved.
Extricating the company
from the debt-ridden
trust was of critical
importance. "It
had come to the point
where the company was
having some problems;
it needed a change in
leadership," says
Howard. Wallick, he says,
had strayed too far from
its core business of
managing affordable housing. "We
had to make a choice.
We wanted our father's
legacy and the company
to survive," says
Julie.
So the Wallicks-both
company principals, licensed
real estate brokers and
members of the advisory
board and board of directors-looked
for someone to put the
business back on track.
They found Tom Feusse,
who had run a consulting
company, taught at Ohio
Wesleyan University and
was a senior vice president
at the Scotts Miracle-Gro
Company. After consulting
for a year (and getting
advice from Goldston
prior to his death in
2008), Feusse was named
CEO and took on a 10
percent ownership stake.
The Wallick siblings
hold the remainder.
"The good news for
me is they understand
the business and the
industry very well," Feusse
says. Howard and Julie "are
both intelligent, they're
quick studies, and the
ability to make sound
and good judgments is
there as well. É I'm
very fortunate in that
they get along really
well and respect each
other." Indeed,
says Julie, "We
work together incredibly
well. We both have strengths
in completely different
areas and we have an
incredible respect for
each other."
Feusse credits three
factors for the company's
resurgence: the fact
that multifamily affordable
housing hasn't been hit
as hard as the rest of
the economy; a 2008 merger
with Stern-Hendy Properties
of Cincinnati, which
beefed up its portfolio
50 percent to more than
12,000 units under management;
and attitude. While other
companies are looking
to "just muscle
through, we said, 'To
heck with that.' The
question was not just
how do we survive, but
how do we get stronger," Feusse
says.
As a result, Wallick
has refocused on its
core business in the
Midwest. Early in the
decade, it expanded westward;
the company still retains
properties in Arizona.
Wallick's 5 percent market
share in Ohio makes it
the largest player in
the state in terms of
affordable housing; Feusse
is optimistic that the
company can grow that
percentage without reaching
outside its core business.
Wallick's focus, too,
has shifted from building
new apartment communities
to managing and renovating
existing properties,
most of which were constructed
in the 1960s to 1980s. "Really,
our goal is to become
the No. 1 service provider
in our industry," Feusse
says.
Though the Wallicks no
longer live in Columbus-Howard,
52, lives with his family
in Brooklyn while Julie,
50, moved to Reston,
Va., three years ago-they
remain heavily involved
through telecommuting
and making monthly visits
to Wallick's Reynoldsburg
headquarters.
Jack Wallick's legacy
is that of doing the
right thing above all
else, says Howard. "I
think that comes ahead
of profit-we want to
do the right thing by
our employees and our
residents. É And
we share that with Tom
Feusse-he's a sensational
business manager, and
I think he knows what
our values are and he
shares them."
Michelle
Davey is an editorial
assistant and Jennifer
Wray is a staff writer
for Columbus C.E.O. |