FBCG’s Implementation Successes For Enduring Client Engagements Feb 12, :15-10:30

FBCG’s Amy Schuman Kelly Lecouvie Steve McClure Interactive Support Encouraged If anyone in the audience has a contrasting anecdotal family story, please feel open to share (in a concise manner). Audience questions at the end Welcome Distinguished Panelists

FBCG’s Long-Term Client Engagement Data For Panelists & Moderator

FBCG’s Projects – typically involves FBCG being called in for a specific issue Processes – typically involves FBCG being a catalyst for change with targets and goals that challenge and that are difficult enough, yet appropriate and accomplishable Programs – typically involves cases in which FBCG maintains an ongoing relationship with the client family over an extended period of time during which we manage: –Multiple processes –Ongoing evaluation of the processes put into place –Networking and learning opportunities with like-minded famililes committed to family firm continuity and best practices. Definitions – Projects, Processes, Programs (Source: FBCG internal document – 2004)

FBCG’s 1.In reviewing your long-term clients, what do you observe as common characteristics (type of client, presenting challenges, size, generations, etc.) among these family businesses? 2.In addition to succession, what other major initiatives (conflict resolution, governance structures, younger gen development, etc.) have you helped clients implement that you believe have contributed to long-term engagements? 3.What approaches have you taken to move the client up the continuum from project  process  program? 4.Could you describe some logistics, such as meeting schedules and note taking, which you believe set an on-going rhythm for long- term clients? Panelist Questions

FBCG’s Reflecting on Long-Term Clients 11 Lifetime Clients billed over $100K Average tenure 7.6 years (Ranges from 3 – 13 years) Average Billing:$203,056 High: $362, 965Low: $101,000 Commonalities: 0% Presented in crisis. Only 2 had crisis in first 2 years. 100% have revenues close to, or above $1B. 100% have multiple business locations. 100% used FBCG team. 4/7 Global businesses. 4/7 Headquartered in Midwest. 2/7 Formal advisory team with other external advisors. 4/7 Close teaming with internal staff (HR, Finance, etc.) Industries: 1 Real estate, 2 Travel Stops, 4 Manufacturing (all heavy) Generation: 2/G1 – G2 2/G2 - G3 3/Beyond G4 Initial Request: Help us put lasting frameworks in place. (100%) Help us be successful in our generational transition (3/7) Evaluate what we've done and take it to next level (4/7)

FBCG’s What has been Implemented? Board framework, independent directors, board education for family/owners, retirement of longtime family and independent directors. Family Council, initiated/updated/strengthened, Family Meetings planned/provided, first time education and gathering of cousins. Ownership Council, Ownership Goals (GRPL), policies and processes for selection of shareholder directors, first selection of shareholder directors. Policies developed, input/education on estate planning, trusts, trustee/beneficiary roles. Strategic Plan(s) Leadership Team Assessment, Succession planning for team, introduction of COO and other new executives. Sibling Constitution, Sibling team building, addiction confrontation. Ongoing service on advisor team, quarterly meetings in person and phone. Help us communicate more effectively, understand each other, understand paradox, conflict management techniques, DiSC, stages of family business, three circles, etc. Confrontation of long-time relationship issues, unspoken conflict, fears especially regarding retirement and new roles.

FBCG’s Logistics Wisdom: Meet quarterly in the afternoon after the board meeting. Start very small with modest expectations. With productive, energized experiences the momentum will build. Be patient. Coordinate family meeting with board meetings. Use day before family meeting for next generation job shadowing or touring. Create annual goals and project budget each Dec/Jan. Review progress. Create calendar w/client, segment into actions plans for family/business/ownership. Point person, planning team, annual survey of family members for agenda items. Team of family and management to plan summer meeting. After some time do an evaluation - bring in an FBCGer to do an evaluation and make recommendations for next steps - bring in FBCGer to speak or do Strategy or director search. Aspirations: Trying not to meet over meals. Trying to write fewer minutes.Resisting the temptation to set goals without deep involvement. Conscious even of providing options without involvement of client in creating them.