Loyola University Chicago

Family Case Study: IDEAL Industries

Dave Juday, chairman, and Meghan Juday Family Council Chair, 10:30 AM

Founded in 1916 by J. Walter Becker, IDEAL Industries has operated on the idea that every product should be worth more than the price that was paid for it.  Now led by 3^rd generation Chairman, Dave Juday, Ideal industries is known in its traditional markets as one of the leading suppliers of quality products for installers in the electrical and datacomm industries.  Many of their products have become synonymous with their function. Wire-Nut® Wire Connectors, Yellow 77® Wire Pulling Lubricant and T®-Stripper Wire Strippers are products which have found their way into the tool bags of professionals and solidified the IDEAL reputation as an engineer of innovative and trustworthy products.  In the last decade, the company has expanded into several other businesses such as power electronics, telephony testing, and environmental testing, in Europe, Central and South America, and Asia.

Dave and his daughter Meghan (4^th generation), who chairs the Family Council and sits on the corporate board will share a story of family growth, challenges and governance that have led to addressing such diverse topics as board succession, family governance among a diverse group, compensation for family leaders, qualifications for employment and board seats, and how to deal with liquidity issues. 

IDEAL’s 26 shareholders across 4 generations, along with a new outside CEO, look forward to new growth opportunities for the company and shareholders.

Family Case Study: Azteca Foods Inc.

Arthur Velasquez & Renee Togher, 10:30 AM

Azteca Foods Inc. has been owned by the Velasquez family - twice.  Azteca was founded in 1970 in Chicago by a group of ten members of the Azteca Lions Club, a club serving the inner city community of Pilsen.  Arthur and his father Arturo were original members.

Azteca sold the company to Pillsbury in 1984.  In 1988, Pillsbury was purchased by the British conglomerate Grand Metropolitan PLC.  On July 1, 1989, Aruthur and Joanne Velasquez and a partner saw that Azteca was no longer a priority for Pillsbury, and purchased the business from Gran Met.  At this time their daughter, Renee Togher, took on responsibility for marketing and the Velasquez family took the reigns of leadership of Azteca.  In 1996 Joanne and Art bought their partner out.

In December 2008, the company named Togher president. She is among several family members employed by Azteca.

This session will include:

• An overview of Azteca Foods including its history and the strategies used to rebuild the company.
• A description of the succession planning process that led to Renee’s appointment as president.
• A discussion of the governance processes implemented by the Velasquez family.

Family Case Study: The Saval Family Laboratorios

The Saval Family, Moderated by Gonzalo Jimenez, FBN Chile, 3:30 PM

Third-generation members of the Saval family, owners of the 70-year-old Chilean pharmaceutical firm Laboratorios Saval, are pursuing the company’s succession process in a particularly defiant environment.

Four Saval cousins, who come from different branches of the family, have built a unified team to manage the transition from second-generation leader Emilio Saval, whose extraordinary vision, skills and leadership style have presented great challenges.

In this case study, participants will learn about the enormous patience the four cousins have developed as they:

• Build a succession team with a common vision.
• Soft-manage the leader, decoding his intentions and making them their own.
• Transfer these clarified intentions to the organization, earning the staff’s respect.
• Examine the consistency and logic of value creation metrics.
• Establish new management control systems.
• Change compensation, bonus and incentive systems.
• Institutionalize the company by holding periodic shareholders meetings.

Family Case Study: D’Addario & Co.

The D’Addario Family, 10:30 AM

The D’Addario family – which traces its roots to 1680 in Salle, Italy – has made strings for musical instruments for nine generations. In 1905, Rocco and Charles D’Addario immigrated to New York and began importing strings made by their father, Giovanni. In 1918, the family began producing strings in the U.S. in a tiny shop behind their home in Astoria, Queens. Through the hard work of Charles’ son John Sr., and his children – John Jr. and James – the family began selling strings under the D’Addario name in 1974.

Today, the D’Addario name is synonymous with the world’s finest-quality musical-instrument strings. The business employs more than 1,100 people – including 13 family members – and markets its products in more than 110 countries.

This case study will explore the D’Addario family’s rich history and discuss the challenges of building family unity and business success. The presentation will cover family communication, the work of the family council, preparing the next generation, and keeping cousins on the same page.

Family Case Study: Hatfield Quality Meats Inc.

Phil & Tom Clemens, John Reininger, 10:30 AM

Hatfield Quality Meats Inc. was founded in 1895 when John C. Clemens began selling his pork products in the Philadelphia farmers’ markets. In 1940, four of John's sons took over the business, maintaining their father’s emphasis on quality, integrity and values. Today, Hatfield manufactures and supplies more than 1,200 fresh and manufactured quality pork products to customers from Maine to Miami, and in several international markets.

In this session, the Clemens family will discuss how they keep 229 family owners spanning four generations connected and committed to common goals. They will describe how their board of directors, ownership council and management team have created an environment of trust and respect, leading to a clear set of expectations regarding financial metrics, risk management and stewardship. Participants also will learn how the Clemens family has attracted 23 family employees as it builds the next generation at Hatfield Quality Meats