Eric Allyn, a fourth-generation owner of medical device manufacturer Welch Allyn, Inc., will serve as the inaugural keynote speaker for the Austin Family Business Program’s Excellence in Family Business Awards, being held tonight at the Governor Hotel in Portland.
Allyn has been a strong advocate for family business throughout his career, and recently sat down with AFBP for a Q&A in advance of tonight’s keynote address.
Oldest family business owner: 78, third generation Youngest family business owner: Due December 31 Number of family members working in the operating business: 2 Ownership generations: 3rd, 4th and 5th generations Last family vacation destination: Skaneateles NY
Family business book that you recommend most often: John Ward and Jennifer Pendergast’s “Building a Successful Family Business Board: A Guide for Leaders, Directors, and Families” and any case studies of family businesses, such as the Mondavi family or the Busch family case.
Best advice you’ve given your children: I don’t expect them to be great managers of our business but I do expect them to be great stewards!
Best business decision you made as an executive in the family business: By far the best decision was to insist that we move the governance of our business from family management to family ownership with outside management.
How would you describe your work in family business education: Our company transitioned to a non-family CEO in 2007 and I stayed two years to help the transition. I was elected chairman by our board and now serve other families by speaking to leadership groups and in sit- ting on family business boards in the pharmaceutical and medical fields. What I enjoy doing most is sharing the Welch Allyn story to prepare the next generation, especially how to use succession planning tools to push the ownership down to the younger generations.
Why are you committed to this work? I think family business should be, and need to be, more competitive than public companies. They can make quicker decisions and ownership is close to management. I have no time for the big public markets and excessive regulations but I will always take the time for people of the next generation.
I love to compete against GE, Phillips and Siemens. There’s a big difference than working for these and for Welch Allyn, Inc. that has long term vision, values the brand and thinks generationally, not quarterly. That makes it more fun to compete against GE in winning a hospital bid. If the customer is really buying value and a long-term solution then we will help them do their work and solve their problems. It’s not transactional and it’s not a commodity. Family businesses can do that much more effectively.