Sam Johnson had a radical idea. The
patriarch of the renowned Racine, Wis.-based business was the fourth-generation
man to oversee the entire conglomerate, guiding the firm’s successful expansion
for more than 40 years. But as he neared retirement in the 1990s, he formulated
a plan to drastically alter this winning succession formula.
Upending the legacy begun by his
great-grandfather Samuel Curtis (S.C.) Johnson when he founded the company in
1886, Johnson chose to divide control of the business’ operating companies among
three of his children. A fourth would oversee the family foundation. Johnson may
have been hoping to avoid the clashes that punctuated his upbringing: When his
grandfather died in 1928 without a will, his father, Herbert Fisk Jr., wrestled
with his sister for control of the firm for a
decade.
In 2000, Sam Johnson become chairman
emeritus of SC Johnson, the cleaning products company, clearing the way for his
children to assume high-level management of the family businesses. Today, two
years after his death, his legacy represents a case study of not only how a
family can successfully plan for business succession, but also how one can
transition a company from concentrated leadership to control by
consensus. | TOP VIEW: For four generations, the Johnson family companies were led by a strong patriarch. Now the fifth generation is taking a more cooperative approach. However, one heir, Helen Johnson-Leipold, is emerging as the glue that holds together this new team. Late chairman Sam Johnson's progressive business succession plan seems to be working, but with few successful models to follow, the family faces immense challenges, both internally and within their various businesses. These will surely test Johnson-Leipold's abilities in years to come. | A prime mover in the Johnson
family’s culture of collaboration is Helen Johnson-Leipold. At 49, she serves as
chairman and CEO of Johnson Outdoors, chairman of Johnson Financial Group and is
a director of the family’s two other enterprises, SC Johnson and
JohnsonDiversey. She also heads the family office, helping manage her family’s
estimated $7.5 billion in assets, and is pivotal in its charitable work as
chairman of the Johnson Foundation and a trustee of the SC Johnson
Fund.The business press is always rife
with family business blowups. But Johnson-Leipold and her family are committed
to avoiding this fate. With so few successful models to follow, they are
creating their own. “This is a very unusual family in terms of their ability to
get along,” says François de Visscher, president of an eponymous family business
consulting firm and a fourth-generation family firm
shareholder.
Last May, Johnson-Leipold and her
mother, Gene, accepted an award from the Northwestern University Kellogg School
of Management for “special contributions to family business,” on behalf of the
Johnsons. How does Johnson-Leipold explain their success? “As long as we keep in
our heads what’s best for the companies and family, there’s no argument,” she
says. Sam Johnson planted the seeds of
family business harmony long ago, knowing his children would inherit a company
vastly different than the one he did. (His tenure saw revenues grow 40-fold.) He
initially engaged all four children in the family’s charitable work through the
Samuel C. Johnson Family Foundation (now headed by his daughter Winnie
Johnson-Marquart) so they would learn how to make cooperative decisions. He
created four separate companies and changed the corporate structure by
introducing outside presidents or CEOs to run them together with family members,
who were chairmen. He also formed the Family Business Council, comprised of his
children, their mother and three advisors, to help guide and oversee all the
companies. There is no chairman; decisions are made by consensus.
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