Discover why it’s often the founders—not the next generation—who derail the business, how to use Harvard’s Three-Circle Model, and why succession planning often fails from the start.
Whether you're running a family business, thinking about joining one, or just want to understand why your friend complains about working with their dad, this conversation will change how you think about family enterprises forever.
Host: Amy Bruske President at Kolbe Corp (Kolbe: 3583)
Guest-at-a-Glance 💡 Name: Sara B. Stern (Kolbe: 5691)
https://www.linkedin.com/in/sarabstern/
💡 What she does: Helps family businesses figure out where they're going, how they'll get there, and how to stay healthy while doing it | Expert EOS Implementer® at EOS Worldwide
💡 Company: EOS Worldwide
💡 Book: Start Here: A Guide for Family Business Succession
💡 Website: https://www.sarabstern.com/
What You'll Learn
💡 Why founders (not third-generation heirs) are the real killers of family businesses
💡 The Harvard-developed "Three Circle Model" that separates family drama from business decisions
💡 How to fire your cousin without ruining Thanksgiving dinner
💡 Why "because" is the most dangerous answer in family business
💡 The shocking statistics about family business survival rates
💡 How Kolbe assessments reveal why your Dad's mentoring style might be destroying the next generation
Jaw-Dropping Moments
❗️ The construction company that lost $30+ million because one family member was "too scary to discipline"
❗️ Kathy Kolbe's two-week exit announcement that nobody saw coming
❗️ Why Sara tried to cheat on her own Kolbe assessment (and got caught)
❗️ The breakfast conversation that saved a 50-year family legacy
Key Quotes
Sara: "People like to talk about how the family business is killed by the third generation... I think it's the first. If the first generation creates a business that is not being run thoughtfully, it's like having a sports team where half the people have injuries."
Sara: "I came to this work because my parents instilled in me that I needed to grow up and do something positive on this planet. When I started to see how many family businesses there are and realized that most adults have to go to work, it occurred to me that helping family businesses be healthier places would mean that I would help make families healthier, help make classrooms healthier—the classrooms of the kids whose parents are working in these businesses."
Sara: "I've talked to way too many second, third, fourth generation family business owners who, when I ask them, 'Why do you own the business?' their answer is 'because.' And that answer does not get you through the hard days. It maybe didn't even really get you through the good days."
Amy: "If you can't trust me to order pizza, you cannot trust me to run your business."
Amy: "It seems so safe to hire a family member, but it's actually one of the biggest risks that you can take."
Amy: "You better be able to be at work, have a complete disagreement over a decision, and then in the next hour go to a family gathering... and be able to now be a loving member of a family again."
Resources Mentioned
Business is Business: Reality Checks for Family-Owned Companies by Amy Bruske and Kathy Kolbe
Harvard's Three Circle Model for Family Business
EOS (Entrepreneurial Operating System) https://www.eosworldwide.com/
Take your Kolbe Index at https://www.kolbe.com/takea/
Perfect For: Family business owners, next-generation family members, EOS implementers, business coaches, and anyone who's ever wondered why Uncle Bob still works at the family company despite being terrible at his job.
Chapters
00:00 Introduction to Family Business Dynamics
00:17 Welcome to Powered By Instinct
00:48 Kolby Corp: A Family Business
01:51 Introducing Sarah B Stern
02:53 The Prevalence of Family Businesses
03:56 Sarah's Family Business Background
05:18 Challenges in Family Businesses
07:39 The Three Circle Model
15:19 Succession Planning Insights
18:05 The Importance of Passion and Fit
21:53 Balancing Work and Family
22:59 Transitioning Leadership at Kolby Corp
24:02 Unexpected Transition Announcement
24:18 The Pizza Incident: A Turning Point
25:53 Balancing Founder Involvement
29:49 Challenges in Family Businesses
34:44 Understanding Ownership and Boundaries
43:59 Kolbe Assessment Insights
46:09 Conclusion and Resources
#Entrepreneurship #FamilyBusinessSuccess #BusinessGrowth #EOSWorldwide #FounderMistakes