Carton Brothers working hard to keep it in the family

It is one of the oldest family firms in Ireland, with a proud business tradition dating back as far as 1775. But the name Carton Brothers could disappear forever in the not too distant future.

It is not because the Cavan-based business is enduring difficult times – quite the contrary. The question mark over the future of its name points more to progress than any decline.

Carton Brothers is the parent group of Manor Farm, one of Ireland's largest poultry processors, producing in the region of 600,000 birds per week. With an annual turnover in the region of €168 million and around 650 staff, it is not quite your average small family business. So why might the Carton Brothers name possibly fade in the future?

Vincent and his brother Justin Carton are part of the eighth generation of the family company and are justifiably happy with what they have achieved since taking over the running of the business from their father. But now their thoughts are turning to the next generation – and the possibility of a name change to the Carton Sisters.

Vincent and Justin have eight daughters between them – none of whom, Vincent says, will be allowed into the family firm until they have made it to management level somewhere else outside of the family business.

“Every family business should be run as a meritocracy,” he says, “and there should be rules that everyone follows, regardless of what your last name might be.

“There can’t be favouritism and you should always choose the best person for the job. You shouldn’t try and adapt a job for a person; look instead for who can bring the best skills to the job.”

He says honesty is a vital component in family business and you have to be prepared to admit that everything can and will become emotional on some level. But he believes this is also one of the strengths working with a family business.

“Most family businesses are different because they are very committed to the area they are located in – they aren’t going anywhere – and to their staff, so if the business goes through a hard time or someone is, for example, having a baby, everyone is more likely to work together because, by treating people like one of the family, it engenders loyalty.”

Running a family business also creates a sense of responsibility, not just to the family, but also to the people whose livelihoods depend on you. It is one of the reasons why he advocates that all family businesses, regardless of size, have a succession plan in place.

Cathy Booth, a director with business advisers BDO Northern Ireland, says it can mean the difference between a family firm surviving through to the next generation and complete failure.

According to Booth, statistics show that 77 per cent of private sector businesses are family-owned in the Republic while 74 per cent are family-owned in the North. But, of these, only 3.2 per cent survive past a third generation.

Now BDO NI has teamed up with the William J Clinton leadership institute at Queen’s University Belfast to develop the first leadership programme, North or South, designed specifically for family businesses. The programme, which aims to prepare the next generation of family business leaders, begins on December 9th.

Booth says one of the key lessons for family businesses to learn straight away is that the most important decisions to take are the ones that will protect the business.

“Most people initially think that, first and foremost, they have to protect the family but I always advocate that you make decisions to protect the business first. This will, in turn, protect the family.

“Businesses in general have to deal with difficult, complex decisions every day but add into this the emotional attachment that family businesses naturally bring to the table and the various relationships that are involved and it can all very quickly get very complicated.”

“That’s why it is important to put the right structures, from family governance structures to clear succession planning, in place.”