FBSS 6-2-2011

Keystones for Family Business Success

John Tracy & Jean Tracy BuckleyDot Foods

June 2, 2011

Sponsored by:

Family Business Family Business Speaker Speaker SeriesSeriesFamily Business Family Business Speaker Speaker SeriesSeries

Ritz Carlton \ St. Louis, Missouri

June 2, 2011June 2, 2011

John Tracy & Jean Buckley

Presenters:

Family Business Speaker Series

Ritz CarltonSt. Louis, Missouri

Happiness is having a large, loving, caring,

close-knit family



Happiness is having a large, loving, caring,

close-knit familyin another city.

George Burns



Dot Foods’ Shareholders



Family Business Challenge



Tracy Family 2nd Generation (2G)

Don Tracy

Pat Tracy

Anne Capestrain

Tom Tracy

Jim Tracy

Jean BuckleyJohn

Tracy

SusanStamerjohn

Mary Sullivan

JaneSchmidt

Joe Tracy

Dick Tracy



50th Anniversary



Dairy Ingredient Supplier1960 - 1980

0-$20 Million



Redistribution as Our Niche

19601960

Food Manufacturers

19751975

Foodservice

19951995

Vending

19981998

Supermarket

20012001

Convenience

20062006

Specialty Retail

20082008

Drug Store &Drug Wholesalers

20092009

Military/Mass



Dot Foods Revenue and Growth

Billion

s



Dot Foods Overview

3.6 Billion

IN SALES

3,300EMPLOYEES

800TRUCKSTRUCKS

1,200TRAILERSTRAILERS

10LOCATIONS



Business Challenges

• Sustainable Value Proposition• Access to Capital• Ongoing Business Planning• Talent• Leadership



Family Challenges

• Talent|Objective and accurate assessment

• Decision making |Structure and process

• Fairness |In responsibility, compensation, perks, etc.

• Communication |Opportunity, forum disagreement, openness

• Earned vs. Given |Job, status, value

• Sharing|Family connection, stock, dividends & jobs



Family Objectives & Challenges

1. Sustainable Family Unit

2. Sustainable Family Business

3. Family members working in the business

In priority orderIn priority order



Universal Family Business Advice

• Outside Board of Directors and advisors

• Family Council

• Ownership/Estate Planning in Advance

• Dividends and/or fair liquidity options

• Annual Family Meeting



Family Leadership Transition



Family Business Mistakes

• Nobody says, “The CEO is ‘Stupid!”• No candor - Constructive disagreement is the

foundation of great leadership• Family managers don’t get “objective” assessment• Focus on family managers only and not owners• Inactive family shareholders don’t get a voice• Family businesses don’t learn from others mistakes• Family employees assume accountability is for

“others”• Family leadership is solitary



Tracy Family Business Structure

Board of Directors

Active Family Members

Don

Tra

cy

Pat

Tra

cy

Tom

T

racy

Jim

Tra

cy

Jean

Bu

ckle

y

Joh

n T

racy

Joe T

racy

Dic

k T

racy

Mik

e B

uck

ley

Sco

tt

Sta

merj

oh

n

Dot Foods’ Shareholders

FamilyFoundation

FamilyCouncil

Family Business Family Business Speaker Speaker SeriesSeriesFamily Business Family Business Speaker Speaker SeriesSeries

Ritz Carlton \ St. Louis, Missouri

June 2, 2011June 2, 2011

John Tracy &Jean Buckley

Presenters:



Jean’s History in the Business

HIGH SCHOOL

Office Clerk

COLLEGE

Sales & Marketing

POST-COLLEGE

Wife & Mother

CURRENT

TFF President & Board Member

GRADE SCHOOL

Cleaning Lady



Tracy Family Foundation Overview

• Founded in 1997• Focus areas: youth,

education, families• Primary geographic

boundaries• 1998 Grant Budget: $37,000• 2011 Grant Budget:

$2,007,500• Grant Programs



Tracy Family Foundation Governance

3rd Generation Tracy Family Member

• Dot Foods relationship to Tracy Family Foundation

• Governance Structure

• Board Make-up

2ndGeneration Tracy Family Board Member

Non-family Board Member



Family Involvement in the Foundation

Mission to build a philanthropic spirit in Tracy generations, present and future.

Having been blessed with many gifts and inspired by the values set forth by Robert F. Tracy and Dorothy Curtin Tracy, the multiple generations of the Tracy Family will seek to proactively impact the world, beginning with Brown County in Illinois and the west central Illinois region. The vehicle for this work will be the Tracy Family Foundation.

We will strive to promote the values of honesty, integrity, fairness, a Catholic/Christian belief, and a strong work ethic. These values are the essence of Robert and Dorothy Tracy. We will seek to provide resources to organizations that foster this value system.

Our primary focus will be to those charitable institutions that focus on education, youth, and strengthening the family unit.

It is also our desire, through the work of the Tracy Family Foundation, to encourage the growth of a grateful spirit within all Tracy generations present and future

Boards & Committees

Grant Programs

3G Annual Meeting Retreat



Tracy Family Foundation Challenges

• Many hats, many roles• Geographic dispersion of

Family Members• Not our money! We are just

stewards of money. • On-going board transition



Family Council Overview• Founded in 1995• We believe:

1. Family issues often become business issues in family run businesses

2. Family harmony is critical success factor for Dot

To provide a forum for addressing family issues which might impact the business, with the goal of continuing the growth and success of the business from generation to generation.

To provide a forum for addressing family issues which might impact the business, with the goal of continuing the growth and success of the business from generation to generation.

MISSION STATEMENT:MISSION STATEMENT:



Family Council Governance

Lauren Tracy3rd Generation Family Council

• Dot Foods relationship to Family Council

• Governance Structure

• Board Make-up

FAMILY COUNCI

L

FAMILY COUNCI

L

Sara Terwelp3rd Generation Family Council

Dick Tracy2ndGeneration Family Council

Joe Tracy2nd Generation Family Council



Family Council Challenge

• Policy setting when names are already Policy setting when names are already attachedattached

• Issues brought to table when names are Issues brought to table when names are already attachedalready attached

• Workload – projects can take on a life of Workload – projects can take on a life of their own and be very time intensivetheir own and be very time intensive



Family Council Lessons Learned

• Be Pro-Active!

• Be Transparent!

• Be Inclusive!

• Develop skill set in how to approach sensitive subject areas



Dot Foods Board of DirectorsBoard Make-up…then and now

Then…Then…

Now…Now…

• Decision to add non-family board members

• Decision to add family member who is not a Dot Foods employee

1980’s Board of Directors

R.T. Tracy 1960



Dot Foods Non-active Family Member Board Seat

• Purpose of seat1. Better shareholder, more

informed2. Different perspective3. Leadership development

• Challenges1. Learning curve2. Depth of contribution



Important Role of TFF and FC to Dot Foods

FAMILY COUNCI

L

FAMILY COUNCI

L



Spouse&Non-Active Family Member Perspective

My husband is a Dot Foods employee…I am not

• Importance of remaining objective, leaving emotions out of it

• Trust in leadership is vital

• Ability to separate family and business

• Importance of being knowledgeable shareholders even if individual is not a Dot employee (decision making, Dot functions, etc.)

• Important role of all shareholders to support and add value to the family culture piece we talk so often about



Q & A

Please text your question for John, Jean

and/or a sponsor to (314) 740-5366.

Sponsored by:



June 2, 2011

Sponsored by:



Q & A



Sponsored by:





June 2, 2011

Sponsored by:



Q & A



Sponsored by:





June 2, 2011

Sponsored by:

Clayton Capital Partner

s

Clayton Capital Partner

s

CMACMAEnterprise Bank &

Trust

Enterprise Bank &

Trust

Please complete the feedback form.

Thanks for participating!

John Cook

School of Business

John Cook

School of Business

Mueller ProstMueller Prost

Polsinelli ShughartPolsinelli Shughart

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FBSS 6-2-2011

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