Coutts Prize for Family Business

Judged by a panel of independent experts and chaired by Roger Pedder, former chairman of C & J Clark Ltd (Clarks Shoes), the Coutts Prize for Family Business analyses what makes family-run businesses successful. Short listed nominees enjoy the opportunity to benchmark their company's performance against our assessment criteria.

The awards aim to:

• recognise overall performance and firms that employ best practice in family
• governance, business governance and social responsibility
• raise awareness of the economic and social benefits of family businesses, and the challenges they face.

Family businesses are judged by three regional evaluation committees in:

• London and Greater London
• Northern England and the Midlands
• Southern England and Wales.

The winners of each then go on to participate in a national final. We then invite the national winners to join the evaluation committee for next year's event.

Step 1 - September 2009

Coutts & Co send out nomination packs to professional advisers, family businesses and trade associations

Step 2 - September - October 2009

Nominations of well-run family businesses by region and turnover

Step 3 - November - December 2009

Independent interviewing company conduct interviews with nominees and prepare evaluation reports

Step 4 - February 2010

Independent Regional Evaluation Committees (family business owners, professional advisers and academics) review evaluation reports, decide regional winners

Step 5 - March 2010

Announcement of regional winners

Step 6 - May 2010

Independent National Evaluation Committee (representatives of regional evaluation committees) interview regional finalists and decide on national winners.

Step 7 - June 2010

National Prize Giving Ceremony

Turnover categories

• £5-25 million
• £25 million +

Regions

• London and Greater London
• Southern England and Wales
• Northern England and the Midlands.

1. ELIGIBILITY

To be eligible for nomination for the Coutts Prize for Family Business, businesses must:

• Have their headquarters in England or Wales.
• Be wholly or mainly carrying on a trading activity.
• Be companies or firms where the family have significant influence over the company.
• Consider themselves a family business, though family members need not be involved in the management of the firm.
• Have been profitable in at least two of the last three years.
• Please note that first generation family businesses are eligible provided they meet the above criteria.

A note on re-entry: Winners of the Coutts Prize for Family Business national finals may re-enter after three years; Winners of the Coutts Prize for Family Business regional finals after two years. Other firms that were entered for previous year's prizes are, of course, free to re-enter this year

2. GENERAL CRITERIA

In addition to these basic eligibility requirements, nominated companies/firms must:

• Be able to demonstrate a combination of high standards of family governance and corporate governance.
• Occupy a competitive market position and demonstrate consistent financial performance over time.
• Demonstrate a track record of charitable giving or involvement in the local community.

3. SPECIFIC CRITERIA

(according to the size of the business)

Examples of characteristics that the independent evaluation committees will be looking for include:

Corporate governance

• The strategic vision of the business over the next three to five years
• The effectiveness of management meetings
• The way in which the roles and responsibilities of Chairman and Chief Executive are clearly differentiated
• Leadership succession plans for top family management and promotion of non-family members
• The integration of Non-Executive Directors or other non-family members, where appropriate
• The leadership style of key family members.
• There is a strong emphasis on next generation training and development.
• There is effective planning for succession of ownership, which the family understand and sign up to.
• All family members clearly understand their roles and responsibilities and can demonstrate they operate as a cohesive group of shareholders.
• The family has a clear vision for the future of the business.
• The company has a means of returning wealth to shareholders.
• Procedures are in place for resolving conflicts between family members.

Family governance

• The way family values are embedded in the culture of the company
• The way 'familyness' is used as a competitive advantage
• The types of discussion the family has around succession planning, ownership and involvement of other family members in the business
• Rules or structures governing and clarifying the relationship between the family, shareholders and the business
• Procedures for resolving conflicts between family members
• The means for returning wealth to shareholders such as a dividend policy or share buy back process
• Next generation training and development
• Planning for ownership succession
• Steps for ensuring the sustainability of the business
• The way roles and responsibilities of family members are defined
• The way family members spend time together outside the business

Business strategy and financial planning

• The way the business differentiates itself from the competition
• The business has key performance indicators
• The process for identifying and managing risk
• Decision making for the long-term
• Innovation in products, services, technology and ways of doing business
• Open communication between directors, stakeholders, suppliers and advisers
• There is a process for identifying and managing risk
• The business makes effective use of outside consultants and advisers
• The financial performance of the company and prospects for turnover and profitability

Corporate social responsibility and philanthropy

• The corporate social responsibility strategy
• The corporate giving strategy
• Family philanthropy
• Social impact

View articles for families in business

'Trust in traditional family business values' interview by campden FB with Roger Pedder (pdf, 24kb)

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