podcast episode<\/a> on that that we\u2019ll put a link in the transcript so our listeners can check that out. Can you describe that program a little bit and then talk somewhat about what some of the challenges are that minority business owners face?<\/p>\nHENRY MCGEE: Okay. As it turns out, Jessica is the head of the alumni association for the 10,000 Small Business Initiative\u2026<\/p>\n
BRIAN KENNY: So, we should probably let her answer that question is what you\u2019re saying.<\/p>\n
JESSICA JOHNSON-COPE: So the 10,000 Small Businesses Initiative is a program that was created by the Goldman Sachs Foundation coming out of the financial crisis of 2008. One of the advisory board members, Mr. Warren Buffett, who with whom many of us are familiar with-<\/p>\n
BRIAN KENNY: We know that name.<\/p>\n
JESSICA JOHNSON-COPE: He encouraged the firm to look at how small businesses were going to help the nation move beyond the financial crisis. And so Goldman made a significant financial investment, partnering with community colleges across the country, providing executive level business education with business advisory services and access to capital through CDFIs, community development financial institutions, to help high growth opportunity, small businesses across the country to grow. Initially the goal was to get to 10,000 small businesses. In 2009 when the program launched, they thought it would be a ten-year initiative. Here we are past 10 years. We have an excess of 15,000 alumni across the country in all 50 states and the U.S. territories. And the latest iteration of 10,000 small businesses focuses on rural-based small businesses because they\u2019ve often been overlooked. And so the most recent launch was in Minnesota a week or two ago. So I\u2019m proud to serve as the head of the 10,000 Small Businesses Voices advocacy platform, which helps to band together the small business alumni to identify what are the priorities, legislative priorities that we have, how can we have conversations with the elected officials in Washington DC as well as in our state capitals to advance the issues that are important to us to help us not only to survive, but to thrive. Particularly as we look at changing economic factors, access to capital, access to a well-trained workforce, and the other things that we face just in business in general.<\/p>\n
BRIAN KENNY: Yeah. Yeah. It\u2019s a fabulous program. When we did the show, it was probably five or six years ago, so they were coming up on their 10th anniversary at that time. So really glad to see that it\u2019s still thriving. But let\u2019s go back to the other part of the question, which is minority business owners face a whole set of challenges that other business owners don\u2019t face. Can you tell us about some of those?<\/p>\n
HENRY MCGEE: Well, we can start, first of all, with access to capital. One of the most popular ways for white entrepreneurs to get into business is to leverage their home equity. But because of historic discrimination in that market, difficulty of black and brown consumers to get home loans, the home ownership rates are so much lower. And so that form of capital has been denied. Also, black-owned businesses and Latinx businesses tend to operate in certain communities, which are discriminated against in terms of the number of business loans that banks traditionally have made in that area. So access to financing is a huge, huge issue for minority entrepreneurs. Another big issue is access to markets and customers. And again, whether it\u2019s racial discrimination or the size of the businesses, it\u2019s been often a big, big challenge for minority-owned businesses to get the customers they need in order to grow.<\/p>\n
BRIAN KENNY: Jessica. I want to go back to one of the things that you were looking at as you considered this crossroads that you were at was expanding further into New York City, broadening the scope of your business and your relationships. What are the kinds of decisions that you have to make about who you\u2019re going to partner with and what do you look for in a partner when you\u2019re thinking about scaling your business?<\/p>\n
JESSICA JOHNSON-COPE: Well, smart partners can make all of the difference. And we\u2019ve been very fortunate to be able to connect with several large corporations that are making investments in people, making investments in organizations as well as making investments in communities. And they haven\u2019t given us handouts, but given us a seat at the table to have different levels of conversation that on our own we might not have been able to access. So having the appropriate corporate and legislative partners is one key part. And when we\u2019re looking at potential business partners, we look at core values. Our core values were key to my grandparents when they started the business. And so as I carry on their legacy, if I\u2019m not value- and principle-based, then I\u2019m not living up to that legacy. And one of the things that many of the organizations with whom we do business say when they do business with Johnson Security is we love the story. We love what your family stands for, what the business stands for. And so when we\u2019re looking for business partners, we need people who stand for something, who stand on a set of values that align with our core values as we communicate them and as we demonstrate them and the work we do as well as the clients with whom we choose to do that work.<\/p>\n
BRIAN KENNY: Yeah. This is a key theme that I think we see run through a lot of challenges that family-owned businesses in particular face, which is you have the originator of the business, who\u2019s got a vision, who\u2019s got the core values, who\u2019s setting the tone. But how do you hand that down to the next generation and ensure that it\u2019s going to survive or even the next generation after that? And that might be part of the reason why a lot of family-owned businesses don\u2019t make it to where you have, the third generation. Did you learn things from your father and your grandmother specifically as they were teaching you about this business?<\/p>\n
JESSICA JOHNSON-COPE: I did. I did. So we had an odd set-up in terms of how we lived. My grandmother and my father lived in the same apartment building, and they lived directly across the street from where my brother and I grew up with my mom. And so every day I was able to see my dad and my grandmother. We would have dinner together as a family. And at the dinner table we would talk about business, we would talk about community, we would talk about interests that impacted the family. And so having those regular conversations, being able to sit at my grandmother\u2019s knee as she cooked, and she would relay stories to me about growing up in North Carolina, she would relay stories to me about the business and how she exemplified excellence and how she led the business as a woman during the Civil Rights era. So, I say any challenges I face now is nothing compared to what she had to deal with. Being a young widowed woman, raising children, and running a business all at the same time in an environment that wasn\u2019t welcoming to her. She was an educator by training. And so as she led the business, she thought about \u2026 She put on her hat as a guidance counselor because that\u2019s what she did as work in New York City public schools before she went into business. And so she always wanted to make sure she connected with where someone was trying to go to help them get there and used the business as a tool to get there. And so watching her be a guidance counselor, being a principled woman, being a mother, a grandmother, a cook, a business leader, and being tied to the community through the church and the union, that demonstrated to me what servant leadership looked like in business. And having been able to watch her \u2026 Because she worked in our business up until almost 2003 when she passed away. Watching her as a child and then watching her as an adult and then having been able to go outside of the house and work for somebody else and then come back, seeing the difference was seeing how some people in corporate environments ran their business, that taught me a lot about being a leader and how I wanted to take the business into the future. So I could borrow many things from her and then make adjustments. My first job out of college was with IBM selling technology.<\/p>\n
BRIAN KENNY: I\u2019ve heard of them.<\/p>\n
JESSICA JOHNSON-COPE: And so understanding what role innovation plays in longevity and remaining relevant in a marketplace. And then my dad, having watched him work. He was a trained attorney. He worked in the Bronx district attorney\u2019s office. He also served in state government before he came back into the business. So understanding that advocacy and legislative piece as it applies to impacting the community and as it applies to running a business. I think they equipped me with skills that I didn\u2019t even know that I needed, but helped me to carry on the business into the next generation and to be efficient and effective in the role that I play.<\/p>\n
BRIAN KENNY: Henry, not everybody has the fortunate circumstance that Jessica had to be able to be at the knee of her mentors as she was growing up and learn the business. What are some strategies that people listening can think about as they try to hand down that same value to the next generation?<\/p>\n
HENRY MCGEE: I think they should think very consciously about it. It\u2019s not going to happen without some intention. So the first thing would be to have a plan. I do think it\u2019s very important that whoever\u2019s going to take over the business \u2026 And of course there may be sibling rivalry or other rivalries. We see that being played out right now with the Murdoch family and others. HBO has an entire successful series on just this issue.<\/p>\n
BRIAN KENNY: Still plugging HBO.<\/p>\n
HENRY MCGEE: Still plug it. I had to. I had to. But I would think one is identifying a clear set of successor or successors. Bringing them in as Jessica\u2019s family did with her early on in the business. But I do think that the key to success is managing all the family dynamics in a business situation and having to be able to prepare to make decisions that you somehow got to figure out how to divorce the emotion from the decisions that you\u2019re making. That can be very, very tough.<\/p>\n
BRIAN KENNY: Anybody who\u2019s planned a wedding can tell you that can be really hard.<\/p>\n
HENRY MCGEE: Exactly. Exactly.<\/p>\n
JESSICA JOHNSON-COPE: And Brian, I\u2019ll add access to networks is important. My grandparents had a phenomenal network of other movers and shakers in Harlem in the New York City area. So like Dave Dinkins and Basil Patterson and Percy Sutton. So leaders in the community as well as leaders in business. So for anyone looking to take their business to the next generation, you don\u2019t have to have all of the answers, but if you have a strong support network of other business minded people who have access, who are plugged in, that can advise your children, your grandchildren, that helps to create those conversations when it gets difficult.<\/p>\n
HENRY MCGEE: Yeah. Yeah. Brian, if we could go back and talk a bit about Jessica\u2019s success, which is so much based on the values that were handed down to her by her family. I think that is an issue that she\u2019s wrestling with right now in terms of how to scale the business because should she decide to either acquire another business or to joint venture with a business, it\u2019s important that she find a partner or in a company that that shares the same values because it would be a disaster for her if she finds out that she\u2019s bought a company that isn\u2019t run the way that she wants it to run, or she\u2019s got a partner that doesn\u2019t share her values. And so those are real impediments, challenges that she has to overcome as she thinks about scaling her business.<\/p>\n
BRIAN KENNY: One of the things that gave me a real glimpse into your leadership style in the case was it talks about one of your largest clients called you up and said, \u201cWe want you to do all our security, like everywhere.\u201d And you didn\u2019t just jump at that chance. That was a moment for you to step back and say, \u201cWait a second. Are we ready to do this? Are we ready to do it in a way that\u2019s consistent with our values as a business?\u201d I\u2019m wondering how your employees would describe your leadership style. It\u2019s a hard question. I know.<\/p>\n
JESSICA JOHNSON-COPE: I would say my employees would describe my leadership style as musical. That at times it\u2019s very up-tempo and sometimes it\u2019s very low-key. That it can make you dance at the same time. It can make you cry, but it has a certain level of energy and a beat to it that gets people\u2019s attention and makes them want to follow just like music does.<\/p>\n
BRIAN KENNY: That\u2019s the best answer to that question I\u2019ve ever had. Henry, how do you think people would describe Jessica\u2019s leadership style?<\/p>\n
HENRY MCGEE: I think that they would describe her as a combination of being both inspirational but also forceful. There as you know, many theories about the value of leadership from behind. She\u2019s very, very much in the leading, leading by example. There is right now, as you know, Brian much talk about founder mentality and that as a leadership style, and I would certainly place Jessica in that group of founders who are very much involved in the business, but also can pull back and talk about the strategic direction as well.<\/p>\n
BRIAN KENNY: I like that. One of the strategic choices that you made in the case is to move into cybersecurity space. We all hear every day about all of the dangers that are out there with cybersecurity, so there\u2019s no shortage of need there. How did you think about making that move? What were some of the things that led to your decision to do it and how\u2019s it going?<\/p>\n
JESSICA JOHNSON-COPE: So one of the things I say to my team all the time is, what\u2019s the point of having trusted advisors if you don\u2019t trust their advice? There\u2019s a gentleman named Bob Perry who for the last 16 or so years has released a white paper on the state of the contract security market in North America. He focuses on transactions, mergers, acquisition, sales of other contract security guard companies. And I had a conversation with Bob just last month about what\u2019s coming up, and he said, \u201cAny small company in the security market that\u2019s not taking advantage of technology will get left behind.\u201d Now, I have a background as an engineer, maybe not the best engineer, but still nonetheless an engineering background. And I understand that I want to take my business into the future and that the physical guard services are not going to get us there. That we have to figure out some way to supplement what we\u2019re doing with the guard work with technology and cyber security just seemed logical with the number of increasing threats. Some of my advisors on the corporate side always talk about the next big security emergency is not going to be a physical one, it\u2019s going to be a cyber one. And so wanting to position the company for success, wanting to be able to provide my customers with the services that they need and to support the longevity of their security programs. Those were some of the key factors in us considering cybersecurity as an extension of the business.<\/p>\n
BRIAN KENNY: So this is a big decision, Henry, for her to make.<\/p>\n
HENRY MCGEE: It does. And so one of the questions we ask the students is, as Johnson Security Bureau is currently constituted, what are the challenges it\u2019s going to face in making this pivot? Right now, it\u2019s a very labor-intensive business. There are recruiting issues that she faces in terms of staff turnover, staff training, and so on. Once you go into cybersecurity, it\u2019s a different workforce. Also, you\u2019re then competing against other firms who are already established in the cybersecurity field. And so how does she make that leap from physical security to cybersecurity, which she\u2019s so rightly identified is something she has to do, but the question is how does she do it?<\/p>\n
BRIAN KENNY: It must feel lonely sometimes, Jessica, when you\u2019re the one that\u2019s got to make the call. How do you know when to call on an advisor or a mentor to give you some counsel?<\/p>\n
JESSICA JOHNSON-COPE: Some days you just get decision fatigue, and you don\u2019t have the strength to see things clearly. So you call in the reinforcements. Who\u2019s on the bench? Is it Aaron Rodgers or is it Patrick Mahomes? I want to go to Patrick Mahomes if I have decision fatigue.<\/p>\n
BRIAN KENNY: I don\u2019t blame you.<\/p>\n
JESSICA JOHNSON-COPE: But I understand what I know and what I don\u2019t know. And what I see, especially in this internet age where people are seeing being a CEO and a business leader glorified, is that ego gets in the way of making good business decisions. So when ego starts to get really loud, those are the times where I have to get quiet and seek those trusted advisors to give me the right information. And sometimes they say what I was thinking and confirm. Oftentimes they tell me something different. And one of the tests of better leaders is knowing when to be quiet and take the advice of someone else, even if it\u2019s not what you think.<\/p>\n
BRIAN KENNY: Yeah. That\u2019s the basis of the case method. That\u2019s why we teach that way at Harvard Business School, because you\u2019ve got to be willing to listen to an opposing point of view from time to time to help you shape your own point of view.<\/p>\n
JESSICA JOHNSON-COPE: And our politicians could take a couple of notes from that.<\/p>\n
BRIAN KENNY: Yes. They could. COVID-19, because we\u2019re still so much feeling the gyrations from COVID-19, I\u2019m wondering how that impacted your business because I think any small business that was able to weather that storm must have made some really hard decisions while it was happening.<\/p>\n
JESSICA JOHNSON-COPE: We were very fortunate. Security is considered an essential service, so we didn\u2019t have to close our doors. Many of our clients needed the same level or additional coverage than they did before the pandemic. So our business almost doubled from March to April of 2020 as a result of having one contract with the hospital system and then having to work with the COVID team there and provide emergency services. That allowed us to keep people working. People who otherwise would not be able to go to work. And more so than any decision I can make, I appreciate my employees, our team members who kept showing up. I appreciate that our clients continued to call on us because they trusted that their facilities and their people would be safe when they employed our services. And that\u2019s what helped us to get through 2020, 2021, even into 2022. The majority of our business was either in healthcare or in transportation, protecting critical systems around New York City while people were not able to work.<\/p>\n
BRIAN KENNY: Henry, I\u2019m wondering if we extrapolate this beyond Jessica\u2019s business, beyond that segment, what are some of the things that people listening might take to heart where it comes to creating that resiliency and creating that ability to be able to see opportunities if you\u2019re in a small business and you want to find a way to scale and grow?<\/p>\n
HENRY MCGEE: Several things. First, I think that understanding both your market and market trends very, very important. If you are in a mature business, be aware of that and think about how you\u2019re going to compete in a mature business. In Jessica\u2019s case, for example, while she\u2019s in the security business, has been around for a long, long time, it is mature. There are also segments that are growing to cyber security. So her strategy is to move into cyber security. So one is understand where you are in the life cycle of your business and what the market looks like. The second thing is you\u2019ve been a successful entrepreneur because you have been prepared to take risk. And I think as you think about changing, you\u2019re going to continue to have to take those risks. This is no time to have a lack of courage. And so that as well. Understanding the market. Be prepared to take risk. And then the thing that Jessica has talked about is to have an understanding of, at the end of the day, what the purpose of the business is and why you are doing this at all. And I think those three things together can make a huge difference.<\/p>\n
BRIAN KENNY: I\u2019ve got one question left for each of you, so you can\u2019t get up just yet. But building on what Henry was just saying, Jessica, my question for you would be, given the opportunities that are in front of you and given the challenges that are in front of you, what do you see as the things that you\u2019re going to be focused on in the next five years or so and what will success look like at the end of that period?<\/p>\n
JESSICA JOHNSON-COPE: I love that question. On our team, we like to say they\u2019re riches and niches; that we have to find a focus. We can\u2019t be everything to everyone. I anticipate with addition to what\u2019s happening in the political forefront, the changes that we\u2019re seeing in the demographics across the country, there\u2019ll be lots of opportunities for physical security. And we want to be positioned to take advantage of construction opportunities because there will be building. We want to take advantage of transportation because people will need to get back and forward from wherever they\u2019re going. We want to make sure that we maintain strong strategic corporate relationships, whether it\u2019s just for goodwill or just for understanding which organizations will be leading our nation forward through the next decade. And success looks like putting people to work while we\u2019re putting money in their pockets. Giving them respectable jobs. Just like my grandmother and my grandfather wanted people to be respected. Showing that you can have values in business and still be successful. And building the next generation of business leaders, whether they\u2019re entrepreneurs or whether they come through Johnson Security and go work for someone\u2019s corporation. I tell everybody that with Johnson Security, I\u2019m the only person that has to die there. But anybody that has the opportunity to touch our family\u2019s business, I want them to leave better than before they touched us. So whether that means they have additional skills, they have additional relationships, they have additional exposure, that they\u2019re better after an interaction with our firm than beforehand, and if we can do it en masse, then that would really be successful.<\/p>\n
BRIAN KENNY: I love that. And I think succession planning needs to be part of your next five years too. Are you got to think about the fourth generation?<\/p>\n
JESSICA JOHNSON-COPE: We think about that. I have a 13-year-old and a three-year-old niece. The three-year-old. She says that she\u2019s the mini boss. And when she goes to school, she knows she has to make good choices because that\u2019s what mini bosses do.<\/p>\n
BRIAN KENNY: Henry, over to you for the last word since you are the professor on the case. If there\u2019s one thing you want people to remember about this case, about the Johnson Security Bureau, what would it be?<\/p>\n
HENRY MCGEE: To me, the big takeaway is a strong leader who has a purpose for the business that combines both a focus on a profit, but also its responsibility to the community.<\/p>\n
ALISON BEARD: \ub9ac\ub354\uc2ed\uc5d0 \ub300\ud55c HBR<\/em>\u00a0will be back next Wednesday with another hand-picked conversation from Harvard Business Review.<\/p>\nThis episode was produced by Mary Dooe.\u00a0On Leadership<\/em>\u2019s team includes Maureen Hoch, Rob Eckhardt, Erica Truxler, and Ian Fox.<\/p>\nIf this episode helped you, please share it with your friends and colleagues, and follow the show on Apple Podcasts, Spotify, or wherever you listen to podcasts. While you\u2019re there, consider leaving us a review.<\/p>\n
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#Scaling #Business #Family #Playbook<\/p>","protected":false},"excerpt":{"rendered":"
ALISON BEARD: Welcome to\u00a0HBR On Leadership. I\u2019m HBR Executive Editor Alison Beard. On this show, we share case studies and conversations with the world\u2019s top business and management experts, hand-selected to help you unlock the best in those around you. We carefully curate this feed from across the HBR portfolio, aiming to help you unlock […]<\/p>","protected":false},"author":1,"featured_media":3177,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-6908","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management"],"acf":[],"yoast_head":"\n
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