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w w w . i n s i g h t o n b u s i n e s s . c o m F e b r u a r y 2 0 15 • I NSIGH T | 29 jobs. By all accounts, Galloway's process can serve as a model for other companies facing the challenge, she says. For Galloway, it helped there was already a candidate in house when they made the initial transition to non-family leadership. Robert Kime, longtime chief financial officer, was asked to step into the role of president. Tim took the role of chairman of the board and CEO. Dieterich moved into the president's role in 2003 aer Kime retired. Dieterich says the relationship has worked well in part because the family has developed very clear expectations for what the president's role will be. It also helped that Kime's tenure solidified the position and its relationship within the family leadership. "I had the benefit of observing the initial transition and how clearly they handled it," Dieterich says. "You learn through the years how to manage it effectively. ere are four very strong personalities, but they are in agreement on how this works." While the family members have strong personalities, Dieterich says they are a great team to work with. Open and positive communication helps, of course. He makes sure his plans are clear, and once agreed upon, family members make sure to avoid contradiction. e end result: e company benefits from a day-to-day leader not torn by other demands while family leadership can concentrate on the areas of the business they have the most passion for. "ey are very good with customers, and that's what they want and need to do," he says. With that transition behind them, the company is now preparing for the next one: a time when a customer may not work directly with someone named Galloway. "A Galloway has always been out with the customer," Dieterich says. "We need to be ready for that." Tim says of his realization he needed to change his role. "Feed your passion, not your ego." With none of the current generation wanting the role, and uncertainty if and when a fourth generation would be ready for leadership, it became apparent it was time to go outside the family for leadership posts. While not an easy decision to make, family members agreed not only that it was best, but that they would not second-guess themselves. "It was unfair what we were asking Tim to do (both jobs)," Ted Galloway says. Still, he says, there was some trepidation going in. Not that it wasn't the right decision, but more that they wanted to make sure it was executed properly, he says. "Once you make the decision, you have to let that person do their job," Ted says, noting the issue can be disastrous otherwise. "I still get calls from folks asking how we did it. We made the decision and we stuck with it." Making the decision to hire non- family executives is a difficult decision for family-owned businesses, and one that is best planned for well in advance, says Meridith Jaeger, executive director of the Wisconsin Family Business Forum at the University of Wisconsin-Oshkosh. "If the family is still going to own the business, then it's critical there is a succession plan in place and the family has time to articulate its values and find a candidate who is a good fit," Jaeger says. Handled poorly, these decisions not only hurt the company, but can hurt the community with a loss of local control and even lost The Friday challenge A special feature was recently built into Galloway's renovated office space. At the end of the main hallway (really only discernable if you know what to look for) is a perfect circle of carpet that pops out of the floor. Underneath is a regulation PGA putting cup, and if you look in the conference room behind the hole, you will notice the flag with a Galloway crest. On Friday afternoons, the staff partakes in a little team bonding and competitive putting, a real challenge given the alternating carpet patterns you have to conquer in the 25 to 30 feet between the starting point and the cup. The breaks can be tough to negotiate. "It's a lot nicer than what we had in the other building," Dieterich says. "Come to think if it, it's been a while since I won, but I did have a streak of three or four in a row." The first two generations of Galloway Company include founder Edwin Galloway, seated, surrounded by his sons, from left to right, Dick, Ned and John.