Earlier this year, the Morrissette Institute for Entrepreneurship welcomed Richard Sifton, President and CEO of Sifton Properties Limited, for a fireside chat. Mr. Sifton was joined by David Simpson, Director of the Business Families Centre at Ivey Business School.
For almost a century, the Sifton Properties Group has been developing properties in and around southwestern Ontario. Over the years, Sifton has diversified and offers a wide range of properties which include retail, residential, retirement living communities and office spaces. Through effective family leadership, good governance, and consistent intergenerational innovation, Sifton is not only primed to provide immediate value today but continue developing for the future.
Throughout the fireside chat, Mr. Sifton highlighted strategies that proved effective for Sifton Properties Group.
Effective Family Leadership
Managing the intersection between familial and business expectations is challenging. This challenge is not unique to Sifton Properties Limited. Almost every family business will invariably have to deal with the pressures of family and business. Successfully navigating these issues first involves recognizing and accepting the existence of multiple viewpoints. At Sifton, the kitchen table has always been for family conversation, for better or for worse. Sifton embraced this dynamic and has fostered an organized family council.
The family council allows Sifton to include partners in business decisions. This inclusion is multi-faceted and not strictly limited to spouses. It includes the next generation and children who are not directly involved in the business. Outside professional support was brought in to implement shareholder's agreements, prenuptial agreements, and other personal governance documentation to maintain a degree of separation between family and business.
Transitions and Good Governance:
Sifton has been able to maintain its presence and continually develop over the years due to a shared governance mindset. Almost everybody has been of the mindset that when it is time for the next person in line, the current leader will move aside. This eased the transition process for three generations. Mr. Sifton shared that at most transition points, the outgoing leader would provide the necessary support for the smoothest transition possible. This was not always the case and sometimes, for whatever reason, there might be resistance and pushback. Mr. Sifton shared that no matter the reason, if it is best for the business, the transition must occur.
Business needs and circumstances seldom remain static. At Sifton, different circumstances called for different approaches. For instance, Mr. Sifton shared that in the 1980s, the real estate business experienced a downturn and in turn, Sifton emphasized the preservation of capital as opposed to growth. Where there is resistance to transition, it is beneficial to play to each leaders’ strengths and how they match the business circumstances.
Maintaining Innovation Through Generations
Successful family businesses operate on the balance between maximizing both present and future interests. Mr. Sifton shared that at Sifton, every child must have an education. However, the Sifton family has not been specific about the level of education, makes no distinction between college or university, and does not have a preference of specificity to the property development industry. What is of importance, however, is the sense of accomplishment and completion. Further, Mr. Sifton emphasized that he requires everyone to work somewhere for at least three years. The most integral benefit gleaned from this practical work experience is the gaining of perspective.
Leveraging this perspective has been instrumental in Sifton navigating shifting business circumstances and acting as trailblazers in the property development industry. Mr. Sifton shared that Sifton was the first in Ontario to develop a subdivision with underground hydro and telephone systems. Currently, with Sifton’s West Five initiative, Sifton has integrated environmentally friendly and energy-efficient measures. This implementation is seen as the right approach for the future.
Through the consistent incorporation of these strategies, Sifton Properties Limited has been able to effectively handle leadership transitions and intertwine family and business. Today, as Sifton Properties Limited approaches its centennial anniversary, due to innovative ventures such as West Five, Sifton is well-positioned to continue at the forefront of the property development industry.
To learn more about Sifton Properties Limited, visit their website at www.sifton.com.
The Morrissette Institute for Entrepreneurship hosts regular fireside chats and other entrepreneurial events. To find out more, visit the Morrissette Institute for Entrepreneurship website and subscribe to the newsletter to stay up to date with the latest entrepreneurship news and events.