Liz McBeth became president of Armour Valve in 2019, the company started by her father Ian Braff. She had grown up in front of many employees and it took time and hard work for them to see her as a competent professional and leader.Tijana Martin
As more women take charge of family businesses, they’re rewriting traditions that once favoured sons. Yet, despite their fresh ideas, many still grapple with deep-seated biases and heavy family expectations.
Liz McBeth knows this struggle well. When she joined her family’s business in 2007, it was after a successful previous career in marketing and communications, and after earning her MBA. But joining a team with many people her parents’ age who had watched her grow up meant she had to work hard to shake impressions that had built up over her lifetime.
“People have seen you since you were a child, because there was very little attrition at the business, so it’s hard for them to perceive you as a competent professional adult,” says Ms. McBeth, who became president of the business, Armour Valve, in 2019. “In order to be able to apply my skills to benefit the business, I had to win over the trust of the employees – and trust isn’t always earned quickly. It doesn’t matter if you’re competent.”
Ms. McBeth’s father, Ian Braff, became a partner in a business in 1971, which he and his wife Sally took over a few years later and rebranded as Armour Valve. The company, which distributes industrial valves, instrumentation and controls, now has 28 employees and locations in Calgary and Scarborough.
Ms. McBeth, who has three brothers, was the sibling most engaged in the business, even when the kids were young. “I had my first job there covering reception and worked in a few different departments.” Her parents didn’t subscribe to the now-fading tradition of passing the business to their first son. She says her brothers seem to appreciate that she’s furthering their parents’ efforts.
“We all have an affection for the brand,” she says, noting her dad is technically retired now but is still involved, and has been working on an app for the business. “It was like a fifth child at the table growing up.”
The number of women running family businesses has increased dramatically over recent decades, at about 18 per cent of family businesses globally in 2020, according to data from KPMG. However, North America has the lowest proportion of women in these roles compared with other regions, the company says.
Women who take over family businesses can face additional challenges than their male counterparts, such as overcoming traditional family dynamics and gaining acceptance from staff and clients, say experts.
But despite these challenges, some Canadian second-generation business leaders say they felt compelled to keep their parents’ legacy alive and, in doing so, have found new ways to drive their businesses forward. For Ms. McBeth, this has meant expanding Armour Valve’s sustainability efforts and opening new markets in emerging industries.
Ms. McBeth’s experience is far from unique. Across Canada, women like Danielle Kanengoni are also navigating the complex dynamics of family businesses, where tradition and modern leadership styles often collide.
Danielle Kanengoni took over Allan Financial from her father, Ross Allan. She says one big challenge is navigating the shift in the hierarchy between her and dad, who still works there doing sales.SUPPLIED
Ms. Kanengoni took over her father Ross’ business, Allan Financial, in 2022 after working at the Vancouver-based business full-time for seven years, including as vice-president and head of operations. She says her day-to-day experience didn’t change much when she became president, but one of the hardest aspects has been navigating the shift in the hierarchy between her and dad, who still works there doing sales.
“It’s easy to fall into the family hierarchy, that’s the default,” Ms. Kanengoni says, noting she sometimes still struggles with the fact that final decisions are now up to her, especially when she and her dad disagree. “My dad has never had a boss.”
Fortunately, she says her dad has always been good at sharing authority and designating subject-matter experts in areas of the business he is less knowledgeable about, which has helped in this transition.
“As a founder, you have so much of your identity in the business,” she says. “For him to give up that control is not an easy thing, and he’s done it – not perfectly – but well for many, many years.”
The company, which specializes in life insurance, has a team of seven people. Not unlike Ms. McBeth at Armour Valve, Ms. Kanengoni had been pursuing her own path, consulting for businesses on Bowen Island, until her father asked her to work with him on a special project.
“The project got bigger, I dropped other clients, and in 2014, I came on full-time,” she says. “It’s become this amazing, fulfilling thing for me.”
She says she’s had time to make her role into something that suits her and has focused on evolving the business’ communication and technology to meet customers in more ways than the traditional face-to-face meetings favoured by her dad.
“The translating of our model and our culture to be relevant to the next generation, I think that’s relevant to the skill set I bring to the table,” she says.
These stories highlight a broader trend in family businesses, where women are increasingly stepping into leadership roles, yet still face unique challenges. Julia Chung, a certified family enterprise advisor, explains that success in these transitions often hinges on a combination of long-term planning and open communication within the family. She notes many families are increasingly open to passing businesses on to women but says those that haven’t kept up with social changes over the years – such as acceptance of diversity and women’s empowerment – are less likely to reflect those changes in their companies.
“Families are inherently traditional,” says Ms. Chung, a board member at Family Enterprise Canada. She notes male-dominated industries – “which are most of them” – can pose particular challenges for female successors and those who are queer or gender-diverse. “If you aren’t fitting into that traditional role, people feel uncomfortable, and they might pass over you.”