02.17.11
Online Exclusive: Tips on Taking Over
Mitchell Kaneff, Arkay Packaging's CEO, discusses his new book, and the state of the beauty packaging industry today.
The beauty industry is a passionate one, filled with inspired people who bring energy and enthusiasm to the products or services they provide. Mitchell Kaneff has passion. And as the chairman and CEO of Arkay Packaging, he brings this quality to his role as a third-generation leader of the 89-year old folding carton company. Like his grandfather, Max, the company’s founder, Kaneff also has the entrepreneurial spirit. Under Mitchell’s leadership, the company’s growth has been substantial. In 2008, Arkay expanded its Roanoke, VA facility to twice its size, complementing its two locations in New York.
Kaneff brings a unique perspective to the beauty packaging industry. Apart from having had the opportunity to cull knowledge and business know-how from his father and grandfather, he’s also a graduate of the Rochester Institute of Technology. A family business, like Arkay, can offer family members great opportunities for success – yet at the same present a unique set of challenges, particularly when the leadership reins are passed on to the next generation.
Mitchell Kaneff wears several hats. Not only the CEO of Arkay Packaging, Kaneff is also the bass guitarist and songwriter for The Young Presidents, a rock group based in New York City. In addition, he is the producer of their upcoming album, “Freedom of Speech,” being released this spring. And, for his latest endeavor, Kaneff has entered the literary world.
This year, Arkay’s CEO published “Taking Over: Insider Tips From a Third-Generation CEO.” In his book, Kaneff offers guidelines and advice on how to effectively – and successfully – handle the transfer of business leadership from one generation to the next. Drawing on real-life experience, Kaneff reveals tips on carrying on the family legacy, building a loyal team, creating a balanced work environment, getting support, and even stepping aside – to name a few of his topics.
Beauty Packaging recently caught up with Kaneff and had a chance to discuss the new book, as well as his thoughts on the state of the beauty packaging industry:
Beauty Packaging: How would you say the beauty packaging industry has changed over three generations?
Mitchell Kaneff: There have been, of course, numerous changes in the industry since my grandfather began our company in 1922. Back then he was doing business with Coty, Lentheric and AT&T, and he was mainly dealing with printed materials and labels. By the 1940’s my grandfather was doing packaging with customers like Charles of the Ritz, Madame Rubinstein, Charles Revson of Revlon and Estée Lauder of Estée Lauder. The technology continued to evolve from hand-filled packaging to full automation and the advent of computer-aided designing decreased lead times from 18 weeks down to a matter of days. There is just too much to mention in almost nine decades of Arkay history for one article – that could be a whole article in itself!
BP: Are there any particular challenges associated with a generational takeover?
MK: Succession is a process that is highly complex even under the best of circumstances. Add to that the fact that people you are dealing with are family, and you have a prescription for disaster. Business dynamics that are part of any succession process are weighted even more heavily when you are trying to preserve family relationships – and especially when dealing with parents and children. There is no exact road map – believe me, I wished there was! One of the key reasons I wrote “Taking Over” was to provide the guidance I was unable to find, and to raise key questions in order to begin the critical process of open communication, which needs to take place to assure a successful transition.
BP: What advice would you give someone who is taking over the reins of a company?
MK: Many of the tips in my book address the best way to manage those first difficult months of “taking over.” I would recommend that new leaders cultivate a “culture of transparency,” so that every employee feels comfortable with a shift in management. Since a leadership change often brings with it significant anxiety at all business levels, one of the first – and best – moves is foster security in the workplace. I also encourage those in a new position to ensure that his/her key leadership is supportive and has the best team possible. I would spend time assessing the business and the players and not make any fast moves – at the same time, assessing a way to make an immediate and positive impact. Perhaps most importantly: believe in yourself. There is a reason that you were handed the baton and you should hold it with confidence.
BP: What would you say is the greatest challenge facing the packaging industry today?
MK: A great challenge to any industry during these recessionary times has been finding a way to persuade reluctant consumers to open their wallets. As the country emerges from this historic recession and we see discretionary spending start again, the packaging industry especially must guard against brand cannibalization and the fallout of a loyalty fickle consumer base. It is more vital than ever to be well-stocked and to be cautious about the overuse of flankers. Differentiation is key. Stand out from the competition! The best way to accomplish this: perceived value through added-value packaging.
BP: Is there a plan in place for a fourth generation of Kaneffs to take over Arkay Packaging?
MK: I have twin sons who are ten years old. I would love for them to follow in my footsteps, but only if it is something they have passion for because passion is as critical to business success as talent is. I’m aware they may not want to “take over,” and I already have a clear succession plan, which could take effect any time, should the unanticipated happen. This plan will continue to evolve and will include my sons, if all of the pieces fit.
BP: Is there anything else you'd like the beauty packaging industry to know about the book?
MK: I recently spoke at a YPO function (Young Presidents Organization) to many of the best and brightest young business leaders today. One of the first things I shared was this: No one really wants to talk about succession! So just being aware and overcoming the inherent discomfort to create a strategic and constantly evolving plan already puts you at an advantage. My book is one of the tools that companies can use to guide all business leaders through one of the most complicated transitions in corporate life. I also encourage all industry members to think of their businesses as family businesses, regardless of whether the members are blood related. Every company strives to create an environment where employees have the loyalty, camaraderie and commitment that family members share. That is why I believe my book, despite having been written by a third-generation CEO, is universally relevant.
Mitchell Kaneff lives with his wife, Amy, and his twin sons in New York City. For information on his book, “Taking Over,” as well as upcoming speaking engagements, visit his website: www.mitchellkaneff.com.
For “Taking Over” book sales visit Amazon.com: http://www.amazon.com/Taking-Over-Insider-Tips-Third-Generation/dp/0982845464
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The beauty industry is a passionate one, filled with inspired people who bring energy and enthusiasm to the products or services they provide. Mitchell Kaneff has passion. And as the chairman and CEO of Arkay Packaging, he brings this quality to his role as a third-generation leader of the 89-year old folding carton company. Like his grandfather, Max, the company’s founder, Kaneff also has the entrepreneurial spirit. Under Mitchell’s leadership, the company’s growth has been substantial. In 2008, Arkay expanded its Roanoke, VA facility to twice its size, complementing its two locations in New York.
Kaneff brings a unique perspective to the beauty packaging industry. Apart from having had the opportunity to cull knowledge and business know-how from his father and grandfather, he’s also a graduate of the Rochester Institute of Technology. A family business, like Arkay, can offer family members great opportunities for success – yet at the same present a unique set of challenges, particularly when the leadership reins are passed on to the next generation.
Mitchell Kaneff wears several hats. Not only the CEO of Arkay Packaging, Kaneff is also the bass guitarist and songwriter for The Young Presidents, a rock group based in New York City. In addition, he is the producer of their upcoming album, “Freedom of Speech,” being released this spring. And, for his latest endeavor, Kaneff has entered the literary world.
This year, Arkay’s CEO published “Taking Over: Insider Tips From a Third-Generation CEO.” In his book, Kaneff offers guidelines and advice on how to effectively – and successfully – handle the transfer of business leadership from one generation to the next. Drawing on real-life experience, Kaneff reveals tips on carrying on the family legacy, building a loyal team, creating a balanced work environment, getting support, and even stepping aside – to name a few of his topics.
Beauty Packaging recently caught up with Kaneff and had a chance to discuss the new book, as well as his thoughts on the state of the beauty packaging industry:
Beauty Packaging: How would you say the beauty packaging industry has changed over three generations?
Mitchell Kaneff: There have been, of course, numerous changes in the industry since my grandfather began our company in 1922. Back then he was doing business with Coty, Lentheric and AT&T, and he was mainly dealing with printed materials and labels. By the 1940’s my grandfather was doing packaging with customers like Charles of the Ritz, Madame Rubinstein, Charles Revson of Revlon and Estée Lauder of Estée Lauder. The technology continued to evolve from hand-filled packaging to full automation and the advent of computer-aided designing decreased lead times from 18 weeks down to a matter of days. There is just too much to mention in almost nine decades of Arkay history for one article – that could be a whole article in itself!
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Mitchell Kaneff |
MK: Succession is a process that is highly complex even under the best of circumstances. Add to that the fact that people you are dealing with are family, and you have a prescription for disaster. Business dynamics that are part of any succession process are weighted even more heavily when you are trying to preserve family relationships – and especially when dealing with parents and children. There is no exact road map – believe me, I wished there was! One of the key reasons I wrote “Taking Over” was to provide the guidance I was unable to find, and to raise key questions in order to begin the critical process of open communication, which needs to take place to assure a successful transition.
BP: What advice would you give someone who is taking over the reins of a company?
MK: Many of the tips in my book address the best way to manage those first difficult months of “taking over.” I would recommend that new leaders cultivate a “culture of transparency,” so that every employee feels comfortable with a shift in management. Since a leadership change often brings with it significant anxiety at all business levels, one of the first – and best – moves is foster security in the workplace. I also encourage those in a new position to ensure that his/her key leadership is supportive and has the best team possible. I would spend time assessing the business and the players and not make any fast moves – at the same time, assessing a way to make an immediate and positive impact. Perhaps most importantly: believe in yourself. There is a reason that you were handed the baton and you should hold it with confidence.
BP: What would you say is the greatest challenge facing the packaging industry today?
MK: A great challenge to any industry during these recessionary times has been finding a way to persuade reluctant consumers to open their wallets. As the country emerges from this historic recession and we see discretionary spending start again, the packaging industry especially must guard against brand cannibalization and the fallout of a loyalty fickle consumer base. It is more vital than ever to be well-stocked and to be cautious about the overuse of flankers. Differentiation is key. Stand out from the competition! The best way to accomplish this: perceived value through added-value packaging.
BP: Is there a plan in place for a fourth generation of Kaneffs to take over Arkay Packaging?
MK: I have twin sons who are ten years old. I would love for them to follow in my footsteps, but only if it is something they have passion for because passion is as critical to business success as talent is. I’m aware they may not want to “take over,” and I already have a clear succession plan, which could take effect any time, should the unanticipated happen. This plan will continue to evolve and will include my sons, if all of the pieces fit.
BP: Is there anything else you'd like the beauty packaging industry to know about the book?
MK: I recently spoke at a YPO function (Young Presidents Organization) to many of the best and brightest young business leaders today. One of the first things I shared was this: No one really wants to talk about succession! So just being aware and overcoming the inherent discomfort to create a strategic and constantly evolving plan already puts you at an advantage. My book is one of the tools that companies can use to guide all business leaders through one of the most complicated transitions in corporate life. I also encourage all industry members to think of their businesses as family businesses, regardless of whether the members are blood related. Every company strives to create an environment where employees have the loyalty, camaraderie and commitment that family members share. That is why I believe my book, despite having been written by a third-generation CEO, is universally relevant.
Mitchell Kaneff lives with his wife, Amy, and his twin sons in New York City. For information on his book, “Taking Over,” as well as upcoming speaking engagements, visit his website: www.mitchellkaneff.com.
For “Taking Over” book sales visit Amazon.com: http://www.amazon.com/Taking-Over-Insider-Tips-Third-Generation/dp/0982845464
