How three sisters stepped in to strengthen their family business
After the sudden death of their father, sisters Stephanie Jackson, Kimberly Paxton-Hanger and Melissa Steiner stood on the precipice of a moment they had never anticipated: running their multigenerational family enterprise, Kwik Lok, alone.
Believe it or not, you have certainly used their iconic product: the small, plastic tabs on bags of bread, produce and other items that keep food fresh and safe. Their grandfather, Floyd Paxton, invented the tab and founded the company in 1954 in Washington state, initially to provide bag closures to nearby apple growers. Their father, Jerre Paxton, later led the company for 50 years, but had never intended for his daughters to take over.
Finding themselves at a crossroads, the sisters were forced to ask themselves what the next generation of Kwik Lok would look like, how they would achieve their vision for the company and why they were motivated to accomplish any of this.
A new generation of ideas
By the time they became third-generation co-owners, their product had been constantly innovated and was sold globally, they said in an episode of the Ward Center’s Family In Business podcast.
Stephanie emphasized that together, the sisters decided they would “bring the heart into the business” while maintaining the strong foundation built by their father and grandfather. They strategically approached the question of why they should be its new leaders:
- Outside expertise: They realized that although they had not held leadership roles in the company before, they could bring in a fresh point of view because of their other experience and encourage new areas for the company to explore, like corporate social responsibility, for example.
- A new point of view: Not being entrenched in “the way we’ve always done it” afforded them the chance to question assumptions and prompt the company to re-examine its ways of working. “I believed in us asking that next question, why? Is this still serving us? Is this still working?” said Stephanie.
The foundation for change
As Stephanie put it, “being smart is the essence of being curious and being brave.” That perspective came into play when they assessed the company’s global supply chain, which included manufacturing plants in the US, Canada, Japan, Ireland and Australia.
Coming into the company, the Paxton sisters noticed how disconnected each plant was from the others, and how workers felt siloed. As they were gaining traction with their new roles, the sisters introduced a “One Kwik Lok” initiative to drive more consistency across the brand and operations. They focused on:
- Messaging – How priorities were being communicated at a brand-wide level.
- Practices and experiences of employees – What the employees experience is like, around the globe.
- Customers – Who the ultimate consumers and customers are, and how to serve them better.
The initiative has helped employees across their global operations share best practices, and it has introduced a new excitement and energy to the company.
“It would have been easy to listen to the people who think you should just sit on the sidelines,” Kimberly said, thinking back on that time. “But we knew we could bring a new perspective and also connect the employees back to the business in a way that they hadn’t been before, working with the heart and soul of the family.
“The family really is an asset to the business,” she said. “We have a long-term view. We are tied to our community. And we care deeply about how our employees do. All of those things layered in are a natural fit to us.”
Lessons learned
Two family enterprise experts, BanyanGlobal cofounder Rob Lachenauer and Kellogg Professor Jennifer Pendergast, joined the podcast episode to draw learnings from the sisters’ family enterprise journey. They shared these three pieces of advice for other family business leaders who may find themselves in a similarly unexpected transition:
- Have trusted friends and advisors by your side. You don’t have to do it alone.
- Show your team your curiosity and ask questions. Get curious and explore areas where you do not have a wealth of knowledge.
- Be firm about your expectations for the company. Gather an executive team and create goals and checkpoints, as well as a thoughtful purpose statement that lights the way.
At the end of the day, says Lachenauer, “It’s essential for successful transitions to be as transparent as possible. It should be a slow process. There will always be a change in leadership style, and you have to talk about it, be explicit and hopefully celebrate it.”
Says Prendergast, “I think the other thing that active owners can do that can be helpful is say, ‘We intend to keep this business for the long-term.’ … The fact that the Paxton sisters are present can be a good thing because it demonstrates that there's a longer-term family commitment to this business.”
A sisterly bond
As the Paxton sisters have overcome challenges since stepping into their new roles at Kwik Lok, they have navigated the ups and downs together. If they could tell their father one thing today, what would they say?
It would sound like this, says Stephanie: “Hey dad, I know you were coming from a place of protecting us by not bringing us into the company because it's stressful and it's hard and it is a lot of responsibility, but guess what? We're doing a great job.”
For leaders of family enterprises, the challenge isn’t just staying relevant to the market — it’s ensuring the business remains meaningful to the next generation. Connect with the Ward Center for Family Enterprises at Kellogg to learn more about our resources and events for family businesses.