Larry Stern, President of Standard Electric Supply Co., and Matt Stern, Chief Operating Officer, joined the Driven by DCKAP podcast for a rare two-generation conversation about what it actually takes to keep a family business alive across more than a century.Â
Sitting down with host Karthik Chidambaram, the father and son discussed how:
- Untangling a 17-owner ownership structure was critical
- Why succession planning works best when it starts long before anyone thinks it is necessary
- Standard Electric has grown from a regional Wisconsin distributor into a multi-state operationÂ
It is a grounded look at independent distribution from two leaders who have deliberately chosen to stay that way.
Podcast Highlights
Cleaning Up a Complicated Ownership Structure Was the Foundation for Everything
When Larry came into the business in the mid-1980s while practicing law, Standard Electric had 17 owners, most of them aging children of the original three founders, none of whom had children involved in the business. Getting value out of a company with that kind of fractured ownership is a common problem that ends many family businesses before the next generation has a chance to step in. Larry saw the situation clearly and made his move.
“By cleaning that up, it opened up an opportunity for my children to get involved. I’ve been involved over 30 years, so my history is a third of the history of the company. I feel it’s important to maintain that custodial relationship for the next generation,” said Larry.
He added that the company likely would not exist today without resolving the ownership structure when it did, which meant buying out all the other stockholders and creating a clean path forward.
Succession Planning Is Not an Event, It Is a Posture
Larry never drafted a formal succession roadmap. But he also never stopped thinking about it. The approach he describes is one of continuous attention: watching which people have the skills and motivation to take on more, giving them room to grow into larger roles, and staying patient enough to let the process develop naturally.
Matt came into the business after working for Schneider Electric in the Chicago market, earning his own footing before returning to the family company. The same pattern held for the sales leadership team.
“You need to identify individuals early on, whether that means five years or 10 years, and always be thinking about how you structure the organization. You have to be deliberate about the training and the opportunities you give them to be comfortable when that next time comes for the succession,” said Larry.
Matt echoed that growing up going to company picnics and spending summers in the warehouse gave him a sense of belonging to something without ever feeling pushed toward it, which he described as a good way to let a family business pull someone in.
The Independent Edge Is a Competitive Advantage
Standard Electric gets acquisition interest almost every day. Emails, calls, voicemails, some routed through the general company switchboard. Larry said he has never seriously entertained any of those offers, and both he and Matt made clear that the family structure is not a limitation but a strategic differentiator.
The ability to make decisions without layers of corporate approval, to make people feel genuinely part of the business rather than just accountable to it, is something larger chains cannot easily replicate.
“When we look at large organizations, whether it’s a manufacturer, one of our suppliers, or one of the large global chains, we can compete against any of them. We have the size and the capabilities to do that. The difference is that family touch, making people feel part of the business, part of making the decisions, implementing the decisions, and that really is what drives the business,” said Larry.
Matt added that the leadership team Standard Electric has built, people who have been with the company for years and bring deep institutional knowledge, is not the kind of thing you can acquire in a transaction.
More Information
- For more details, visit the Driven Podcast portal or tune in on YouTube or Spotify
- For information about ERP integration, check out the DCKAP Distributor Blog
- Subscribe to the Driven by DCKAP Podcast
About the Driven by DCKAP Podcast
The Driven by DCKAP Podcast is an audio and video show that explores B2B leaders’ stories, digital journeys, and insights on trends in distribution and manufacturing. The podcast is hosted by Karthik Chidambaram, Founder & CEO of DCKAP, who grew the company from a startup to a global team of more than 200 employees. Follow Driven by DCKAP Podcast on YouTube or LinkedIn.
About DCKAP
DCKAP is a leader in digital solutions that help distributors’ systems talk to each other. Its technology simplifies software integrations, e-commerce, and product information management for B2B companies. DCKAP’s flagship product, DCKAP Integrator, helps distributors and manufacturers automate data between ERP, e-commerce, and CRM systems. Founded in 2005, DCKAP is a global and distributed team headquartered in Austin, TX. Visit dckap.com or follow on LinkedIn.
About Standard Electric Supply Co.
Established in 1919, Standard Electric Supply Co. is a fourth-generation, family-owned full-line electrical distributor emphasizing industrial automation and control products, with a focus on the OEM and MRO marketplace. The company’s mission is built around providing superior customer service and support, helping customers reduce operating costs and increase productivity through engineering services, inventory management, repair services, and technical solutions. Standard Electric operates across Wisconsin, Illinois, and Indiana. For more information, visit www.standardelectricsupply.com.
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