Family Rule Restored at Hallmark - Arrivals - appointment of Donald J. Hall Jr - Brief Article

Chief Executive, The, Dec, 2001 by Jennifer Gilbert

HALLMARK CARDS, PRIVATELY held since its founding more than 90 years ago in Kansas City, MO, recently announced the retirement of its CEO of 16 years, Irvine Hockaday Jr., 65. Hockaday, the first person outside the Hall family to run the company, will be succeeded at the first of the year by Donald J. Hall Jr., 45, son of the chairman, Donald J. Hall, and grandson of the co-founder, Joyce Hall.

Hallmark's decision to return to the family fold for leadership is less common than one might think. Only one-third of family businesses survive a second generation, according to Joseph Astrachan, Ph.D., principal, Family Business Consulting Group International. Only 12 percent make it through a third generation and about 3 percent last through a fourth.

Hallmark's family dynasty hasn't relied solely on sons and cousins to stay alive. And as Hockaday's role in the Hallmark story proves, family businesses can benefit from outsider blood while maintaining the integrity of a family-owned business.

Hockaday joined Hallmark's board of directors in 1978 and became executive vice president of the company in 1983. Two years later, he became president and CEO.

Hockaday overcame his outsider status to lead Hallmark through one of its most dynamic periods, one marked by the acquisition of creative products company Binney & Smith in Easton, PA, and the development of a family miniseries and movies distribution subsidiary, Hallmark Entertainment. Hockaday also oversaw creation of Crown Media Holdings Inc., which operates and distributes the Hallmark Channel worldwide.

Now it's younger Hall's turn to step in. He will become president and CEO in January, after serving as executive vice president of strategy and development since 1999. Earlier, he was director of specialty store development, general manager of Hallmark Keepsake Ornaments, vice president of creative, and vice president of product development. He's also been a member of Hallmark's board since 1996.

But he will still have to prove himself as CEO. "Skill set is really the measure here," says Paul Karofsky, executive director of Northeastern University's Center for Family Business. "And there's an obligation of family to perform to a higher standard."

"Everyone's going to compare Hall Jr. to Hockaday," says Virginia Clarke, a principal at executive search consulting firm Spencer Stuart. "He's probably losing a little sleep at night."