Passing the Torch

For Arrow Lift, communication, understanding and foresight have been key.

Over the past 40 years, Arrow Lift has become a trusted name in the home elevator and accessibility lift industry across the Midwest and West Coast. But when Bob Newstrom founded the Duluth, Minnesota–based company in 1985, it was with a much simpler goal: to support his family of seven. This spring marked an exciting new chapter for Arrow Lift as Bob’s son, Pete, steps into the CEO role; his son, Andy, takes on the role of chief operating officer; and his son, Joe, transitions to the role of chief engineer. Bob continues to serve as chairman of the board while the second generation of Newstroms advances Arrow Lift’s mission of “serving others by helping them fully enjoy their surroundings.” 

The significance of this milestone isn’t lost on Bob, who says:

“It’s humbling to remember that many family-owned businesses experience great difficulty transitioning to the next generation. I’m thankful that, in the case of our family, the handoff has been relatively smooth.”

Four Key Principles

When asked how they were able to do it, Bob and his sons point to four key principles they believe contributed to a successful transition: 

1) Put relationships first. Family is what fueled the founding of Arrow Lift, and the Newstroms feel that their strong family relationships are a big part of what kept the next generation interested in the business over the years. “We have always been a close-knit family and genuinely enjoy spending time together,” Pete observes. “When the time was right for the business and for each of us individually, those conversations sort of unfolded naturally because we had such a strong bond, and we talk all the time.”

Throughout childhood and into their college years, Pete, Andy and Joe also worked for the business in some capacity, whether it was tagging along on their dad’s sales calls in the early days or passing out brochures at the Minnesota State Fair over summer breaks as they got older. Pete says: 

“The three of us all decided to join the family business because we all look up to our dad. He sets a good example for us and always has. We all love each other and like spending time together. That continues to be a big part of our dynamic at work.”

To Bob, it was also important his sons didn’t feel pressured to be a part of the business. They were encouraged to explore their own options. The family patriarch states:

“While I did hope and pray for a particular outcome, over the years I have learned that the most important thing is to be responsible for what’s in front of me and to trust God with the rest. So, it’s been very important for me to let each son arrive at their own decisions about where they’re led to be.”

Each son has brought something different to the table in terms of skills and experiences, and Bob Newstrom believes that has been both a blessing and an advantage.

2) Embrace different skill sets. Each son has brought something different to the table in terms of skills and experiences, and Bob believes that has been both a blessing and an advantage. With his mechanical engineering degree, Joe boasts various technical and professional skills in equipment design and troubleshooting, software development, IT and more. Andy honed his management skills with his degree in business administration and management. And Pete developed leadership experience as a U.S. Air Force officer with an MBA in finance. “We were very fortunate to have a balance of skillsets and personalities among the brothers,” Joe says. “I think honest self-assessment is important in developing a sensible succession plan.”

Part of that self-assessment was cultivating experiences outside of the family business. Andy explains:

“Prior to working for our business, it was important for me to try some things on my own. While building my skillset was an important part of that, I think getting a dose of experience at another company was important to my growth. I learned a lot about what to do — and what not to do — as a manager.”

3) Prioritize hands-on experience. All three of the Newstrom boys spent their early years in the business getting in-depth, hands-on experience in sales or technician roles before holding any leadership positions at the company. That experience was ultimately crucial in laying the groundwork for succession planning. “Sales and technician roles are the foundation of our business,” Bob points out. “They’re really the essentials of what we do as a company, so the importance of gaining that hands-on experience can’t be overstated.”

Joe recalls the joy he felt in the hands-on experience of the job when he first joined full-time more than 20 years ago, soon after earning his mechanical engineering degree. He says:

“Before I started working with elevators while in school, I had some talent at math and physics, but I didn’t know the difference between a ratchet and a box-end wrench. After graduating, Arrow Lift was hiring for an installation helper, and I took the job as a way to pay my bills until I found my career. I fell in love with the equipment, with the constant learning and with the process of building our team while helping our customers.”

Andy’s biggest piece of advice for others who are considering a future in the family business is to also develop hands-on experience — but with another company. “Go out and work for someone else so you gain a combination of experiences and approaches,” he says. “This will likely make you more appreciative of working in a family business and give you better insights into how to communicate with people, along with what approaches were effective and what approaches failed in other businesses.”

4. Don’t force it. Bob acknowledges that he had been thinking about succession planning off and on since his first son joined Arrow Lift more than 20 years ago, but says it was important to him to let things develop organically. He says:

“I planned to transition out of direct leadership at some point as I got older, but there was never a predetermined point in time. I knew I had to be flexible because it involved gauging where the organization was and making sure we had the right leaders. Over the past decade or so, it really became clear that we had all the appropriate people in place for the move to make sense.”

Staying Involved

In Bob’s opinion, this approach provides a number of benefits. “When you let things develop and progress naturally, it gives you a chance to assess each of your children’s talents, gifts and goals,” he observes. “And just because you hand things off doesn’t mean you can’t be involved in the business!” Although he is no longer in executive management, Bob stays involved through his role as chairman of the board. “My goal is to give them room and to be available as a mentor or a sounding board and be helpful wherever it’s desired,” he says. 

His sons have also appreciated the more patient approach. Pete says:

“Our dad never pressured us to join the business. He allowed us to earn money in various ways before joining as adults, and each of us had a different path to coming on board after college, but the one thing in common was that there was never any arm-twisting.”

Andy says it wasn’t until college that he seriously considered the possibility of working for Arrow Lift. He says:

“While I had always worked summers for the business growing up, I didn’t want it to be my first job out of school. After a year and a half of experience at another company, I began looking at it more seriously and having conversations with my dad about what that may look like, and ultimately, I was able to talk him into a job.”

A Natural Progression

While the Newstroms sometimes disagree about who talked whom into what, the one thing on which they all agree is that this year’s leadership transition wasn’t a major shift for their family or for the Arrow Lift business. Pete says:

“It’s really just a continuation of the legacy our dad has built. We love the business and are deeply invested in making it a success — for our family, for our customers and for all the amazing folks on the Arrow Lift team. All three of us are excited and passionate about continuing the growth trajectory we’ve been on and hopefully taking the business into the next 40 years.”

And as Bob Newstrom puts it, “Addressing succession on a planned basis is just good stewardship. Ultimately, my sons and I want the same thing: for our organization, team and customers to be well-served.”