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FALL 2017/WINTER 2018 Chinese Acquirers Loom Larger as M&A Bidders INSIDE By Jaewon Kang As more Chinese acquirers search across the consumer Be It Oil, Gas or space globally for investment Water, Buyers See opportunities, private-equity Midstream Opportunity p.4 investors could soon start to feel the heat.

Prepping for Investments Strategic and financial play- in the Meal-Kit Market p.4 ers from the world’s second largest economy are betting shoppers in China will An Entrepreneur’s Tale become more health-con- Can Be the Perfect scious and remain hungry Marketing Vehicle p.5 for premium consumer Naruedom Yaempongsa/Shutterstock.com products as they get richer. Senate Bill Aims to Clarify With Chinese acquirers Small Business Security p.6 quickly learning the ropes of the Western deal market, they are emerging as a force to compete with local private-equity investors for targets in the consumer sector. Ex-Shoe Shiner Seeks to Polish His Legacy p.6 “It’s rare for us to have a sell-side process where you’re not giving a real thought about Asian buyers—whether they’re from China or Japan or what continued on page 15, see M&A Bidders Ignoring Cyberrisk Can Be a Costly Mistake for SMEs p.7 Consumer Health Care Attracts New in Boardrooms: The Buddy System p.8 Wider Range of Competitors By Laura Cooper

Corporate World Health-care investors used to having the sector largely to themselves are beginning Recruits Generals p.9 to feel the competitive heat from their deep-pocketed consumer-focused peers.

Speaking at the Jefferies 2017 Global Healthcare Conference in June, Jay Wilkins, a Live Like an Aristocrat senior managing director at Harvest Partners, said consumer-focused private-eq- on a Tour of England’s uity firms have been “sniffing around a lot more” at consumer-facing health-care Stately Homes p.10 companies these days, particularly within the dental and veterinary spaces.

As a result, health care-focused firms have faced stiffer competition for health- Japan for Beginners: care businesses focused on the consumer market, Mr. Wilkins said on the sidelines of the conference. The Country’s Most Effortless City p.12 continued on page 14, see Consumer Health Sampling of recently closed transactions

FINANCIAL OPINIONS PLANNING & ADVISORY SERVICES M&A SERVICES

Dallas, TX | Atlanta, GA | Chicago, IL | Irvine, CA | Tampa, FL FALL 2017/WINTER 2018 Generational Legacy

Generational Generational Group News & Notes Legacy From the Desk of Ryan Binkley, President, The Generational Group published by Dow Jones & Co. in partnership with Generational Group Dear Friends, Generational Group Welcome to the Fall 2017-Winter 2018 issue of Generational Group Contacts Legacy, our newsletter developed in partnership with Dow Jones & Co. At the Generational Group of companies we understand that (877) 213-1792 selling a business is often the most important financial event that occurs in the life of a business owner. Our goal with each issue of the Jay Hellwig Legacy is to provide you with key information about M&A trends. We Vice President of also look at current issues and emerging business developments that Client Experience are important to you. You will also find some general human interest [email protected] stories that we hope you find enjoyable to read.

Dow Jones The M&A market continues to be very favorable for business owners Contacts right now. Barring a major geopolitical event, we expect the current Nicholas Elliott level of buyer activity to continue for the foreseeable future given the Managing Editor significant amount of capital available with both strategic and [email protected] financial buyers. Simply put, there is more cash available than there are deals in the market, driving higher valuations. You will learn About more about current M&A market conditions in our conference today. Generational Group Most entrepreneurs that we work with have a significant portion of Generational Group is a global mergers and acquisitions firm focusing on the middle market their net worth tied up in their companies. And nearly all hope to assisting clients in mergers, acquisitions and create a financial legacy that they can leave to their children and strategic growth. With over two hundred grandchildren. Attending a Generational Group exit planning professionals, Generational Group brings a strategic domestic and international buying conference is an important first step in understanding the process community to the middle market. involved to eventually exit your company for maximum value.

About The Generational Group is one of the leading M&A advisory firms in Dow Jones North America with the experience and knowledge to guide you Dow Jones Newswires provides real-time news for through one of the most challenging and important decisions you financial professionals in the equities, fixed- will ever make. While a successful transaction is the ultimate goal, income, foreign exchange and energy markets, and also offers news for financial firms’ Web sites. rest assured our team is dedicated to a rewarding and personalized Dow Jones also publishes The Wall Street Journal client experience in your journey. and its international and online editions, Barron’s, the Far Eastern Economic Review, MarketWatch, Dow Jones Indexes and the Ottaway group of This is the Generational Way. community newspapers. Dow Jones owns Factiva and co-owns SmartMoney with Hearst Corp. It also provides news content to CNBC television I’m sure you’ll enjoy our conference and find this edition of operations worldwide and to radio stations in the Generational Group Legacy to be informative and helpful as you run U.S. Dow Jones is a News Corporation Company. your business. I wish you continued success in all your endeavors.

Generational Group Advisor is made available as a complimentary service by Generational Group, in partnership with Dow Jones. No further redistribution is permitted without written permission from Generational Group and Dow Jones. Generational Group Advisor is intended to provide factual information, but its accuracy cannot be guaranteed. Dow Jones is not a registered investment advisor, and under no circumstance shall any of the information provided be construed as a buy or sell Ryan Binkley recommendation or investment advice of any kind. The views expressed in any article are solely those of the President and CEO respective individuals cited. Generational Group

Be It Oil, Gas or Prepping for Investments Water, Buyers in the Meal-Kit Market See Midstream By Jaewon Kang Opportunity By Luis Garcia

Private-equity firms are raising their bets on the U.S. midstream energy sector as booming exploration in the Permian Basin increases the need for infrastructure to handle not only oil, but the gas and water flowing from the region’s wells. Intense drilling activity in the Permian Basin of West Texas and southern New Mexico is approach- ing the limit of the region’s existing oil-and-gas infrastructure. Crude-oil production is expected to surpass takeaway capacity in the Permian— which was at 2.6 million barrels a Daniel Acker/Bloomberg News day—by the end of this year, according to a January report from industry data provider Drillinginfo Inc. Will private equity find ways to cook up investments in the prepared-meal “We’re quickly running up against delivery services sector as a variety of players battle for the hundreds of mil- not just takeaway capacity con- lions of dollars at stake? straints, but gathering constraints,” said Sarp Ozkan, Drillinginfo’s man- Campbell Soup Co. recently injected $10 million into meal-kit startup Chef’d ager for energy analytics. LLC, sealing one of the latest transactions in a space that is gaining popularity The heightened demand has as consumers increasingly look for convenient and novel dining experiences. encouraged private-equity firms to step up their investments in Permian The success of early movers such as Blue Apron Inc. and Grocery Delivery midstream ventures. Rangeland E-Services USA Inc., which operates as HelloFresh, also has contributed to Energy, Medallion Midstream LLC and Oryx Midstream Services LLC— the sector’s growth. Blue Apron, which counts Bessemer Venture Partners backed by EnCap Flatrock and First Round Capital among its largest investors, just filed last week to go Midstream, Energy & Minerals Group public. In recent months, SunBasket Inc. and Relish Labs LLC also have and Quantum Energy Partners, secured investments. respectively—are some of the midstream companies expanding their Investors of all stripes are likely eyeing hungrily the sector’s growth prospects. oil-gathering and transport systems The meal-kit delivery services sector is estimated to generate a compound in the region, including the laying of annual growth rate of 30.8% from 2016 to 2021, according to Morningstar Inc. hundreds of miles of pipeline. Despite the fact that meal-kit services represent less than 1% of total food and The midstream investments don’t beverage sales, the investment firm wrote in an April report, loyal subscribers stop at oil, though. The Permian spend as much as 13% of their food purchases on such meal-kits. drilling boom is also increasing the output of natural gas produced The Chef’d deal underscores strategic buyers’ growing interest in meal-kit ser- together with oil—and is attracting private-equity capital as well, The vices to expand their online-commerce presence. At the same time, it also Wall Street Journal reported. The raises the question of where private-equity investors fit in the sector and what article highlighted Blackstone role they may be able to play. Group LP’s agreement to acquire EagleClaw Midstream Ventures Venture capital has already demonstrated strong interest, flocking to meal-kit LLC, a gas-focused pipeline compa- providers at various stages of their development. By contrast, private equity ny, for $2 billion in April. has largely stayed on the sidelines of the still-nascent industry, waiting for the players to reach more attractive levels of profitability and scale. As they remain continued on page 18, see Midstream continued on page 16, see Meal-Kit

An Entrepreneur’s Tale Can Be the Perfect Marketing Vehicle By Barbara Haislip

Have you heard the one about the founder returns to “normal” life as an company with a really great story entrepreneur with a product or ser- to tell? vice for society.

You see them on company websites Founders should keep that structure and commercials. Businesses, partic- in mind when coming up with their ularly small ones with limited mar- own narrative, she says, and then keting budgets, use stories about highlight important points. their company to grab the attention of consumers, lenders and investors. “For example, if the product is the Whether the tales are about the result of a family member being founding of the firm or how it injured or dying, the strong, sad affects customers, stories can be a emotions associated with the trage- powerful tool, resonating more dy are the strong call to action that deeply than facts and figures or tra- pulls the audience in,” she says. Also ditional product pitches. highlight “favorable characteristics that founder exhibited during the “Emotions and motivations shape trial and/or the new characteristics cognition, which is why good stories that are the result of the trials.” Adrian Niederhaeuser/Shutterstock.com stay with us,” says Angela Randolph, assistant professor at Babson Col- Focus on images lege. “People are more likely to Company founders should be sure telling of his company’s story—and remember emotional information to flesh out their narrative with the images stick with you: the nip of than nonemotional.” memorable images. “Humans are a cold morning on your skin, steam hard wired as visual creatures,” says from the coffee, a waving hand as But shaping a narrative to really Hannah Harvey, a scholar and pro- you drove through the gate,” she grab and hold people’s attention fessional storyteller who tells tales says. “The values of early hours, hard involves a lot of subtleties. Here’s a and leads workshops at festivals, work, leadership that labors along- look at some of those secrets. among other places. An audience side you—these values sound great, will remember the images far longer but...you won’t remember them five Do some myth making than abstract goals or values. minutes after I stop talking. But Effective business narratives tap you’ll remember how that cold air into old archetypes of storytelling That can mean using visual images felt on your skin, and the coffee, and that go all the way back to the ear- to accompany a company story on the image of the man at the gate.” liest tales of mythology. “Stories a website, but also using evocative about founders and new innova- imagery within a narrative. Dr. Har- So, founders should think about tions are often in the form of a vey uses examples from her grand- what strong images they have that myth and follow the hero’s journey,” father, Tom Little, who used stories will connect with potential custom- says Dr. Randolph. to welcome hires and forge rela- ers. “You already have them in your tionships with clients at his con- head,” Dr. Harvey says. “Where were Like the heroes of classic tales, she struction business. you when you first got the idea for says, the company founder is going your company? Who was your first about a normal life when they run “In the early years, picking up two employee? What were the textures into a problem that interrupts it. employees in his battered truck in in that room, the weather outside, After this call to action, the founder the dark on the way to work each an object that was central to the undergoes trials that must be over- morning, after drinking steaming experience of that day?” come—and along the way trans- hot coffee at his kitchen table forms into a leader and the idea before his two little girls woke up. continued on page 16, turns into a product. Then the These images were entwined in his see Tale

Senate Bill Aims Ex-Shoe Shiner Seeks to Clarify Small to Polish His Legacy Business Security By David Benoit By Adam Janofsky Dennis Washington assembled a By approving a cybersecurity bill sprawling industrial empire based meant to help small businesses, largely on instinct. The 83-year-old bil- cybersecurity experts said the U.S. lionaire is now grappling with how to Senate has taken the first step toward encouraging businesses of make sure it endures after him. all sizes to use basic security practices that can help fend off sophis- Mr. Washington started out in 1964 with ticated cyberattacks. a $30,000 loan and a single bulldozer. Today, the privately held Washington The bill’s core provision directs the National Institute of Standards Cos. comprises six private companies, and Technology to “disseminate one public company and a joint ven- clear and concise resources for ture, running mines and railroads, small business concerns to help building ships and designing jet reduce their cybersecurity risks.” wings—and generating more than $2 NIST publishes a widely-used billion a year in revenue. cybersecurity framework that rec- ommends best practices for secur- Now it is set to close its biggest deal ing data, including installing anti- virus software, backing up busi- ever, a $1.2 billion purchase that will ness data, and requiring multi-fac- add diamond mining near the Arctic tor authentication to sign in to Circle to the mix. sensitive applications. The entrepreneur’s improbable rise KAMIL_BIALOUS FOR THE WALL STREET JOURNAL “The act itself isn’t going to prevent future cyberattacks, but it might turned a boy who grew up poor—he motivate a bigger percentage of used to shine shoes in Washington Mr. Washington who grew up poor now small businesses to take action,” state alongside a young Quincy Jones— runs a business with more than $2 billion said Jon Loew, chief executive of into a Montana tycoon worth $6 billion, in revenue. AppGuard LLC, a security software according to Forbes. company that helps small businesses protect themselves against Driving through his shipyards in Vancouver, where the first vessel in an $8 bil- cyberthreats. “Small business are lion contract with the Canadian government is nearing completion, Mr. Wash- probably least prepared for this— they might not have dedicated ington simplifies his collection of businesses: They all involve “big machines.” information technology staff, and They were strung together through a series of acquisitions that often launched they certainly don’t have a dedicat- him into lines of businesses he had no experience with, but poured off cash ed information security person— he could reinvest. but the ramifications are more seri- ous than at larger companies” “I get some seeds in the ground, and I just keep plowing them,” Mr. Washing- The bill, which received early sup- ton says. port from lawmakers from both parties, was passed after several Like many family-run businesses and even some public companies—including weeks of major data security dis- that of his friend Warren Buffett’s Berkshire Hathaway Inc.—his approach has closures, including a breach at created a difficult succession challenge: how to pass down Mr. Washington’s Equifax Inc. that compromised the intangible abilities. Mr. Washington says his goal is to ensure the group sur- information of 143 million U.S. con- vives at least three generations. sumers and an attack on the U.S. Securities and Exchange Though his two grown sons are involved, they aren’t interested in running Commission’s system for storing public-company filings. the operations, Washington officials say. Instead, he has turned to three good friends, well-known businessmen themselves: David Batchelder, When the bill was introduced in a pioneer activist investor; Stephen Hanks, who ran Mr. Washington’s con- March, Ann Beauchesne, senior struction company; and David Sokol, once viewed as a potential successor continued on page 16, to Mr. Buffett. see Security continued on page 17, see Legacy

Ignoring Cyberrisk Can Be a Costly Mistake for SMEs By Adam Janofsky

For mom-and-pop stores and other Small business owners are increas- Ms. Gondek, who was not involved in small businesses, cyberattacks can ingly finding that the threats are the HSB study, said she settled with seem like a distant worry compared real, and can be expensive. the former employee in court and to regular concerns such as securing obtained a three year non-compete loans, filing taxes, and competing Cindi Gondek, the chief executive of agreement that prevents him from with online giants. ACT Group, a 3-D printing company courting her customers. with 30 employees, said an insider But a majority of businesses experi- threat incident cost her company She also changed her company’s enced a cybersecurity incident in about $200,000 in legal fees and a policies to make it harder for the past year, and about 38% of forensic investigation after she discov- employees to download customer hacked businesses spent more ered a former employee had attempt- data. The company now uses a cus- than $50,000 responding to ed to steal a vast amount of data from tomer relationship management cyberattacks, according to a the Connecticut company in 2015. platform that makes it easier to study that will be released by secure client information, and The Hartford Steam Boiler “He downloaded our customer data- employees are given tablets instead Inspection and Insurance Co., a base to a Dropbox account—he had of laptops to limit the amount of cyberinsurance provider. access to it because he ran one of information they can download. our departments,” said Ms. Gondek, “A lot of small businesses have the ‘It adding that a computer forensic “We now have more control over won’t happen to me’ mentality,” Eric specialist determined that the our information, and it makes it Cernak, the U.S. cybersecurity and employee downloaded enough doc- harder for someone to repeat what privacy practice leader for HSB, add- uments to fill a tractor-trailer if they happened,” she said. “You learn ing that about 7% of hacked busi- were printed out. “He was definitely from your experiences and you nesses spend more than $250,000 trying to start his own business.” move on.” responding to the cyberincident, which can be devastating for a small firm. “What they’re not realizing is they might be a target simply because of who they’re doing businesses with.”

The study, which surveyed 403 executives across the U.S., found that the most common costs associated with these incidents were data loss and business interruption, and roughly one-third of respondents said they also experienced physical damage to their equipment and reputational damage.

The report also found that businesses are most concerned with cyberincidents stemming from so-called insider threats. Disgrun- tled or negligent employees were the biggest cyberrisk for 44% of respondents, compared to the 37% who said hackers were their Elnur/Shutterstock.com top concern.

New in Boardrooms: The Buddy System By Joann S. Lublin Amy Chang got unusually frank buddies can help newcomers figure Boards that integrate new members feedback when the new director of out the boardroom’s cultural sooner should “make better deci- Cisco Systems Inc. walked out of her norms, power brokers—and even sions and produce better results for first board meeting last December. the right place to sit. shareholders,” said Rusty O’Kelly, head of the board consulting and Longtime board member Carol Mentors make sure “you don’t come effectiveness practice at recruiters Bartz chided the then-39-year-old in as a bull in a china shop,” Russell Reynolds Associates Inc. But tech executive for apologizing observes Steven R. Walker, manag- the concept is so new that there is when she posed questions during ing director of the board-services little concrete evidence that they the meeting. group at the National Association of actually accelerate the impact of Corporate Directors. newcomers. “You have the right to ask questions,” said Ms. Bartz, a Cisco director since A 2016 survey conducted by the asso- Ms. Bartz, Cisco’s independent lead 1996. Ms. Chang says the guidance ciation found that 33 of 296 U.S. com- director, became its first mentor helped her understand how things panies with orientation programs for when Ms. Chang joined the board worked on the networking giant’s directors choose an experienced last October. Ms. Bartz says “the big- board, though she had been a cor- board member to guide their latest gest benefit is having an effective porate director elsewhere. member. The boardroom buddy sys- board member faster.” tem was virtually unheard of five More boards are pairing new mem- years ago, governance specialists say. The best mentors counsel new bers like Ms. Chang with seasoned directors before and after board mentors like Ms. Bartz as they Businesses with formal mentoring meetings for at least six months, scramble to improve their oversight efforts include Foot Locker Inc., governance experts say. Without of management in the face of Applied Materials Inc. and such hand-holding, new directors intensified investor scrutiny. Board Nasdaq Inc. typically take about nine months to assimilate.

“It’s a really efficient and practical way to assure that the new directors get the most out of the early meetings,” says Dick Johnson, chief executive of Foot Locker. The sports retailer began a board mentorship program when its two newest members arrived in 2016.

Cisco directors endorsed the idea partly because some prior board recruits “weren’t a good culture fit,” says Cassandra Frangos, vice president of global executive talent at the San Jose, Calif., company.

Ms. Chang, a former Google Inc. executive who runs privately held tech firm Accompany Inc., spoke with Ms. Bartz for several hours before her inaugural Cisco board DREW KELLY FOR THE WALL STREET JOURNAL continued on page 19, Amy Chang, left, and Carol Bartz at Cisco headquarters in San Jose, Calif. see Buddy

Corporate World Recruits Generals By Vanessa Fuhrmans

kuzmafoto/Shutterstock.com

At companies across America, gen- general, as calming forces in a tur- counsel of a former military leader, erals are bringing battlefield lessons bulent presidency. says Wendy Monsen, president of to business. executive recruiter Korn/Ferry’s fed- Discipline, though, is only one of eral-government practice. Whereas Software maker Red Hat Inc. and the traits companies say military more than three-quarters of Ameri- computer-security firm Symantec leaders bring to boards and man- cans trust the military to act in the Corp. are among the employers agement teams. public’s interest, according to a turning to generals for help on 2016 Pew Research Center survey, numerous fronts, from corporate In the fog of war, and in peacetime, only 41% feel the same way about governance to grappling with generals are trained to anticipate business leaders. cyberwarfare. At not-for-profit Florida unknown risks, build high-function- Hospital, a retired general is develop- ing teams and make quick, strategic For companies seeking cybersecuri- ing global partnerships and leader- decisions in high-pressure situations. ty skills or geopolitical know-how, ship talent, while Finland’s Cargotec “They are the same traits necessary “general officers end up on our short Oyj has one running its rough-ter- in the fog of business,” says Henry list quite a bit for industry clients,” rain-equipment unit in Texas. Stoever, a captain in the Marine says Ms. Monsen. Corps who is now chief marketing Military brass have gained clout in officer of the National Association of However, outside the defense the White House, too. Often refer- Corporate Directors. industry, military brass remain rare ring to them as “my generals,” the in c-suites and boardrooms. The president has tapped a trio of lead- The group has put some 500 retired number of top executives who once ers to impose order and shape his generals and admirals through a served has shrunk over the decades national-security policy. Retired three-day course to prepare them for as Vietnam War-era veterans have Marine Corps Gen. John Kelly swiftly corporate board duty; half of them retired. Among S&P 500 firms, only brought a forceful management now sit on private and public boards, 13 are led by former service mem- style to his job as the president’s including those of Wells Fargo & Co., bers, and just under 5% of their new chief of staff, staffers say, while USA Truck Inc. and aerospace suppli- combined board members are vet- both Republicans and Democrats er Wesco Aircraft Holdings Inc. erans, according to S&P Global Mar- see Defense Secretary Jim Mattis, ket Intelligence data. also a retired Marine Corps general, Companies, especially those in cri- and national security adviser H.R. sis, covet the reputational boost continued on page 18, McMaster, an Army lieutenant that comes from seeking the see Generals

LIFESTYLE Live Like an Aristocrat on a Tour of England’s Stately Homes By Kate Maxwell

It was early on a summer morning in the walled garden at Wiveton Hall, a Jacobean estate on a marshy stretch of the north Norfolk coast, and Desmond MacCarthy was worrying about his salad leaves. Already nudging 90 degrees, the mercury was breaking English records, and Mr. MacCarthy, Wiveton’s owner, feared that his leaves, destined for the estate cafe, would wilt.

You can bet the 17th-century mer- chant who built Wiveton Hall, a Dutch-gabled manor home whose flint-stone coat sparkles in the sun- light, didn’t concern himself with such fripperies as vegetable hus- bandry. But up and down England, the custodians of ancient houses, the agricultural estates of which were either sold off centuries ago, or whose output no longer covers their ANDY SEWELL FOR THE WALL STREET JOURNAL staggering maintenance costs, are being forced to come up with cre- Aside from touring Holkham Hall, where you can see manuscripts that pre-date the ative ways to keep the tiles on the Magna Carta, visitors can roam the sprawling grounds, which include two cafes, a new roof. Wiveton Hall’s crayon-colored Field-to-Fork exhibit and the stable blocks that have been turned into co-working cafe—which serves slender aspara- spaces. A number of the estate’s follies, arches and cottages have also been turned into elegant overnight accommodations for visitors. gus with fried eggs on sourdough for breakfast; succulent crab-and-mayonnaise sandwiches at accommodation in chocolate-box hoping not to wake the guests lunch, and is invariably full to its tur- cottages and a field of fully fur- above. For Mr. MacCarthy, letting quoise rafters—is one. nished bell-tents. My family and I out portions of his home is a glamped for two nights, roasting necessary evil. “In a few years A perpetual headache for their marshmallows over our fire pit, there’ll probably be nine families highborn owners, this financial while a barn owl glided overhead here [at Wiveton Hall],” he said, struggle is a boon for travelers, who and a hedgehog thumped through mournfully. “It’ll be like Dr. Zhivago.” are being given ever more access to the undergrowth. For now, Mr. MacCarthy’s new status sprawling stately piles—of which as a reality TV star is helping to there is an abundance on Norfolk’s Mr. MacCarthy’s latest initiative is a keep the wolves from the door. Last so-called Royal Coast, a three-hour maize maze, which his son, year, he, along with assorted staff drive northeast of London. Des- Edmund, had been tasked with and his 102-year-old mother, Chloe, mond MacCarthy’s program of scything. In Wiveton Hall’s West who still lives on the estate, “agricultural diversification,” as the Wing, which offers accommoda- became the subject of the BBC’s practice is known, is extensive. As tions in four of its bedrooms, Des- “Normal for Norfolk” series about well as the cafe, there are pick- mond and I tiptoed around the the family’s efforts to maintain your-own strawberries and ground floor, previously a ballroom, Wiveton Hall.

A few miles up the coast, Holkham bit more than an egg-and-cress Leicester in the 19th century. The Hall is a stately home on another sandwich made by the farmer’s wife,” beach spans such a width that you scale, and it, too, is in the midst of a said David Horton-Fawkes, Holkham’s can feel, at low-tide, as if you’re cross- diversification drive. An 18th-centu- estate manager. Still, Holkham’s ing the desert, and stroll for an hour ry Palladian estate, Holkham greatest asset remains its coastal before reaching the water’s edge. encompasses 25,000 acres of nature reserve, a 4-mile, white-sand land, 100 times that of Wiveton beach backed by dunes and pine continued on page 19, Hall, but tourism overtook farming forest planted by the 3rd Earl of see Aristocrat in the revenue stakes long ago. I half-expected a giraffe or elephant to emerge from the sweeping, savannah-like parkland (instead, THE LOWDOWN herds of fallow deer roamed). Else- Stately Home-Hopping on England’s North where are swaths of woodland, grand fountains, soaring statues Norfolk Coast and ornamental lakes. Built by the 1st Earl of Leicester in the mid-18th Getting There There are no direct trains, so rent a car. You’ll need one to explore north century, Holkham Hall continues to Norfolk. It will take you around three hours be home to the Leicester family to drive from Heathrow—take the M25, A11 and is open three days a week and A1065. between April and October; visitors Staying There Wiveton Hall’s West Wing can tour the grounds daily. You can sleeps nine people and is available to rent peer inside the original, soaring by the week; its three cottages accommo- kitchen, where copper pots gleam date between four and six (from about $685, on the shelves; marvel at the collec- wivetonhall.co.uk). A short walk from the cafe, six bell-tents have stoves and double tion of manuscripts that predate beds with crisp white sheets, and share an the Magna Carta and poke around immaculate shower block (about $185 per the Long Library, where the current night, two-night minimum, ambersbelltents. Earl of Leicester, Thomas Coke, likes co.uk). The 20 rooms at Holkhom’s Victoria to work on his laptop opposite a Inn sport an elegant country look (from about $240, holkham.co.uk). Each of lion mosaic dating from the 2nd Holkham’s four historic lodges, deep within century B.C., a souvenir from an the estate, sleeps two (from $120, minimum ancestor’s European tour. two nights, barefootretreats.co.uk). Just opened near Burnham Market, the 12-room Since my last visit to the hon- White House on Sussex Farm has a bold interior with mainly British fabrics and wallpapers. Rooms are available on a B&B ey-stone Holkham estate, over a basis, or you can rent the whole house (from about $140, stayatthewhitehouse.co.uk). decade ago, a number of follies and cottages have been turned into ele- Touring There If you haven’t had your fill after Wiveton Hall, Holkham Hall and Sandringham, consider three more stately historic homes to visit in north Norfolk. gant accommodation for visitors. We For starters, Houghton Hall, another Palladian home, was built for Britain’s first prime stayed in the Ancient House, its minister, Sir Robert Walpole. Dating back to the 17th-century, Felbrigg Hall encom- many ornate chimneys rising from a passes a stunning walled garden and 520 acres of parkland to explore. And redbrick crenulate roof. Its Beach Café has Blickling Hall lies on the ruins of Anne Boleyn’s birthplace; her headless ghost is said been given a Scandi-style makeover, to appear on each anniversary of her beheading (May 19). while a Field-to-Fork exhibit explor- Eating There The Gunton Arms is on the edge of the 1,000-acre deer park of a former ing the 18th-century innovations in estate that played host in the 1890s to actress and royal mistress Lillie Langtry; as well as serving fantastic food (whole dressed Cromer crab; pork belly with apple), it houses an livestock breeding and agricultural impressive contemporary art collection, including work by YBAs (Young British Artists) pioneered by the 1st Earl of Leicester Tracey Emin, Damien Hirst and Jonathan Yeo (Cromer Rd., Thorpe Market,theguntonarms. opened this year. Stable blocks have co.uk). In Burnham Overy Staithe, the Hero, so-called because of its proximity to the birth- been reimagined as co-working place of naval hero Horatio Nelson, is fresh from a refurbishment and offers classics like spaces as well as a studio for Lon- haddock and chips, plus more inventive dishes (Wells Road, Burnham Overy Staithe, the- heroburnhamovery.co.uk). For refined British food with French and Italian twists, in a laid- don jeweler Monica Vinader; her back environment, don’t miss 20 North Street. Housed in a former chapel, 20 North Street gold pendants hang in the gift shop. opened earlier this year with an alum of London’s top kitchens at the stove (20 North Street, Burnham Market, 20northstreet.co.uk). Make time for a meal at the Victoria at All these efforts combine to appeal Holkham (see “Staying There”), and for fish-to-go, try Cley Smokehouse (High St.) or to the increasingly sophisticated visi- Gurney’s Fish Shop (28 Market Place, Burnham Market, gurneysfishshop.co.uk). tors who “want an experience that’s a

Japan for Beginners: The Country’s Most Effortless City By Dyan Machan

Sean Pavone/Shutterstock.com

An undated photo of Fukuoka, Japan downtown city skyline.

It feels silly to apply the term “life Kyoto, versus 2.8 million to Fukuoka. temples in Dazaifu and in the Zen affirming” to a bowl of noodles. But It feels untrammeled, unrushed, gardens at Komyozenji Temple, when I arrived in Fukuoka, dead- sophisticated without shouting. The where, in November, maple trees tired after the long flight from New primary pleasures of Japan’s more tend to blaze a burnt-orange hue. York, and my lips met the ramen touristy cities—the history, the Both, on the edge of Fukuoka city, invented there, a pork-based variety shrines, the food, the shops full of are easily reachable by train. Deter- called tonkotsu, no phrase seemed chic clothing and weird candies— mined leaf peepers also head to more apt. My husband, a composer can all be found in Fukuoka (popu- the gorge-spanning footbridge in and conductor, has a regular gig at lation: 1.5 million) but in more man- Aburayama Shimin no Mori (Citi- an orchestra in this seaside city on ageable portions. Come spring, you’ll zen’s Park). And at the Akizuki cas- Kyushu, Japan’s southernmost main find American tourists, on their way tle ruins, an hour’s drive from the island, and for the second year in a from Tokyo or Kyoto, snooping city center, towering rows of but- row, I tagged along. At my insis- around for cherry blossoms and ter-colored, elm-like zelkovas and tence, our first stop off the plane sidling up to the yatai, the small aged scarlet maples near Kuro- was a tiny ramen restaurant, where mobile restaurants that are justly mon’s gate rarely take a bad photo. all the diners tucked their noses in famous in this city. But plenty of Après koyo, you can plop down for earthenware bowls of the piquant locals will say that they should have tea in one of the traditional tea- pork-bone broth. The restaurant come in autumn instead. shops nearby. serves nothing else. Fukuoka Prefecture extends some Back in Fukuoka city, the Hojoya The city of Fukuoka, capital of the 1,900 square miles, wrapping festival, held every September near prefecture (or district) of the same around a crenulated coastline and the Hakozaki shrine is apparently so name, permits a kind of effortless forested mountains. In the fall, the worthwhile it’s lasted a thousand discovery that tourist-engorged region offers prime koyo—or autum- years. Ostensibly, the festival centers Kyoto, sweet as it is, never could. nal leaf-viewing. Among the best on revering nature’s abundance, Last year, 5 million foreigners visited ogling spots are the 1,000-year-old with revelers releasing captive

animals like fish or frogs into a The castle’s stone walls were as thick outpost. Inside, a reconstructed stream. But the real attraction as a bus, covered with moss and room conjured images of Song seems to be the culinary abun- miniature ferns. Cats scattered Dynasty Chinese or Islamic traders dance—myriad food stalls where under a pine. Steps away, a gray meeting their Japanese counter- people can pop takoyaki (fried octo- building that looked like an airplane parts. Only a handful of other visitors pus balls), among other Japanese hangar turned out to be the dimly wandered around the museum and snacks, down their gullets. lit Korokan museum displaying the the castle, soaking up what felt like remains of a centuries-old trading a secret history. Fukuoka is an ancient gateway city, Japan’s Ellis Island, its mixing pot. Buddhism first entered the country on Hakata Bay, on the city’s north- THE LOWDOWN ern shore, where migrants from Korea and China arrived. It’s also Falling for Fukuoka where green tea and noodles first Getting There You can fly into Fukuoka via Tokyo, or fly to Osaka and take the three- came through, starting a craze that’s hour Shinkansen bullet train to Hakata station in Fukuoka for $141. continued since Marco Polo. Eating There At Chikae restaurant, the live seafood swim or crawl in front of diners in a warmly retro ambience (2-2-17 Daimyo, chikae.co.jp). Iroha’s specialty is participatory The day after we arrived, we met up dining a la chicken “mizutaki” hot pot in a homey setting where noteworthy guests’ with a guide—Takakuni Kosuge, a framed signatures adorn the walls (Iroha Building, 14-27 Kami-kawabata-machi, 60-something retired Panasonic Hakata-ku). Mengekijo Genei serves life-affirming ramen (2-16-3 Yakuin, Chuo-ku). One of the two new stars of Fukuoka’s 130 yatai, or street-side restaurants, is Telas and Mico, executive. I arranged the private whose chef /owner came from London’s Nobu and Zuma; try the coriander ramen or tour through Fukuoka SGG, or “Sys- the wagyu beef on a leaf. The other new yatai star is Chez Rémy, which offers a tematized Goodwill Guide,” a Burgundy-in-Kyushu experience with garlicky escargot, pumpkin gnocchi and French cohort of locals who volunteer to wine (Both are located near Loft shopping center on Watanabe-dori Ave). help tourists. First up was lunch. He Staying There Nishitetsu Grand Hotel is a bustling operation with a French-style bak- took us to Chikae, a seafood restau- ery and stellar concierge service that makes up for low marks on the hipness scale rant near the city’s trendy Daimyo (from $100 a night, grand-h.jp/english). district. I ordered a live squid, which Touring There Fukuoka Now, a free-online magazine serves as an excellent all- arched its tentacles when the around resource for news and current happenings (fukuoka-now.com/en). Fukuoka kimono-clad waitress squirted it SGG (Systematized Goodwill Guide) provides prearranged volunteer guides for $18 plus expenses ([email protected]). Suito Fukuoka, a cultural center, offers with lemon. “You must get used to tourists lessons on Japanese customs and culture, including sake tasting, Japanese it tickling in your stomach,” said Mr. gift-wrapping and calligraphy (1-2- 29 Imaizumi, Chuo-ku, suito.inboundhub.jp). Kosuge. Seeing my distress, he directed the waitress to redeliver the squid as tempura.

After lunch, he took us to the ruins of Fukuoka Castle, a relatively little-known site in Maizuru Park, which occasionally pops up on those lists of “best spring and autumn color spots.” But I was more interested in the history than the horticulture. Legions of samurai once lived in the protection of the castle. In 1281, Kublai Khan attacked Hakata Bay, mobilizing 4,000 ships and 140,000 warriors to conquer Kyushu island. With only shields and tricked-out headgear, the city’s 40,000 samurais were outmanned and outgunned, but miraculously ALAMY won the day. It helped that a well- timed typhoon shredded a third of STAR TURN Komyozenji Temple in Japan’s Fukuoka Prefecture. the Mongols’ boats.

And unlike much of the health-care For health care-focused private- Consumer Health sector, Mr. Wilkins said consumer firms equity firms, the interest by their continued from 1 are attracted to businesses like dental consumer brethren in consumer- chains and vet clinics because of the facing health-care deals may foster limited reimbursement risk they face. future partnerships. Mr. Wilkins said Consumer-focused private-equity his firm has been approached by a firms, or consumer units within larger One recent example of a business mov- consumer shop, with the aim of firms, have been dipping their toes ing from a firm with health-care exper- partnering on a deal in this hybrid into the sector for some time. tise to one with a consumer-focused space. Although he said Harvest According to Nirad Jain, a health bent was the purchase late last year of hasn’t yet pursued this type of deal, it care-focused partner at consulting Great Expressions Dental Centers, an is clear to him that some consumer firm Bain & Co., interest in consum- Omers Private Equity-backed dental funds are interested in this kind of er-focused health-care companies may chain with 280 practices in 10 states, by arrangement. stem from investors bracing for a Roark Capital Group. Roark, a firm potential economic downturn. focused on consumer brands and mul- In addition, competition for deals may tiunit businesses, may be better known also encourage more collaboration “Health care is about 18% to 19% of for its ownership of pretzel retail fran- within various units of private-equity GDP. It’s hard to be a fund of scale chise Auntie Anne’s LLC and sports- firms. The marrying of consumer and without exposure to health care,” said themed restaurant Miller’s Ale House. health-care teams to get deals done Mr. Jain. “At the end of the day, there would mirror the increasing collabora- are many aspects about running a In addition, consumer-facing firms such tion between technology and health- retail store that will help customer as L Catterton have ongoing interest in care professionals at some firms. experience. That’s one pillar of it.” the space. Among its active investments, L Catterton lists on its website If more consumer and health-care Mr. Wilkins said that as with traditional PetVet Care Centers, an operator of vet- investors develop partnerships, expect retail businesses, consumer investors erinary hospitals and clinics; Caredent, a to see more instances in which the pri- are skilled at creating experiences network of European dental clinics; and vate-equity backer of your favorite teen that will bring customers back again ClearChoice Holdings LLC, which pro- retailer or a taco chain becomes the and again. vides clinical dental implant services. owner of your local dental or vet clinic.

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corresponding increase in confi- of language and cultural barriers. M&A Bidders dence by Chinese acquirers in That advantage may be starting to continued from 1 the growth potential of such change, however. brands have been the most significant drivers of cross-border invest- “In auctions where PE sponsors have you—and what role they’re ment activities. play a role, you have to be going to play in the process,” said nimble and you have to be fast,” Timothy Larsen, a managing director “If you look at Chinese consumers, said Oliver Brahmst, a partner in the consumer, food and retail they’re getting more and more and global co-head of private group at investment bank Houlihan wealthy,” said Hao Zhou, a Hong equity at law firm White & Case Lokey Inc. Kong-based partner at consulting LLP. “Chinese buyers are getting firm Bain & Co. He added that better at auctions and making Within the consumer and retail buyers in the expanding Chinese decisions faster.” space, categories relating to health middle class have demonstrated and wellness, in particular, have gar- their willingness to embrace To be fair, Chinese acquirers are still nered attention from Asian acquir- premium prices for quality products learning to compete against West- ers, said Mr. Larsen, adding that in the wellness, nutrition and ern bidders in sale processes for there has been a noticeable uptick juvenile categories. consumer brands. Some are sealing in overseas interest for such compa- traditional buyout transactions nies with scale that are valued at “From the supply perspective, not while others are teaming up. $500 million or more. many good quality brands are out there yet,” Mr. Zhou said. For example, Chinese family office “If you think about the rapidly Fortune Fountain Capital in June expanding middle class [in China] For Chinese buyers, the consumer acquired a controlling stake in fine and how to deliver nutrition ade- sector has become an attractive crystal glassware maker Baccarat quately to any economy of people area of investing because such from Starwood Capital Group and L that large, there is an interest in brands are less likely to raise nation- Catterton. Meanwhile, Bain Capital alternative sources of protein that al security concerns and subse- in January partnered with Shang- are not dependent on animals,” quently hinder regulatory approval hai-listed supermarket operator Yon- he said. processes. Meanwhile, these acquir- ghui Superstores Co. to acquire ers are using different tactics to seal retail-services firm Daymon World- Emblematic of this is the strong consumer deals. wide Inc. interest demonstrated by Chinese bidders in the sale process for Some look to acquire Western “I don’t think it’s a zero-sum game. Nature’s Bounty Inc., a maker of companies in hopes of broadening A lot of deals are going through vitamins and nutritional supple- the existing branding of such co-investments or partnership mod- ments previously backed by Carlyle businesses in their own countries, els where local private investors Group LP. said Mr. Larsen of Houlihan invest together with U.S. investors,” Lokey. Others are turning to said Mr. Zhou. The sale process included several acquisitions to expand the Chinese bidders, including vitamin footprint of Chinese brands in Chinese bidders may not giant BY-Health Co., as well as North America by utilizing the dominate the consumer deal investment firms Primavera Capital continent’s infrastructure. world just yet as they continue Group, CDH Investments and PAG, writing their playbooks. But said a person with knowledge of “There’s certain cache associated deep-pocketed Chinese buyers will the deal. with our infrastructure, brands and keep looking beyond their own professionalization of companies backyards for brands largely Ultimately, in late July, KKR & Co. that [is attractive] to emerging econ- because there simply aren’t enough won out, agreeing to purchase a omies,” Mr. Larsen added. targets in the region. As they majority stake in the Ronkonkoma, remain willing to write big checks, N.Y.-based company in a deal that For private-equity firms selling their they could become dark horses in valued Nature’s Bounty at about consumer businesses, Chinese the consumer sector. $3 billion, said people familiar with acquirers are expanding the the situation. potential buyer universe. Although “They will become a very powerful interest from Chinese bidders is force and will become better at this The rising spending power of expanding, Western buyers still M&A game, so we all better count consumers in China and the largely have an edge, given the lack them in,” Mr. Brahmst said.

capital-raising process, said industry the value of the sector, they have Meal-Kit observers familiar with the matter, also found it challenging to find continued from 4 adding that many meal-kit provid- opportunities with a differentiated ers are eagerly looking to test the edge, whether they be price points market. or ingredients. on the lookout for reasonable valuations, private-equity investors are Some private-equity and More investment opportunities surely scanning the space for both growth-equity firms took a pass on surely will emerge as the space consolidation and turnaround plays. Chef’d because of concerns sur- matures. But it remains to be seen rounding the crowded and com- exactly to what extent private equity El Segundo, Calif.-based Chef’d petitive nature of the meal-kit sec- will be willing to add some spice to targeted both financial and tor, these people further said. growth trajectory of the meal-kit strategic investors throughout its Although investors have recognized provider industry.

presenter’s products or services. A empty chair to be moved. This Tale potential investor who heard and builds tension that we can see neu- continued from 5 was enchanted by a venture’s com- rologically,” he says. pelling character story may recom- mend that his partners take a Because the mystery is about a per- Keep things tense deeper look at the company,” says son—the unknown patron who will The best stories also take advantage Ms. Gale. sit in the empty chair—”it has a social of how the brain works. We are pro- component that we find builds grammed to respond to stories that Along with tension, Dr. Zak says, the emotional connection—oxytocin build empathy for the main charac- brain responds to stories with relat- release—as the story continues,” Dr. ter, says Mary Gale, a Babson College able characters. They “result in a bet- Zak says. The tension is released lecturer, citing research by Paul Zak ter understanding of the key points when we finally learn that the chair of Claremont Graduate University. a speaker wishes to make and is for a soldier, whom the crowd enable better recall of these points,” salutes when he arrives. In additional research, Dr. Zak he says. showed that a story that sustains Dr. Zak adds that it’s important tension and thus engages the brain Dr. Zak cites a commercial for Guin- to take advantage of the effect a longer increases the probability that ness beer that features a bar with story has created by including an listeners will “come to share the an empty chair. It “initially draws us explicit call to action at the end, emotions of the characters in it.” into a mystery: Why is the chair like buying a product or calling for empty? It deepens the mystery more information. “Otherwise you “Perhaps the listener becomes when the chair remains empty and lose the ability to influence the motivated to tell others about the the barmaid does not allow the viewer,” he says.

Industry Council, an advocacy group small businesses federal agencies’ Security whose members include Apple resources and coordinated support, continued from 6 Inc., the security vendor Symantec they can better manage risks, protect Corp., and International Business customer privacy, and focus on grow- Machines Corp. ing their ventures.” vice president for the Chamber of Commerce’s National Security & “Small businesses often don’t have the The House will likely vote on the bill in Emergency Preparedness Department, resources they need to guard against the next few months, according to a told WSJ Pro that the act would drive sophisticated cyberattacks, and this policy expert who helped craft the leg- growth in the economy by helping legislation can be the helping hand islation. Florida Rep. Daniel Webster businesses with limited resources pro- small businesses need to help reduce introduced a similar bill in April called tect themselves from cyberthreats. their cybersecurity risks,” said Andy the NIST Small Business Cybersecurity The bill also received early support Halataei, ITI’s senior vice president Act to the House’s Committee on from the Information Technology for government affairs. “By offering Science, Space, and Technology.

The day doesn’t seem too close. says he could have done a better job Legacy anticipating that risk. continued from 6 Neither Mr. Washington’s age nor a bout with polio as a boy that still Mr. Washington’s one atten- affects one leg slows him down tion-grabbing habit has long been They oversee a trust that owns much as he takes a reporter around yachts. His largest, the Attessa IV, Washington Cos., an umbrella for his Vancouver properties. An avid stretches 330 feet and has about the businesses. Independent chief tennis player, he is preparing for an 18,000 square feet of living space executives answer to Larry Simkins, annual tournament against a team and an orange chandelier from the CEO of Washington, and to their led by another friend, Bill Gates. famed glass sculptor Dale Chihuly. It own boards. is estimated to have cost more than Despite his high-profile connections $200 million. “He’s met a lot of multigenerational and his success, Mr. Washington families, and he learned from their avoids attention, and keeps away Still, friends say he is frugal and gives successes and mistakes,” says Byron from politics and stock investing. away vast portions of his fortune. He Trott, an adviser to wealthy families “Big shot” is a term he uses will host movie stars—Vince Vaughn and companies, including Berkshire. pejoratively. and Mel Gibson kept him up late “He doesn’t take things off the shelf.” recently on his smaller Attessa III Mr. Washington made his first real yacht—but favors Kokanee Glacier Mr. Simkins says each CEO is given fortune buying a bankrupt copper beer, a locally brewed beverage. wide latitude but held accountable mine in Butte, Mont., in 1985, and he for growth and return on invested got a lucky break when prices for And he hates losing any money friv- capital. The trustees focus on how to copper soared. Washington expects olously. On Mr. Washington’s private invest cash the businesses generate. to keep mining copper for about 45 golf course, designed by Robert more years. Trent Jones Jr., Mr. Hanks once had a They made their biggest move this short putt to win a minor wager. year with the purchase of Dominion He laments some missed deals— When he missed, Messrs. Hanks and Diamond Corp. Mr. Batchelder, who wishing he had done more in rail- Washington had to pay Mr. Batchel- had looked at Dominion when he roads—and the one big one he land- der $20. was an activist, brought the idea to ed. Washington bought Raytheon Mr. Washington and led the negotia- Co.’s construction-machines busi- Months later, waiting for a meeting tions along with Mr. Simkins. The ness in 1999. A legal mess over con- with U.K. officials at 10 Downing St., deal is expected to close in the tracts Raytheon hadn’t finished led Mr. Washington was still lamenting fourth quarter. to a bankruptcy. Mr. Washington the miss, Mr. Hanks recalls.

The trustees also will pick the next group of leaders, and Mr. Washing- ton is seeking to instill in them his way of thinking. He advocates long- term investment, like the Canadian contract to build noncombat vessels for the Coast Guard and Navy.

He credits spending on local commu- nities and employees for saving him from union trouble. He has sought to avoid public markets because he wants to own his businesses “forever” and questions investors’ willingness to back him consistently.

Mr. Washington has no title and sits silently at board meetings. After- ward, the others ask him what he would have done differently. KAMIL BIALOUS FOR THE WALL STREET JOURNAL

“We are practicing for the inevitable,” Despite Mr. Washington’s high-profile connections and success, he avoids attention, Mr. Simkins says. and keeps away from politics and stock investing.

water, given that oil production in the tor concerns about increasing oil pro- Midstream Permian is near 2.5 million barrels a day. duction in the U.S. make that difficult continued from 4 to say. For now, with exploration still The need to manage all that water profitable at current oil prices thanks to creates more investment opportunities the Permian’s favorable economics, pri- Five Point Capital Partners in February for private-equity firms. Tailwater vate equity should find more mid- invested $176.4 million in a midstream Capital, for one, said last year it invest- stream opportunities as undeterred joint venture with producer Matador ed $80 million to finance the expan- producers move, according to Mr. Resources Co. The venture aims to sion in the Permian and other regions Ozkan, “from exploration phase to expand a gas-processing plant, among of Goodnight Midstream LLC, which development phase.” other plans. provides water-handling and saltwater disposal services to oil-and-gas com- Then there is water. Besides gas, oil panies. Five Point’s joint venture with “The exploration phase doesn’t require wells often produce a good deal of Matador also includes water disposal as much infrastructure, but when you water, which in certain areas in the facilities. move to full-on development mode, Permian can reach four barrels for every you need the infrastructure to make barrel of oil produced, according to How long will the Permian boom last? sure that your unit cost is as low as pos- experts. That means a huge volume of Recent declines in oil prices and inves- sible,” he said.

the dots, and you’re looking at the ago, Lt. Gen. Stephen Speakes Generals risks,” she said. “If the assumptions developed enterprise strategy continued from 9 that went into the strategy change, at financial-services firm USAA how do you think about adjusting?” for three years before he was let go. The approach “isn’t unique to me as In hindsight, he says he failed to Rather than barking orders and a military member,” she says, “but it grasp the need to build consensus enforcing hierarchy, military leaders is inherent.” around his decisions and didn’t who succeed in the corporate world recognize when colleagues weren’t know how to coax different groups Lt. Gen. Mark Hertling brought dispa- on board. into collaborating, says retired Army rate brigades and regiments into a Maj. Gen. Michael J. Diamond, an cohesive force as commander of the “In my old days, I was a deci- organizational leadership consultant. U.S. Army Europe. Similar challenges sion-making machine. It was a quick awaited when he joined Florida Hos- look around the room and if no one Before her retirement in 2013, Maj. pital in 2013. Hired to develop idea-ex- had objections, it was go,” he says. Gen. Suzanne Vautrinot led the U.S. changes and other partnerships “In the corporate world, once you Air Force’s cyber operations. She has abroad, he soon after was asked to make a decision, you have to contin- parlayed that expertise into board devise a leadership course for doctors, ue to sell its execution.” seats at companies such as Wells in part to improve collaboration with Fargo and water treatment- and administrators and get physicians Now rounding his fourth year as cleaning-products maker Ecolab Inc. more involved in broader decisions at CEO of Kalmar Rough Terrain Center the 32,000-employee hospital group. LLC, a Texas unit of cargo-equipment Like many senior officers in the pri- maker Cargotec, Gen. Speakes says vate sector, Gen. Vautrinot urges Gen. Hertling’s course culminates in he has learned to encourage staff others not to use her Air Force title, several dozen doctors, nurses and input and allow time for them to and instead call her “Zan.” Ecolab administrators going to Gettysburg, get behind ideas. Chief Executive Doug Baker says her Pa., each year. There, he assigns each disarming style lets her push her to be a different figure in the pivotal He keeps up other practices honed points without ruffling feathers. Civil War battle; afterward the staff during his 35-year military career, “Think about that generation of discuss how the lessons apply to such as making sure he knows the women generals,” he says. “You have health care. “They really dig into that situation on the ground, frequently to have pretty good [emotional person’s personality and see how holding company meetings on the intelligence] skills, and she does.” their achievements or dysfunctions plant floor. “When manufacturing contributed to the bigger disaster or companies get too big, the leaders Gen. Vautrinot says she examines accomplishment,” he says. leave the manufacturing floor,” he company strategies much like mili- says. But “the people on the line will tary leaders are trained to do: “You’re Generals learn lessons, too. After tell you in a heartbeat what’s going looking at the future and connecting retiring from the Army seven years on and why.”

“That’s the tiniest thing, but it is Saunders. He told Mr. Capellas he Buddy important.” had seen the word in board brief- continued from 8 ing materials, but “didn’t know Brent Saunders, a Cisco director what it was.” since March, says he especially meeting. They met three times appreciates being mentored by That mentoring session persuaded in the glass-roofed conservatory industry veteran Michael Capellas. Mr. Saunders to propose a formal of Ms. Bartz’s suburban San Like Ms. Bartz, Mr. Capellas has led board buddy program for Allergan. Francisco mansion. big tech businesses. Board mentoring relationships “She really took the time to walk “I come into Cisco certainly having sometimes take time to develop, me through things,” Ms. Chang says. very strong experience running pub- especially when programs aren’t Ms. Bartz described the context for lic companies [though] not with a highly structured. That proved several board colleagues’ beliefs, tremendous grasp of technology,” true for Judy Bruner, a former the complex global risks facing says Mr. Saunders, CEO of drugmak- finance chief who joined the board Cisco and the importance of er Allergan PLC. “They have a differ- of semiconductor-equipment observing board committees for ent vernacular.” maker Applied Materials in 2016. Its months before Ms. Chang took a mentorship effort is fairly informal, committee seat. Mr. Capellas briefed Mr. Saunders she says. about why Cisco developed a new Ms. Bartz, former chief executive of security service just before the Ms. Bruner and her mentor, Dennis Yahoo Inc. and Autodesk Inc., also board discussed the service’s immi- Powell, say they have forged a rela- recommended where the newcom- nent launch. The mentor also talked tionship, mainly through casual chats er should sit in the boardroom “so I about Cisco products, such as its after board and committee meet- literally wouldn’t be taking anyone’s switches—a technical term for net- ings. This summer, she arranged a seat at the table,” Ms. Chang says. working hardware that puzzled Mr. mentoring lunch with him.

another wide, sandy beach on the side-table. The Queen, we were Aristocrat Holkham estate. told, is an enthusiastic puzzler, and continued from 11 encourages the staff to participate, I don’t think the Queen lies awake but woe betide anyone who gets a at night worrying whether the gar- piece wrong. On a sunny Friday evening, locals dener has remembered to water and their Labradors and Londoners the vegetables at her Norfolk An Englishman’s home is his like my family and me crammed estate, Sandringham. Still she, castle—so goes the adage. At the picnic tables outside Holkham’s too, throws open its grand doors to Sandringham, it’s the other pub-with-rooms, the handsome, visitors between April and Novem- way around: Gilt and crystal brick-and-flint Victoria Inn. The ber, before traveling there herself chandeliers notwithstanding, cooks source the menu almost for the Christmas holidays. I had this royal retreat feels like a home. entirely from the estate: top expected the ground-floor rooms to But if I were the Queen, I’d break scorers were the Holkham beef which visitors are admitted to be with protocol, flip the calendar burgers and the chargrilled bacon I lobotomized of personal details; and decree that summers and ate at breakfast the next morning. instead, Sandringham offers an autumns, rather than winters, be There’s stiff competition for food in oddly intimate look at royal life spent at Sandringham. Swallows these parts. A 15-minute drive away, (we were assured that, except for careening over the marshes; beach- in Burnham Market, a collection of the carpets, the rooms are es flecked with pastel huts and ivy-clad Georgian cottages sur- unchanged when the Queen stays). crab shacks; the evening light gild- rounding a village green, we In the sitting room, we spotted a ing everything and everyone—it’s bought potted shrimp and dressed needlepoint cushion, given to the not hard to see why Desmond Mac- crab from a fishmonger whose Duke of Edinburgh, that read Carthy, the Earl of Leicester and the accent could pass for an earl’s, and “Good shots never grow up, they other titled homeowners of north picnicked beside the ice-cream- just pick up less birds.” A large jig- Norfolk cling so keenly to their colored huts of Wells-next-the-Sea, saw puzzle lay half-finished on a money-pit piles.

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