[vc_row disable_element=”yes”][vc_column width=”2/3″][vc_custom_heading text=”Succession challenges” font_container=”tag:h2|font_size:48|text_align:left” use_theme_fonts=”yes”][vc_column_text]Family member who is line for succession but is not the right person for the job. Family is reluctant to intervene.
Succession is arguably the most difficult issue in family owned businesses. The challenge of choosing the right leader raises the hard question of whether family members have the right skills and talents to grow the business. This can lead to the larger question of whether the family wants to own the business if a family member is not actively in charge.
When we work with clients, we start with identifying the end goal and build a process from there. Often, clarifying the goal requires interviews, analysis and acceptance of difficult challenges. As a first step, an assessment of the management team is critical as it identifies the leadership bench and internal options. We focus on the competencies and experience required to succeed in the job, regardless of family affiliation. Having agreement on a baseline provides an objective lens when family successors are considered. Working with the family we help them reconcile the needs of the company and required competencies with family qualifications.
In some cases, we will serve as an interim CEO or President, if the family has decided to hire someone other than from the family. We help find the right person for the job and stay through the transition[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”4292″ img_size=”full” alignment=”center”][/vc_column][/vc_row][vc_row full_width=”stretch_row” disable_element=”yes” css=”.vc_custom_1550511992109{background-color: #e0e3e7 !important;}”][vc_column width=”1/3″][vc_single_image image=”4302″ img_size=”full” alignment=”center”][/vc_column][vc_column width=”2/3″][vc_custom_heading text=”Improving operations and business systems” font_container=”tag:h2|font_size:48|text_align:left|line_height:1″ use_theme_fonts=”yes”][vc_column_text]Rapidly changing market conditions that require significant change in an organization that has been stable for many years
Many organizations are reluctant to change or redesign business processes and structure. They believe that significant change will be difficult even with compelling business reasons. In today’s environment, doing nothing is often a riskier option than changing. We believe that change must be proactively addressed in a way that recognizes its impact on employees, customers and owners. With this perspective we design and implement plans that improve competitiveness and enable organizations to grow successfully.
Our process starts with an initial assessment of profitability, throughput and organizational effectiveness. From this data, we identify the critical processes that need to be improved and those that are working well. We estimate the impact and cost of change and the resulting benefits before we provide recommendations. Getting commitment and agreement that specific changes are required is the key to success as it engages employees and management in the change and the outcome. Without awareness, agreement and commitment, many organizations will quietly sabotage change efforts and implementation will be very difficult.
Depending upon the process and the change, we may add technical resources to redesign what is there. Our preference is to use internal resources as they will own the solution and will improve things in the future.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”2/3″ css=”.vc_custom_1550512137630{padding-top: 40px !important;padding-bottom: 40px !important;}”][vc_tta_accordion][vc_tta_section title=”Succession challenges” tab_id=”1550511905602-37428a04-ff5a”][vc_column_text]Family member who is line for succession but is not the right person for the job. Family is reluctant to intervene.
Succession is arguably the most difficult issue in family owned businesses. The challenge of choosing the right leader raises the hard question of whether family members have the right skills and talents to grow the business. This can lead to the larger question of whether the family wants to own the business if a family member is not actively in charge.
When we work with clients, we start with identifying the end goal and build a process from there. Often, clarifying the goal requires interviews, analysis and acceptance of difficult challenges. As a first step, an assessment of the management team is critical as it identifies the leadership bench and internal options. We focus on the competencies and experience required to succeed in the job, regardless of family affiliation. Having agreement on a baseline provides an objective lens when family successors are considered. Working with the family we help them reconcile the needs of the company and required competencies with family qualifications.
In some cases, we will serve as an interim CEO or President, if the family has decided to hire someone other than from the family. We help find the right person for the job and stay through the transition.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Improving operations and business systems” tab_id=”1550511905602-53cf083a-bfc2″][vc_column_text]Rapidly changing market conditions that require significant change in an organization that has been stable for many years
Many organizations are reluctant to change or redesign business processes and structure. They believe that significant change will be difficult even with compelling business reasons. In today’s environment, doing nothing is often a riskier option than changing. We believe that change must be proactively addressed in a way that recognizes its impact on employees, customers and owners. With this perspective we design and implement plans that improve competitiveness and enable organizations to grow successfully.
Our process starts with an initial assessment of profitability, throughput and organizational effectiveness. From this data, we identify the critical processes that need to be improved and those that are working well. We estimate the impact and cost of change and the resulting benefits before we provide recommendations. Getting commitment and agreement that specific changes are required is the key to success as it engages employees and management in the change and the outcome. Without awareness, agreement and commitment, many organizations will quietly sabotage change efforts and implementation will be very difficult.
Depending upon the process and the change, we may add technical resources to redesign what is there. Our preference is to use internal resources as they will own the solution and will improve things in the future.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Building scale for exit” tab_id=”1550512180729-6ea39f9d-e188″][vc_column_text]Ownership that wants to sell the business but need scale for a profitable and substantial exit
Many companies know that current business processes will not be adequate in the future. Doing something about it, however, is difficult. We start with estimating capacity and growth in several areas: revenue, product output, customers and capital needs. We then assess resources, profitability and the ability of the organization to fund what is desired. Outside capital may be the deciding factor in how fast or how far the company can grow and this is highlighted. We usually involve a valuation expert to provide an objective baseline.
We develop a plan for the future that includes implementation time lines and adding resources at specific points in the plan. The overall plan will include removing bottlenecks that have been identified with the current way of doing business and improving the processes that are used. Frequently, additional skills and experience are needed to supplement the current organization. This leads to an organizational chart for the future that includes specific hires and competencies that can drive revenue, profitability. All of these factors lead to an increase in valuation.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Facilitating ownership resolution” tab_id=”1550512212236-536f5844-6d4b”][vc_column_text]Split ownership that cannot agree on the near term or long-term priorities for the business. Different opinions of future success.
In our opinion, resolving this requires a combination of analysis and deep family introspection. We start with a business plan and develop scenarios that help define the options, the benefits and the risks. Depending on the process that is used, we will supplement the current plan or develop a new plan for the future. With our initial analysis and using available projections, we then develop several scenarios to show possible outcomes that could occur and estimate the probability that they will occur. This is intended to get agreement on likely outcomes and the risks and resources involved for each major scenario. We usually involve valuation experts so that everyone has a common value baseline.
In developing scenarios, we use a comprehensive approach. For example, if capital is needed and the future is bright, this could lead to considering an outside investor. It could also indicate the need to upgrade skills and business processes. Conversely, if cash is needed and the risk is higher than desired, this could lead to sale or harvest. We facilitate discussions among the family and owners to enable them to reach consensus and make the decision that is right for them. From our past experience, we bring broad perspectives on the difficulty of change and the options that are available as well as the potential marketability of the company if sale is a preferred option.[/vc_column_text][/vc_tta_section][/vc_tta_accordion][/vc_column][vc_column width=”1/3″ css=”.vc_custom_1550519538836{padding-top: 40px !important;padding-bottom: 40px !important;}”][stm_sidebar sidebar=”311″][/vc_column][/vc_row]