One of the most frequent business mistakes is ignoring the need for continuity planning. How can any successful firm establish a long-lasting legacy without designing one first? Too many future leaders feel disconnected from the brand from a lack of planning. They might feel lost, confused, and usually don’t last long within the company.
We understand what matters most during family business succession planning. In this blog we talk about some of the things that Positively People will look for when we’re advising your firm.
Your Family Business Needs to Have a Strong Foundation
Some may ask, if a family business lacks a foundation, how is it operating? What many don’t seem to understand is that quick profits aren’t always a picture of long-term success. A strong foundation should also include both family values and dedicated business practices. Missing one or both means your firm may not stay around for too long.
It’s important to have something to build from and work towards it. Doing so gives you clear goals to rally behind.
Slowly Roll Out New Family Governance Policies
When a company has a few generations within it, some degree of change becomes necessary. However, not every company will transition smoothly from one group to the next. Oftentimes, too drastic of changes are made which can push their business further from their goals. An overcorrection is then needed, making the situation even messier.
Working towards unifying objectives for the family and business maintains a symbiotic relationship. Otherwise, you could splinter the two halves into distrustful factions.
Intertwine Family Culture with Business Values
Culture is often reserved for either inter-office relationships or relatives only. Then the question comes up of, how can you see both sides grow when one takes precedence? Embedding family values into decision making can ensure that moves stay within the overall vision. The company’s success should also include things that the family considers important to its goals.
Conflicts arise when companies can’t maintain common ground from the personal side. Keeping the peace goes beyond petty arguments and focuses on a unifying goal.
Where Does Your Family Governance Have Gaps?
Many companies fail to define goals and strategies because they often don’t know how. This can cause them to put off setting corporate metrics because of a fear of failure. Ignoring a problem never makes it disappear, but proactive planning can. Knowing what directors can become utilized and where they can help you most can help you avoid many pitfalls.
It’s also important to understand that hiring independent members doesn’t change things overnight. You need patience and careful planning to achieve the payoff that you seek.
Work on Improvements Where You Can
Another problem with family business succession is when companies only look at the bigger picture. Many organizations have a dynamite board but a weak foundation. Significant changes can take years to take hold, so you may need to redirect your focus during the process. Maintaining middle management and frontline goals can help overall growth take place.
You may not even realize what areas require the most attention or resources. It might take a family business advisory service to help direct your efforts in the best way possible.
Get Better Continuity Planning with Family Business Consulting
Even established brands need independent eyes to help them find every blind spot. When your firm feels like it has stagnated, you need our expert advisors. Contact Positively People today to help you make wiser decisions for your brand.
Learn more about Positively People Services in Family Business Consulting.
