Foundations often think of family business succession as a future problem. Many companies frequently add new directors to existing boards, which makes preparation vital.
As a family business grows, so must its leadership by including independent members. However, keep in mind that it can tank a company’s survival without effective continuity planning.
Our family business consulting firm focuses on tailored solutions for every growing pain in your business. Read on to find out what makes Positively People the best partner for your brand.
Incorporate More Than One Board
Relying only on a family governance board will only get you so far. To have sustained growth, it’s important to incorporate other skills, checks, and balances. No one person or role should control the other but instead work in tandem. That way, everyone shares a vision while utilizing their best talents.
Some firms should have a fiduciary board, while others should expand their directors. You may want to learn what is missing from your current structure with family business succession planning.
Offer More Than a Smile and a Handshake
You dedicated 15 minutes for everyone to meet the new member, but that likely did nothing to put them at ease in their new role. True onboarding involves forging a bond between incoming members and the existing ones. Instead of a short emotionless entrance, plan for a long-term relationship.
Even new members should explicitly understand their new roles and duties. You can seamlessly add new talent to your organization with family business advisory services.
Focus On Building Trust
Trust is the difference between members staying and leaving right after joining. Not only do they need to trust you, but others need to trust and rely on them as well.
Unfortunately, with a family business, trusting outsiders can be challenging for some. However, it’s necessary to see the brand succeed for years to come. Building trust is such a priority that some companies spend a fortune on training. It’s best to focus on which activities and outings work best to gain that needed trust.
Have Them Learn About the Board Before Joining
An informed new member is one that quickly takes to their new role with flying colors. They can familiarize themselves faster by learning about significant figures, current members, and policies.
Few boards have enough time to introduce themselves during meetings properly. Instead, allowing incoming directors to read up on the company acclimates them much faster. You may even appoint a dedicated member to serve as a mentor to new ones.
Have Consistent Outings
Many companies spend a small fortune on a single group outing. In the end, it feels wasteful and ineffective and little more than a write-off. Instead, plan weekly gatherings before meetings occur, either for a meal or just for a little fun. Enjoy dinner out as a group or play a round of golf together.
Too often, group bonding activities are overthought, seeing lackluster results. Don’t let weekly meetings serve as the only time you see each other.
Contact Us for Family Business Succession
It takes a lot of firms many years to find the right balance on their own. That is why we strive to make every family business the best version possible. Contact us at Positively People for family business succession advisors to help your company today.
Learn more about Positively People‘s Family Business succession advisors.