Succession Planning – Building Value

March 9, 2010 | Link This | Email this | Comments (1)

I’ve worked with many family businesses in which the history between the father and son was difficult at best. They tend to love each other deeply, but they just can’t get over events of their past. Family business is an oxymoron: family, an environment of unconditional acceptance and business, an environment of conditional, performance-based acceptance. When the two entities get out of balance negative, destructive, and unproductive messages are communicated in both arenas, wreaking havoc in the family business environment.

In a recent experience, the message that one dad communicated to his son was that he was only acceptable if his performance as a human being matched up to dad’s expectations. Further, dad never paid attention to son when his behav...Read More

January 14, 2010 | Link This | Email this | Comments (0)

Conveying the seemingly intuitive business sense that comes from years of experience is a leadership trait that cannot be had by any other method than experience. Closely related to the gaining of experience is that business leaders have learned to take initiative. Without initiative they would not have learned some tough lessons along the way that, in essence, is what experience is all about.

They do not simply wait for things to happen to them. They live at cause rather than at effect. They make things happen. They are not afraid of making mistakes and therefore make the necessary decisions to get things done. I’ve been working with a widow of a man who started and grew a large distribution company. While he was a true leader and built a substantial b...Read More

November 26, 2009 | Link This | Email this | Comments (0)

The reason for exploring family dynamics is precisely because family issues compel business decisions and sometimes these family dynamics include significant mental health issues as noted in my last two posts. I have recently been working with a family in which a history of depression has been a significant part of their personal struggles. 

The entrepreneur father and his two sons, who are both involved in the business all have periodic bouts with depression. It is described by them as a “funk” or a period of days in which they feel like they are under a cloud, they see the glass as half empty, they are irritable, emotionally sensitive with one another, and end up withdrawing relationally. And of course, it happen...Read More

October 22, 2009 | Link This | Email this | Comments (0)

I was working with a business owner, John, who was in the transition process turning management and leadership of the business over to a family member. At one point in the process, John asked, “When Tim takes over my role, what do I do?”

This is reflection of limited insight into the succession process as well as a reflection of the intense emotional aspects of developing an effective exit strategy that tap into identity issues.

For most business owners, they will be planning an exit strategy that unfolds gradually over a number of years. In other words, there will not be a “cold turkey” exit from the business. This requires expanding your vision of the role that you play within the company. John felt a little threatened by the fact that Tim would be taking over his role, which left him feeling as if he were being “sent out to pasture...Read More

September 17, 2009 | Link This | Email this | Comments (0)

“When you challenged me to transfer more stock than we had originally agreed upon last summer, I wasn’t so sure. In fact, you remember, I was panicking about the decision and had seller’s remorse. I had to do a lot of soul searching about whom I am in relation to the business and who I am apart from it,” Stated my client Bill. 

“But, here we are a year later, and you know what? Nothing has really changed. I’m still getting paid. I still come to...Read More