| Business
Type: |
|
Home
builder and commercial construction |
| Challenge: |
|
Succession
planning/conflict resolution |
| Work
Performed: |
|
Facilitated
business planning, addressed issues of conflict and assisted
with succession planning |
| Benefit
Provided: |
|
Continuity of business and greater
cooperation among siblings. Long term growth strategy. |
| Long-term
Result: |
|
The proper leadership structure has
been established with a clear exit strategy for the founder.
Siblings are better prepared to take over management of the
operations with greater cooperation and team spirit. |
Like some family businesses, this company evolved
under a patriarchal leadership style that often
"separated" the siblings - rather than creating unity
among them. This resulted in poor communications and a rather
disorganized operation. In addition, the founder's ambition for
new business opportunities outpaced the company's financial
resources. These factors contributed to a serious concern by the
founder that the siblings would be able to work effectively
together upon his departure (planned or unplanned), and whether
they had the skills necessary to manage the operations.
Management Advisory Group helped the founder to
improve communications among the siblings and the founder (as well
as other management team members) and to develop a business plan
that also addressed management succession issues. We also helped
to professionalize the manner in which the siblings operated the
business and how they conducted themselves (together as well as in
public).
One additional positive result of our involvement
was that one sibling eventually left the business (with the
support of the others) to pursue a professional career that had
been "deferred" because of a sense of duty to the family
business.
