The Importance of Governance in a Family Business

 CONTINUITY

FAMILY BUSINESS CONSULTING 

US/CANADA: 877-925-5149 INTERNATIONAL: 1-978-925-5149

ContinuityFBC.com

 

The importance of governance, no matter how small the company, cannot be overstated.  

Formal boards, executive committees, and advisory boards develop and articulate policy, objectives and strategy.  They provide strategic guidance and are the most effective vehicle for resolving businessrelated conflict between managers, owners and other family members.  

Developing effective governance for a family business involves appropriate procedure (attending to the right priorities, operating by the right rules) and good structure (selection of the right people and roles).

Early stage family businesses may be struggling to develop good governance practices and may be wary of creating formal boards or engaging independent board members.  Helping these stakeholders understand and practice good governance as a first step towards board development can be enormously helpful especially as part of a succession planning process.  

Creating a first board, while retaining control, is a big step for many founders of family businesses and one which benefits greatly from independent advice. 

For more information on Governance and Board Development, visit ContinuityFBC.com.

Understanding Family Systems Within Family Businesses

 CONTINUITY

FAMILY BUSINESS CONSULTING 

US/CANADA: 877-925-5149 INTERNATIONAL: 1-978-925-5149

ContinuityFBC.com

Families are systems – just like businesses – with organizational charts, policies and procedures, required skill sets, and structural risks and opportunities.  Understanding these less transparent and highly emotional systems is crucial to working with family businesses and helping them succeed both as businesses and as families. 

Family systems assessments are typically the most enjoyable and interesting part of Continuity’s engagements with clients.  When family members better understand the system they are operating in, they see each other in a new light and often find ways to more meaningful and less conflictual relationships. 

For more information on Family Systems with Continuity Family Business Consulting, visit ContinuityFBC.com, LIKE us on Facebook, and FOLLOW us on Twitter. 

Business Strategy with Continuity Family Business Consulting

 CONTINUITY

FAMILY BUSINESS CONSULTING 

US/CANADA: 877-925-5149 INTERNATIONAL: 1-978-925-5149

ContinuityFBC.com

Continuity, LLC is a leading family business consulting firm that develops comprehensive strategies for enterprising families to thrive together as owners, managers and family members through succeeding generations. We serve clients across the US and abroad.

As part of our engagements, we are often asked to discuss business strategy with our clients.  Especially when stakeholders disagree with corporate vision and mission or the state of the market, we provide evaluative techniques to help clients achieve consensus. 

By asking the tough questions concerning the marketplace, technology, competition, financial and organizational strength, personal goals and other metrics, we help clients make the right business decisions.

Management and Organizational Development with Continuity Family Business Consulting

CONTINUITY

FAMILY BUSINESS CONSULTING 

US/CANADA: 877-925-5149 INTERNATIONAL: 1-978-925-5149

CONTINUITYFBC.COM

 

With family dynamics at play, developing both the organizational structure of the business and the individual management skills of key stakeholders can be very complicated.  Having clearly defined policies in place (for example, standards and criteria for a child or in-law entering the family business; performance review and compensation policies for family employees; etc.) will lessen conflict and feelings of unfairness or entitlement among family members and other employees.

Maintaining the entrepreneurial spark, which is the foundation of most successful businesses, is often a challenge with succeeding generations who generally bring more professional management skills to the table.  Developing the management and communication skills of family managers is a key requirement for both business success and managing conflict. Clear organizational charts with appropriate authority, accountability and responsibility – and implementing these ideas effectively – are crucial for family businesses to thrive.

There are ‘Best Practices’ both for general businesses and for family businesses and they are not always the same.  Special considerations may be needed to support and retain family members who may be the most committed and motivated employees possible.

Here at Continuity Family Business Consulting, we have solid grounding in general business best practices and we know where special policies and procedures need to be considered to ensure family business success.  Managing family employees effectively in a family business requires appropriate HR policies, strong accountability and appropriate review and compensation. Leveraging the advantages of family management and control, while avoiding the pitfalls, can be challenging and benefit from competent and experienced independent review and advice.

Continuity has extensive experience and expertise in management and organizational development, coupled with a unique understanding of family systems to create solutions that work for family businesses.

For more information, visit ContinuityFBC.com.

Succesion & Exit Planning Within Your Family Business

CONTINUITY

FAMILY BUSINESS CONSULTING 

US/CANADA: 877-925-5149 INTERNATIONAL: 1-978-925-5149

CONTINUITYFBC.COM

 

Transitioning a business from one generation to the next is probably the most difficult and complex process a family business will face.  It requires much thought, trust and planning. Developing next generation leaders, assuring that estate planning documents are both tax and succession friendly, evaluating the company’s financial ability to sustain succession and managing conflict and expectations within the family are all required for family businesses to achieve reliable successions between generations.

Continuity’s approach is highly collaborative and comprehensive. We work closely with estate planners, CPA’s, key non-family executives and family stakeholders both in and out of the business in order to develop a plan that works for both the company and the family. 

Succession planning is often delayed in a family business due to either active conflict or fear of conflict.  Continuity’s expertise in managing conflict when the continuing relationships are important is a crucial element of our succession planning work.

Exit planning is another aspect of family business Continuity works with. Sometimes it is appropriate for owners of a family business to consider selling the business.  If the business is sold due to unresolved conflict, insufficient planning or financial difficulties much can be lost in terms of both family relationships and potential missed business opportunities.  Continuity helps clients address these challenges and the ongoing concerns of next generation leadership. 

There are significant questions to be considered here.  What if there are no heirs that are interested?  What if the nature of the business requires that it be part of a larger, perhaps global, organization in order to thrive?  What if the opportunity to sell the business is just too good?  There may be many good and necessary reasons for selling a family owned business. 

Continuity’s depth of staff and resources can help owners evaluate the pros and cons of selling the business.  We help owners evaluate specific offers and, as appropriate, help them prepare the company for an optimal sale. 

If the company is to be sold, we help all family and non-family stakeholders understand and manage such a transition both personally and professionally.  We assist the family in re-defining itself from a business owning family to a family of wealth or a family with new opportunities. 

Selling the family business is one of the most important decisions that its owners make.  It is a decision that they make, perhaps, once in a lifetime.  Having a trusted advisor with no bias towards any particular outcome is extremely advantageous.

Contact Continuity Family Business Consulting at 877-925-5149 for more information on succession and exit planning.