Case Example 1: Preparing for Succession

Scenario

Husband/wife team founded and bootstrapped a waste disposal business. Husband, a real hands-on operator, became ill and passed away. Wife decided to carry on, with two of four sons active in business. Hired an experienced COO, to develop a business plan, establish operating procedures, controls, performance measures, tracking systems and management reports, and especially to coach two sons as potential successors.

Older of the active sons, a former Marine, is street-smart, exhibits a true command and control management style. The younger son (also youngest of the four) a college graduate in marketing/economics, is outgoing, but not street-smart, and serves as Sales Manager.

The COO hired Management Strategies Group to plan and facilitate a one-day off-site "management advance" (he refused to "retreat") in order to get the two sons, the mother, the Operations Manager (a 25-year company veteran), the Controller and himself: a) communicating better among themselves; and b) on the same page regarding the strategic direction, organization structure and responsibilities.

What We Did

In an assignment such as this, it's important to tailor the experience to not only meet the stated objectives, but to help develop and shape the organization's culture. Therefore, prior to the management advance, we interviewed about 18 or so employees to understand roles and how the organization works. Confidential conversations focused on job duties, perceptions about what was working well and what wasn't, and exploring opportunities for improvement.

Rather than limit participants to the six management team members, we invited about 15 to the all day off-site meeting. This included several working supervisors, a third brother and the corporate attorney who was very familiar with the company and family.

The session agenda included discussion of the participants' views regarding the company's current strengths and areas for improvement and how they believe their customers and their competitors see the company. Then, three subgroups were tasked with devising "20 Crazy Ways to" 1) increase total sales; 2) improve operating efficiency/productivity; and 3) increase profitability of the paper recycling division (managers of each function were not involved with the groups they managed).

Task teams were formed to further develop ideas generated and complete action plans for moving ahead with the three most compelling, leverageable ideas for improvement. The action plans included resource requirements, project steps and a timetable.

Outcome

Each task team presented its proposals at a subsequent meeting. Several ideas were accepted and acted upon; others required further analysis, refinement or implementation planning. Task teams continue to operate, and serve as both problem solving and communication vehicles to help explain, fine-tune and monitor the success of the initiatives.

Under the continued mentoring of the COO, the two brothers show definite signs of growing in their jobs, both in terms of a greater understanding and acceptance of their accountabilities and in accomplishing performance objectives.

While Mom isn't ready to turn over the reins yet, she is devoting more time to community and industry activities, with greater confidence that day-to-day business operations are in good hands.

Next                     Previous