Success in succession

Success in succession

The next generation taking over the family business

Situation

The son of the founder was taking over the family business.

To grow the company, he also took on a private equity partner. The private equity firm recommended me as a sounding board to the CEO.

Context

The new CEO was the oldest son and best equipped to take over the business with the skillset, knowledge and passion. He also had a vision and the mindset to get there. Some of the senior executives had been with the company for some time – they had strong relationships with the father and were used to his way of doing business. A big challenge was enabling them to shift their mindset to a new way of doing business and genuinely respecting the new CEO, an individual they had known since he was a boy. In some ways, they saw him as younger and, therefore, less experienced than them.

Approach

  • Conducted one-to-one sessions with the Senior Executive team to understand their background and assess their capabilities and mindset.
  • Identified and addressed potential threats related to attrition and politicking
  • Working with the CEO, enabled him to think through workarounds and develop the right strategies
  • Became a trusted advisor to discuss deeper family dynamics, challenges, aspirations and legacy.

Why it matters

Change can be difficult, especially when it’s related to a person’s life work. Having the time, space and insight to understand the different factors at play, what truly matters and finding a way forward can make all the difference.

Get in touch

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THE STORY BEHIND AMANI™

During my time in Executive Search, I had the privilege of meeting and interviewing brilliant people every day. Amidst a ‘war for talent’, I didn’t experience a shortage of talent. What I found was a shortage of great companies that deserved great talent.

I didn’t appreciate the urgent need to address this until I received a link to water poverty – water poverty caused by a privatisation deal, where the tariffs set were too high for some members of the community to afford, resulting in the water supply being cut off. One of the consequences that captured me was young girls being bullied and teased at school for being dirty.

The irony was that the company leading the transaction had a link on their website to CSR (corporate social responsibility).

How can a company’s business practices cause harm, but they have a department ‘to do good’?

Many companies have compelling mission statements, well-articulated values and CSR initiatives. But what truly matters is what a company and its people do in practice.

It got me thinking about the people leading the transaction and the company’s strategy and modus operandi. Having interviewed many Investment Bankers, I knew that none of the ones I helped my clients hire would ever have been so short-sighted, so irresponsible. Moreover, my clients would never have accepted them.

So what was creating this? How was business impacting society? How can we improve things?

I explored water poverty – what’s causing it, who it’s impacting and what needs to be done to solve it. I was saddened by what I found, from questionable policies and poor principles to bad practices, misaligned performance metrics and poor decisions. The crux of it all? People and organisations – their collective mindset and motivations, their actions and inactions.

But I also found some great companies with incredible people doing a lot of good. These weren’t charities. They were profitable commercial entities (including banks). I studied these companies and profiled their people. The findings were extraordinary. These companies and their people gelled and excelled. They were principled and profitable. They are companies worth emulating and are the cornerstone of the AMANI™ protocol.

Learn more about AMANI™ and how it can help you be your best – in your life, in your business and in the world at large.

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CASE STUDY

ESTATE PLANNING

Wealth transition between generations

 

CHALLENGE

An Ultra high-net-worth family had sold the shares in the family business and placed the funds in trust to secure the wealth for future generations. However, the structure was creating family friction. Was asked to look at the structure in place, how to ensure success in succession and safeguard the cohesion of the family.

INSIGHT

The business was set up by the grandfather who had two children – a son and a daughter. Believing only boys should be in business, he spent more time with his son who then took over the company. The daughter herself had three sons, all of whom were very close to the grandfather when he was alive. Their mottos was a saying instilled in them by their grandfather.

The three grandsons were all married with children. By observing family dynamics and conducting one-to-one sessions, the cause of family friction became apparent, along with a pathway to create cohesion.

SOLUTION & OUTCOME

Many underlying issues arose, including:

  • Family members and their spouses holding different views on whether they are owners vs stewards of the wealth
  • Different attitudes and beliefs around money (e.g. one family member believed the middle class were happier and was on a mission to spend the wealth)
  • Different aims on how much wealth to leave the next generation

Worked with individual family members to:

  • Define their values, ambitions, and what legacy looks like for them
  • Explored potential avenues to see which would be the best fit
  • Brought the family together to share common values and develop a shared family philosophy
  • Discussed potential avenues raised during one-to-ones
  • Leveraging the family philosophy and overlapping values, reevaluated the structure and rules around the trust.
  • Developed a framework for decision making and conflict resolution that reflected the family values and philosophy.
  • Developed a path forward that was owned by all family members, not imposed.

Ultimately the family realised that beyond the financial wealth, it is the goodwill of the family name, its lineage and heritage that is their greatest asset.

CASE STUDY

EMERGING MARKETS: Navigating a clash between corporate governance and local customs   CHALLENGE A multinational company operating in emerging markets discovered an individual who had access to the company float was taking money out of the company but replacing it...

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  WHEN INVESTORS COME IN Tackling transition and the growing pains of scaling a business CHALLENGE A start-up was acquired by a private equity firm. There was low morale, diminished team spirit, lack of personal performance, all ultimately impacting results. INSIGHTS...

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  MILLENNIAL LEADER: Unmotivated and difficult to manage?   CHALLENGE A team transformation process with people from various backgrounds and ages. One person, in particular, was a millennial in a leadership position. He was perceived as difficult to manage by his...

CASE STUDY

ESTATE PLANNING Wealth transition between generations   CHALLENGE An Ultra high-net-worth family had sold the shares in the family business and placed the funds in trust to secure the wealth for future generations. However, the structure was creating family...

CASE STUDY

SUCCESS IN SUCCESSION The next generation taking over the family business CHALLENGE A nextgen was taking over the family business. To grow the business he also took on a private equity partner. The private equity firm recommended me as a sounding board to the CEO....

CASE STUDY

THE RIGHT PERSON TO LEAD? Taking a closer look at people's credentials. CHALLENGE The client needed to find a Managing Director for their business in an emerging market. A potential candidate had been recommended. I was asked to profile him. INSIGHT On paper, the...

CASE STUDY

SUCCESS IN SUCCESSION

The next generation taking over the family business

CHALLENGE

A nextgen was taking over the family business. To grow the business he also took on a private equity partner. The private equity firm recommended me as a sounding board to the CEO.

INSIGHTS

The new CEO was the oldest son and best equipped to take over the business, with the skillset, knowledge and passion. He also had a vision and the mindset to get there. Some of the senior executives had been with the company for some time. They had strong relationships with the father and used to his way of doing business. A big challenge was enabling them to have a shift in mindset to a new way of doing business and genuinely respecting the new CEO, an individual they had known since he was a boy, and in some ways still fixed on seeing him as younger and therefore less experienced than them. SOLUTION & OUTCOME
  • Conducted one-to-one sessions with the Senior Executive team to understand their background and assess their capabilities and mindset.
  • Identified potential threats related to attrition and politicking
  • Working with the CEO, enabled him to think through workarounds and develop the right strategies
  • Taken in as a trusted advisor to discuss deeper family dynamics, challenges, aspirations and legacy

CASE STUDY

EMERGING MARKETS: Navigating a clash between corporate governance and local customs   CHALLENGE A multinational company operating in emerging markets discovered an individual who had access to the company float was taking money out of the company but replacing it...

CASE STUDY

  WHEN INVESTORS COME IN Tackling transition and the growing pains of scaling a business CHALLENGE A start-up was acquired by a private equity firm. There was low morale, diminished team spirit, lack of personal performance, all ultimately impacting results. INSIGHTS...

CASE STUDY

  MILLENNIAL LEADER: Unmotivated and difficult to manage?   CHALLENGE A team transformation process with people from various backgrounds and ages. One person, in particular, was a millennial in a leadership position. He was perceived as difficult to manage by his...

CASE STUDY

ESTATE PLANNING Wealth transition between generations   CHALLENGE An Ultra high-net-worth family had sold the shares in the family business and placed the funds in trust to secure the wealth for future generations. However, the structure was creating family...

CASE STUDY

SUCCESS IN SUCCESSION The next generation taking over the family business CHALLENGE A nextgen was taking over the family business. To grow the business he also took on a private equity partner. The private equity firm recommended me as a sounding board to the CEO....

CASE STUDY

THE RIGHT PERSON TO LEAD? Taking a closer look at people's credentials. CHALLENGE The client needed to find a Managing Director for their business in an emerging market. A potential candidate had been recommended. I was asked to profile him. INSIGHT On paper, the...