The Common and Shared Challenges We All Face
All family businesses must face some of the same predictable challenges often related to significant transitions in the business or family. Unfortunately, only about one-third of family businesses successfully transition to the next generation of leadership. The major causes of such a failure are lack of planning, poor management of the family involvement, and not preparing the next generation.
The members of McCann & Associates are aware of these challenges and are able to help family members identify ways to address them. Our consultants can also help individuals manage the different roles they play in each system.
Transitions: Succession
Forty percent of family businesses will face succession within the next five years. However, this is more than just a transition of the management leadership, but very often includes planning related to the transition of ownership. Since everything is interconnected in a family business, these changes and the related stress impact the family.
As such, McCann & Associates sees involving the family to be crucial to managing any family business issue. Family business is more than just a business: much more is involved and much more is at stake.
Communication & Conflict - Managing the Family’s Involvement
Even successful business owners can often feel stuck -- unable to make progress on a certain issue. Having a direct conversation on these difficult but important issues is vital to planning and success.
McCann & Associates helps the family prepare for these vital discussions and even helps facilitate them. Our ultimate goal in this part of the process is to help our clients evolve to have these discussions on their own.
Developing the Next Generation
Families that own businesses typically face greater challenges than other families. Not only must they manage the family and business, but they must also manage the related wealth, power, and opportunities that come with it. Navigating all these challenges is difficult for even the most skilled executive, so imagine the risk it poses for young adults.
Developing a sense of credibility and marketability is essential for the next generation as they become competent, contributing adults in the family business or beyond. Our consultants specialize in working with members of the Next Generation.
Empowering the next generation is vital for the business and the family!
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Menu of Services for Committed Clients
Our work with our family enterprises starts with our three fundamental commitments:
- We promise the highest integrity.
- Everything we do is customized.
- We are in there with the client, working towards success as they define it.
Our experience is the families that start this work and truly invest in addressing the hard issues openly, proactively, and with respect, benefit greatly by applying those results to their family enterprise on an ongoing basis. We help families manage their family’s involvement to create a more cohesive family, a strategic advantage for the business, and greater shareholder value for the owners.
To that end, we have a broad outline, which should serve as a starting point for the discussion with your family about the future goals for your family enterprise. We welcome the opportunity to collaborate with you about how we can customize these services for the goals, character, and timing of your family enterprise.
I. Values
A. Deeper reflection on values and operationalizing them
II. Communication/Relationships
A. Fierce Conversations
B. MBTI – Personality, Power & Persuasion
III. Next Generation
A. Credibility/Life Plan
IV. Governance
A. Family Councils
1. Buy/Sell (stock ownership)
2. Family Employment Policy
3. Family Legacy
B. Board: Directors or Advisors
1. A review of corporate structure & governance
C. Owners
1. Crafting the out-of-bounds & goal line for the board and management
V. Enterprising Families
A. Family Strategy
B. Family Employment Policy
C. Family Legacy and Values
D. Family Strategic Plan
VI. Individual Work
A. “Coaching” – Communication & Family Relationships
B. Relationship Repair Remediation