Stepping into a family business feels like taking control of a long-established ship that has weathered many storms—it sails steadily, but generations past have set its course.
Increasing revenue is the logical approach to moving forward. Achieving sustainable growth requires going a step further- by identifying and harnessing the unique strengths of each family member involved in the business.
One of our clients has an established family business and were struggling to integrate the third generation into the business. Typically the second generation demonstrates patience and turns a blind eye to issues that they disagree with – not so with the third generation.
A common struggle emerges where the fresh winds of ambition of the younger generation are cooled by the steady waves of the tradition of the older one.
Challenges They Faced
The client was struggling to carry forward the legacy of a joint family business, facing challenges with compatibility and coordination among the family members. It was challenging for them to utilise the potential of the talent available internally.
One key issue was the challenge of separating ownership and management between the two families, creating friction and impacting overall harmony.
There were issues with defining roles and responsibilities clearly, which caused overlaps and confusion within the organization and added another layer of complexity. This lack of clarity resulted in contracted accountability which made it harder to measure progress and efficiency. The equity leadership group made large decisions without consulting each other, and the team actively fed information to all the promoters in a way that suited them.
Issues were brushed under the carpet in the interest of harmony but they continued to simmer and erupted unexpectedly – hurting the business and souring the relationships.
Our Intervention – A Blend of Coaching and Consulting
A business coach empowers people and facilitates them – to become who they want to be!! A consultant work at a strategic and operational level and leads the way.
In coaching conversations, as the family focused on their values and the identity of the business, they discovered “that what truly mattered to them was preserving and nurturing the family legacy.”
In a few sessions, they gained clarity on their vision. We were committed now to their realised goal of integrating the family business and strengthening it with a robust governance mechanism. After this, we wore our Consulting hat and the flavour of the project evolved.
- The first step was to identify the core strengths of each family member and assign the roles accordingly. Fortunately, the team exhibited a healthy mix of competencies – one demonstrated entrepreneurial skills, another embraced risk aversion, the third focused on details, and the fourth inspired with a flamboyant persona. The equity management thus took on roles where they could thrive and contribute more effectively to the organization
- Communication is the lifeblood of all relationships. The strategy was to conduct structured family meetings to encourage open dialogue and to promote mutual respect and understanding. The format was dynamic and the issues ranged from business issues to personal grouches.
- Each leader continued through a 1 on 1 coaching journey to keep adapting to the changes
- The new system needed a compass in terms of Vision, Mission, and Values at a strategic level and policies at an operational level. Performance Management systems were developed to foster a performance-driven culture.
- Over time, a clear distinction emerged regarding how each individual wanted to contribute—whether as an investor, a leader, or both. This clarity proved invaluable in creating and implementing the RACI matrix.
- There were countless workshops, alignment meetings, training, and planning forums for culture building.
Outcome: Business Boomed; Relationship’s Strengthened
- Instead of going their separate ways, they chose to move forward united.
- They successfully expanded their business, leveraging their newfound clarity and unity to enter new markets and drive growth.
- They strengthened their market presence by executing a merger and acquisition deal with a global brand.
- With this newfound clarity, they were able to articulate a stronger business plan and establish an improved organizational structure.
- They successfully implemented a system supported by an Annual Operating Plan (AOP), having comprehensive action steps that ensured every member was able to step into the roles with accountability.
This mix of Coaching and Consulting helped them to become an organization that was able to integrate robust frameworks, which significantly improved their organizational efficiency. As a result, they achieved remarkable growth, reaching a turnover of 150cr to 750cr in 2 years.
Even the most successful family-run businesses, need guidance to allocate the responsibilities between families and to help them with business planning
So, set your family business to sail faster on the path to success with the help of business coaching and leadership coaching.
All the best,
Richa Mahendra (ICF Accredited PCC Coach, Business Coach, Leadership Coach)
Contact: +91 82333 33344