family dynamics v5 · 2010-09-21 · © 2010 grant thornton international. all rights reserved....

© 2010 Grant Thornton International. All rights reserved.

Success and Succession: Thriving through family dynamics

September 2010Jol Hunter, CA, MSc, CHRP, CAFÉ family facilitator


Goals

• Impact• Financial• Community• Family• Retirement options• Relationships• Next gen


Some data that is not new

• Transfer success rates: 1 gen 30%, 2 gen 15%, 3 gen 5%• 80% of family business failure is due to family dynamics• Impact when addressed


Some truths….

"Good families, even great families, are off track 90%

of the time. The key is that they have a destination."Stephen Covey

"Without a vision the people perish."Proverb


Situations

• There is more than one generation in the business• There is a succession planned• There soon could be more than one generation in the

business• There are multiple shareholders• There is concern for family harmony• It is not clear who should succeed the current generation• Its not clear if the succeeding generation really has the

skills and aptitude to do so


Situations (continued)

• There are siblings in the business – there are siblings not in the business

• Conflict is now in the open• There are parents who are quite proactive in their

management

• It is not clear that as you look out 5 to 10 years that both the family and business are set up to thrive

• There is lack of clarity between personal and business goals


What can we do?

• Family council/business family communication process

• Readying next generation to lead and own• Readying senior generation to let go• Managing key stakeholders• Head off conflict• Understand and deal with strains• Help live with wealth• Reduce costs and have energy applied to

productive matters• Do not just avoid…things tend to get worse


Objective: a business that is thriving in a family that is thriving

1. An approacha) Understand-the power of questions

i. Objectives - the vision-ideal scenario 5 to 10 years out, the values

ii. Today – stakeholders, relationships, position, interests (self, children, other shareholders, key employees, suppliers, customers, bank)

b) Gap analysisc) Design process to close gapd) Implement solutions


A way of looking at the relationships and roles:


A word about conflict

Conflict normally results from the reasons below. Once you know why the conflict is there it can often be resolved.

• Relationships: history of troubled relationships impact on reaction to issues today.

• Moods: moods can change and are carried around. Moods are current emotional status.

• Values: you will tend to adopt the values of those who mentored. Values are set by age two.


A word about conflict (continued)

• Data: having differing underlying facts. Could be missing facts or misfacts.

• Structure: what are the formal and informal structures or processes that the family/business uses to make decisions? Are they the same?

• Interests: an individual’s interests will influence their position. “I am only doing this because it is in your best interests.”---“Yes, but I don’t want that.” WIIFM


Respect for your current relationships with other professionals


Consider…….

• As you look out 5/10/15 years, are you happy that both your business and family are set up to thrive?

• What is that ideal picture for you, your family and the business in 5/10/15 years?

• Do you need help clarifying your objectives?• Do you need help structuring matters to ensure your goals are

achieved?• Do you have clarity on the expectations of family members?• Are you concerned about conflict in your family?• Is the next generation ready enough to take over?


Contact

Jol Hunter, CA, CHRP, MSc (Training and HRM)

Suite 1100, Cogswell Tower2000 Barrington StreetHalifax, NS B3J 3K1T: 902-420-7176F: 902-420-1068E: [email protected]

family dynamics v5 · 2010-09-21 · © 2010 grant thornton international. all rights reserved....

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