Building the
entrepreneurial resources
and the capabilities
of your family group
should be approached
as an investment
with real,
tangible
returns.
Case One: “Building an Accountability Culture”
BACKGROUND
◊ Large Food Distribution Co.
◊ 5 Senior Generation Branches
– 4 in Management
– 4 Successor Managers
– 1 Non-Working
◊ Ownership Trust/Board
◊ 70+ year old President
◊ Primary Areas of Focus
– Organizational Structure
– Professionalize Board & Management Team
– Leadership Transition
ASSESSMENT
◊ Enmeshed Operational, Strategic, and Ownership Roles
◊ Weak Governance Structures and No Succession Process
◊ Conflict Emanating from Compensation Plan
◊ Lack of Formalized Budgeting and Strategic planning processes
◊ Owner-Manager Conflicts of Interest
◊ Conflict over Philanthropy Goals
◊ Family Interpersonal Conflict
◊ Younger Generation Starting to Enter Business
RESULTS
◊ Created Two Year Transition Plan
◊ Facilitated Transition of Chairman and Succession of New President
◊ Addressed Shareholder/Family Conflict Issues
◊ Clarified Board Member Roles and Responsibilities
◊ Clarified the Relationship Between Ownership Trust and Board
◊ Formalized Accountability Structures and Conflict of Interest Guidelines
◊ Clarified Family Involvement Policy and Defined Philanthropy Goals
Case Two: “A Seamless Transition”
BACKGROUND
◊ $2.6B Diversified Holding Co.
◊ Non-Family CEO
◊ Business in Trust
◊ Founder, Four Children, Two Non-
◊ Family Trustees Constitute Ownership
◊ Inactive Advisory Board
◊ History of Family Enmeshment
◊ Primary Focus:
– Organizational Structures
– Formal Board of Directors
– Values, Vision, Mission
– Successor Empowerment
ASSESSMENT
◊ Strong Founder With Poor Communication Practices with Children
◊ Need Next Generation Board and Practices
◊ CEO Trustee Conflict
◊ Successor Empowerment Gap Analysis:
– Role Clarification
– Mentoring
– Empowerment
– Communication
RESULTS
◊ Defined Values, Vision, Mission, and Risk/Reward Profile
◊ Designed Organizational Structure and Established The Office of Trustees
◊ Defined Roles/Responsibilities of Trustees and Board Members
◊ Created Formal Board
◊ Administered Successor Mentorship Program
◊ Facilitated New CEO Transition