Resources for the different stages a business goes through from start up to decay or regeneration, across time.
Start Up Young business founded on entrepreneur model and founders’ ability to offer a product or service.
Growth & Formalization New levels of competition increase as the company leaves the niche market and enters larger more competitive areas. Requires strategic planning and management that may also engage outside professionals and more formal operating processes and procedures.
Maturity & Stability Focus on development of organizational talent and creating a structurally flexible framework to rapidly manage threats or take advantage of opportunities that arise in meaningful ways.
Regeneration Key stakeholders face a strategic choice between further growth and maturity. If growth or reinvention is not prioritized these businesses have a heightened risk of decline.
Resources for the key and controlling stakeholder(s).
Founders Dream First stage of ownership. Owner(s) makes all decisions.
Sibling Partnership Siblings jointly own shares of the business. Leadership maybe singled out to a primary family member.
Cousin Consortium More mature ownership model that includes extended family through multiple generations.
Distant Relatives Extension of the initial family circle to include and facilitate family succession.
Resources for the various experience and engagement levels of family leadership in the business.
Leading the Business Control is held to either one primary family leader or shared among siblings. Leadership oversees all strategy and operations.
Joining the Business Introduction of the potential successor(s) to build professional experience, operational experience and respective industry knowledge. Younger generations are learning the business operations and are in the early stages of leadership. At this stage, business implements professionalization of roles and key formal processes are developed.
Working Together Next generation has its own visions and often a strong desire to introduce more strategic thinking, maybe taking on mid-level roles in management. Expansion phase is often linked to the family business’ need for restructuring which may include development of board of directors, family governance policies, and family council meetings to create effective management and direction.
Passing the Baton Leadership succession can span more than a decade as a succession plan is created and implemented. Each generation transitions to new roles both internally and externally. The family may also sell or expand to different markets. A Family Business may evolve to a Family Office.