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As Seen in Multi-Unit Franchisee Report - Have It All Done?: There is a Difference Between Continuity Planning and Succession Planning

Over the years we have encountered hundreds of successful business owners who have made the statement "I have it all done," as they describe how well they have planned and documented their business succession plan. Unfortunately, in most cases these business owners were referring to the work they have done to implement their wills, trusts, buy/sell agreements, and life insurance, which we would constitute as business continuity planning. You may be asking yourself, what is the difference?

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As Seen in Multi-Unit Franchisee Report - Emotional Rescue: Understanding Relationship Dynamics in the Family Business

Recently one of my partners and I were facilitating a meeting between a father and his daughter to work through some mismatched expectations between them in the family business. We had already had several prep meetings laying the groundwork for aligning their expectations, which were all positive and headed in the right direction. They were both excited that we were going to be able to help them get some things out on the table, as they typically would avoid one another and leave issues unresolved.

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As Seen in Irrigation and Green Industry - Passing the Baton to the Next Generation

If you’ve decided that it’s time for your kids to take over the family business, there’s more to it than simply handing them the keys. You need to have a succession plan. We can’t give you a template, as there’s no single “right” way to do it. But you do need to have a plan. 

In a good succession plan, roles are clearly defined. “Everybody can’t run the company,” says Champ Rawls, associate planner at the Rawls Group, LLC, an Orlando, Florida-based succession-planning firm. “You have to clearly outline what everybody’s responsibilities will be.” 

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Brain Bombs From Dr. Merlot

As a succession planner, Dr. Merlot is engaged in an amazing diversity of issues on any given day. The average day is replete with high and inside "heaters" from all points of the Succession Matrix® of issues. Predictably this nonstop progression of diverse succession issues creates excitement that ranges from invigorating and gratifying to confusing, perplexing and shocking. None the less as a poster child for Attention Deficit Disorder, Dr. Merlot thrives in this frenetic environment with occasional reliance upon the medicinal qualities of the nectar from the grape that has earned him the moniker, Dr Merlot. After taking a few moments to decompress, we thought you may find it interesting to listen in on a morning of Dr. Merlot's Brain Bombs as they may provide you perspective on Brain Bombs you may be facing.

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Key Manager Retention: Investment in Relationships Yields a Greater Return

I was with a new succession planning client the other day that is known for paying his managers very well. He is also known for being a bit cocky and aloof. He was a referral sent from another client who is very successful at recruiting and retaining managers. He inquired about the advice I had given his colleague, in order to have the same productivity. I confirmed his observation noting that his friend had several managers who were amazingly motivated and most importantly, they were totally committed. I confirmed that they were paid well but not extraordinary, but relative to the jobs they were doing. I advised him, that with respect to the development of these managers, I expressed that his friend was coachable. I told him to acknowledge those managers that produced, show affection to managers that could lead, affirm the ones that drink his Kool-Aid, and show love with more than money to those leaders who believe in him. His friend had done this and now he has a very impressive management team that is getting better every day.

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Setting Boundaries: How to Avoid Family Business Entanglements

A principle I'm reminded of on a daily basis is: “It is far easier to get entangled than it is to get untangled.” If you've ever tried to unravel a tangled up web of string you know what I'm talking about. Entanglement almost seems to be an effortless exercise whereas untangling can tax even the most patient of personalities.

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Regrettable but Reality – Facing Challenging Family Business Decisions

In spite of family dynamic issues, ABC Auto, a second generation multi franchise dealership group was “successful.” Dad, our original client from 35 years ago, was quite the dynamo. He had been a very successful domestic dealer in a prosperous community. Back in the 80's he also accumulated an assortment of lucrative import franchises before they were hot. Both of his sons came into the business and worked their way through the various seats with energy, enthusiasm and varying degrees of success. Against my recommendation, however; their dad did not hold them accountable for performance, elevated them quickly to management, paid them and passed ownership to them equally. He just could not bring himself to make a decision as to who would lead and who would follow.

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How to Move Under-Performers Up or Out of Your business

Take stock of the employees in your company; most likely you have already mentally classified them into categories of nonperformers, underperformers, average performers, or super performers. Hopefully, you have the majority of your people in the super performer bucket, but in all likelihood, you have a mix of all four types.

As the business environment becomes more complex and even more litigious, it's important to know how to deal with each of the 4 groups for two very different and yet related reasons: Risk Management and Productivity Management. With the concept in mind that you are only as strong as your weakest member the following will provide insight into how to address those in the non performer and under performer buckets.

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Identifying Successors - Can I Have Multiple Successors?

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~ An Excerpt from Family Business Heartburn Relief™~

The vast majority of businesses have a designated "successor leader." However, a business can have multiple successor candidates, who can provide support to "the leader." Successor candidates include any family member or key manager who brings value to the business and is prepared to serve as a leader with a goal of perpetuating the success of the business.

Multiple successor candidates ideally generate a team of successors who are led by the successor leader. The interaction of multiple successor candidates can be complex especially if there are no expressed parameters for sibling/cousin/Key Manager interaction; or if back biting, resentment and rivalry are tolerated. However, assuming there is mutual respect among the group of next generation successors, the more successors who have skin in the game and a vested interest in continued success, the merrier. Multiple successors, effectively managed, create organizational strength, resilience, power and leadership bench strength. 

Email This email address is being protected from spambots. You need JavaScript enabled to view it. for an electronic version of Family Business Heartburn Relief

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1986 Hits

Successful Successors Come in All Sizes

The story of first generation family businesses is usually an inspiring saga about an individual with a vision who overcame a great deal of adversity through hard work, dedication, good timing and a certain amount of luck. Success does not come easy, especially when you start at the ground floor. The lessons learned through the sacrifices of G1 become a value system that is modeled for future generations. As future generations are introduced however, the story of G1 often becomes more like folklore – the message is heard but is not entirely relevant anymore. The successful family business is sure to have had a positive change on the family’s standard of living and your successor isn’t starting with the same perspective as G1. So in order to successfully pass the baton to the next generation, it is important to identify who you’re working with and what will motivate them.

The difference between successful G1 and G2 business owners can be compared to an ongoing rivalry between two current NFL quarterbacks – a first generation Tom Brady and a second generation Peyton Manning. Their routes to the NFL couldn’t have been more different; Brady an unknown back-up in college and 6th Round Draft Pick vs. Manning who is essentially quarterback royalty and a First Round Draft Pick. Despite the differences, they are both tremendously successful at what they do and are both known for a relentless work ethic to be the best.

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Successor Development - What About the Youngest?

Birth order can be a significant factor in many situations. Should it be relevant in the succession of your family business?

If you’re like most parents, you probably strive to treat your children equally, paying special attention so as not to create jealousy or the illusion of favoritism. Additionally, you want to equip each of them with all of the tools they will need to be successful in life. Unfortunately, reality has a funny way of making “equal” unattainable.

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How to Check Perfectionism at the Door - Keys to Becoming An Effective Leader

Mary Poppins described herself as “perfectly perfect in every way”. Some of us nourish that same self image as we sing or think to ourselves, "What’s the matter with people today? Why can’t they be like me, perfect in every way?”

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Why Do I Procrastinate and How Can I Stop?

A friend of mine believes very strongly that no one should do today what they can put off until tomorrow. He is the ultimate procrastinator; and he's quite happy with where that's taken him in life. He simply does not buy in to the notion that any non-emergency has to be dealt with today. His rationale is all based on a Rolling Stones' hit titled "Time Is on My Side."

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Win the Right to Be Heard: Successor Prep for the New Generation

Picture this, 60+ year-old dealer who has been in business 20+ years. Possibly inherited the dealerships from his/her own family and have tirelessly worked to grow and build the business. The kids are in their late 20’s and have been getting more involved in the dealerships. They are ecstatic to be entering the family enterprise and proudly fly the family name. The company has a fantastic reputation in the community and the family name holds weight and notoriety in the industry. It is well-established with sound business practices and a formula for success that has produced generous profits and provided a great place of employment for many families. Sound familiar?  

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Family Feuds and Business Turf Wars: How Do They Start? How Do They End?

A lot of people lose sleep over a great divide where two or more people have chosen sides. It happens where ever there are people. It could be among friends, enemies, a family or families, clients, or business partners. Usually it is a disagreement over relatively scarce resources: People; Time; and/or Money.

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When is the Right time to Discuss Succession Plans with Family Members?

In 1988, Jack was thrust into the leadership position of the family business his father started in the late 1950’s. At the time Jack took over the family business there was only one dealership and approximately sixty-five employees. Over the years the business had become highly productive and profitable in large part due to his father’s incredible work ethic, customer focus, business savvy and knack for attracting quality employees. Jack’s father was a humble man who attributed much of his success to luck, good fortune and being in the right place at the right time. “Timing is everything” was a phrase Jack’s father used frequently. From a business perspective, there very much could have been some truth to timing and being in the right place at the right time but for Jack, timing could not have been worse!

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Preparing Family Members to Take Over - As Seen On Automotive Buy Sell Report

Succession planning is a hot topic in the automotive industry and has been one frequently discussed in the pages of Automotive Buy Sell Report. Recent articles by Don Ray and Robert Bass have specifically focused on successor identification and development, and how, in the absence of a qualified successor or the lack of management bench strength, owners are forced to sell their business. 

Click Here to: Read full article on Automotive Buy Sell Report website

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Interview - Key Issues Impacting Dealership Succession Plans

Check out Dan Schneider's Interview on Car Business Today where he discusses key issues impacting your dealership's succession plan. 

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Interview - Why Your Dealership Needs a Succession Plan in Place

Check out Jeff Faulkner's Interview on Car Business Today where he discusses why your dealership needs a succession plan in place. 

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Family Business Issues - I Did Not Like You at 22

I recently met with the son of a client that I had not spoken to in a couple of years. It was somewhat of a surprise as I frankly did not think I would ever meet with him again as a prospective successor. We had initially been introduced when he was 21, a fresh college graduate and a new employee at my client's business. Neither he nor my client had taken my advice that he work elsewhere prior to joining the family business. Sonny was newly married and Dad did not want him to struggle as a common law employee; working long hours, being criticized for his size and not being able to travel with the family on vacations.

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