Handling generation change in a family-owned business is challenging. Recently, Flensby & Partners has been involved in such a process where we went beyond the role of Executive Search consultants. Our understanding of strategy and organizational development was equally important.
The client is a very successful company that has had a fantastic development since the beginning. It has identified a niche in a market with tough competition. Last year, the company participated in the draw of "Gazelle of the Year" and was awarded a recognized prize for "start-up" companies with positive development for 5 consecutive years.
In this process, the key challenge that Flensby & Partners met as consultants was that the management team and board consisted of the same entrepreneurs. In addition, the organization was very exposed after several years of strong growth. Furthermore, we found that the processes and routines were no longer in accordance with the size of the company.
Through close cooperation and fruitful discussions with our client, we agreed that the owners should cease being operative and rather focus on developing the company from a board position. A new management team should be recruited with the task to evaluate the company's routines and procedures and reinforce these, as well as develop the organization further.
The challenge of such a shift was to ensure that knowledge would be passed on and that the culture of the company would still be nurtured. But also on the other side, which was equally important, establish routines where the board has a respect for the new management team allowing them to work without too much involvement from the owners.
Through a well-established process, trust and focus, Flensby & Partners recruited a very high caliber CEO from one of the largest players in this market as well as a new Head of New Product Development. Since the beginning of May 2017, they are now working together with the board on this exciting challenge.
To find out more about handling generation change in family owned businesses, please contact:
Fredrik Torp, Managing Partner Norway, Flensby & Partners
Our Monthly Case Studies: