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The Institute for Family Enterprising Blog brings you the latest in events, research and thoughts from within the nexus of family business and entrepreneurship. We will also use authors and findings from our major research arm - the STEP Project.
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 Succession Mindset and Strategies
I love looking at the history of family businesses, and the great stories of their founding entrepreneurs seeking opportunity. But the sad truth is that when we think about family businesses and succession, words like conflict, feud, nepotism, and failure come to mind, rather than opportunity, vision, growth, and wealth creation. Why is it so hard to have positive entrepreneurial thoughts about succession? Succession can be a great time to think about new businesses, new products, new markets, or new opportunities. Let me suggest a few changes in the succession mindset and strategies to help you move toward the new:
First, succession discussions should focus on the business and the family as a platform and pool of resources for new opportunities. Business owners need to talk about succession as a plan and strategy for creating new streams of wealth.
Second, think about succession as a change process for the whole organization in deciding which roles people will play, building new teams, planning for the future, and professionalizing structures and processes. Don't think about picking a single person as the successor. Not only will there be conflicts, emphasizing on a single successor will also make the organization egocentric and internally focused.
Third, succession should be a family conversation, not a senior generation decision. Succession is a business issue, not a retirement or death issue. The family should have regular family meetings at which the future health of the business is openly discussed. Secrecy, silence, and self-absorption need to be banned from the succession process.
Fourth, realize that tension and conflict surrounding succession are normal and healthy, not an indication that things are going to blow up. Succession is a very complex, emotional and scary process. Acknowledge that, and manage the process by addressing these issues openly, not by creating a conspiracy of silence. A facilitator may be able to help ensure that the bold, opportunistic spirit that started your business is part of your succession planning, too.
Posted by Timothy Habbershon on June 12, 2008 14:31 | link
Gentle Giant in Innovation
Gentle Giant Moving is the dominant regional mover around Boston, particularly because of its ability to think and act innovatively. President Larry O'Toole says that Gentle Giant's innovation is deceptively simple: Don't copy the accepted - or unacceptable - practices in the moving industry. Consider a few common business phrases, and how Gentle Giant has renewed them.
*Customer-Driven. O'Toole's innovative thinking about his company stems from his radical application of this phrase. Moving is a stress-filled experience. But Gentle Giant begins with the premise that customers deserve a stress-free move.
*Team-Based. Unlike others in their industry, Gentle Giant's movers do not get their pay docked when they damage furniture. Instead, as a team, movers review the breakage on a job and talk about how it could have been avoided. Gentle Giant invests heavily in training every employee to be a leader, take responsibility, and care for the customer.
*Cultural Consistency. An innovative culture is built by making sure that even the everyday habits of the business are innovative. Gentle Giant movers run--they don't walk—to or from the truck when they're not carrying something. When employees join, they are taken to the Harvard football stadium and asked to run up each section of stairs in order. That's not only to see how physically fit they are but also, as O'Toole says, to see whether they can finish what they start without whining.
*Leadership Buy-In. Gentle Giant's top managers and team leaders are committed to perpetuate the Gentle Giant approach and hold others accountable for their actions. There is no compromise on the values and vision within Gentle Giant - even to make money. Gentle Giant is now sending their team leaders to start branches in other cities. In a rough-and-tumble industry, O'Toole has proved that you can be a Gentle Giant.
Posted by Timothy Habbershon on June 02, 2008 13:46 | link
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