Formulating a strategic vision for your family business involves creating a vivid depiction of your envisioned future. In essence, having a vision means possessing the capability to contemplate, visualize, and strategize for the future you aspire to reach.
A life vision, on the other hand, is akin to a vivid portrait of the ideal life you wish to experience, not just occasionally, but each and every day.
vi·sion
/ˈviZHən/
noun
1. The Ability to think about or plan the future with imagination or wisdom.
This ability to strategize for the future, using imagination and wisdom, is what constitutes the core of vision development. But what are the main elements of a vision? Research on visionary leadership suggests that visions have five characteristics: a picture, a change, values, a map, and a challenge (Nanus, 1992; Zaccaro & Banks, 2001).
It is evident that applying a clear vision to personal, professional, and organizational assignments is of great value. However, many fail to proactively align themselves with this vision and end up wandering aimlessly in a desert of doom. To achieve success, it is vital to work towards alignment from the outset.
Being a visionary leader holds immense value, especially in small or family businesses. However, it's important to distinguish between a visionary leader and a head-in-the-clouds dreamer. Balancing the art and science of leadership requires skill, both personally and professionally, and it's a complex process that many choose not to undertake.
A visionary leader is like a pilot in a helicopter, hovering above the chaos and distractions of daily life, with a clear view of the bigger picture. They have the courage to stand alone if necessary, and the integrity to engage with others authentically. They reflect on their strengths and weaknesses and use their vision to guide them towards success.
One of the significant advantages of having a clear vision is the ability to identify hidden trends that surround us. This is crucial for success, and it helps one to stay ahead of the game. So, take time to discover the hidden trends and use them to your advantage.
You will go nowhere if you cannot clearly envision where you want to go. That simple. Distraction abounds around us – focusing on vision is your friend.
Like anything, everything has a process. Succession requires excellent strategic planning, disciplined implementation, sound reporting management, and great care. Add to this family, and matters become more complicated. Everyone must focus on the ball and, most importantly, care about the outcome. There are several high-priority items to consider and manage while developing a sound family business succession plan.
Change is often difficult for any enterprise, and internal and external forces can complicate family enterprises. Succession is complex at the G3 level as outside parties of influence become magnified and more diverse.
The statistics tell the story. The mantra is to be prepared and work to earn succession success. Many struggle with change, family and non-family members alike. Success is found by assembling all stakeholders and getting them on the same page. Collaborating and driving the mission together will enhance teamwork. Unified by a shared strategic vision, there is a far more significant percentage for success. Trust is required and must be earned by all. Missteps here can lead to failure.
Earning commitment is necessary for succession to work. The entire team must be on board. This can be a difficult time for many family organizations. Not every team member will make this journey. They may begin the motions, but in the end, they may not be committed to the organization's next phase. That is okay; no square pegs in round holes on this one.
Here is a valuable process to consider in family business succession.
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Formulate and share a viable vision of the future in which the founder is no longer in charge of the organization. |
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Select and train the founder's successor as well as the future top management team. |
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Design a process for power to be transferred from the current generation of management to the next. |
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Develop an estate plan that specifies how family assets and ownership of the enterprise will be allocated among the founder's heirs. |
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Design and staff the structure required to manage the change, including a family council, a management task force, and a board of directors. |
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Educate the family to understand the rights and responsibilities that come with the various roles they may assume. |
If the planning process outlined is insufficient, additional considerations for success exist. Below are a few to consider to get the ball rolling.
Similar to most processes, there are phases to be aware of. Here are the basics to reference what stage you may be considering or are currently in. It is not easy to get yourself geared up for the change and succession that will take place, and the entire team must get on board and be willing to make succession a reality. Consider the following:
JRCI Phases of Family Succession
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Pre-succession phase Preparation takes place Planning & grooming occur |
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Engaged Phase Change occurs: old truths lose validity People seek new truths commitment develops |
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Post-succession phase Balance of transition happen Has an effect on how people react Organization performs |
To wing succession is to fail before the start. Building the correct team to assist the process is the key to success—trust matters deeply. Build a team you trust and a team that has you as the priority.
Establishing a strong framework for family business succession planning is crucial for success. This process requires a strategic approach and expert guidance to navigate the complexities involved. A trusted BAIL team, consisting of a Banker, Accountant, Insurance Agent, Lawyer, as well as a business coach, can help keep the momentum going and support the culture. Going it alone would be unwise, but with the right team, success is achievable.