Perhaps you’re a successful business owner who spent their life building a business as a legacy for their loved ones. On the other hand, you may be a second or third-generation shareholder worried about succession planning and how best to take care of the enterprise you birthed.
As desirable as this position may seem to an outside observer, navigating the complexities of running the business’s day-to-day operations, managing family roles and dynamics, and preparing the next generation of owners can be challenging for even the most competent leaders.
Add to that the fear and uncertainty of succession planning, wondering who is the best fit to take the reins once you are no longer willing or able to, and you have a recipe for disaster.
In this video, Sally Derstine speaks about how she has spent 30 years helping enterprising families deal with issues like these and much more.
Since family members usually serve in multiple roles, there is built-in complexity and conflict as they juggle competing needs and desired outcomes.
The traditional 3-circle model that identifies the business, its ownership, and the family as its key components has its uses but does nothing to solve issues around conflict management and succession planning.
To this end, Sally and her team have developed their 5 Mountain® Process, separating these three traditional elements into five governance teams. These teams work together to ensure clarity so your business can focus on providing value now and in the future.
This model has the family as the bedrock on which the business is given a solid foundation. And the management and the shareholder teams are added, two paths some family members may take. The last two Mountains include the Board and the advisor team, which complete the governance model.
These 5 teams and structures require nurture, improvement, and constant iteration to maintain their usefulness and effectiveness. Without them functioning effectively, your business could be at risk from internal and external threats that may not be clear now.
If you are concerned about the future leadership of your family business and family relationships, schedule a meeting with Sally and her team of qualified experts at the Delaware Valley Family Business Center today. You will learn just how valuable their 5 Mountain® process can be to your family and your business.