Family-owned businesses are different and this difference is due to the family component.
The potential impact this has on the management and ownership of the business is paramount, hence this should be understood and effectively managed.
Some of the key challenges family-owned businesses face includes; resolving conflicts among family members who are in the business, formulating a succession plan and developing strategic business and retirement plans.
The focus on this article will be on succession planning and how important it is for the continuity of the business. Succession planning is the process of transitioning the management of the business to the next generation of family members through effective coaching and mentoring.
The coaching and mentoring process can be broken down into six stages. The first would be pre-coaching needs analysis and planning whereby the exact need and degree for executive coaching and mentoring is identified.
Secondly, it would be data gathering/key stakeholder discussions for business appreciation and executive appreciation. This would include understanding the business strategy and the broader business context in which the executive would operate. Plus key business initiatives directly relevant to the executive and how the executive’s role would fit into the overall business strategy.
Thirdly, it is goal setting and development of coaching plan whereby the executive and coach would agree upon specific results that best reflect the organisation’s business objectives. The assessment of coaching will be customised, considering the needs of the executive and the norms and culture of the organisation.
Fourthly, the implementation of the coaching plan takes place whereby the executive will be developed in the context of organisational needs. The coaching objective is to maximise the executive’s effectiveness and his/her contribution to the organisation.
Penultimately, measuring and reporting results where progress is measured against goals, and is updated to incorporate the executive’s changing capabilities and the organisation’s evolving priorities.
And finally, it would be the transition to long-term development which will include identifying the future areas of focus and handing off the development plan to existing top management to take it forward.