Unveiling Risks to Continued Success
The chairman of a family-owned company took over control when it had been foundering badly. Since his turning it around, it had a proud record of achievement, including high profitability, up-to-date technology, low turnover, high morale and a well-internalized attitude towards quality. The chairman, somewhat skeptically, challenged us to see if we could help them become even better.
We identified that, though doing well, the company had a number of features characteristic of previously successful companies that subsequently went out of business. These included a non-participating board, a functionally imbalanced top team, a weak finance function and a heavy investment in a project that called for know-how unrelated to the company's core skills.
Our organizational diagnosis revealed significant needs related to the company's current phase of growth were not being addressed. We developed and guided the company through a strengthening plan which targeted structural and process changes, hiring a new financial controller, retaining IT consulting firm, and coaching senior managers. We also coached members of the family on the delicate issues surrounding succession planning.
The company avoided previously unrecognized risks and continued its trajectory of success based upon increased management breadth and depth, increased delegation, and other tailored organizational arrangements. The chairman acknowledged that our interventions had strengthened his company significantly, much to his surprise. He also resolved important issues related to his young son succeeding him.
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