Articles

Managing Change is Key to Success

In this article, the third in the series, we highlight the role of change in realizing success in your transitioning endeavours. Whether change is negative or positive, conflict of some sort always is a by-product of the process.

·        The key to a successful transition process is to ensure that you manage any conflict so that there is a positive result. Such approach will bring about even greater success in the solution. The question is, how to do this:

·        The common denominator in achieving success in transitioning is to proceed with a high degree of confidence and conviction. In that regard, we need to be confident both in addressing and managing the change and also in addressing and managing the conflict that results from implementing the change.

As professional advisors at Wolrige Mahon, we can help you acquire the confidence to manage changes that result from your business transition. As part of the process of change, most of us try to improve our lives and help our family and/or business partners do the same. Previously broken resolutions or promises can be set aside or resolved as part of the process of moving to a healthy transition. While it is true that most family businesses only survive for a couple of generations and that need not be the case when the right steps are taken to perpetuate the already proven successes and reputation of the enterprise. Empowering the next generation through mentoring is one important part of this process.

Now is the time to plant and nurture the seeds for growth to a bigger future.

The early summer often presents an opportunity for us to meet with clients. Whether to discuss financial or strategic planning, taxes or an estate plan, as professional advisors, we can take the time to lead clients through the steps to a future-focused approach to the family business. We can deal with some of the family issues, tax and estate planning strategies, and with wealth preservation concerns.

In arriving at solutions, the positive conflict approach is a vital tool. Shying away from troublesome issues will not ensure a solid future, whereas the use of controlled techniques such as family meetings and individual interviews will get you moving in the right direction.

However, you can’t steal second with your foot still on first. An over-used quote perhaps, but it highlights the problem of dwelling on the past instead of focusing on the future.

This is the premise of the Positive Conflict Model. YESTERDAY includes principles / values, relationships / history and moods / personalities. There is also TOMORROW which includes structure, common interest & facts.  The path to building a bigger future lies with TOMORROW. It begins with finding common interests among the stakeholders by asking questions such as:

·        Do we have the same vision for the future?

·        Do we have a process to realize that common interest?

·        Do we have a formal structure where people can communicate, make decisions and solve problems together?

·        Do we have clarity around the facts so we can avoid basing decisions on individual perceptions? Our perceptions are our reality, but are they correct?

There will be conflict for sure, but businesses that focus on the TOMORROW side of the model achieve something that everyone can relate to and will experience a positive result. Experience tells us that these businesses have a 70% chance of finding a go-forward solution.

Businesses which direct their energy towards trying to change the events of YESTERDAY are more likely to fail in resolving their conflicts. Whether the source of conflict is perceived differences in individual principles or values, an issue from the past that has never been resolved, or simply a clash of personalities, our refusal to cut the cord with the past will stop us from finding a positive going forward solution almost 90% of the time.

Business owners and their families therefore need to risk leaving first base behind if they ever want to get to second and eventually reach home.

Running to second with a good transition plan is not just about the transfer of the ownership of the business, but also is about the skills, relationships and reputation that have been built up over time.

Transitioning these assets and achieving a home run, requires communication. As professional advisors, we can assist you with this process using our SuccessCare Program.

Having read the above, many things will come to mind. Why not ask yourself if you are a candidate for a transition action plan? If you are interested in further discussions, give us a call and we can help you get the wheel rolling! Call Diane Friedman or Paul Gaster at Wolrige Mahon LLP for further information. Our telephone number is 604 684 6212.