Blog

Moving chairs can present itself for various reasons, including those from within and outside. And it’s more than just moving furniture! It takes open communication, defined governance, and sometimes external expertise to navigate the complexities of interrelated, personal, and professional dynamics. Ideally, family harmony, relationships and the Business unit survive the move and continue to thrive! 

• From within, examples include retiring members, promotional ambitions, or others wanting a different role.  Deaths, marriage, divorce and births and changing values and aspirations of each new generation can also play a part.  

• Externally, the business environment exerts continual pressure for change, and innovation that can require dramatic change to how and by whom the Business is managed and run. The key is to see change as an opportunity rather than a problem, threat, or obstacle. 

To be successful, a family Business must be prepared, equipped and skilled to respond to both internal changes and external Business developments. It’s a balancing act! If too much time is spent dealing with pressing and sometimes disruptive family issues, the risk is not giving enough attention to the Business, its stability and future.  

8 Key Strategies for Moving Chairs  

1. Establish clear governance – creating a formal structure (Family Council, Board) is the framework for a strong Business unit. They can differentiate between Business operations, family issues, and ownership matters. This distinction helps separate and prevent emotional connections from clouding business decisions. Good governance underpins a strong Business unit. 

    

2. Define roles & responsibilities – Review the Business structure and related positions required. Then, articulate clearly the scope and responsibilities of each role, existing positions, or if new ones need to be created. Ensure these support the Business Plan, structure and objectives. 

3. Schedule a Meeting - start the conversation with formal meetings, a planned Agenda with the opportunity for everyone to have a say. Importantly, this is about supporting open and frank discussions where family members can speak without fear of damaging relationships. If needed, engage a mediator or independent facilitator to support fair and open dialogue.   

4. Professionalize the Business – Develop and adopt guidelines, policy & procedures for recruitment purposes.  When considering moving chairs, ensure family members meet the same qualifications and performance standards as external hiring.  This supports best practice and best outcome for the Business enterprise. 

5. Embrace change - this is not adopting change for change's sake, but is about acknowledging the world is a changing place. To stay competitive, new ideas and ways need to be given due consideration. For example, a Business founded in the 1960s was in a different time and era. To stay successful, a Business should invest in its younger generations. They are valuable resources and allowed to contribute, add their skills and experiences to the future success of the Business. Drawing on the strengths of all will build a stronger, more united family enterprise. 

6. Seek external advice – engaging independent, non-family related consultants or experts can be crucial to providing neutral advice. They can also give specialized knowledge that may be lacking internally. Additionally, they can act independently, offering a fair process during often difficult discussions.  

7. Succession Planning – Early planning can help in making the transition to handover smoother and easier. The plan should address both ownership and leadership succession, identify potential candidates, and offer supporting mentorship and training. 

8. Blackburn Accounting – your Family Business Specialists. We offer solutions to the following matters: Succession Planning, Financial Structures, Strategic Planning, Resolving conflict, Retirement & Estate Planning, and more! Contact us today to help build your successful Business.