Client:
A family office, investing in various businesses
Our role:
Our role was initially as coaches for NextGen and aimed to identify appropriate ways for them to join and develop within the family business. We later worked on a new ‘Owners’ Strategy’ with the two generations.
Country:
Poland
Setting the scene
This project supported a family business built by owners in the 1990s. The business was run from its establishment by the founders and managers who are not family members. The NextGen are business school graduates who’ve some experience working in other private companies. The family jointly agreed it was time for them to join the family business and develop to work towards future owner leadership roles.
There was a knowledge gap on how to approach this succession and what would be the best development path. Additionally, the diversification of operations, as well as limited experience resulted in a lack of self-confidence and represented a blocker to successor engagement. As a result, the NextGen’s succession was continually postponed to the frustration of both generations.
How we helped
We started with individual interviews with each family member and key managers. This enabled us to get to know business goals and needs, family aspirations and individual challenges. We then started coaching processes with the successors aimed at identifying the best ways to join and develop within the family office.
NextGen then joined the business in operational roles. This allowed them to get to know how each of the portfolio companies operate and what investment processes look like. NextGen gradually moved towards management and owner roles. Once they felt they knew the company well enough and had their own ideas and opinions, we started working on an Owners’ Strategy, which spelled out the details of succession and roles and responsibilities, with the two generations.
“We work with family businesses to help to smooth transfer of ownership to the next generation of owners and leaders. This includes partnering to establish a legal structure to support the family business's unique needs and the unwritten rules that govern family interactions in a business context. We can also assist in defining managerial roles for family members, complementing these with external experts where necessary to bring in fresh perspectives and specialised knowledge. We work alongside family businesses to make succession processes transparent, feasible and perceived as fair by all stakeholders, particularly the inheriting generation.”
Piotr Woźniakiewicz, PwC Partner, Tax and Succession Planning AdvisorImpact and potential
Through a bespoke Owners’ Strategy, the founders and successors agreed a new, cross-generational vision for development. This has a greater focus on environmental, social and governmental (ESG) aspects of the business, including the establishment of a charity.
NextGen’s growing knowledge and experience, together with a new direction for further portfolio development, resulted in their rising engagement and self-confidence. NextGen also took over management of some of the projects.
Ultimately, the family business has gained new capabilities and perspectives, new areas of investment and a new charitable angle to how they do business. The company is currently run by two generations, with the founders gradually stepping back and NextGen taking over key roles.
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