Direction and Management and Bottom-Line Performance
January 11, 2017
In the pursuit of prosperity, and for some, survival, it is hard to exaggerate the impact of Direction and Management on bottom line performance. With commercial demands increasing at staggering pace, and the economy and the market often getting the best sound bites when explaining results, it is vital to empower management as a force for positive bottom-line impact which:
Denies the economy and market undue control
Isolates the true and proportionate causes of shortfall
Distinguishes reasons from theories
Rescues the controllable from the inevitable
For family businesses juggling both family and business priorities management standards and performance is both a sensitive yet crucial issue, and addressing it requires some ground rules in empathy and objectivity. First, this is often more a matter of role, not competence, until proven otherwise; and so we need to reveal and remove the obstacles to securing management in its proper role and contribution. Secondly, targets and other key objectives are often the constant victims of failing to realise full management potential; and so this standard is really non-negotiable.
Unique challenges to securing this benchmark can arise from: the different routes individuals have taken to management including, but not exclusively, entrepreneurial and family businesses; confusing management terminology; assumptions of existing control; management roles diminished by questionable priorities; and even the common misconception that bottom-line performance is the accountants job. Managers also often work under adopted roles without opportunity to understand and embrace accountability for commercial and other key performance.
Taking care to merge family support with business support family businesses can greatly benefit from simple strategies, initiatives, and tools to secure performance management.
Billy Andrew - Family Business Solutions Ltd.
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FBS worked with both generations of our family and the board of directors to help us develop a Family Constitution. This now helps guide us in many areas of importance to the family and the business. Theres a lot of work involved in creating a constitution and it was essential for us to have the right information and advice to ensure that ours would last for a long time.
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Martin Stepek, Chief Executive, Scottish Family Business Association
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Our planning for the future had become stuck in lots of technical detail and it felt that we were not making enough progress. The way FBS went about their work guided the family firmly but sensitively through the process of making key decisions; the big picture ones that then make it easier to deal with the detail. Their process for doing this kind of work is markedly different from the way other advisers operate and we can vouch for the advantages of getting both generations involved in the process.
Morris Hamburger Searchlight Electric Ltd
I want to thank George Stevenson of Family Business Solutions for his help on all fronts. He made a complex family issue very straightforward, providing solutions to our problems, bringing them to a very acceptable outcome whilst taking account of the emotions at play and the interests of everyone involved. I know that in the weeks and months ahead that all parties will be secure in the knowledge that there will be fair treatment and the company will never be under threat. Thank you once again for bringing that to this company and our family.
Chris Stockwell, Director, Stockwell Ltd
I finally realised that unless we could first address family issues we would never solve our business problems. Through contacting the Scottish Family Business Association, I was put in touch with Family Business Solutions. I cant speak highly enough about the contribution from FBS.
Over the last 3 years, they have clarified our shared purpose as a family and a business. Profitability has increased substantially. Thanks to FBS we have in place Governance and Management structures that are fit for purpose and a next generation that are better informed, understand the vision and shared purpose for Hendersons and are clear about what part they will play as future owners of the business.
Family Business Solutions was asked to advise on constituting the family interests in a much-loved landed business. The prospect of greater financial success, and the passing of interest through the generations, required a more formal structure. It was a long, detailed and sometimes tense process -but FBS guided us through it with great skill, patience and discretion. Without that guidance, it would not have happened. And now the family governance is on a completely different level.
Artordinsh Estate company Ltd and Raven family