Establishing and accompanying governance entities in the family firm, such as board of directors, advisory board, and a well-defined management chain, while addressing family interests and needs, to ensure professionalism, efficiency, and optimal implementation of business strategy.
At the point of establishment, an overlap is created in family firms between the ownership circle, the management circle, and family circle. Usually, this overlap proceeds to exist for many years on, as an undisputed tradition, although at some point it ceases to serve the business interests of the firm and reduces its ability to successfully cope with new challenges.
To solve the tension between the business interests of the firm and its traditional governance structure, a significant organizational change is required.
Therefore, after becoming deeply familiar with the firm’s activity and operations, with its organizational structure, and with its organs, and after defining the firm’s strategic goals, I redefine, together with relevant firm members, the organizational and managerial structure of the firm.
This usually involves defining a new division of roles, as well as a new reward system. Such a step ensures decision-making processes in the firm will be structured and also in line with strategic business goals and with the skills and capacities of its various managers and directors.
Simultaneously, I strive to establish new governance entities in the firm, such as an advisory board and a board of directors, which will assist in leading the company to new achievements and to growth. The new entities will be composed of trained and skilled professionals, guided by strategic vision, who will be recruited from inside the family, and if needed, also from outside. In their new position, they will be responsible for examining and shaping the firm’s strategy, as well as for supervising its execution and the managers’ performances.
The re-organization process and the establishment of new governance entities in the firm is based upon continuous and effective dialogue with firm members, to ensure business interests are met, as well as family needs. In certain cases, I will offer my services as a director in the firm to better promote both business and family interests.
