We are family.
Family Business Advisory Services
We recognize the importance of family businesses. We know that family-owned businesses are the primary creators of jobs, economic growth, and wealth, with over 90% of business operations being family-owned.
As most families know, blood ties are strong - but there is frequently conflict, resentment, expectations, disappointment, rivalries, and entitlement that can impact family and business dynamics.
Video: Family Business
Running a family business comes with unique challenges that go beyond standard corporate strategy. In this video, Larry Goddard explores the complexities of managing a family-owned company, from operational execution to dealing with internal family dynamics. While family businesses must tackle the same strategic and performance issues as any other organization, they also face additional hurdles such as succession planning, generational leadership transitions, and voting control.
These factors can either create a legacy of success or lead to significant internal conflicts that threaten the future of the business. One of the biggest struggles in family businesses is knowing when and how to transition leadership. Older generations often feel the younger generation isn’t ready, while the younger generation is eager to take the reins. Additionally, ownership and decision-making power can become fractured among multiple family members, leading to disputes that impact business performance.
Larry shares insights on how family businesses can create structured succession plans, resolve internal conflicts, and ensure long-term stability. If your business is family-run, understanding these dynamics is crucial to sustaining growth across generations. Learn how to navigate these challenges effectively and build a legacy that lasts!
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I've worked with over 500 companies,
and I've yet to find companies
that cannot improve
if they do the right things.If they identify the right strategy
and they implement the right execution,
almost every business can improve
and improve significantly.My name is Larry Goddard.
I'm the CEO of the Portland Group,
a consulting firm based in Cleveland,
Ohio, that works with companies
to improve their performance,
profitability and value.A high percentage of the clients
that we work with, family businesses
and family businesses
are really a unique breed
because they have all the issues
that non-family businesses have,
which is figuring out strategy
and operational execution.But then you have to throw into the mix
family dynamics, which in many cases works
very well,
but also in lots of cases creates
huge drama and problems.And so when we work
with family businesses, we help them with
both their business strategy
but also their interpersonal dynamics.One of the biggest issues in family
businesses is the concept of succession.
When does the older generation back out
and when do they hand it over
to the younger generation?Generally,
most people in the older generation
feel that the younger generation
is not ready for it,
and the younger generation can't
wait to take over.Another issue is who has voting control?
A lot of times in family businesses,
you start out with a
a founder generation one.
That founder is focused on
building a business
and providing for his immediate family.40 years later,
that family has grown to 15 to 20 families
that are living off that business
and two issues arise.Number one, is the business
producing enough profit and cash flow
to now fund the lifestyles
which sometimes can become extravagant.
Of 20 families
and who ends up in control
because founder usually controls
all voting stock.But when that founder either
retires or dies,
the founder has to decide
who to pass that voting stock onto.
That in of itself creates
huge complications.Let's say the founder has four children
and decides to give 25% of the
company to all four children.
You potentially create
a stalemate and factions
and those factions can change over time
based on people's needs and situations.So there are huge complications
in family businesses that require,
in many cases, the help of an outsider.We work with many family businesses.
We help the family resolve
not only their business issues,
but also their interpersonal conflicts,
and help them try to prioritize
what's best for the business
and the family.
Succession planning & counseling
Parents who build a successful business have demonstrated their courage, hard work, and sacrifice. Most have a dream of seeing their children (and even grandchildren) continue the business they have created. While this can be a relatively simple process, many times it’s not, and a family business consultant is needed.
Parents and children don’t always agree on the timing, the process and the respective roles and responsibilities that are key to business succession. Parents may not be ready to leave, even if their children have proven themselves as capable leaders. This is understandable – it’s not easy to commit everything to build a business for decades and then walk away. In some situations, a structured and respectful transition is sometimes a desirable path.
Parents may also feel their adult children still require more business “seasoning”, and sometimes one child or family member may be more competent than others. Other family members involved in the business (cousins, in-laws, etc.) may feel excluded or present their own concerns. Family members who don’t work in the business can also generate different expectations and conflicts. Even if a business decision is clear, the personal and family fallout could be significant. Engaging a family business advisor can help the family and the business navigate these feelings while focusing on growing the business.
Parents will want to be assured that their financial future is secure. Some may want to ensure that there will always be some space for them at the executive table. Others can’t wait to walk away and pursue other passions. Every situation is different and must be approached in a manner that is best for the family and the business.
Our Family Businesses Team
Empowering executives and businesses to reach their full potential with tailored growth strategies and expert guidance from our dedicated team.
Preparing the next generation
Parkland can help families navigate these challenges. We coach parents on the best manner and timing for a transition.
As experienced family business consultants, Parkland mentors and coaches the next generation on how to assume leadership in a way that is in the best interests of the family. We help chart a strategic path that will allow the next generation to stand proud of their own accomplishments, while at the same time keeping what is best of the business’s tradition and heritage.
We also coach non-family executives on how to succeed if they are brought in as professional management or in leadership role for a family business. It can be difficult and challenging for non-family executives. Finding ways to help them feel included, valued, and motivated is vital.
Developing appropriate guidelines for family member employment and governance structures is a key part of the consulting service we provide. This frequently includes setting up effective boards of advisors or directors.
Helping ensure the family business has the right growth strategy, profitability, and cash flow to fuel business growth and family needs is very important to family success. As the business and family grow, the need for strong cash flow becomes even more important. As experienced family business consultants, the Parkland team helps families and family businesses succeed.
