Hartford Business Journal

38 Hartford Business Journal • October 28, 2019 • www.HartfordBusiness.com FAMILY BUSINESS AWARDS 2019 1 Santini Living 3 2 Platinum Prep 3 3 Granny's Pie Factory 3 4 Zlotnick Construction Inc. 4 5 Richards Machine Tool Co. 4 6 5 Churches Brewing 5 7 West Hartford Coworking 2 8 Giuseppina's Italian Bakery 2 1 Albert Bros. Inc. 3 2 Tile America 5 Tips for creating a family business succession-planning strategy By Eric Cormier I n any company, long-term success requires strategic, forward-looking decisions from executives. However, in a family owned business, planning for the future can be particu- larly complex. By proactively creating a plan for future gen- erations of lead- ership, family business owners can help ensure their organiza- tion endures for years to come. Below are four ways family busi- ness owners can create a succession- planning strategy that aligns with organizational values, and positions the company for continued growth. Identify leaders Early in the planning process, leadership should focus on identify- ing candidates who are well-suited to lead the organization in the future. However, while skills and experi- ence are important factors in any staffing decision, family business owners should also consider wheth- er these candidates have a passion for the organization and a desire to be involved for years to come. By having open and honest con- versations with family members and potential candidates early in the process, key decision-makers can better determine who may be the best fit to lead the company in the future to help avoid unneces- sary training down the line. Underscore values Family owned businesses are often built upon a strong set of guiding principles that are funda- mental to the organization, its staff and its operations. However, while these values may ring true to current leaders, it is important to ensure future genera- tions share the company's vision and are committed to protect and promote it moving forward. A well-defined set of organiza- tional values can be a guiding light for leaders as they navigate times of crisis and other important decisions. By aligning succession plan- ning with fundamental principles, family business owners may feel more confident in the future of the company and its shared values. Bring in help It is natural for work and person- al lives to overlap when managing a family owned business, particularly when planning for the company's future. While inevitable, these situ- ations can create tension and strife both in and out of the office. When worlds collide, it may be helpful for business leaders to bring in outside help. Whether the family chooses to enlist a third- party lawyer, financial advisor or HR consultant, external voices can provide an unbiased, expert view- point on complex situations and avoid hurt feelings. This approach can help family members see issues from a new per- spective and may lead to solutions that better position the company for future success. Formalize the plan After agreeing on an approach, management should formalize a plan of action that can be shared with internal teams and family members. Whether executives choose to create a handbook or roadmap, the document should provide a compre- hensive view of plans for the compa- ny's future as well as any contingency plans that have been developed in case of emergency. This approach helps to ensure both current and future leaders are aligned on the direction of the company. After finalizing the plan, manage- ment should consider sharing it with all family members who have a stake in the business to avoid questions or conflict. Succession planning may seem like an intimidating process, par- ticularly in a family owned business. However, leadership can address the issue head-on by proactively invest- ing time and resources to identify potential leaders, underscore core values and develop a strategy for the future. Eric Cormier is manager of HR services with Insperity, which provides outsourced HR. EXPERTS CORNER Eric Cormier 2019 Connecticut Family Business Award finalists Family members employed Category Rank Company by company Family members employed Category Rank Company by company Less than 25 Full-Time Employees 26–75 Full-Time Employees (cont'd.) 26–75 Full-Time Employees 76-plus Full-Time Employees Source: Hartford Business Journal 3 National Graphics Inc. 3 4 Saybrook Home 6 5 Baronet Coffee Inc. 4 6 Century 21 Clemens Group 3 7 Zavarella Woodworking Inc. 3 8 Mattern Construction 2 1 Connecticut Spring & Stamping Corporation 4 2 Phoenix Manufacturing Inc. 4 3 Turbine Controls MRO 3 4 Key Cars 2

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