Recently, I had the opportunity to facilitate a strategic planning session for a family-owned business in Rome. Over the course of our discussions, the family successfully defined the business's vision and mission, aligning all family members around shared goals. The resulting strategic action plan focused on two crucial aspects. From a family perspective, the primary question was, "Why are we in Business Together?" Meanwhile, from a business standpoint, the theme centered around "Where do we want the business to be in 3 years and 5 years?" These simple yet powerful questions compelled family members, especially senior leaders, to embrace the concept of change, which is vital for a family business to remain competitive, grow, and thrive over time.
Embracing Change for Sustainable Growth
By recognizing the importance of change, the family business can position itself for continued success in a dynamic and ever-changing business environment. Change enables businesses to adapt to evolving markets, foster innovation, and sustain the family legacy across generations. With change as their rallying cry, the family also set their sights on sustainable growth. With a growth mindset, they established clear objectives and developed a roadmap to achieve them. Additionally, the integration of succession planning in the strategic game plan fostered family unity that will ensure a smooth transition across generations.
Strategic Planning is a Pathway to Your Legacy
Strategic planning is undeniably crucial for the long-term success and sustainability of family businesses. It helps owners understand and embrace "best practices" and core competencies among family members. Furthermore, it provides a clear vision and direction, ensuring all family members or branches in a multifamily setting are aligned toward common goals. By actively involving family members in the planning process, unity and commitment to the business's future are fostered.
Richard A. Harvey Jr. emphasizes strategic planning as a key to growth and sustainability: "In today's competitive and global corporate marketplace, strategic planning has become a valuable tool for companies balancing the interests of key stakeholders—shareholders, employees, customers, and community members. For middle-market family firms, understanding and implementing sound growth strategies is critical to achieving a competitive advantage and corporate sustainability, generating shareholder wealth, both in the near term and at a future liquidity event."
Advantages of Strategic Planning in Family Businesses
The advantages of undertaking a well-structured strategic planning process for family-run organizations are numerous:
a. The creation of a well-defined strategy.
b. Optimizing the use of resources.
c. Flexibility to adapt to changing market dynamics.
d. Effective risk mitigation by anticipating market volatility.
e. Encouraging innovation and supporting growth opportunities, ensuring competitiveness and relevance.
f. Improving decision-making by prioritizing initiatives that align with long-term objectives.
g. Enhancing effective communication within the family, fostering transparency and trust.
h. Bolstering financial stability by setting clear financial goals and monitoring progress.
i. Taking a long-term perspective to consider their legacy and impact on future generations.
Overall, strategic planning empowers family businesses to navigate challenges, seize opportunities, and thrive in a dynamic business environment.
To kickstart your efforts as business leaders in securing a solid future for your family-owned enterprise through a plan that works, I invite you to join me at W+B Advisory Group's upcoming event on August 19, Saturday, at the Crowne Plaza Manila Galleria. The event, entitled "Family Business Continuity: Ensuring a Fail-Proof Succession Plan," is made possible by Icon Executive Asia. I will be in the company of a global thought leader and Harvard Professor, Dr. Josh Baron, Alliance Global Inc. CEO, Mr. Kevin Tan, and JG Summit Group President and CEO, Mr. Lance Gokongwei. The seats are limited, so I encourage family business leaders to register by calling Marivi Estrada at 0977-835-5533.
By leveraging strategic planning, family-owned businesses can ensure continuity, growth, and success, passing on their legacy to future generations with confidence.