The success or failure of any business will depend on a series of variables related to its management. This leads many to seek methods and strategies to professionalize their operations aiming for continuous growth. In the case of family businesses, many tend to bring in experienced executives who contribute their knowledge to reshape processes and boost the brand in their segment – something that can be entirely beneficial for this goal, as long as certain precautions are properly understood.
Today, about 90% of companies in our country are family-owned, according to IBGE data. Of them, 60% aim to expand their operations into new markets, along with 51% who want to launch increasingly better products and services, according to other information shared by PwC. Such ambition is normal to be seen in any entrepreneur at some point in their journey, and in many cases, it ends up being the turning point in their understanding of the importance of professionalism in relation to these achievements.
Typically, there are three major motivators for this professionalization: when the company finds itself in financial difficulties and sees this process as a way to avoid closing its doors and restructure itself economically; by the entrepreneur's own decision when thinking about the succession of his business, understanding that his heirs may not be adequately prepared to take over his position; or in the desire to carry out a merger or acquisition, where the arrival of an executive is extremely important to ensure this procedure is successful and responsible.
Regardless of the event that generates professionalization, the arrival of this talent will represent significant changes within the business ecosystem, creating a previously non-existent space that needs to be properly prepared so that it can assume its responsibilities – which also need to be clearly discussed and understood between the parties so that there are no obstacles due to lack of communication.
A common obstacle in this process is some entrepreneurs' reluctance to give up their tasks for this new talent. This is something that cannot exist in the decision to professionalize the business, as it will be necessary to grant and delegate a large part of its responsibilities to the executive. After all, your role will be strategic for competitive prominence, and without the proper space or autonomy to perform your duties, the necessary plan to boost the brand will have difficulty coming to fruition.
Many of these executives end up accepting this challenge in search of a redefinition of their careers. Something more, where they can contribute with their expertise, knowledge, and in this way, feel useful in building a successful brand. This requires them to adopt a humble attitude in their behavior, understanding the position they will assume and valuing unity with the entrepreneur and all members of that environment.
Boards are excellent spaces for these entrepreneurs to occupy, in the role of information provider, so that they can continue to manage their businesses while leaving the executive with the responsibility, in itself, of managing the company.
It is a complex dynamic, which reinforces the need for detailed planning, including the definition of the role that will be played by the executive, avoiding mixing it with those of the businessman; and a generous dose of emotional intelligence on both sides – so that the businessman knows how to delegate and leave certain tasks, and that the executive understands his position and how far he can go to achieve the stipulated objectives.
There are many questions, but all are valid and essential to ensure there is no doubt about what is expected from each of them. Because, if there is no flexibility from both parties, what is the point of deciding to professionalize your company?
