Success or failure of any business will depend on a series of variables related to its management. This makes many seek methods and strategies for professionalizing their operations aiming at their continuous growth. In the case of family businesses, many often bring experienced executives who contribute their knowledge to reshape processes and leverage the brand in their segment – something that can be completely beneficial in this objective, as long as certain precautions are properly understood.
Today, about 90% of the companies in our country are family-owned, according to IBGE data. Of these, 60% aim to expand their operations into new markets, along with 51% who want to launch better products and services, as per 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, ends up turning the key in their understanding of the importance of professionalization in the face of these achievements.
Usually, there are three main motivators for this professionalization: when the company is facing financial difficulties and sees, in this process, the way out to avoid closing its doors and to restructure economically; by the decision of the entrepreneur himself when thinking about the succession of his business, understanding that his heirs may not be properly 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 responsibly and successfully.
Regardless of the triggering factor of professionalization, the arrival of this talent will represent significant changes within the business ecosystem, creating a previously nonexistent space that needs to be properly prepared so that they can assume their responsibilities – which also need to be clearly discussed and understood between the parties to avoid any hindrance due to lack of communication.
A stumbling block often encountered in this process is the reluctance of certain entrepreneurs to relinquish their tasks to 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 their responsibilities to the executive. After all, their role will be strategic for competitive advantage, and without the proper space or autonomy to carry out their functions, the necessary plan to leverage the brand will have difficulties coming to fruition.
Many of these executives end up accepting this challenge in search of a redefinition of their careers. Something beyond, where they can contribute with their expertise, knowledge, and, in this way, feel useful in building a successful brand. This requires a humble attitude in the way they conduct themselves, 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, as providers of information, so they can continue piloting their businesses while leaving the executive with the actual responsibility of managing the company.
It is a complex dynamic that reinforces the need for meticulous planning, including defining the role to be played by the executive, avoiding mixing with that of the entrepreneur; and a generous dose of emotional intelligence on both sides – so that the entrepreneur knows how to delegate and let go of certain tasks, and the executive understands their position and how far they can go to achieve the set goals.
There are many questions, but all are valid and essential so that there is no room for doubt about what is expected from each of them. After all, if there is no flexibility on both sides, what is the point of deciding to professionalize your company?
