In most family-run businesses, enthusiasm and loyalty are in ample supply. But their informal cultures can sometimes prove an obstacle to continued growth with business processes becoming increasingly complex. H+C guided a medium-sized transport company to a professional structure in six months.
The transport company’s 200 plus staff work well together and are loyal to both the company and the family. There is a willingness to work hard, particularly at peak times. The SME has a sound reputation in the market, which is apparent from a growing demand for their transport services. Managing that well requires an adjustment to the organization, a natural process in family-run businesses. This one was led by H+C.
Market alignment
Analysis showed that the informal structure led to confusion about responsibility and agreements. In the past, short communication lines had been effective but the business processes had become too complex. Underlying the internal transition was the question: what are the customer demands of the transport company and how can the organization respond to those effectively?
Parallel approach
We handled the transition to an effective collaborative organization in a multipronged approach by tackling organization, HR and marketing policies. We drew up a detailed action plan listing all necessary steps including planning. One essential condition for this transport company was that the transition had to be completed before the peak season. That meant an implementation period of just six months, which was feasible thanks to a parallel approach.
We then got to work: adjusting the organizational structure, optimizing and recording processes, training the management team and organizing assessments for managers and key officers to identify their skills and development potential. We also built a modern job classification system with corresponding structured assessment cycle. To aid perception in the market, we applied for sector certifications confirming the quality of the adapted processes.
Effective collaborative organization
Competencies-based job profiles that include specific agreements on results and behaviour indicators make clear who is responsible for what and to who they are held to account. It is also clear which results are expected from everyone. With our help, this fine family-run business developed into a professional, effective collaborative organization equipped to better serve the market. The admirable family culture still plays a significant role in the new organization.
Extra tools
Change processes such as this one require even more expertise. Our talent management programme brings to light the employees’ talents, which can be far more useful for the organization when employed in the right positions. Using individual coaching sessions we promote personal and professional growth. A characteristic of family businesses is the emotional component. So to prevent any tension in the relationships between family members, we can, if desired, help the family involved to make clear agreements which are subsequently set down in a covenant. Our approach is people-driven and committed – we look to the future with respect for a past with which the owner/founder feels so connected.
Fast transition
We always start at the base. Once the organizational processes are in place and the joint core values and goals have been determined, we can build an effective collaborative organization able to realize its expansion strategy. By setting up a robust structure and rolling it out immediately, H+C is able to achieve fast and proficient implementation, suited to the dynamic of SMEs such as this transport business. That kind of transition is a wonderful process.
Would you like to know more about transition processes and support of family-run businesses?
Call Henk Hauptmeijer on +31 70 346 92 05 or +31 6 53 20 67 31 for more information and relevant references in the profit and non-profit sectors. Henk is a strategic consultant, a business administrator, organization specialist and founder of H+C.