Case study: Enabling family succession

Overview: $30m company in the civil construction industry. AltusQ facilitated some tough succession conversations which resulted in a re-engaged management team and 50% profit growth.

Issues addressed

  • 30-year family owned business, with the founder generation still in control.  Next generation in the business, but frustrated, causing Board conflict
  • Significant opportunities in the market. However, cashflow issues due to strong recent growth and some unprofitable projects.
  • Financial systems not able to support decision-making
  • Team feel ‘micro-managed’, with directors overseeing most operational matters
  • Poor communication across all levels of both businesses resulting in feelings of unease and uncertainty in the workforce.

Actions implemented

  • Worked closely with Group’s external accountants
  • ‘Hard’ succession discussions at the Board level facilitated, with a project plan created and implemented
  • Vision and strategic priorities agreed, documented and communicated group-wide
  • Significant restructuring and functional project with 2 business now being managed as one
  • Cultural values clarified, documented and rolled out.

Results achieved

  • Succession plan now enacted, despite significant energetic and financial hurdles
  • Next generation now firmly in charge, with a strong senior leadership team in place and fully in control
  • Founders being paid out
  • Massive turnaround in staff engagement. In the most recent survey, net promoter score jumped from +5 to +42 in 16 months
  • Over 50% profitable growth achieved.

Business succession issues are a challenge we've dealt with many times over the years. Click here to find our about our QTransition program.