A $20 million manufacturing company was transferred to three siblings when their father moved west. The siblings and their spouses made all the decisions. As expected, very little could be accomplished, but the company had to grow because it now had three families to support. The families decided they needed a business plan and diversification strategy.
Relative Solutions’ Direction:
Using our Relative Solutions method, we helped set up a new business structure, which departmentalized the company’s sales and marketing, operations, finance and administration, and human resources divisions. Sales are up 20 percent and diversification can now be considered.
We helped the families clarify the rights and responsibilities of ownership and distinguish the differences between ownership and running the company. We also addressed issues of compensation and appraisal, which led to the establishment of a Board of Directors. Over a two-day assessment, we examined sibling conflicts and spent individual time with each family to clarify their values and philosophy. The in-laws developed new relationships, which had suffered as a result of the sibling conflicts.