The document discusses succession planning for family businesses. It notes that only 30% of family businesses succeed to the second generation due to a lack of planning. The author advocates for separating family issues from business problems, beginning succession planning with a clear long-term vision, and identifying obstacles to that vision. The document provides a 9-step process for successful succession planning, including crafting strategies, restructuring ownership and management, defining roles, compensating family members fairly, and transitioning leadership over 3 to 7 years.

1. Copyright Jeff Haltrecht | family business advisor 2011
Family Business Succession Planning:
We are our own worst enemies

2. Every Business Must Be Sold
Either Internally Or Externally
‣ Gifting the business to
your children is a
Copyright Jeff Haltrecht | family business advisor 2011
recipe for wealth
destruction
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3. How Old
Are Old People?
‣ Old is someone 15 years your senior
‣ No matter your age, you still feel young...
Copyright Jeff Haltrecht | family business advisor 2011
‣ And your not ready to ‘stop doing’!
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4. Could We Say The Same
For Succession Planning?
‣ “Succession planning? That is
something I will think about
when I get older.”
‣ Still lots of time
Copyright Jeff Haltrecht | family business advisor 2011
‣ My kids aren’t ready yet
‣ Going to work until I die
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5. Some Of Us
May Be Thinking...
‣ “What would I do with
my time if I wasn’t
building this company?”
Copyright Jeff Haltrecht | family business advisor 2011
‣ “Will my children do the
work the way I do the
work?”
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6. 30%
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Copyright Jeff Haltrecht | family business advisor 2011

7. Why Do Only 30% Of Family Business
Succeed At The Second Generation?
‣ Poor training
‣ Lack of common vision
‣ Parent does not hand over de-facto control
Copyright Jeff Haltrecht | family business advisor 2011
‣ Compensation program
‣ Business is gifted vs. earned
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8. Are We Avoiding
The Difficult Questions?
‣ Taking the time to plan the
transition means having the
difficult conversations:
‣ Who will lead?
Copyright Jeff Haltrecht | family business advisor 2011
‣ When will it happen?
‣ How to compensate?
‣ What gets transitioned?
‣ Who has defacto control? 8

9. Would You Gift
The Stock Portfolio?
‣ Look at the business as
a wealth building
investment that
Copyright Jeff Haltrecht | family business advisor 2011
provides an ROI...
‣ If this was the view,
would you gift it?
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10. You Have A Choice:
Voluntary Or Involuntary Transition
‣ Our role is to replace
Choice! ourself at the point we
stop adding value to
Transition or Sell the organization
Copyright Jeff Haltrecht | family business advisor 2011
‣ Think of yourself as
the business’ steward,
instead of its founder
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11. Family Business Succession Planning
In 9 Successful Steps
1 Separate 2 Begin with 3 Identify the
people from end in mind obstacles
problems
6 Determine roles, 5 Rebuild 4 Craft strategies
accountability, structure on to overcome
Copyright Jeff Haltrecht | family business advisor 2011
responsibility paper obstacles
7 Compensate 8 Transition over 9 Three tools
family at market 3 to 7 years every family
value deploys
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12. Separate The People Step
From The Problem 1
Emotional Centre
•Empathy
•Support Wealth Centre
Ownership
Family •Stewardship
•Fair and Equitable
Copyright Jeff Haltrecht | family business advisor 2011
Management Wealth Engine
•Opportunity
•Competition
Source: The SuccessCare Program
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13. Begin With Step
The End In Mind 2
‣ What will the business
look like in 7 years?
‣ customers
Copyright Jeff Haltrecht | family business advisor 2011
‣ markets
‣ products
Source: The Success Care Program
‣ size
‣ structure
‣ people 13

14. Identify Step
The Obstacles 3
‣ What are the obstacles
preventing the business
from achieving the vision?
‣ Leadership skills?
Copyright Jeff Haltrecht | family business advisor 2011
‣ Resources (time, people,
capital)?
‣ Productivity?
‣ Ownership structure?
‣ Output capacity? 14

15. Craft The Strategies That Will Step
Overcome The Obstacles 4
‣ What are the 4 to 6
initiatives required to
move things forward?
Copyright Jeff Haltrecht | family business advisor 2011
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16. Rebuild The Preferred Step
Structure On Paper 5
‣ How does both the
ownership and management
structures need to evolve?
Copyright Jeff Haltrecht | family business advisor 2011
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17. Determining Roles, Step
6
Accountability And Responsibility
Dad/
Mom
‣ Put people in roles that
allow them to play to their
Mary
strengths, while developing
future leaders
Ken
‣ Give them freedom within
Copyright Jeff Haltrecht | family business advisor 2011
a framework
‣ Reward their efforts
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18. Compensate Family Members Step
At Market Value For Their Work 7
‣ Give them the
opportunity to buy into
the company over time
using their own earnings
Copyright Jeff Haltrecht | family business advisor 2011
‣ Provide a bonus for
delivering at the high
end of their target
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19. To Fully Transition A Business, Step
Plan On 3 To 7 Years 8
Cold Turkey Slow And Painful
Management by successor
Management Management
by founder by successor Management
by founder
On again, off again Interim Solution
Management
by successor
Copyright Jeff Haltrecht | family business advisor 2011
Management by
non-family CEO
Management
by founder
Progressive
Management
by successor
Management
by founder
Source: The SuccessCare Program
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20. 3 Tools Every Family Step
Should Deploy 9
‣ Owner’s Council
‣ Family Charter
‣ Family Foundation
Copyright Jeff Haltrecht | family business advisor 2011
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21. Will They Do The Work
The Way You Do The Work?
‣ No
‣ But make no mistake: they will work as hard.
Copyright Jeff Haltrecht | family business advisor 2011
‣ Just in a different way that plays to their strengths and vision
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22. What About
De-facto Control?
‣ Yes, you must give this
up too!
Copyright Jeff Haltrecht | family business advisor 2011
‣ Let them lead
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23. Gifting The Business To Your Children
Is A Recipe For Wealth Destruction
‣ Give your adult child a large enough sum of
money and ask them where they would invest it.
‣ If they say ‘in the business’, you know an internal
transition is possible
Copyright Jeff Haltrecht | family business advisor 2011
‣ If they say ‘no thanks’, sell the business outside
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24. Monetize The Value Created,
While Shaping New Realities
Starting fresh
never felt so
Copyright Jeff Haltrecht | family business advisor 2011
good!
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25. Lead With Your Entrepreneurial Spirit
While Accessing Breakthrough Solutions
the
A bout r!
a utho
‣ I believe being a trusted advisor
involves listening first. The more I
seek to understand your business and
what you are dealing with, the richer the
dialogue becomes. I have a friendly and
engaging work style that is balanced
between asking questions, challenging, and
Copyright Jeff Haltrecht | family business advisor 2011
providing solutions for you to consider.
‣ What I don’t do is make decisions
for you. Our conversations are designed
to stretch your thinking, for me to be a
sounding board, and most importantly, a
Jeff Haltrecht | family business advisor
catalyst for you and your company’s
growth.
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26. Treating You With Respect,
While Challenging For Better Performance
the
A bout r!
o
auth
Strategic
Thinking ‣ When applied correctly, values guide behaviour
Dev and set the tone for interaction between
Lea opment
Mod ness
eling
people. Here is what you can expect when we
el
ders
work together:
i
Exceptional
Bus
hip
Experience
‣ Treating you with respect
Copyright Jeff Haltrecht | family business advisor 2011
n M
ar
atio ke
‣ Challenging for better performance
ov tin
g
Inn
‣ Helping you be internally driven
Jeff Haltrecht | family business advisor ‣ Putting ideas to action
‣ Embracing change as the path to opportunity
‣ Communicating candidly
‣ Delivering results 26

27. A Safe And Private Place
To Have A Proactive Discussion
s
Pro duct
‣ Helping small to mid size business
Strategic Business Plan owners maximize wealth within
Build your business with powerful yet simple the company so that when you choose
strategies that add to company wealth
to sell or transition sometime in the
Business Growth Advisor future, the business is valued at the highest
Working one-on-one, we take a solid look at price possible.
your strategic plan, leadership style, and
Copyright Jeff Haltrecht | family business advisor 2011
management productivity, all with the intent of
helping you maximize value within the company
Succession Planning
Effective solutions for realizing business wealth -
so that the day you choose to transition or sell -
the company gets the highest price possible
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28. Have A Terrific Day!
Contact Information
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