Planning
Some CEOs want to plan strategically for growth (59%), others for an exit (19%), while still others want to focus on making the company easier to run or bringing the next generation into the business (20%). All of these transitions; growth, exit, transformation or generational succession, require specific types of planning with each of the different outcomes in mind. Each of them, however, benefits from predictable cash flow and profitability.
Talk to us about the Vision for your American Dream and let us help ensure the likelihood of it being fully realized. It starts here within these distinct phases; Discovery, Deep Dive Analysis and Executable Plan.
PathFinder Group will:
Deliver a report that examines 18 value drivers, your company’s standing within its industry and the gap between estimated current value and potential value based on that standing.
Identify “Red Flags” posing a risk to your company and blocking growth.
Quantify the contribution to equity value that resolving each “Red Flag” issue will make.
Develop, collaboratively, an Executable Plan that you use as a road map for allocating resources and tackling problems with measurable ROIs whether your goal is growth, exit or succession. This sets you on the path to what we call the 3 Dimensions of Business Growth:
Predictable Profits & Cash Flow
Predictable Growth
Predictable Equity Value
According to Ernst & Young, the greatest predictor of long-term success is year over year profitable growth. We would argue that growth then is linked to and benefits each of these planning goals. Embedded in growth are all of the other determinants of success; customer satisfaction, employee engagement, systems, scalability etc. Getting there starts with planning.
Does the next generation want to lead the family business one day? Seventy (70%) percent of family owned businesses fail to make it through the second generation. By the third generation eighty-eight (88%) percent will have failed. Given the high failure rate for family owned businesses as they move from the founding generation to the 2nd and 3rd generation, how have you addressed succession planning to increase the odds of their success? What can you do? We can help.
Your preference might be exiting the business without succession but did you know that eighty-five (85%) percent of businesses listed for sale fail to close? That’s right, sellers discover the business is not worth what they thought it was and can’t finance their retirement. Exit planning is critical and in most cases will benefit from a multi-year process. We can help. We do that!
Family owned businesses maintain control best, when armed with solid plans, intentional cultures aligned with the mission, clarity of purpose and an unambiguous vision. The combination of these elements produces an unimaginably sustainable competitive advantage.
Company Culture
Most leaders would agree that culture has an extraordinary impact on everything a company does. Since that’s true, doesn’t it follow that it’s far too important not to be intentional about it? We think so and we help companies do just that.
We offer two options to help you develop a strong high performing culture intentionally.
The Standard Edition is designed primarily for companies with fewer than 50 employees and gives you all the tools necessary to successfully implement our program on your own at a monthly rate that is surprisingly affordable. It even includes unlimited phone support from an expert implementation specialist to help ensure your success.
The Custom Edition is designed for larger companies and is a fully-facilitated process led by an expert certified consultant. By scheduling a free consultation today, we can help you write fundamental behaviors tailored to your company, establish the appropriate rituals, conduct all rollout sessions onsite (or virtually) and personally guide you through every step of the process. This edition also includes the powerful mobile app and our vast library of teaching content.
Leadership Training And Development
85% of the businesses listed for sale ultimately fail to close. They fail to close for a variety of reasons but one of the dominant ones is linked to the lack of leadership depth. This makes the business an asset that is not transferrable. The business is almost entirely dependent on the seller and the seller’s relationships or revenues are concentrated around a few customers. Addressing these hurdles begins with developing your bench strength.
When you work with PathFinder Group we will:
Help you articulate the core competencies required of leadership at every level within your operating environment.
Work with you to define your goals for developing current and future leaders.
Individually meet with each leader to help them develop their personal leadership plan.
Provide coaching to reinforce the goals and clarify the leadership principles being developed.
If you want to exert more control over the ultimate transition from your business you need to understand that buyers are buying your team and its ability to grow the company with new resources and added guidance, so no one would argue that leadership is unimportant. The skills of leadership are basic to overcoming the inertia that naturally prevents a company or project from moving forward.
The challenges of leadership are many and the more complex the operating environment the greater the challenges.
The role of leadership in determining sustainable family business success is well documented. Organizations with quality leaders and a clear vision are easily distinguished from those with ineffective leadership. But how do you build a pipeline today with tomorrow’s leaders--young staff who have the competencies needed for competing in a changing market? How does one develop leaders?
Successful leadership can be developed and improved. The five principles found in Kouzes & Posner’s work, The Leadership Challenge, form the basis of our work in this field.
We’ve actually used this framework to create a millennial leadership plan to identify and develop tomorrow’s leaders today.
Process Improvement
There are two ways to increase the profitability of your family business: drive top line revenue and wring out inefficiencies that add unnecessarily to costs. Most companies focus on the former at the expense of the latter. But it isn’t a binary choice. Every dollar of identified waste falls right to the bottom line and adds to company’s value at whatever multiple fits your industry. Save $500,000 in costs within an industry that pays multiples of 7 times EBITDA and you’ve just increased your enterprise value by $3,500,000.
PathFinder Group will help your family business:
Identify the Problem through our “Discover” tool uncovering the “Red Flags” posing the greatest risks to your company’s growth.
Analyze the Problem and provide that analysis in a detailed report.
Evaluate the alternatives available in correcting the problems and make specific recommendations.
Implement then test recommendations.
Standardize successful test findings.
Your family business operates in dynamic environment where competitive forces might be as close as across town or as distant as an overseas operation. When leadership fails to develop the best in people, processes, and product or service quality, competitive advantage wanes and margins shrink.
PathFinder Group can pinpoint the red flags inhibiting your growth in sales as well as those adding to the costs in your processes. Our process improvement consulting experts will assist you in reducing these unnecessary costs adding immediate value to your business.
Other Services We Offer Include:
BOARD GOVERNANCE
It is true that most family businesses do not have formal boards with outside directors. We think this is a mistake. The best boards are diverse boards and help the executive team “see around corners” by bringing different and informed perspectives to the conversation. That is why we support education provided by Private Directors Association.
PathFinder Group will:
Clarify Board Strategy and Objectives.
Create a useful Board Agenda Format.
Deliver a Board Skills Matrix: Need vs Have.
Develop a Succession Roadmap.
Provide a Board Accountability Scorecard.
Good board governance is less a burden than it is an opportunity for creating a competitive advantage. Intelligently structured boards provide an important element of accountability and perspective for business management and protection for shareholders, whether those shareholders are family members or not. Not since Sarbanes-Oxley has the need for sound governance, risk and compliance (GRC) practices been as important as they are now. Whether addressing sexual harassment, diversity equity and inclusion (DEI), cyber security, marketing, internal financial controls, compliance with industry regulations, or accessing new markets, good boards make good business and reduce risks.
Well composed boards also provide important opportunities for mentoring up-and-coming leadership within the family business. They help build credibility in heirs among more seasoned non-family members of the business.
BUSINESS CONTINUITY
How dependent is your family, the families of your employees, and the community you live in on the success of your business? If you’ve never really thought about the ripple effect of a catastrophe on all those who depend on you, COVID-19 has certainly brought that notion into clearer focus. Insurance is helpful but not all disruptions are insurable. What’s your responsibility in managing this risk?
It’s a weighty issue but one that others have struggled successfully with before you.
PathFinder Group will help your family business:
Evaluate the current state of your company by examining 18 value drivers (9 macro-economic, 9 operational), your company’s standing within its industry and the gap between estimated current value and potential value based on that standing.
Identify the “Red Flags” posing the greatest risks to your company’s growth and make appropriate recommendations.
Develop a plan for implementing solutions that manage the risk inherent in the scenario’s management identifies.
Implement, or assist management in implementation, to maximize accountability.
Schedule system tests of selected recommendations.
Business continuity is so important that the Centers for Medicare and Medicaid (CMS) have required healthcare providers in seventeen (17) categories to have fully developed plans in place or face stiff penalties and cessation of reimbursements for services provided.
BUT I’M NOT IN THE HEALTHCARE BUSINESS, YOU SAY!! Is the survival of your business any less critical?
Business Continuity is a proactive plan to avoid and mitigate risks associated with a disruption of operations. It details steps to be taken before, during, and after an event to maintain the financial viability of your business. Disaster recovery is “continuity’s” reactive cousin--a plan for responding only after an event.
This process, the result of scenario planning, is a strategy created with a recognition of the potential threats and risks facing a company. The process ensures that personnel and assets are protected and able to function in the event of a disaster.
GENERAL BUSINESS MANAGEMENT CONSULTING
Abraham Lincoln is quoted as saying, “Give me six hours to chop down a tree and I will spend the first four sharpening the ax.”
Preparation and planning are both important but sometimes growth in a company or changes in the competitive landscape prevent us from being as prepared as we can be. Sometimes growth outpaces an owner’s ability to read the signs and make the best decisions. Sometimes we’re just too close to the action and it takes analysis from another objective and competent set of eyes to see clearly what’s right in front of us.
Our approach is to:
Discuss your Goals and Vision for the Company.
Evaluate the current state of your company by examining 18 value drivers (9 macro-economic, 9 operational), your company’s standing within its industry and the gap between estimated current value and potential value based on that standing.
Identify the “Red Flags” representing threats to your company.
Analyze and report our findings in a written report.
Based on those findings, develop a plan around the recommended course of action.
Provide management expertise in overseeing the implementation of the recommended course of action.
Drive revenues and profitable growth
Consider hiring Pathfinder Group as a fractional consultant capable of analyzing, planning and implementing a course of action to jumpstart your company’s profitable growth at a fraction of the cost of a full-time employee. All the benefits of a professional you need without the risk in long term commitments that come with a recruitment effort.
We provide that fresh set of eyes with the collective wisdom of over 110 years of operating experience.
OWNER'S REPRESENTATION (OWNER’S REP)
Did you know that eighty-five percent of capital improvement projects suffer from missed deadlines, budget overruns, and poor communication? Owner’s Representation by an Owner’s Rep is the solution.
Owner’s Representation is the administering of a capital improvement by an experienced professional in the development world. The real estate, design, and construction industries have their own languages, timelines, costs, and expectations.
PathFinder Group will:
Act as your comprehensive and accountable advocate on the job.
Manage the entire process for delivery of services.
Provide daily updates with weekly reports.
Deliver your project on time and within budget.
While operating as an advocate, an Owner’s Rep stresses the value of mutual success in managing risk. This ensures the entire team is working toward a common goal for the benefit of not only the Owner, but all parties involved. This "win-win" philosophy allows the team to rally around a problem to solve for the mutual benefit of the project and the consultant/contractor team.
Trends in development and construction are leading to leaner, faster models of delivery. An Owner’s Rep lubricates the process, bringing development experience and specialized management to an executive team. The ROI for this position is in reducing risks and costs associated with design and construction overruns and missed deadlines.
Succession and Exit Planning
Does the next generation want to lead the family business one day? Seventy (70%) percent of family owned businesses fail to make it through the second generation. By the third generation eighty-eight (88%) percent will have failed. Given the high failure rate for family owned businesses as they move from the founding generation to the 2nd and 3rd generation, what have you done to increase the odds of their success?
Your preference might be exiting the business without succession but did you know that eighty-five (85%) percent of business that are listed for sale fail to close? Exit planning is critical and in most cases will benefit from a multi-year process. We can help.
PathFinder Group will:
Determine if the next generation is ready and if not, how best to position them for success.
Assist you in developing a custom plan around your succession or exit goals.
Work with your current advisors to affect a comprehensive approach to accomplishing your goals.