Why Planning?
A vision without a plan is just a pipedream!
It might be trite to say but every journey starts with a plan. This is an inescapable truth. Whether your motive is strategic to gain market share, succession to pave the way for the next generation, or to exit on your own terms, planning… proper planning is vital.
The other side of this planning coin is implementation. Why do 67% to 97% of companies with plans report failing to successfully implement those plans? According to Forbes, overly complicated plans and lack of accountability are two of the overarching reasons.
We have expertise in planning and believe the difference between the theory of a successful family business and its reality is the ability for your people to execute a strategic, succession, or exit plan that provides uncomplicated context for your vision with the means to make informed changes as conditions on the ground change and we learn things. Planning for the family business addresses two of those reported failings.
Data and your specific goals drive our process.
PathFinder Group uses a variety of frameworks matched to the overall planning goal. There are seven steps embedded within three phases. The Discover phase begins with a diagnostic tool that was developed at MIT and leverages Artificial Intelligence to measure 18 value drivers in every company; 9 of those drivers are macro-economic and 9 are operational.
Phase 2 is the design of an operational plan to close the gap between the current value and the value your plans dictate. We expand on the three primary challenges to profitable growth identified in the first phase and go on to identify all of the “red flag” areas that are preventing that growth. Additionally, we quantify the contribution to enterprise value that addressing each of these areas will contribute as you close the gap.
The final phase provides an executable plan for tackling each discrete problem area. This can include internal operational issues as well as external issues related to estate planning, de-risking assets, coordination of wealth management strategies to reduce the probability of plan failure, and more.
Together these tools and this approach provide an uncomplicated proven method for reducing risk and vastly improving the probability of your goals for family and business being more fully realized.
If your family-owned business is not doing these things, your vision may not be achievable.
