Business Mentoring

Because of the confidentiality observed in assignments we do not seek or provide testimonials from clients. With more than 300 assignments over 20 years here is a selection of outcomes achieved through Business Mentoring and further examples of successes can be provided.

Assisting Generational Change by Business Mentoring:

Example 1

A Widow who inherited a diversified Bus and Transport Business on the death of her husband had appointed a son to be the General manager on a Salary Package plus Bonus arrangement which had never been documented.

At 84 and still involved in the Business on a daily basis she was aware her two daughters and another son (who had benefited from her largess) were becoming jealous of the rewards received by her GM son without recognising the long hours, ‘on hand’ approach he had provided over 20 years.

We provided her with

	An Agenda for a Family meeting in Melbourne
	Brief details of Business results achieved over the last 10 years
	A summary of Financial Assistance she had given to Family Members
	A summary of her wishes she proposed for her Will

and the result was we were able to Mentor the Business Transition from one Generation to the next with the satisfaction of everyone.

We have often seen apparently "seamless" generational changes in a business which still requires some 'hand-holding' whilst the new Owner, in a particular case the son of the founding parents, became accustomed to being both Boss and Owner. It occurred with a prosperous family in the Wholesale and Retail Meat Business when the parents decided to sell the operating business to one of the children.

We handled the succession steps and the family transaction (see our website www.succession.com.au) but the son felt that some post-sale support was necessary through our Management Development Program. He quickly instituted preparation of monthly management accounts, something that had never been done before as aside from cash, it was only year after year-end results that profits were known! We also assisted funding the sale process and arranged there be no personal bank guarantees by the Son and his Wife as new Owners.

Aside from better control of business operations, there were three key outcomes from our "short-term, intense mentoring":

	The bank agreed to significant extra lease financing for new equipment, because we prepared a Business Plan prior to sale.
	The new owner was persuaded to take out life insurance to the value of 12 months overheads or full level of borrowings plus 12 months pre-tax profits (which happened to be similar $ amounts).
	Primarily as a result of our mentoring assistance, full-year profits have trebled, and continue to increase!

A successful second generation business owned by three brothers had decided, through a Family Retreat which we co-ordinated, that two sons and a daughter out of a large family group should lead the business in the third generation - we call them Active Family Members. As one brother had no children involved in the next generation, another had a son and daughter, and the third only a son, there were many matters to be addressed for the continuing success of the business. These included:

	Management standards (see Article 5) - because the three brothers were "old style" who ran it "their way"
	The need for a Management Development Program, both internal and external, to educate the next generation on disciplines required in modern business - too many believe "learning on the job" will provide adequate education which is not the case
	Concern by the third generation Passive Family Members (not employed but entitled to a share of the business as part of their inheritance) that their siblings and cousins would not be as committed to the business as their parents.

The appointment of the external Business Mentor was the link between the "old guard" and the "new team".