Maybe your children don’t have burning interest in your store or business. Or worse yet, maybe they came into the business for a while and discovered they don’t have the abilities or stamina for the job. Now what? You find yourself in a dilemma. Do you sell your business? Should you keep the business to keep them employed? Do you keep the business for your grandchildren? How can you do this without working until you are 80?
If you want to maintain family ownership, but have no children stepping up to the management plate, your solution may be a professional manager — a person to run your company adeptly and diligently, but not take active ownership. If a professional manager sounds like a viable solution for you, here’s how to get started.
Job Criteria – Before you begin your professional manager search, develop a list of skills and attributes your successful candidate should possess. As you develop your list, consider leadership style first and foremost. What style would work most effectively within your existing corporate structure? Autocrat? Team coach? Will the manager’s role be highly internal, external, or a combination of both? In most instances, this professional will be expected to perform the owner’s current job duty emphasis. So, what is the owner’s current emphasis? Sales? Financial? Technical? How much actual industry knowledge would the candidate need? If you found someone sharp from outside the industry, could you teach them industry specifics?
Finding the right person – Once you have clearly defined criteria, you must find matching candidates. In many instances, the professional you seek may already be on staff. If not, you’ll need to search outside. Since you’ve already made an assessment of industry knowledge needed (or not), you’ll know how to recruit.
If you don’t need industry experience, the pool of potential candidates is virtually limitless. Consider using an executive search firm to find candidates. Clearly and specifically communicate your candidate criteria so you don’t waste their time or yours with non-qualified applicants.
The interview – Once you have a few candidates, begin the interview process. Honesty about children, ownership and expectations is critical. Without the lure of ownership, an incredibly lucrative bonus structure based on company profitability will excite good candidates.
If other family members work in your business and plan to stay after you leave, they should be actively involved in the interview process. Buy-in from your family team is critical to future success.
With clear criteria, an ample pool of candidates, honesty and integrity during interviewing, and an involved family interview team, you’ll make the right selection!
