Business consultancy for sensitive decisions

If there is not yet a point of contact within the company

Many business issues arise long before they officially become a topic of discussion.

Perhaps initial thoughts are being given to succession planning without the family, senior management or staff being aware of it. Perhaps the question arises as to whether responsibility should be handed over – but not yet to whom or to what extent. Or a decision affects people within the company so directly that an open internal discussion is hardly possible at first.

It is precisely at this early stage that an independent and confidential point of contact is invaluable.

We help to structure your thoughts, run through different options and highlight potential implications – before initial considerations turn into concrete decisions.

Business consultancy for succession and business handover

Business succession is rarely just an economic or legal matter. It simultaneously concerns:

• the future of the business
• the role of the current business owner
• potential successors
• the family and shareholders
• managers and key personnel
• Employees and corporate culture

This is precisely why succession processes can be difficult.

The question is not just:

Who will take over the business?

Equally important are questions such as:

• What responsibilities do I still want to take on in future?
• Can I, and do I actually want to, let go?
• What role should the successor take on?
• Is the person in question suitable for the role?
• How will the relationship between the outgoing entrepreneur and the new management change?
• When and how will managers and staff be involved?
• What conflicts are foreseeable?
• What happens if the originally planned solution does not work?

HOLSTEIN:CONSULT helps to consider these questions at an early stage and to bring together the human, organisational and personal aspects of a succession.

Clarifying one’s own role after the handover

One of the most difficult issues in a business handover often concerns not the business itself, but the business owner.

Anyone who has built up and run a business for many years often relinquishes not only responsibility but also a significant part of their own role.

That is why the following should be clarified at an early stage:

• How much responsibility do I actually want to hand over?
• Which tasks do I wish to retain?
• Do I wish to continue in an advisory capacity?
• What decision-making powers should the new management have?
• What will stepping back mean for my day-to-day life?
• What new role or direction do I want to pursue?

An unclear role for the outgoing business owner can also significantly complicate even a well-prepared succession plan.

We therefore provide support not only with the question ‘How do I hand over my business?’, but also with the question:

‘What role would I like to have afterwards?’

Preparing for difficult decisions

Entrepreneurs regularly have to make decisions whose consequences extend far beyond the immediate circumstances.

For example:

• Can a key executive help drive the company’s next stage of development?
• Is a family member actually suitable as a successor?
• Should responsibility be shared amongst several people?
• Does a key person need to be replaced?
• How can an existing conflict be resolved without destabilising the company?
• When is the right time to announce a change?

In such situations, it often helps to first reflect on the issue from outside the existing system.

Together, we consider:

• the initial situation
• the people involved
• interests and interdependencies
• possible responses
• the risks associated with different options
• Long-term implications for businesses and entrepreneurs

This creates a solid foundation for the actual decision.

Considering people, roles and organisations as a whole

In business consultancy too, HOLSTEIN:CONSULT adheres to a key principle:

Business decisions can rarely be viewed solely in economic terms.

For example, a succession plan may be excellently laid out on paper yet still fail if roles are unclear or expectations are not articulated.

That is why we consider three levels together:

People

Personal goals, motivations, relationships, expectations and potential conflicts.

Role

Responsibilities, decision-making powers, future tasks and boundaries.

Organisation

Structures, leadership, succession planning, key positions and impact on the organisation.

It is only from this overall picture that a solution emerges which not only works in theory but is also viable in practice.

Typical process for business consultancy

1. Confidential assessment of the current situation

The first step is to openly sort through ideas and questions – even if no concrete decision is yet required.

2. Identifying options

What approaches are fundamentally conceivable? What consequences and interdependencies arise in each case?

3. Examining people and roles

Who is involved? What interests and expectations are at play? Which roles would need to change?

4. Preparing for a decision

We develop criteria that can be used to assess the various options realistically.

5. Planning communication and implementation

Once a consideration has become a decision, the next question arises: Who needs to be involved and when – and how will the matter be communicated?

Depending on the situation, further support may then be advisable.

Which business owners is this consultancy service suitable for?

This business consultancy service is aimed in particular at:

• Owners and managing partners
• Entrepreneurs in family-run businesses
• Entrepreneurs facing succession or the handover of their business
• Entrepreneurs who wish to change their own role
• Shareholders facing difficult decisions or periods of change
• Entrepreneurs who wish to reflect on a sensitive issue outside the company first

There is no need for concrete succession planning to have begun yet. Early, as yet unformed considerations can be particularly useful before internal expectations arise or decisions become public knowledge.

Distinction from other consultancy services

Entrepreneurial consultancy is aimed at the entrepreneur themselves and their strategic, personal and organisational issues.

Depending on how things develop, further services may follow:

• Change management consultancy, if a decision gives rise to a major change process
• Employee consultancy, where individual key personnel need to be developed
• Management training, where new or existing managers need to be prepared for changed responsibilities
• Team development, when leadership or team structures change
• Career counselling, when the entrepreneur’s personal professional future comes more to the fore