Having a long-term vision is important to the success of any business – otherwise how do you know where you’re going and if you’re even on the road that will take you there?
A long-term vision essentially sets out your aims about the type of company you want to be and where you’re going. It’s what keeps you on track when you’re setting the short and long-term goals and helps you navigate through periods of change.
This sort of planning is probably even more important to the family business, especially if you’re looking to create a legacy you can pass down through the generations.
While large corporate entities will probably survive regardless of who is at the helm at a given time, a family-run firm could easily live and die with the first generation if some thought isn’t given to succession planning.
That means thinking about how the company might look in 10, 20 or even 50 years’ time and giving consideration to the aims, motivations and capabilities of the family members who could be running the show at each stage of the company’s journey.
Hopefully, those involved in your family business will share a commitment and passion to ensure it does survive from one generation to the next, and that’s half the battle. Having that long-term vision defined and written down can help keep this in focus as important decisions are made across the generations.
Creating a vision statement
If you’re the founder of a family firm, or currently at the helm, a vision statement is a good place to start in planning your legacy. This will give you the foundations upon which to build your business, prepare for the future and plan successions.
Writing a vision statement mainly comes down to what you want your business to look like, what you want it to achieve, the purpose for its existence and the values which underpin it.
This is often an evolving process and something you can share with all members of your organisation which will hopefully serve to inspire and motivate the whole team.
Here are some examples of vision statements from some of the world’s largest companies.
Ikea: “To create a better everyday life for many people.”
Nike: “Bring inspiration and innovation to every athlete* in the world. (*If you have a body, you are an athlete).”
McDonald’s: “To be our customers’ favourite place and way to eat and drink. We are committed to continuously improving our operations and enhancing our customers’ experience.”
Succession planning
A well thought-out long-term vision will hopefully become engrained in company culture so that it underpins any succession plan and the inevitable changes in leadership and direction that follow.
Having a succession plan is key in a family business, no matter its size. Who’s going to take over when you retire? This could involve identifying potential heirs, considering their strengths and weaknesses and figuring out what their life goals are and how this could align with the needs of the business at different stages in the future.
Succession planning should involve a formal and written plan, with rules around what will happen, who is intended to take over and what skills they require for the job. That way potential heirs can start their training and development early on in their careers, aware of what they are aiming for.
Hopefully this has given you a good starting point, but if you would like more information, or help with your succession planning, you can contact ActionCOACH for expert advice.