Taking the reins at a successful family business

Background

Walford Timber had a main operation in Ross-on-Wye manufacturing and selling wood products to the building and construction industry, tradesmen and the general public, and a second outlet in Cheltenham selling to both trade and the public. It was a successful family-run business, established in 1945, with 25 staff and a turnover of around £4 million.

The transition of a family business to the next generation can be a stressful time for the person stepping down, who wants to see the business he has built succeed and flourish, as well as the person filling his shoes, who feels the weight of expectation on his shoulders.

George had been working there since 2000, and always knew he would take over from his father, Gerry, when he retired.And when Gerry – who inherited the business from his father and founder Herbert Smith – stepped down, George called on Nigel to guide him through the transition.

Results

We had to closely examine the business, looking at where the profit was coming from and whether any parts of the business needed a change of emphasis.

George and his core team were introduced to the ActionCOACH 90-day plan, in which priorities for the Quarter – in marketing and sales, cash flow, customer service, and staff development – were identified, targets set, and results analysed. The team was encouraged follow the mantra of Plan, Do, Review.

Through face-to-face meetings and telephone conferences I coached George for more than three years, teaching him the dos and don’ts of running a business, helping him to understand the business he was taking over, and putting checks and measures in place so that he could see exactly what was going on in the business.

As a result, George’s ability to make decisions and analyse the business improved, and I supported him when he was looking to invest in new technologies and innovations – changes that have made a real difference to the profitability of the business.”

I also helped George to analyse the cost and investment of an innovative new wood-drying kiln, which put the company at the forefront of timber preservation. The £250,000 kiln dries wood to a moisture content of 28 percent – making preservatives more effective as they are forced deeper into the wood.

Nigel made me an MD rather than an employee

When my father stepped down from running the business, I called on Nigel to help me through the transition. I wanted someone to evaluate my role as an MD,” said George. “Nigel helped me to understand different aspects of the business: budgeting, forecasting, time management, the marketing strategy. He reassured me that it was okay to free up time to look at the business – working
on the business, rather than in the business, as he would say. And he taught me not to be afraid to delegate. Without a doubt, he made me an MD, rather than an employee. I would recommend his services to anyone… and I have done!

George Smith – Walford Timber