Running a business after the leader dies

From Cindy Carrasco, Washington

Many businesses face this issue of losing the main value of a company especially if that value is of the human element. Fortune for this business there were many details left behind that can be used for record as to how the company ran in the past up until the owner died. This is very important data due to it can be used to literally transform the company. This data is probably enormous and determining what will be pertient is going to be a task in itself but a well worth one. First of all the company is now ran by wife and the brother-in-law. Time to put their plans into action. First a re-structuring is necessary by either taking the current business plan that the husband had and re-structure it or create a new business plan because either way this will need to happen. The business plan is going to need a new mission and vision statement in order to take the company into the future and to leave it to the children. Communications a very important term do not lose it along the way. I have a saying that I learned from a Navy Chief when I was active duty. He made it a mission statement for our division I was in. Here is the statement: "The key to the drill is comms". Comms meaning communication. These are words to live by I have found. Second thing to take care of it the people who work for you. They are the backbone or the keel to your ship without it you will go no where. You talk of creating a board for the company. Think of implementing an employee to that board. This way keeps the employees apprised to how the company is functioning and they can also act as a liaison between the employees and management. Third meetings are fine great for the communication lines to keep open going both horizontal and vertical but remember keep the meeting to at least 1 hour long and have an aggenda. Time is always wasted at a meeting if there is no aggenda. Fourth, yes all management needs to be kept in formed to all ideas, plans, procurements and any other aspects that will affect the running of the business whether it is daily operations to issues that may happen every so often or just once. Necessary element for sure. Fifth, definitely solicit ideas and feedback from the employees they have been do the job a long time start listening. Create a bonus type program for the employee to participate in a program that will help in the areas of creating tools to improve the workplace. Sixth technology stay with the times as much as possible it is definitely here to stay. Seventh idea is to create a SWOT know your strengths , weaknesses, opportunities, and threats this will definitely aid in the business plan. There are a lot of business tools use them times are changing and the economy is what it is will need to take the risk and make the leap into the future and besure keep your eyes open may miss something if you don't. Good luck in your new business lives

From connie lopez

A lot of business owners are holding weekly meetings with key employees to keep the lines of communication open, and it is building better relationships too. It is actually a time together that is warmly anticipated.

From Walter Wise, Nashua, NH

Many businesses leave their value behind them and as such become just another company with a product – a commodity in a commodity based market and therefore, must reduce their price to be "successful". Pecard needs to differentiate themselves from their competitors, to put their value in front of them. An initial step would be an in-depth financial management, best practices, sales and marketing assessment, looking at the company as a client/customer would see them and done by an independent 3rd party with no ties to the business. Then they should develop a true strategic plan for growth going forward. And then CEO Coaching and consulting to help implement the action steps from the review and the strategic planning process.

From Glen Barringer,Colorado Springs,CO

Add to my previous post: RE: Michelle's concern that her position in the company "isn't rightly earned", she should make Phil a Full Partner. It was HIS family's business and it would be the ethical thing to do. Can't imagine that this move would do anything but help grow the business…

From Glen Barringer,Colorado Springs,CO

1. How can the firm's team work best together? (a) Include Office Manager Eric Schlag in the weekly lunch meetings. This makes good business sense, furthers communication and increases his 'investment' in the company. (b) Re-write the company Business Plan to reflect changes and new goals (c) Define and create a company 'Mission Statement' drawing upon input from ALL employees. Post it in conspicuous places around the plant and offices. (d) Have monthly (at a minimum) company meetings to provide financial updates and solicit ideas and feedback from employees.

2. Should Pecard focus on its private label or on a branded line? Both. The private label is its 'bread and butter' business and should be given top priority. As things settle more they should then put more energy and time into the Pecard-branded line by making connections to e-tailers such as Amazon, Coach, etc. Also, pump up their direct sales through their website.

3. Which marketing strategies will be more effective? Finding more distributors to carry their branded line. Lower profits per unit will be offset and surpassed by the increase in sales volume they will realize if they can find good distributors.

Also, I would recommend dropping the word 'Chemical' from their name and signage. In an increasingly environmentally aware business atmosphere, 'Pecard Chemical' can have a decidedly negative connotation. Maybe just a simple 'Pecard Products' or something similar.

From T. Brad Coil, Murray, Utah

One of the greatest things a business owner will ever accomplish is to plan on someday passing the baton–dead or alive. I am in the pension, emp. benefits and business owner consulting business, and I've seen everything in 20 years. There is no certain pattern of events, however there IS a pattern to the outcomes if no planning is done: damage and loss of opportunity. I wish CNNMoney would do a corollary to this story involving not a physical death of a business owner, but a "living death": the disability of an owner that damages the competency of a company. Especially a disability that prolongs to the point where the business must be sold, liquidated or passed down–while he/she is alive. Those events are truly frightening if there is no exact planning. A mature business owner/partner starts to consider all these things out of the gate, not when the company is aged. And I'm shocked at the passive invesors in the business who don't see these things coming. Oh, and by the way, a lot of written continuation plans can't be executed because of the poor, or lack of, planning in the PERSONAL estate planning of the business owner(s). Just a little observation.

From Tony Vignieri, San Diego, CA

This is a fascinating case-study and a prime example of how outside perspective can help a company survive troubled times. We had a situation similar to this come up within my company’s membership several years ago. I work for Vistage International, an executive coaching organization that brings groups of non-competing CEOs together in a peer group atmosphere to help process issues and find solutions. In an extremely unfortunate occurrence of events, one of our chief executive members was killed in an airplane crash. That member’s Vistage group, filled with other CEOs, stepped in and helped run his business for several months until the company was able to figure out the next step. The chief executives had their own companies to run, but in a time of need, they came together and successfully kept the deceased member’s company operating smoothly when it easily could have failed. Their expert advice and perspective helped the company leadership make key decisions that ultimately led to the success the company experiences today.

That’s just one of numerous examples that show gaining outside knowledge can have a huge impact on your business. Oftentimes CEOs are too close to their business to see the flaws. Vistage allows executives to step back and gain awareness and advice from other CEOs who have been though similar situations. To learn more about Vistage, please go to http://www.vistage.com/programs/vistage-programs.html