A Refrigeration Engineering Business (£600k Turnover)
A Refrigeration Engineering Business With £600k Turnover
A new Shareholder/Director came into the business to work with the 2 existing board members. After several years working well together, frustrations about the relative effort/reward contributions of the different partners were not adequately addressed. This resulted in a deterioration of the relationship between them. With 2 of the partners close to retiring age and the 3rd some 20 years away, the situation gave rise to different perceptions as to whether the business should be run for cash or long term value growth. The business was primarily being run as a lifestyle business for cash which was highly dependent on the Directors. Little long term value was being built into the business, causing concern for all of the partners – not least with the amount that any sale of company shares might generate for them in terms of retirement planning.
Our consultant spent time with each Director, individually talking through both the Personal Goal Setter Diagnostic and Stakeholder Alignment Diagnostic and helping them to crystallise what they really wanted out of the business in their own Personal Goals Statement. Differences in perceptions surfaced, with each now giving permission for an open discussion at a meeting of all 3 Directors. The divergence between how different Directors saw things and their respective goals was initially quite marked. Our consultant sensitively mediated the ‘sticky’ conversation and helped to clear the air. Over several meetings the tough issues were resolved and the partners began to address the fundamental issue of building long term value in the business for everyone’s benefit.
Issues that were not being dealt with and which were spoiling the team dynamics have now been dealt with and resolved. The partners have now agreed and committed to a much clearer plan, setting out in detail how they will develop the business to meet their long term retirement planning needs.