Business Transition across generations – the challenges & opportunities!

A large commodity trading enterprise in the Middle East was founded and successfully run by a first-generation entrepreneur for over a decade and is a leader in their area of business. The business was at a juncture, where leadership change to the family’s next generation was underway. Inai was commissioned to manage this generational transition of business leadership:

This generational transition needed to ensure that the business:

  • Did not lose the significance and value that it had built over a decade
  • Did not lose the vision and values the enterprise stood for – with its customers, partners, and associates
  • Continued to ensure that the associates are passionate about their work, while the feel secure with the leadership change
  • Does not encounter transition conflicts
  • Incorporated new ideas and goals to craft a medium-term growth plan with the new leadership

The key challenges encountered were:

  • The founder was not sure how such a transition needs to be managed professionally
  • The new next generation leadership was raring to take over and implement several of his learnings from the business schools
  • There were no right or wrong positions, but it involved ambitions, emotions, deep experience, and a global perspective!

Our approach:

  • Dialogue with all stakeholders to understand “as is” situation
  • Understand perspectives and priorities – using our customary and trusted diagnostic sessions to gain the confidence of all involved
  • Conducted workshops with transitioning and the incoming leadership – ensuring that all the existing values and relationships were leveraged and incorporating the new generational ideas and vision.

Over a 12-month period, we successfully completed the transition in a smooth manner and integrated the teams effectively. Our deliveries to the client included:

  • Recast of the vision, mission, and values for the organization
  • Redefined strategy for the organization including new products and geographies added to the portfolio – this turned in a first-year increase in revenues of over 20%
  • New organizational design with deeper focus to support the new strategy of the business
  • An integrated role for the transitioning leadership for a period of 2 years
  • Minimal disruption to the team with none of the critical senior resources leaving the organization

This resulted in a smooth leadership change without diluting the core values inculcated by the founder incorporating new ideas from the new leadership. The new leadership delivered a Year over Year increase in revenue of 20% and profitability of 15% and an aligned the organization to deliver on the new strategy