When families are in business together, the family system and the business system intermingle to create a new, uniquely complex entity.
In most family businesses, member values and dynamics significantly influence business considerations, creating a distinct set of family-specific responsibilities and compensation arrangements.
When families seek to hire leadership expertise outside their family, they frequently overlook personal and cultural dynamics that can have a significant impact on the hiring process, as well as the executive’s successful integration into their business.
Fulcrum helps families understand and resolve the unique challenges they face hiring and integrating an outside executive into their family business. Our proven, proprietary process surpasses traditional search services by offering a 100% success guarantee and providing ongoing consultative support through out the executive’s critical first year of employment.
Successful Hiring Is No Slam Dunk
The failure rate of newly hired executives is high. In the United States, approximately 40% of CEOs recruited for public companies leave within 18 months. The success rate of CEOs recruited for privately-held companies and family businesses is widely believed to be significantly lower. The Fulcrum Executive Search Model provides client with a 1 year, 100% success guarantee and lays the foundation for the newly hired executive’s success in year two and beyond. (Learn more in the Wigder Report.)
When it comes to managing a family business, the tensions and
challenges that families face can be traced back to stories of the mythical Greek Gods. Zeus’ father, for example, tired to prevent him from
being born so he could maintain control over the universe.
Zeus successfully rebelled against his father, but was then rebelled
against by his siblings and cousins who then had him reinstated when
they discovered that they could not govern the Universe without him.
As a leader, Zeus had a legendary temper and would throw thunderbolts when angered. As a result, his cousins jockeyed for his favor and were awarded jobs based on what they liked to do, rather than what the Universe required. And oh yes, Zeus and his wife did not get along very well and their children would often get caught in the middle.
Today, these stories help illustrate the challenges that families face managing and growing their business.