A third-generation family business with 110 employees and annual revenues of €20 million had long been a recognised leader in its market. However, like many multigenerational enterprises, it faced deep internal challenges. Three active generations—each with different management styles, priorities, and expectations—struggled to align on direction, roles, and decision-making.
Despite strong sales and market leadership, the company failed to consistently realise profits. Internal disagreements, unclear responsibilities, and an outdated organisational model hindered the firm’s ability to grow sustainably.
Challenge
The business was experiencing classic multigenerational family-business symptoms:
- Conflicting views and priorities between generations.
- Lack of clarity around roles, authority, and decision-making.
- Absence of formal governance structures.
- Inefficient organisational design.
- Emotional pressure influencing business decisions.
- Difficulty maintaining discipline and focus.
The result was stagnation, internal tension, and missed opportunities.
Intervention: Strategic Performance Management + Family Governance Model
A two-year transformation programme was launched with two parallel streams:
- Organisational Restructuring + SPM Model
- Redesign of the organisational structure for clarity, alignment, and accountability.
- Cascading of strategic goals into business objectives, KPIs, and OKRs.
- Introduction of weekly and monthly management routines.
- Clear role definitions and responsibilities for all generations.
- Data-driven decision-making replacing intuition-driven management.
- Family Business Governance Framework
- Development of a comprehensive Family Business Governance Code.
- Formation of a professional Board of Directors, including external experts.
- Establishment of rules for participation, responsibilities, succession, and decision-making.
- Introduction of structured communication channels between family members.
- A clear system to separate family dynamics from business operations.
This dual approach stabilised the organisation and created a framework for harmony and sustainable growth.
Results (2 Years After Implementation)
The transformation produced measurable and lasting impact:
- The company achieved consistent, year-after-year profitability.
- Organic revenue growth stabilised at 18–20% annually.
- Management operated with clarity, discipline, and alignment.
- The Board provided strong strategic oversight and objectivity.
Most importantly:
The three generations now work in harmony, each contributing according to clearly defined roles, with reduced conflict and increased collaboration.
Outcome
The family business evolved from a market leader struggling internally to a mature, professionally governed organisation with a strong strategic foundation.
Through structured governance and the SPM model, the company secured not only improved financial performance but also family unity -ensuring the business can thrive for future generations.