Family business expert discusses difficult and emotionally destructive problems confronted

In 30 years I have been working as a family business consultant, most difficult and emotionally destructive problems I confront in "business" element of a family business occur during transitional phase where client company is moving from a founder / owner- managed business environment to a professionally managed business environment. It should be noted that "professional" management does not equate to "better" management, but more to a change in management "style." It is mainly a contrast between "content" (professional matter expertise) and "process" (interpersonal relationships and interventions).

Evolutionary Process Professionalization is an evolutionary process that effects every family business. Successful family businesses actively and aggressively manage this transition process. When transition process is ignored or not carefully managed, it can result in chaos within business or severe conflict within family. Or both! The first step in gaining a better or fundamental understanding of professionalization process is to examine stereotypic perceptions between founder/ owner and professional manager. While these differences in individual characteristics are generally clear and predictable, they also translate into culture of organization and types of people hired and way things are done!

In other words, professionalization can not just be accomplished by hiring a high priced executive from outside organization. The basic philosophy, values, goals / objectives, basic work routines and expectations of customers, vendors and other business relationships need to be re-evaluated as well.

In fact, without addressing all of these relevant issues, hiring an experienced and successful executive from outside business, as a strategy to professionalize business, will almost always end as failed strategy, a very expensive failed strategy.