At TWYD & Co, we’ve had the privilege of working with many family businesses as they embark on the complex journey of bringing in non-family executives. One thing we’ve learned along the way is that hiring the right candidate is only half the battle. The real challenge is ensuring they are integrated successfully into the family business.
Too often, family firms get excited about finding the right person for the job, but in the rush to fill the position, they overlook one critical component—an Integration Plan. Without one, the evening before your new executive starts will be spent hurriedly assembling details and last-minute information, when what’s needed is a well-thought-out plan.
This process needs to begin before you’ve even extended an offer to the candidate. Why? Because without a clear path for integration, even the best candidate will struggle to find their place within the unique structure of a family business. Here’s why an Integration Plan is crucial and what it should include.
Why an Integration Plan is Essential
Aligns Expectations Early: Both the family and the new executive will have expectations. A plan helps align these from the outset, ensuring there’s clarity about goals, leadership style, and decision-making processes.
Smooths Cultural Integration: Family businesses have their own set of traditions, values, and dynamics. A well-structured plan helps a non-family executive understand these nuances and builds rapport with the family from day one.
Prepares for Challenges: Every transition comes with challenges. Having an Integration Plan anticipates these, setting up the executive for success and helping the family navigate potential obstacles.
What Should Be Included in an Integration Plan?
Pre-Start Engagement
An Integration Plan should kick off before the hire officially starts. Engage with the incoming executive, perhaps through informal family meetings or visits to the business. This allows both parties to start forming relationships and provides the executive with an understanding of the family’s culture.
Clear Role Definition
Make sure everyone in the business, from the family owners to employees, understands the new executive’s role. Clarifying responsibilities, reporting lines, and decision-making authority early on can help avoid future confusion. The executive also needs a clear picture of how much autonomy they have and where family input is necessary.
Family Dynamics Briefing
Family businesses come with complex interpersonal dynamics. An executive who isn’t aware of these may inadvertently tread on sensitive issues. The plan should include a candid discussion about family relationships, past challenges, and existing tensions. This briefing provides the executive with valuable context
Onboarding Programme
Develop a structured onboarding programme, much like you would in any large organisation. Include a schedule for the first 30, 60, and 90 days, ensuring the new hire understands key relationships, processes, and goals.
It’s also helpful to appoint an internal “sponsor” or mentor from within the family, someone the new executive can turn to for advice, guidance, and family context during their first few months.
Performance Metrics and Reviews
Clearly outline the key performance metrics for the role and how these will be reviewed. While all executives are held accountable to measurable goals, in family businesses, there are often intangible elements—like fitting into the company culture—that are equally important. Regular reviews help ensure the executive is on track and can provide early indicators if issues arise.
Communication Protocols
Family businesses often function differently from traditional corporates when it comes to communication. Establishing communication protocols—both formal and informal—ensures that the executive knows how and when to engage with the family, employees, and stakeholders.
Integration into the Family’s Vision
Finally, it’s essential that the new hire is brought into the family’s long-term vision for the business. A successful Integration Plan allows the new executive to fully understand this vision and their role in helping to achieve it. This alignment between the family’s values and the executive’s objectives is key to long-term success.
Don’t leave it too late.
Creating an Integration Plan takes time and careful thought. It cannot be put off until the last minute or hastily assembled just before the executive steps through the door. The plan is not a simple checklist—it’s a roadmap for building trust, communication, and alignment between the family and the new leader.
At TWYD & Co, we believe in the importance of getting this right from the very beginning. A robust, well-thought-out Integration Plan is not just a nice-to-have; it’s a necessity for ensuring that your new executive thrives and contributes to the ongoing success of your family business.
Ready to create a tailored Integration Plan for your next executive hire? Reach out to David Twiddle, Managing Partner at dt@twyd.co to discuss how we can help ensure your family business thrives with the right leadership in place.