Adams Funeral Homes has endured many challenges since its inception in 1874. Overall, both the family and business have been successful in overcoming these challenges thus far. This memo will address the recent improvements that have taken place, identify the current issues facing the business, and make recommendations that address these issues in an effective manner.
There are many obstacles that the family and business have had to overcome. Some of the obstacles that the business has had to overcome include; deaths of family members (and buying out their stock), missed growth opportunities, and the inability of some to lead. Even though many family businesses would have crumbled under similar circumstances, your business has made necessary …show more content…
It has been brought to my attention that at the next meeting that the family will be addressing the issue of succession and how to determine the next leader of the business. The first step that the business and family should do when creating a succession plan is to have an open mind. When going into a meeting about succession planning do not be close minded and shut out viable outside options. The second step is to determine what characteristics are desired in a leader (i.e. integrity, commitment to the business, respect of employees). Once this is determined, the family should consider what kinds of education, previous experience is desired for a successor (this should also be included in an employment policy for family members). This process is going to take some time, and will not happen overnight. When this process has been completed the requirements for a suitable successor needs to be written down in a succession …show more content…
In this employment policy the topics of compensation, performance appraisals, and what is expected need to be addressed. Compensation for the successor needs to be market based, even if it is a family member. Some of the things that need to be considered when discussing compensation are: what are other executives with similar experience and education being paid in organizations that are similar, what other forms of compensation are similar companies giving executives, is it possible to lower the pay of the executive and provide them with shares to make up the difference. Performance appraisals are a crucial part of an employment policy for a successor, it can tell the family and board if the successor is doing their job effectively. When designing a system for performance appraisals, how performance is measured (i.e. profits, customer/employee satisfaction), are there going to be incentives for good performance, and who is going to do the appraisal, need to be taken into consideration. Appraisals for successor that are family members need to be done by a nonfamily member familiar with the business. An appraisal policy could have allowed the family to determine if the former general manager was doing an effective job. Expectations need to be made clear in an employment policy so a successor does not get surprised with the responsibilities associated with the role, when they step
There are many obstacles that the family and business have had to overcome. Some of the obstacles that the business has had to overcome include; deaths of family members (and buying out their stock), missed growth opportunities, and the inability of some to lead. Even though many family businesses would have crumbled under similar circumstances, your business has made necessary …show more content…
It has been brought to my attention that at the next meeting that the family will be addressing the issue of succession and how to determine the next leader of the business. The first step that the business and family should do when creating a succession plan is to have an open mind. When going into a meeting about succession planning do not be close minded and shut out viable outside options. The second step is to determine what characteristics are desired in a leader (i.e. integrity, commitment to the business, respect of employees). Once this is determined, the family should consider what kinds of education, previous experience is desired for a successor (this should also be included in an employment policy for family members). This process is going to take some time, and will not happen overnight. When this process has been completed the requirements for a suitable successor needs to be written down in a succession …show more content…
In this employment policy the topics of compensation, performance appraisals, and what is expected need to be addressed. Compensation for the successor needs to be market based, even if it is a family member. Some of the things that need to be considered when discussing compensation are: what are other executives with similar experience and education being paid in organizations that are similar, what other forms of compensation are similar companies giving executives, is it possible to lower the pay of the executive and provide them with shares to make up the difference. Performance appraisals are a crucial part of an employment policy for a successor, it can tell the family and board if the successor is doing their job effectively. When designing a system for performance appraisals, how performance is measured (i.e. profits, customer/employee satisfaction), are there going to be incentives for good performance, and who is going to do the appraisal, need to be taken into consideration. Appraisals for successor that are family members need to be done by a nonfamily member familiar with the business. An appraisal policy could have allowed the family to determine if the former general manager was doing an effective job. Expectations need to be made clear in an employment policy so a successor does not get surprised with the responsibilities associated with the role, when they step