Preparing and organizing managerial replacement for the second generation of a mid-cap business

Assignment

Preparing and organizing managerial replacement for the second generation of a mid-cap business specializing in financial services

Issues : Supporting growth
Services : Leadership Consulting

Context

A family business with 500 employees, specializing in financial services, and a leader in its market.
Based in France with a subsidiary in Spain.
The Director, who successfully founded, developed and led his business for more than twenty years, supported by a loyal team, wanted to retire.
Several potential successors emerged, including the Director’s children.

Eurosearch & Associés involvement

Eurosearch & Associés was contacted to prepare and organize this leadership succession, which took place over several years:

  • We analyzed the strategic plan, taking into account changes in the business model, which was moving towards a new sector offering better prospects for growth
  • We gained an understanding of the family situation, and discussed the financial and fiscal implications of succession with the Director, as well as emotional aspects to determine whether this was the right time to go ahead with the succession
  • Management Audit: We assessed the ability of the existing management team to accept and implement the new strategic plan (competencies, desires)
  • We recommended an evolution in job profiles, organization structure, and executive and management committees to reflect the new business model
  • We put in place a new management team through internal promotion and by bringing in outside competencies
  • We identified the most suitable successor
  • We submitted our proposal to the Director, who agreed to it
  • We prepared the new Director, mentoring him, keeping in regular touch and planning professional development to ensure he was prepared and accepted as being suitable to lead the company

Results

The managerial replacement was carried out successfully:

The new Director and his leadership team are still in place after a number of years.
The founding Director has become Chairman of the Supervisory Board.

  • Today, the business is the European leader in its field
  • Successful strategic reorientation: The company is now international in scope with operations in around ten countries. The company changed from an exclusively French business sector to a new Europe-wide activity. Effective innovation strategy with the creation of new products

The company has expanded and now employs 1,500 people.