1/1/2015
Succession Planning: This Greenhouse Ain’t Big Enough for the Five of Us
Joli A, Hohenstein
Henry and Jeff Huntington had it easy when they took over Pleasant View Gardens in Loudon, New Hampshire, from their parents—but when three of their boys wanted into the business at once, they knew the health of the family and the business depended on reaching for the right resources.
“It was so unlike the horror stories you hear when the founder just doesn’t want to let go,” Henry says of the transition from his dad. “Not that he wanted to leave—he still stops by every day—but he wanted us involved.”
Even 40 years ago, the Huntington family was thinking progressively and using all resources available to ensure the future health of the business. “We’ve never been afraid to go outside and find experts; to recognize we don’t know everything,” says Henry. It started with a Family Business Group out of the University of New Hampshire, attending regular bimonthly meets and gathering ideas from experts, as well as other families who were going through the same things.
This time, with a much bigger company, more employees and a senior management team in place, the family knew the pressure to get it right was much greater.
“Jeff and I were talking in general terms about exit strategy, ownership strategy, management strategy,” says Henry. “And we realized there wasn’t a need for structure back when we transitioned because my father, Jeff and I were the management team—but there is a need for it now.”
That’s when they reached out to Consultant David Liddell at SKYE Business Solutions. “All businesses struggle with succession planning,” he says. In fact, “only 5% of businesses successfully transition from the second to the third generation.” Pleasant View is determined to be part of the 5%.
A catalyst for collaboration
“Having Dave on board was definitely a catalyst to speed things up a bit and get us all on the same page,” says Ben Huntington, Pick-Up Yard manager and Jeff’s son. “It’s a long process, but this is more than just a business; it’s a family and the family lifestyle around it.”
Because of that, successful succession starts with a thoughtful process, says Dave. “In the years past it was who is going to replace the CEO or the person we don’t know how to replace? Succession planning today is geared toward looking at leadership from top to bottom.”
Most companies have never considered holistically looking at their entire organization, says Dave. They don’t have a competency model, or have an understanding or value of competency. That starts with looking at everyone in a leadership role in the organization. “It’s an ongoing effort for a number of years, starting at the top and working from there,” says Dave. You create a success profile for each role in the company—what skills do they need, industry knowledge, etc.
It just makes sense, say the Huntingtons. “With the size the business is now, it needs to be a best fit scenario,” says Jon Huntington, shipping manager and Henry’s son. “We have goals and positions in mind, but we also want to make sure we’re the best fit for that position.”
Getting to the nitty-gritty
The succession process thus far has also included an extensive survey, even encompassing the rest of the Huntington family—wives and the first generation. “It was a really thorough, really valuable process to see what everyone’s expectation is for the process,” says Andy Huntington, outside sales rep and Jeff’s son. “We’re a bunch of New England Yankees and we don’t necessarily share our feelings.”
In fact one thing the Huntingtons unequivocally agree upon is their biggest challenge: communication. “In the past year and a half there’s been more open communication than in my entire life,” laughs Andy.
And that’s been one of Dave’s greatest values, the family says—bringing them all together around the table to exchange ideas and visions. “Pleasant View had thoughts and ideas, but needed concrete plans,” says Dave. The structure he brought has helped flesh out those ideas.
Efforts include a leadership development initiative that started at senior management level and includes self-assessments, team assessments and classroom training. With those complete, they’re currently conducting the effort at mid-level management.
At the same time, Dave has encouraged scheduled weekly meetings for the second and third generations separately and as a group. In fact at press time, a key initiative had wrapped up. After six months of intensive strategic planning and positioning with Dave’s guidance, the third generation presented their vision of where they see the company and themselves going forward.
“It was as much about building a personal relationship with one another as it was to have the same vision for the company,” says Andy.
Each worked in the industry before coming back to join the family business, bringing valuable skills and earning a key spot working under senior management. “The boys gained a lot of experience this way,” says Jeff. “Whereas Henry and I pretty much did anything and everything, they’re much more specialized. Maybe they don’t need to get to the nitty-gritty of it, but they at least need a deeper understanding.”
Adds Henry, “The boys are sponges for information—now the challenge is to keep them informed of the decisions we make with senior management.”
Involving the leaders in the organization and providing the opportunity to have input, rather than making changes in a vacuum, will make the difference between pass/fail in succession, Dave says. Talent management is just one aspect and the discipline that goes with it lets you effectively use succession as a tool.
“Organizations look at succession planning as an event,” says Dave. “It’s not an event—it’s how you run your business. Pleasant View has done a lot of work and there’s more to come.”
GT
Joli A. Hohenstein is marketing & PR specialist for Pen & Petal, Inc., a marketing, advertising and public relations agency for the green industry.