Business transfer from parents to gifted children
In the business world in Romania there is a new trend – the transfer of responsibility in managing companies, from parents to children.
Most of the good news about our children going to study in another country than in Romania are related to children who have a very good but not a very good financial situation. There is the stereotype that most children in Romania and “chop” the money parents becoming parasites of their own lives.
Our story begins two years ago I was contacted by one of the owners of a large Romanian entrepreneurial companies who offered me a deal, which at that time seemed to me curious, but very challenging. I was asked “Mr. Nicolae, I know you form busy entrepreneurs in Romania and general managers who do not have knowledge in conducting a business in a professional manner! I propose you take care of my two children, recently returned after completion of studies in Switzerland and England “
You might wonder what it is?!
Successful entrepreneurs running businesses in Romania of hundreds of millions of euros and have balance in business and family have planned not only successful businesses that have changed people’s living standards, but also the careers of their children. In other words, have helped their children follow the most renowned business schools in the world, so that after they can take over all or part of their parents’ businesses.
If we go back to the story before, the entrepreneur wanted to help his children take a business which was built and strengthened for 4 years and a new one, a startup to be developed.
I attended a meeting in which I was pleasantly surprised to see open, educated, assertive and result-oriented young individuals and I said why not?!
In this context, the first step was to pass them through a thorough evaluation process, where we found a huge development potential, opening in taking further efforts and a great desire to perform and take over businesses of their parents.
There was a very intense process, over a period of six months, with the following steps:
- In-depth evaluation of the two;
- Individual plan for performance management;
- Competencies equipment plan;
- Training Program “One to One”;
- Mentoring Program in taking over the business;
- Coaching for personal development and consolidation.
The program has been very difficult because of the short time allocated to take over the business and therefore the program consisted of two hours meetings twice a week – ie four hours a week (the time was very short and investment in business very high) .
So each morning we would meet and walk together an extensive process of acquiring skills in strategic management, but applied entirely on businesses for takeover.
I was surprised again to see that the process of acquiring skills went better than hoped and in a period of four months, our young people had deep expertise in:
- Organization of strategic companies;
- Performance management;
- Strategic marketing and sales management;
- Financial management of the company and especially in the controlling activity;
- Human Resources Management;
- Strategic management of the company.
A mentoring program followed in which young people have implemented and tested all skills learned in the previous stage, covering a period of organizational integration, with the following steps:
- Three days in the production halls, to see production flows and to know in detail the company’s products;
- Three days in the company’s warehouse to gain experience in managing a warehouse and, especially, to gain experience in managing Law 82/91 (accounting management);
- Three days sales and distribution, to track relationship with customers and end users, but also the road of the product from the warehouse to customer Outlet warehouses;
- A week in the sales department to track the processes, mechanisms and especially the company’s sales systems;
- A week in the marketing department to track enterprise systems used in the promotion of company products and services;
- A week in the financial and legal departments to understand P & L management, dashboards, business analysis indicators, etc.
For each milestone was assigned a mentor who was also a very good specialist on his function or department where mentoring took place.
A period of coaching development and consolidation, where I used a method of personal and professional development, namely, PRP®.
After a period of six months and two weeks, our young people were finally ready to take over the businesses of their parents, the parents were very pleased with the results and the investment made in them, and I was proud as well.
Two weeks after concluding this process, I was contacted by another well-known family from Romania who had learned about the previous success and the process repeated, so we got 12 young gifted individuals who took over the businesses and obtained results at least as good as their parents.
It is a beautiful and healthy trend and, above all, a blessing for these parents, who have fulfilled their dream, namely, strengthening their businesses by transferring management responsibility, to their children.
As for me, I’m in touch with “the most wonderful children in Romania” and besides business coaching and business consulting with entrepreneurs and general managers from Romania, I’m always interested to help them young people take over businesses and perform better than they knew before.
Petre Nicolae is managing partner in the training and consultancy company CBC Romania and has an experience of over 15 years in business management, occupying in turn on positions of top management in the largest national and multinational companies in Romania. Works in consultancy since 2003 and specializes in strategic and organizational management.
In the past five years he has specialized on professional recruitment systems and head-hunting. Besides his practical experience in top management, Petre Nicolae holds an E-MBA, free practice certificate in Business Coaching and a PhD in Strategic Marketing and Sales.