Stephen BarterNXD Managing Director/Non-executive director

No.1 Provider of Non-Execs to UK SMEs

Ensuring the Smooth Handover from 2nd to 3rd Generation in an SME Family BusinessCase Study

Stephen Barter:“Initially I was asked to help establish better working relationships between the various family members involved in the business; then to oversee the handover of the day to day management of the business from the 2nd to 3rd generation; and more recently I have been guiding the process of upgrading standards of management throughout the business and establishing more efficient systems and processes.”

Client:“Running a family business has lots of challenges especially during the handover from the second to third generation, so we engaged a non-executive from NXD who along with his independent perspective has helped to enhance our business process by introducing systems, structure and accountability.”

Ensuring the Smooth Handover from 2nd to 3rd Generation in an SME Family Business

Main challenges:Firstly to get the family members to act as managers and directors of the business and not as relatives. Secondly to get the owner who had built a very successful business to take a step back and allow his son to make the decisions and indeed some mistakes. Thirdly to begin to replace years of custom and practice with new more efficient ways of working.

Overcoming the challenges:This was achieved by building relationships and in particular trust, introducing a degree of formality including clear accountabilities, properly minuted meetings and sound business processes and procedures – and doing it all at a speed that the business could cope with.

What value was your role to them:Instrumental – the challenges would not have been addressed directly without me or someone else who was an independent business professional, they would have been ‘fudged’ and the consequences would have been serious and detrimental to the business.

Ensuring the Smooth Handover from 2nd to 3rd Generation in an SME Family Business

Profile: Stephen Barter

Stephen is the founder and managing director of NXD. His background in supply chains and logistics has given him a wealth of senior level general business experience which he now uses to help small and medium sized organisations. He is passionate about changing the perception of smaller businesses to non-execs by providing a new type of non-exec whose outlook, approach and skill is right for them and capable of adding real and sustainable value to these businesses. Along with his role of running NXD, Stephen devotes some of his time to working as a non-exec with small and medium sized companies across diverse sectors. In particular he enjoys helping family owned businesses overcome a variety of challenges and issues , assisting start-ups/early stage businesses gain momentum, and helping established businesses grow to the next level.

Summary of competenciesBusiness strategyChange management and process improvementLeadership and staff developmentSupply chain management and logisticsBusiness development and account management

NXD is the No.1 Provider of Non-Execs to UK SMEs

Wanting to grow their business to the next level

Concerned that their business is getting too big to manage

Frustrated with persistent and damaging issues

Facing new types of challenges in the future

Preparing their business for succession or sale

Needing a high quality, independent sounding board

NXD non-executives have substantial commercial experience that enables them to act as a seasoned sounding board. They also have the commercial acumen to help you improve your financial performance. Non-exec services include: Vision, strategy, planning Fund raising Succession planning, acquisition &

exit

Geographical and product expansion. Leadership coachingNXD non-executives operate across the full range of industry sectors including: AutomotiveBusiness ServicesCharities & Not For ProfitEnergy & ChemicalsFinancial ServicesGovernment/Public SectorHealthcare & PharmaceuticalsIndustrial ManufacturingICT/TechnologyLeisure & TourismMedia/Advertising/PRProperty & ConstructionRetail & Consumer GoodsTransport and LogisticsUtilities

NXD is a network that provides non-executive services to SMEs. Challenges that the NXD non-executives work with business owners to address include: