Below is the famous quote from Warren Buffett. As I keep repeating to clients – always balance the cost of my fees to the value I bring along as a family business consultant. So what is the value I bring along?

Many times family businesses would be interested in my services when faced by two situations. They are at a general overall loss as to how to have the business perform better or else they have a situation or problem in the business where they feel that help is needed to get it sorted. In both cases, an external business family business consultant brings along the following value:-

Discipline: There are many strategic issues or delicate matters that keep being pushed on the back burner. An external consultant can bring the discipline needed to make sure that such important matters do not remain endlessly on the back burner and time is carved out to have these matters discussed and handled.

An outside perspective to sort long term issues: Because family ownership and management of a business add complexity to an already complex system, the potential for conflict in a family business is high. Naturally occurring differences in goals and values among family members can lead to continuous friction, discomfort, and escalating conflict if left unaddressed. An external consultant is better positioned to understand and address these tensions, whilst training people to do so. On the other end of the spectrum is the common occurrence when family business owners decide to sidestep confrontation and conflict, avoiding sensitive or emotionally charged issues. The result can be getting stuck and hindering any chance of making important business decisions. This leads to missed business opportunities and also damages relationships among family members over time. A family business consultant can recognise where the family business is stuck and provide a safe process through which needed change and development can happen.

Training: Does the next generation have what it takes to run the company? Do your family business leaders work well with employees and instil commitment at all levels? Are all players well skilled when it comes to leadership, teamwork and communication? A family business consultant can provide much needed training to bring a positive culture change and fill the skill gaps.

Professionalise the business: Proper governance is an essential part of family business. Who is taking the most important strategic decisions? Do the family business have an effective board of directors? Is the composition of the board well balanced? What is the policy for hiring family members? How are family employees objectively reviewed? How is the family business dealing with family owners who are not actively involved in the family business? A good family business consultant can help stakeholders understand, implement and practice good governance.

Facilitate: A seasoned family business consultant is well positioned to facilitate boards of directors meetings, family meeting or management meetings, as he/she understand the family dynamics and business needs and can balance things out to establish a shared vision and trust. Productive meetings based on proper well set agenda is essential to getting things done, maintaining relationships, learning new skills and forging alignment on goals.

Bringing a range of experience and knowledge: Consultants have extensive knowledge of clients, goods, markets and rivals. Having worked with various different businesses, they are likely to utilise valuable industry knowledge to solve your problems.

Data & Analysis: Based on the vast experience of the consultant, he/she can identify the data gaps and hence the data needed to allow family business owners and leaders, to take decisions based on data. Family business consultants can provide insights from financial analysis and also when analysing key KPIs, to allow the family business owners to remain on top of what is happening in the business.

An external view: A major challenge for family business owners and leaders is how they perceive issues at hand. Misdiagnosed or misinterpreted issues compound company problems and mislead teams. This, in turn, makes finding the right answer complicated and expensive. Framing and assessing a problem leads to a methodical solution and effective recommendations. A consultant collects, evaluates and presents information to help leaders make efficient business decisions. Moreover, an external family business consultant pushes family business to keep their views well focused on what is happening around them and hence on their strategy rather than always being engulfed on internal operational issues.

Implement Change: Many times family businesses get stuck at how to go about implementing change. They know that change needs to happen and have identified what needs to change, but feel at a loss as how to deal with the difficulties and resistance to implement change. An external consultant can help family businesses deal with change management issues and implement changes in a successful way.

Many family business owners get stuck on now engaging at an external family business consultant as they focus on the cost rather than the value a family business consultant like myself, can deliver. It is a pity when this happens. So far, my experience shows that family businesses that have gone beyond the cost factor, have seen that the value delivered is well above any fees paid, with the common realisation being that they ask themselves why has it taken so long to use the services of a family business consultant.