Hal Johnson and LeadershipOne
Hal Johnson, from LeadershipOne based in Sacramento, joins me as my guest on 105.5FM and Money 2.0. Hal talks about the work he does at LeadershipOne and his new book entitled ‘The Game Changer.’
LeadershipOne is a consulting firm that deals with the business transition needs of family businesses when the original or older key manager steps down or passes away.
One of my first questions to Hal was how LeadershipOne handles the departure of what often is the founding or key person in the family business. Hal’s answer was that LeadershipOne creates a plan for the most orderly transition possible for the business. He says they have both a living plan and a death plan, with three key areas addressed to enable the smoothest transition.
These three key areas are:
- Ownership Transfer – Making sure the transition is as tax friendly as possible with the properties being transferred to the next generation.
- Entity Governance – Making sure the governance process involves a board of directors or advisory board.
- Management – Preparing the new management members to manage the businesses.
According to Hal, LeadershipOne assists all types of family businesses; from agricultural and manufacturing to construction and service companies.
Hal says LeadershipOne’s involvement with the process really depends on how much the family has prepared their members to move the company from one leadership generation to the next. Specifically, management expertise is crucial in assessing that the next generation is capable and ready to fully take control of the business. Hal says the more the family members have already prepared, the less they will need to guide them.
Hal Johnson and LeadershipOne
Part of the above approach, according to Hal, is that LeadershipOne develops close working relations with the family business members involved. He says their goal is to become a “trusted advisor” to the family, which does not happen overnight. He says that relationship and trust is cultivated by getting to know the members involved and understanding what their goals are. Hal says they bring a lot of experience and expertise to this exact process.
Hal mentions that LeadershipOne has worked with such family businesses as the Sierra Nevada Brewery and the InterState Oil Company.
Game Changer
Hal also discusses his book Game Changer, which highlights the importance of planned structured one-on-one meetings to evolve powerful relationships between family business associates, general communications, business processes, delegation, accountability, building business culture, and more. He says the One-on-One Meeting system, outlined in the book, enables this. Hal says one of the primary reason businesses fail is that the business grows but people do not. He says the One-on-One mentoring and coaching system addresses that issue.
If you would like to hear my conversation with Hal Johnson, you are welcome to listen by clicking here. Hal was my second guest in this episode. The conversation begins at 26.50 minutes into the recording.
