• News
    • VRM Intel News
    • Latest News
    • Sponsor News
  • COVID-19
  • Marketing
  • Tech
  • OTAs
  • Customer Service
  • Regulations
  • Business
  • Housekeeping
  • Subscribe
  • More
    • Calendar of Events
    • VRM Intel Live!
    • Reports Login
    • VRM Intel Magazine
    • Advertise
    • Authors
    • About Us
    • Contact Us
VRM Intel
  • News
    • Leading Proptech Company Guesty Appoints David Aber as CFO
    • Meredith Hospitality Brands Inc. Expands to Mt Hood with Acquisition of Mt Hood Vacation Rentals
    • Rent Responsibly announces new partnerships and new virtual conference series
      Rent Responsibly Launches New 2022 Partnerships and a New Virtual Conference Series for VRMs and Others
    • Houses in Koko Head, Oahu, Hawaii
      Property Managers And Owners Sue Honolulu County Over Bill 41
    • Steamboat Springs, Colorado houses and condos below the ski runs in winter
      Steamboat Springs Bans Vacation Rentals in More Than Half of the City
    • VRM Intel News
    • Latest News
    • Sponsor News
  • COVID-19
    • 2022 Vacation Rental acquisitions from AvantStay, VTrips, Vacasa, Meredith, and more
      Who Sold? Here’s What We Know: 2022 Vacation Rental Management Acquisitions
    • 2021/2022 Ski Destinations Showing Big Performance Gains in ADR and RevPAR for Vacation Homes and Condos
    • “It’s like a short-term rental regulation pandemic.” 2022 Spring Vacation Rental Regulatory Trends + Fall Outlook
    • HR 2022: Attracting Today’s New Workforce after the Resignation Tsunami and the Great Renegotiation
    • 5th Annual #BookDirect Guest Education Day, Feb 2: Why It Matters
  • Marketing
    • 5 Steps to Clean Up and Organize Your Vacation Rental Website
    • Moneyball for Vacation Rental Managers
    • 4 Ways to Stand Out in a Crowded Market: Get Your Brand & Listings in Front of Potential Guests
    • Why, When, and How to Upgrade Your Hospitality Software
    • 2021/2022 Ski Destinations Showing Big Performance Gains in ADR and RevPAR for Vacation Homes and Condos
  • Tech
    • How One Vacation Rental Firm Finally Solved the Trust Accounting Problem
    • Vacasa (VCSA) Stock Falls as Lock-up Period Expires
    • 5 Steps to Clean Up and Organize Your Vacation Rental Website
    • Front of the House, Meet the Back of the House
    • Why, When, and How to Upgrade Your Hospitality Software
  • OTAs
    • Vacasa (VCSA) Stock Falls as Lock-up Period Expires
    • 4 Ways to Stand Out in a Crowded Market: Get Your Brand & Listings in Front of Potential Guests
    • Stays Group and Touch Stay Announce Partnership that Strengthens The Vacation Rental Travel Ecosystem
    • 2021/2022 Ski Destinations Showing Big Performance Gains in ADR and RevPAR for Vacation Homes and Condos
    • Using Airbnb For Bookings Just Got Even More Risky with New Refund Policy
  • Customer Service
    • Leading Proptech Company Guesty Appoints David Aber as CFO
    • Meredith Hospitality Brands Inc. Expands to Mt Hood with Acquisition of Mt Hood Vacation Rentals
    • View of Waikiki from Diamond Head Park, Honolulu, Hawaii
      Honolulu City Council Bans Stays Under 90 Days Across Oahu
    • Are you a Visionary without an Integrator at Your Vacation Rental Management Company?
    • YOUR Memory Factory: Creating Lifetime Memories for Guests with those They Cherish Most
  • Regulations
  • Business
    • Leading Proptech Company Guesty Appoints David Aber as CFO
    • Meredith Hospitality Brands Inc. Expands to Mt Hood with Acquisition of Mt Hood Vacation Rentals
    • How One Vacation Rental Firm Finally Solved the Trust Accounting Problem
    • 2022 Vacation Rental acquisitions from AvantStay, VTrips, Vacasa, Meredith, and more
      Who Sold? Here’s What We Know: 2022 Vacation Rental Management Acquisitions
    • 5 Steps to Clean Up and Organize Your Vacation Rental Website
  • Housekeeping
    • Analysis: “Reinventing” Vacation Rental Management by Alex Nigg
    • HR 2022: Attracting Today’s New Workforce after the Resignation Tsunami and the Great Renegotiation
    • Safety First: Evaluating and Addressing Safety Risks at Your Vacation Rentals
    • The Importance of the Guest Experience within Vacation Rental Operations: From the Back of the House to the Front
    • Passing the Torch: Meyer Vacation Rentals Transfers Ownership To The Next Generation
  • Subscribe
  • More
    • Calendar of Events
    • VRM Intel Live!
    • Reports Login
    • VRM Intel Magazine
    • Advertise
    • Authors
    • About Us
    • Contact Us
  • RSS

Business

How to Build a Strong Management Team

How to Build a Strong Management Team
mm
The Whichard & Woolard Wealth Management Group of Wells Fargo Advisors
May 17, 2022

 If you were to reduce your participation in your company by 50%, could your management team successfully run the business? What if you were unable to run your business indefinitely? 

These questions are key in evaluating the effectiveness of your management team as operators of the company. Why is this important? Business owners rely on key managers to enact the company’s mission successfully. This can involve including managers in setting strategy, executing the strategy through the division of labor, and coordinating to accomplish key tasks. 

Clearly separating the owner and operator roles in your business reduces conflicting priorities and improves your transition options. By having a strong management team in place, as well as a plan to handle any disruptions in management, your management team can be the primary “operator” of your company, thus enhancing your company’s value and expanding your options for potential business transitions in the future. 

 

The first step: Creating a framework to assess your organization 

In order to begin mapping over operator responsibilities to your management team, it helps to start with a general management framework. 

  • Owners and management should segment the overall corporate strategy into tasks that are handled by specific roles or groups. 
  • Coordination among key roles should be developed to allow management to work together to achieve common goals. A structure is needed to define the levels of authority and the flow of information between roles. Typically, most companies adopt functional divisions (for example, sales, finance, manufacturing, etc.), where the heads of each function work together to set corporate policy. 
  • Oversight of the divisions is facilitated with systems to monitor company health and enable operations. Systems are important for measuring performance in order to tie managers to specific goals. 
  • The management team sets the tone for the culture of the company. Their management style and establishment of a shared outlook can impact how individuals work with each other and with customers. 

Going through this exercise can also highlight any gaps in the existing structure, such as the need to augment management (for example, hiring a CFO) or adjust responsibilities held by current positions. Creating contingency plans can help address potential disruptions due to the departure or retirement of a key leader. Incentive compensation planning and succession planning are two key tools to begin addressing these issues. 

 

Are you using incentive planning to retain and attract talent? 

Incentive planning for the closely held business can answer key questions: 

  • Does the current compensation plan appropriately incentivize managers toward achieving company objectives? 
  • Does the current compensation package attract, reward, and retain key employees? 

Benchmarking the company’s compensation plan on a regular basis versus those of the industry or geography can identify shortcomings and help attract top talent. 

 

How are you developing resiliency through succession planning? 

When a key executive leaves, the company may face numerous risks, including the loss of specialized expertise, a disruption in customer/vendor relationships, and a decrease in employee morale. Succession planning helps minimizes the company’s risk exposure by reducing attrition and ensuring business continuity. 

Start the planning process by identifying those positions of key importance. Understanding the requirements of the position and the characteristics needed to be successful can help develop a profile of the role. Based on the profile, interim leaders from other positions within the organization can be identified. If there are gaps in knowledge that must be overcome, the creation of a development plan to prepare successors should be created. Regularly updating the succession plan can keep the company prepared for any surprises. 

 

Ways to enhance the value of your business in a transition 

By empowering management, you can prepare for your transition out of the business. A strong management team that can run the company in your absence opens up pathways for a successful transition. 

  • A management buyout becomes a strong alternative to a retiring or passive owner, especially with a motivated executive team. Such an alternative can also serve as a retention strategy by minimizing risk to managers compared with a new owner while enticing key executives with ownership. 
  • Sale of the company to an employee stock ownership plan (ESOP) can also reduce risk relative to a new owner. Additionally, it offers all employees the opportunity for ownership in the company while retaining the ability to competitively compensate key managers. 
  • A strong management team increases the value of the company in the eyes of private equity buyers who are looking to back successful operators. If an owner can demonstrate to the private equity firm that the company can run without their presence, then this may give the owner the opportunity to exit completely from operational roles and possibly reduce any rollover investment into the company going forward. 
  • A sale to a strategic buyer can give an owner a clean exit while offering management team members the opportunity to advance in a larger organization. 

These planning exercises can help you empower your management team to become successful operators of the business. For more information, contact your advisor. 

Related ItemsBenchmarkingbusinesscompany missionemployee stock ownership planESOPFeaturedkey executivemanagementstrategysuccession planningWells FargoWhichard and Woolard
Click to add a comment

Leave a Reply

Cancel reply

Your email address will not be published. Required fields are marked *

Business
May 17, 2022
mm
The Whichard & Woolard Wealth Management Group of Wells Fargo Advisors

The Whichard & Woolard Wealth Management Group of Wells Fargo Advisors specializes in helping business owners, especially those in the VRM industry, plan for successful financial outcomes. Through conversation and discovery, we help clients prioritize what is most important and craft plans that are result oriented. It’s all about having a plan; whether it is retirement lifestyle, business transition planning, estate and legacy or philanthropic, with a plan in place, we can evaluate results and make adjustments when priorities change. The practice is managed by Bill Whichard and John Woolard, who both are Private Wealth Financial Advisors, as we are able to coordinate with a team of specialized professionals and leverage the vast resources of Wells Fargo & Company. These resources allow us to work with clients who have highly complex and demanding wealth management needs. Our practice is passionate about making a meaningful difference in the lives of our clients. We enjoy helping people achieve meaningful life financial goals.

Related ItemsBenchmarkingbusinesscompany missionemployee stock ownership planESOPFeaturedkey executivemanagementstrategysuccession planningWells FargoWhichard and Woolard

More in Business

Leading Proptech Company Guesty Appoints David Aber as CFO

VRM Intel StaffJune 21, 2022
Read More

Meredith Hospitality Brands Inc. Expands to Mt Hood with Acquisition of Mt Hood Vacation Rentals

VRM Intel StaffJune 21, 2022
Read More

How One Vacation Rental Firm Finally Solved the Trust Accounting Problem

XimplifiJune 13, 2022
Read More
2022 Vacation Rental acquisitions from AvantStay, VTrips, Vacasa, Meredith, and more

Who Sold? Here’s What We Know: 2022 Vacation Rental Management Acquisitions

Amy HinoteJune 10, 2022
Read More

5 Steps to Clean Up and Organize Your Vacation Rental Website

Marshall MorrowJune 9, 2022
Read More

VTtrips Acquires Carolina Retreats, Silver Sands, Miss Kitty’s, and Tybee Vacation Rentals

Amy HinoteJune 7, 2022
Read More
Scroll for more
Tap

Sponsor News

  • How One Vacation Rental Firm Finally Solved the Trust Accounting Problem
    BusinessJune 13, 2022
  • VTtrips Acquires Carolina Retreats, Silver Sands, Miss Kitty’s, and Tybee Vacation Rentals
    BusinessJune 7, 2022
  • Moneyball for Vacation Rental Managers
    BusinessJune 6, 2022
  • Is now the best time to sell your vacation rental business?
    BusinessJune 1, 2022
VRM Intel
Calendar of Events
Videos & Whitepapers
VRMintel Magazine
Subscribe
Advertise
About Us
Authors
Contact Us

Recent News

  • Aspen and Pitkin County, CO Limit Vacation Rentals to 120 Days a Year
    RegulationsJuly 1, 2022
  • Leading Proptech Company Guesty Appoints David Aber as CFO
    BusinessJune 21, 2022
  • Meredith Hospitality Brands Inc. Expands to Mt Hood with Acquisition of Mt Hood Vacation Rentals
    BusinessJune 21, 2022
  • Rent Responsibly announces new partnerships and new virtual conference series
    Rent Responsibly Launches New 2022 Partnerships and a New Virtual Conference Series for VRMs and Others
    Industry News for Vacation Rental ManagersJune 21, 2022

View Current Issue

VRMintel Copyright © 2016-17 | Click HERE to Subscribe | Privacy Policy | Disclaimer | Copyright | Jobs | Facebook | Twitter | LinkedIn

Why, When, and How to Upgrade Your Hospitality Software
Front of the House, Meet the Back of the House

xxx videos

  • mamadas
  • redwap
  • free porn
  • porno gratis