”Good concepts are like maps. They are not reality, but they help navigate through reality.“
We have always been convinced that consultation needs to be based on a theoretical foundation to be more than the passing on of personal opinions and experiences. That is why Peter May has developed theoretical concepts for the understanding of family businesses and the consultation of their owners.
These concepts are able to explain why some family businesses are successful in the long-run while others fail.
They provide concrete help to concrete challenges. They enable entrepreneurial families to become stronger, and their businesses more successful.
The May-Method is the theoretical basis for the work of Peter May Family Business Consulting. It is also successfully employed and spread by other colleagues.
The May-method is a comprehensive, theoretical system for the consultation of the owners of family businesses. It consists of:
Successful concepts require a simple conceptual base. Therefore I developed definitions for the two key-terms: Family business and business owning family.
Family businesses are all businesses that are dominantly owned by a family with a multigenerational approach.
Business owning families are all families that are the dominant owners of a business with a multigenerational approach.
In 1997, everything started with the development of the INTES principle. It based on the idea that the owner’s task is not only to successfully manage his business. Family Business Owners need to balance the interests of their business, their other assets, their family and their personal goals to achieve stable and sustainable success. This way of thinking became the foundation and the theoretical base of my work.
I have explained the INTES-Principle in detail in my books “Lernen von den Champions” (2001 and 2004) and “Der Unternehmer als Chef, Manager und Privatperson”.
The three deterning elements of family businesses (dominant ownership, family, multigenerational approach) each bring advantages as well as disadvantages.
The Family Business SWOT-Analysis (2012) identifies these advantages and disadvantages. Therefore, it allows the identification of individual strengths and weaknesses as well as specific chances and challenges for Family businesses.
Identifying strengths and chances allows us to create a strategy that helps us to turn them into competitive advantages. Moreover, the identification of weaknesses and possible challenges is useful in finding effective counter measurements.
More information about the SWOT-Analysis for family businesses can be found in my book “Erfolgsmodel Familienunternehmen” (2012).
No family business is like the next. Consequently, they all face their own individual questions and challenges.
In order to understand the key issues in your family business I developed the 3-Dimension-Model. It aims to aid your understanding of the uniqueness of your family business in terms of the three dimensions: structure of ownership, governance-structure and business-structure, and you can use this classification to find the key challenges your family business faces.
The 3-dimensions model allows you to create a clean-cut analysis of the current situation and to identify succession challenges at an early stage.
More detailed information about the 3-Dimension-Model can be found in my book “Erfolgsmodell Familienunternehmen”.
The Entrepreneur-Strategy (2001) is a personal concept for the owner of a family business.
It based on the INTES-principle and aims to ensure the highest possible personal efficiency for the individual entrepreneur, in respect to the four main fields of action - business, assets, family and the individual person.
First, each field of action and the overall situation will be analysed. In further steps we will identify objectives, make decisions and agree on a strategy that will allow us to achieve these goals.
More about the Entrepreneur-Strategy you will find in my books “Lernen von den Champions (2001 and 2004) and “Der Unternehmer als Chef, Manager und Privatperson” (2006).
The concept of Succession-Strategy (2015) is based on the same logical principles as the Owner strategy.
In order to simplify the complexities associated with succession it is crucial to consider the main fields of actions - business, assets, family and the individual person – as well as keeping legal and taxation issues in mind. Breaking down succession into a four-step process -consisting of analysis, defining objectives, decision making and implementation- further reduces some of the complexities associated with it.
The basic principles and mode of action of the Succession-Strategy are further explained in a paper published in the book “Nachfolge im Familienunternehmen” (2015).
The aim of the Owner-Strategy (2008) is to ensure that the family deals responsibly with their dominant ownership of the family business.
The concept is based on the preliminary work by Professor Cuno Pümpin as well as the Family-Strategy-Concept that I developed in 1998 and exceeds both of these works.
In a moderated process with the family the following questions are discussed:
Who can be the owner of the business and how do we shape this ownership? Who do we consider a member of the Business owning family and what does that mean?
Which basic understanding goals and values do we have for our ownership, our family and our business?
3. Owner-Business Model
What is our business model and what is the framework in which our family business should be developed?
4. Corporate Governance
How does the family influence the business and how do we shape its governance?
5. Family Governance
What do we do in order to ensure family cohesion and responsible ownership? And how do we ensure that the next generation is well prepared for their future role?
What roles are there? And who should take on these roles?
The answers will be recorded in a family constitution and a comprehensive strategy paper that will also include necessary steps for its implementation.
The basics and mode of action of the Owner-Strategy are explained in more detail in my book “Erfolgsmodell Familienunternehmen” (2012).
Family businesses are different from other types of business. Consequently they need different business strategies, financing concepts and governance structures.
Structures that will turn their specific strength into a competitive advantage as well as limiting their weaknesses.
In my book “Erfolgsmodell Familieunternehmen” (2012), I further describe such structures and concepts.