Jeweller - July 2022

OPINION
Soapbox
Succession: The best laid plans of
mice and men often go awry
The jewellery industry is one of the few spheres where a connection between family and business is
common. GREVILLE INGHAM shares some lessons on business succession, learned the hard way.
In every way you can name, it’s been
a momentous couple of years for our
business. For a start, I didn’t expect to
be writing an article about business
succession planning, however; we have
learned a great deal over the past 12
months!
Most people would know that, after nearly
50 years of commitment to the Peter W
Beck Company, our founder, Peter, passed
away in December of 2021, leaving behind a
legendary legacy in the Australian jewellery
industry.
He was 'old school'. The company was
named the Peter W Beck Company, because
that was the style then. He was the single
point of ‘truth’ within the business.
That kind of central strong character can
be an enormous driving force in creating a
business; however, when a sudden change
in leadership is forced on a business, it can
be a recipe for disaster.
Now, in sharing our unfortunate
experiences, I don’t mean to suggest that we
had no succession plans in place, we did.
I had returned to the business in November
of 2020 as part of a plan to learn different
aspects of the business over a few years,
developing into a ‘general manager’ style
role with help from my two sisters, Jenni and
Carol, who are already very knowledgeable
in their areas of the trade.
From a strategic sense, the idea was to form
a board-style advisory committee that would
inform management decision making, with
the three shareholders – myself and my
two sisters being involved on shareholder
matters – while Peter would step back into
a kind of chairman position. Unfortunately,
just one year into that plan, Peter fell ill and
passed away.
Like many family companies, which are still
very prevalent in the jewellery industry today,
our family was faced with not only dealing
with all the emotion that comes with a
deeply personal loss, but also with securing
the future of the business.
I was only beginning to become used to
playing my role within the national sales
team, so there were many parts of our
succession plan, which hadn’t begun, let
alone been completed.
Crucial early moves
We made two important early plays.
The first and immediate thing needed was
get our head around the financial aspects
therefore we introduced an external
accountant.
The most important thing was making sure
I could understand all financial matters
The company has many divisions: refining,
casting, CAD/CAM, the custom projects,
and of course, all the wedding rings and
jewellery.
We had so many questions, most of which
were simple. But everyone in a leadership
role needs to be able to answer them.
Solvency? Is the business able to meet longterm
debts and financial obligations? Does
the business have liquidity, and can we pay
the bills? I know it’s basic but it’s the only
thing that really matters!
Making our intentions clear
Once we believed the company’s finances
were strong, we then needed to liaise with
our major stakeholders and let them know
that we are here to stay.
From the banks, the retailers, the suppliers,
our customers, our staff, everyone – we
needed them all to know that the business
will continue.
That’s another important lesson we’ve
learned too – that it’s crucial for the person
expected to take over the leadership of a
company to know everyone who has a role
to play. Peter had plans for exactly that, to
introduce me to everyone, however because
of the change in timeline those plans were
cut short.
And additionally, who within your
organisation is going to provide objective and
effective leadership at all levels in support
Don’t forget
your roots.
Don’t forget
that is what
the business
is founded
on. Identify
those legacy
foundational
attributes and
protect them!
of your vision and plan. Because without
access to a plan – such as the one in Peter’s
head - you are in trouble.
You need to quickly understand your
opportunities, where you will focus to
target growth and how you can employ your
resources to get there. And who better to
tell you than those who are at the coal face,
your staff. You have to communicate, listen
and learn.
A plan for the future
It’s been a steep learning curve, but it’s given
us some great plans for the future. The
success of our transition has come down to
the strength of communication within our
team and the loyalty of our customers, for
which we are extremely grateful. It’s taken
us six months to find our feet and we have
had to back ourselves every step fo the way.
Having a plan, and making sure everyone
is aware of it, is pivotal. Beyond that, you
need to have rules of governance in place,
which everyone within your organisation
understands.
It’s a lot of work putting together a
succession plan, and it requires input from
the whole team. Defining who is responsible
for what, and having an easily accessible
code for operation, makes addressing just
about every issue so much easier.
Don’t forget your roots. Don’t forget that is
what the business is founded on. Identify
those legacy foundational attributes and
protect them!
I leave you with one last piece of advice:
Fifty years of business is a long time in
anyone’s mind. Get a process for password
management, not just for computers and
smartphones, but 'old school' safes too.
Peter had a few!
Name: Greville Ingham
Business: BECKS
Position: Managing director
Location: Adelaide, SA
62 | July 2022