A clear strategic plan, complemented by structured governance, is a powerful lever for building cohesion, securing development, and ultimately ensuring the company’s long-term sustainability.
Aligning interests : an issue to address
The diversity of profiles and the complementarity of skills among partners are key success factors for SMEs, provided that the different perspectives are brought together around a shared project. Having partners means benefiting from varied perspectives, tools, and different working methods. Each person brings their background, their vision, their reflexes. Therefore, the shared project must be clarified around the following key pillars: what, how, why, and by whom. This clarification will enable the organisation to gain efficiency, with individuals who know what they are doing and for what purpose. This intentionality helps reduce “unnecessary” efforts and focus on actions aligned with the objectives stated and accepted by all partners.
Partners’ buy-in to the shared project—crucial to the smooth execution of the plan—also stems from presenting the plan during dedicated discussions, in a format that encourages exchange and debate. Stakeholder commitment will be all the higher if they have participated in developing the plan. This approach can only work if the governance rules are clear and structured.
Governance in family-owned SMEs and mid-sized companies is often more fluid than in larger companies or in companies with more diverse shareholding. Indeed, certain clarifications and formalities may seem inappropriate and are harder to implement in a family-shareholding context. Ambiguity can provide attractive agility for owner-managers, but it can also create frustration, surprises, and disappointment. It is therefore important to find the right balance between rigidity and a lack of governance.
The shareholders’ agreement : the first step towards easier governance
“The shareholders’ agreement” is a private contract signed between all or some of a company’s shareholders. It helps secure governance and prevent conflicts in the event of disagreement by setting out the rules of the game between shareholders. Often overlooked, it is fundamental—not to avoid all disputes between shareholders, but to anticipate them and provide a course of action.
This document sets out the main terms of the partnership : shareholdings, roles, rules for entry to and exit from the share capital, potential vesting… It also makes it possible to define so-called “strategic” decisions and the decision-making process, thereby defining the company’s governance rules.
Defining governance does not prevent tensions or conflicts, but it does provide a framework for resolving them. Drafting such a document has two main consequences : points of attention have, in theory, been addressed, giving everyone the opportunity to express themselves, confront viewpoints, and reach agreement. Secondly, conflict-resolution methods are specified, making it possible to refer back to the text if needed.
This is a decisive step that can be formalised at the start of the partnership, but can also be put in place later if needed. It also helps establish a sound foundation that fosters the conditions for implementing the strategic plan.
The strategic plan : an essential governance tool
The strategic plan is a structuring tool, particularly in human-sized companies where personal and collective issues intertwine.
In the form of a shared roadmap, the strategic plan formalises the company’s 3–5-year vision, its development objectives, and its priority areas, and makes it possible to derive well-considered, effective decisions. This document sets a direction and enables everyone to have an overall view of the company and its objectives, as well as the resources available to achieve them.
Prepared by management and shareholders, this document reflects short- to medium-term ambitions and is intended for employees as well as partners. It is the operational arm of governance. It evolves over time and can be revised depending on circumstances, the competitive environment, and market opportunities. This strategic tool is therefore also a communication tool, providing visibility internally and externally, reassuring financial partners, and positioning the company in a growth dynamic.
Integrating the strategic plan into day-to-day actions helps optimise decision-making at every level of the company. Indeed, when communicated to all employees, it can be a source of motivation : everyone, whatever their role, can visualise how things work and see their impact.
Signs of misalignment between partners
A non-existent or poorly communicated strategic plan can give rise to several points of friction. There are several signs to identify and address, such as :
- Divergent objectives : One partner wants to expand internationally, while the other prioritises immediate profitability. One aims for external growth, while the other is preparing to exit.
- Blocked decisions : The inability to decide on certain matters highlights a lack of clarity in the strategic plan. Putting certain sensitive topics on hold—such as major investments, a reorganisation, or a fundraising round—has significant consequences.
- Managerial ambiguity : Teams feeling a lack of direction or an inconsistency between words and actions is a consequence of a non-existent or poorly communicated strategic plan.
- High turnover : Without a clear direction, employees will tend to and some elements will be lost.
- Declining results : Many reasons can underlie a drop in performance. A lack of direction combined with misalignment, or employees’ misunderstanding of strategic issues, can lead to lower engagement, which impacts performance.
Levers for aligning partners
To avoid sources of conflict between partners, it is necessary to have a clear, shared vision. The first step is to create a space for strategic dialogue by clarifying collective and individual ambitions: where does each person want to be in five years ? What is their vision for the company ?
It is therefore essential to have a collective strategic vision in which each partner recognises themselves and in which they can see themselves. It is also important that everyone feels they have something to contribute to building the company’s 3–5-year vision. Indeed, the perception of one’s added value is impactful.
It may also be relevant to define monitoring indicators such as revenue, profitability, market share, etc. KPIs (Key Performance Indicators) help make the vision tangible. These indicators will enable tracking of the strategy’s progress and its implementation. Choosing the right indicators is essential and must align with the objectives as well as the sector in which the company operates. Monitoring these indicators is often time- and resource-intensive, which can complicate their implementation. However, monitoring tools exist and can facilitate their deployment.
Governance also plays an important role in aligning partners by enabling regular reviews of the entity’s ambitions and providing a space for discussion and resolution of disagreements, or even conflicts.
Finally, creating forums for sharing and reflection (management committees, partner meetings, regular check-ins…) is necessary. When things are going well, these forums help prepare for the future, think things through, and share information. They also lay the groundwork for difficult and complex times when things are not going well. In challenging times, they are invaluable because they enable leaders to surround themselves and make decisions collectively. Perspectives intersect after having already learned to work together. In times of crisis, these are forums where partners share the same level of information, enabling greater efficiency and easier decision-making.
Conclusion
Strategic misalignment is the invisible enemy of many family-owned SMEs and mid-sized companies. It erodes performance and breaks trust. Conversely, a clear, shared, and well-managed strategic plan helps build a collective dynamic that is reassuring for partners and engaging for teams.
At NG, we support companies with these structuring initiatives: governance, strategic planning, performance audits, succession preparation… Let’s talk about it !