TO LEAD ...

IS TO LET GO
 Ruma’s fruit
and gift baskets
AGENDA
CASE ALTERNATI
01 04
OVERVIEW VES

Main issues and CALLS TO

02 05
SYMPTOMS ACTION

CONCLUSIO
03 CORE PROBLEM 06
N
0 CASE
1 OVERVIEW
CONTEXT: RUMA’S FRUIT
AND GIFT BASKETS
●
●
1900 → Giacomo Ruma founds Ruma. He offered fresh fruit and produce at a fair price.
1940 → Dominic takes his father’s place after his death.
● 1968 → Jim assumes the company’s leadership.
● Now, it is a wholesale produce delivery company supplying small markets, restaurants and sub shops
○ There are multiple businesses under one roof.
BUSINESS PERFORMANCE
● Basket business
● “Filler” operation (to avoid store stock-out)
● Pallets
● Selling fiddleheads and blueberries
 x X
Giacomo Unknown

x X
Dominic Unknown

Unknown Unknown Jim Mary - Ann

genogram 32

Kate Mark Andrea Mike

THREE-CIRCLE MODEL
0 Main issues
2 and symptoms
Main issues
Symptoms/Situation Problems Implications

● There is not an established successor

● Andrea doesn’t know where she stands in the Lack of succession plan. No plan for the company in the long term.
company

Family and Business Issues

Family Issues

Business Issues
Main issues
Symptoms/Situation Problems Implications

● Everything (company related) relies on Jim. If Jim is taken out of the picture, the
Jim controls and owns 100% of Ruma’s F&GP ● There is a communication problem among the business will not work.
company. Ownership uncertainty in the future.

Family and Business Issues

Family Issues

Business Issues
Main issues
Symptoms/Situation Problems Implications

● Andrea lives in LA and the company’s HQ are in

Boston. She cannot fully commit to the business.
● Jim has never expressed if he would like Andrea to
take over control.
● No experience or much knowlege

Family and Business Issues

Family Issues

Business Issues
Main issues
Symptoms/Situation Problems Implications

● Communication problems from Jim to the

● Jim leads in an individualist way (in the company
company and family. If Jim is taken out of the picture, the
and the family)
● Andrea doesn’t know if Jim would like her to business will not work.
● He is the only one who knows how the business
take the company’s leadership. Stressful situation for Andrea.
works.
● Lack of strategic plan.

Family and Business Issues

Family Issues

Business Issues
Main issues
Symptoms/Situation Problems Implications

Mark and Mary-Ann depend financially on the Mark and Mary-Ann will encounter themselves in Uncertain situation for Mark and Mary-Ann
company. an unstable economic situation. in the future.

Family and Business Issues

Family Issues

Business Issues
 x X
Giacomo Unknown

x X
Dominic Unknown

Unknown Unknown Jim Mary - Ann

genogram 32

Kate Mark Andrea Mike

SUMMA Everything relies on Jim Dominic and Jim’s issues

RY
Lack of communication within There is no long-term viability for the Lack of communication with
the company company the family

Lack of succession plan

Mark and Mary-Ann will encounter
Lack of strategic plan themselves in an unstable economic
situation.

Andrea cannot fully

commit to the company as
of right now
The future of the company is
uncertain
Family Business Governance Sustainability
Complexity Complexity Structure Risk
 Sharma’s performance
HIGH matrix
+ve performance on business dimension +ve performance on business dimension
-ve performance on family dimension +ve performance on family dimension

Performance on business dimension

Ruma’s F&GB Potential

Risk

-ve performance on business dimension

-ve performance on business dimension +ve performance on family dimension
-ve performance on family dimension

LOW Performance on Family dimension HIGH

03CORE
ThePROBLEM
viability of the company in the long
term is in danger because everything
relies on Jim
0
alternatives
4
External
counseling
Hire a non-familiar expert to give advice as a on how to
manage the business and family.

DRASTIC
CHANGE
Let a new (non-family) CEO take the lead of Ruma’s F&GB.

SELLING THE
COMPANY
Organize the company’s finance to create an attractive
proposal.
External counseling
● Hire a non-familiar counselor/consultant to give advice on how to improve the business and
family scenarios.
● Discuss whether a succession plan should be implemented.

a. Jim may not accept

b. Jim may not be interested / see its importance
c. Low impact / capacity of make significant changes
d. It doesn't solve the family issues

● Time of execution: 1.5 years

Drastic change
● Let a new (non-family) CEO take the leadership of Ruma’s F&GB.

a. Jim may not accept

b. It could generate even more business problems
c. It could generate even more family issues

● Time of execution: one year

Selling the company
● Organize the company’s internal structure and operation in order to create an attractive
proposal for the customer.
● Implement a junction plan between Jim and the company’s operation:
○ Financial area.
○ Clients management.
○ Operations in the company.

● Time of execution: 6 months

Evaluation of alternatives
Alternatives
Advice Jim Hire a new CEO Sell the business
Criteria

Family performance

Jim’s power

Financial performance
0
Calls to action
5
 6 months Year 1 Year 1.5 Year 2

Work on (family and company) communication skills

Corporate governance: meetings, WHO WILL GO NEXT?

succession plan, advisory board.
WHAT WILL YOU DO?
Strategic plan: roles and
functions inside Ruma.

Set performance
indicator (KPIs)

Who will be
the next CEO?

Training the new CEO

0
conclusions
6
 TO LEAD ...
IS TO LET GO
Thank you