Fractional Leadership Stabilizes Family Business Transition

Client Profile
A third-generation family-owned manufacturing business with 75 employees facing a leadership transition as the founder prepared to step back from daily operations.
The Challenge
The founder's adult children were positioned to take over leadership roles, but the transition was creating tension within the family and confusion across the organization. There was no clear operating structure, accountability was inconsistent, and long-tenured employees were uncertain about the company's direction. Turnover had increased, and key managers were considering leaving. The business needed experienced leadership to bridge the gap between founder-led operations and the next generation's vision, without the cost or commitment of a permanent C-suite hire.
Our Approach

Stone Capital Partners stepped in as a fractional Chief Operating Officer for a 6-month engagement to:

  • Establish clear reporting structures and decision-making authority between family members and the management team
  • Facilitate difficult conversations between generations about roles, responsibilities, and the future vision for the company
  • Implement weekly leadership cadence and accountability systems that brought discipline to operations
  • Coach the next-generation leaders on executive presence, delegation, and managing tenured employees
  • Rebuild trust with the management team through transparent communication and consistent follow-through
Results
Within 6 months, the business stabilized. Leadership clarity reduced internal conflict, and the management team regained confidence in the company's direction. Voluntary turnover dropped significantly, and two key managers who had been considering departures chose to stay. The next-generation leaders grew into their roles with measurably improved decision-making and team confidence. By the end of the engagement, the family had a functioning operating structure and the capability to lead without ongoing external support. The founder successfully transitioned out of daily operations, and the business was positioned for its next chapter of growth.