Farmont MP
Professionalisation of the business, defining a system of governance and preparing the company for a successful transition to the next generation.
A family pharmaceutical company in the professionalisation phase
Farmont MP is a family company operating in the pharmaceutical sector, with a team of around 80 employees. Two generations of the family are involved in running it, with the second generation having taken on a significant executive role in the position of CEO.
The company had reached a size and complexity at which the entrepreneurial model — in which the founder holds the bulk of decisions — begins to limit further development. This is the point at which family firms typically enter professionalisation.
Farmont MP entered that process deliberately — with the aim of making growth sustainable and preparing the company for the handover to the next generation, without losing control or quality.
Growth that had outgrown the founder model
Growth exposed the limits of a model in which the company depends on the owner's daily presence. The symptoms were concrete:
- Operational and strategic decisions were concentrated in the owner and a small inner circle, creating a bottleneck at the top of the company.
- Institutional knowledge was concentrated in a few people and hadn't been translated into processes.
- The organisational structure wasn't clearly defined: responsibilities overlapped.
- Performance wasn't measured systematically — the top of the company had no objective, regular picture of the business.
- The rules of ownership, of family members joining, and of the handover to the next generation weren't written down.
Diagnostic as risk assessment
The diagnostic wasn't a list of activities but a risk assessment. For each finding we determined the level of risk to further growth and the consequences of leaving it unresolved.
Dependence on the founder Critical risk
Most decisions passed through the founder, turning him into a bottleneck: the pace of the whole company was limited by his capacity. Left unresolved, any further growth would only increase the load at the top to the point of unsustainability.
A lack of formal governance mechanisms High risk
There was no system of goals, performance measurement and reporting to give the leadership a discipline independent of individuals. Without it, the quality of decisions depends on the moment and the person, not on a system.
Overlap of family and business decisions High risk
The same people made both family and business decisions at the same table, without agreed rules. That works while the company is small, but with growth and the handover to the next generation it becomes a source of serious risk.
A transformation in five phases
The project covered the complete professionalisation of the company — from strategic direction and organisational design to the system of governance, the family governance structure and preparing the next generation.
Strategy and priorities
Challenge. Before introducing a system, we had to define where the company was heading. Done. We set the company's direction and priorities, aligned with the goals of the family and ownership. Effect. Every later decision about organisation and people gained a clear criterion.
Organisational design
Challenge. The strategy had to be translated into a structure that could carry it. Done. We defined the organisational structure, roles and reporting lines, and separated the ownership role from the executive one. Effect. The overlapping responsibilities that had slowed decisions disappeared.
Governance and accountability system
Challenge. For the company to work without the owner's constant presence, leadership had to become measurable. Done. We introduced key performance indicators, a reporting rhythm and the delegation of decisions to defined roles. Effect. The top of the company gained, for the first time, an objective, regular picture of the business.
Family governance
Challenge. Growth raises questions that aren't solved in operations — ownership, family roles and decision-making. Done. We drafted a family constitution that separates family from business decisions and defines the rules of ownership. Effect. The risk that future misunderstandings would threaten both the company and the family was reduced.
Preparing the next generation
Challenge. The goal wasn't just a result today, but continuity. Done. We defined the successor's role, strengthened the management layer and set a plan for the gradual transfer of control. Effect. The handover to the second generation became a managed process rather than a one-off event.
The building blocks of the transformation
How the company works today
Revenue growth wasn't the aim of the transformation but its consequence. The most important change happened in the way the company works.
The numbers confirm that the system works:
All decisions with the founder
Professionalised management and a family constitution
The values shown are rounded to protect the client's confidential data.
Where the company is today
What changed in the way the company is run
- Founder-centric leadership
- Improvised organisation
- No performance measurement
- Unwritten family rules
- Processes tied to individuals
- Succession undefined
- Professional governance
- Defined roles and accountability
- KPIs and regular reporting
- Family constitution
- Standardised processes
- An ordered succession plan
"Working with Đorđe helped us establish a clear organisation within our company and our family."
Lessons for growing family businesses
Diagnosis before solution
Interventions only began once the state of the company and the family was clear. That prevented solving the wrong problems, and the sequence followed from the findings.
Separating the ownership and executive roles
A clear line between what the owner decides and what management runs freed up both. The owner gained room for strategic questions, and the managers real accountability.
Business and family as one whole
Professionalisation without family rules doesn't last, and a family constitution without a professional company stays on paper. That's why they were done together.
Discipline of implementation
Most of the value was created in the execution. Indicators, reporting and new roles entered daily work and became the way the company operates.
Readiness of the second generation
The change was carried from within by the second-generation CEO. That gave it a legitimacy that an external advisor cannot provide.
Find out what is limiting the growth of your family business today
The diagnostic isn't a sales meeting. It's a structured analysis from which you leave with a clear picture of where you stand, what the biggest risks are, and what's needed to move into the next stage of development.
A methodology proven in dozens of family businesses in manufacturing, trade and services across the region.