CASE STUDY: Family succession Redefined: How Ridgeway Builders Grew the Team & the Business

Industry: Mid‑sized General Contracting & Construction

Family Generation: First‑to‑second

Employees: 85Annual Revenue: CAD $20 million

1. Background

Ridgeway Builders started in 1996 when master carpenter Paul Ridgeway left a large contractor to launch his own firm, focusing on commercial renovations across Alberta. After nearly three decades, Paul was preparing to step back. His daughter Megan, a civil engineer overseeing project management, and his son Daniel, who led estimating, were positioned to inherit day‑to‑day control. They recognized, however, that future growth hinged on building a broader leadership bench—one that could deliver projects on time, protect thin margins, and maintain Ridgeway’s reputation for craftsmanship.

Key Concern: “We can manage projects, but running every aspect of the company ourselves isn’t sustainable. We need a leadership team that can scale with us and uphold Dad’s standards.” — Megan Ridgeway, Incoming COO

2. Challenge

·       Founder‑centric decisions: Clients, sub‑trades, banks, and suppliers still relied on Paul for final calls.

·       Limited leadership depth: Decision power was limited for other leaders, leaving no bench strength for growth or emergencies.

·       Leadership not functioning as a cohesive team: Sales, estimating, operations, and administrative leaders operated in silos, slowing decisions and creating friction.

·       Lack of documented processes: Inconsistent site, estimating, and back office procedures led to delays and confusion.

·       Insufficient systems and timely information: Financial and operational data arrived weeks to months late, making it difficult to manage cash, schedules, and risk.

·       Re-work eroding profits: Quality issues and change order disputes consumed margin and undermined client trust.

·       Difficulty attracting talent: The firm struggled to bring in and keep the right trade and administrative people needed to scale.

3. Approach

Action	Detail
Engage a Business Growth Coach	The Ridgeways hired an external coach with construction‑sector expertise to guide strategy, facilitate leadership sessions, and hold the team accountable.
Expand Leadership Depth	Promoted high‑potential employees already in the business into four mission‑critical roles—General Manager, Business Services Manager, Operations Manager, and Business Development Manager—while engaging an external fractional CFO to provide strategic financial oversight and controller functions, relieving founder bottlenecks and signalling growth opportunities for staff.
Install Strategic Planning & Execution Rhythms	Introduced annual strategic planning, quarterly OKR sprints, and weekly “Scrum” meetings that built communications, alignment and a healthy culture of accountability.
Leadership Development & Training	All of the extended leadership team received structured leadership training on people, process and skills disciplines, and cascaded their learning to their respective teams.
Document Processes & SOPs	Standardised project workflows, estimating templates, and back‑office procedures to reduce errors and re‑work.
Implement Systems & Reporting	Deployed a cloud‑based ERP and project‑management platform, delivering real‑time dashboards for WIP, cash‑flow, and cost‑to‑complete metrics; external fractional CFO oversees monthly closes.
Organization‑Wide Training	Rolled out skills development in operational excellence, leadership, communications and processes to elevate performance at every level.

4. Results (18 Months)

Metric	Baseline	18‑Month Outcome
Annual Revenue	CAD $20 M	CAD $33 M (+65 %)
Net Profit	7 %	14 %
Cash‑Flow Forecast Accuracy	± 22 % variance	± 7 % variance
Re‑work Cost (% of revenue)	4.5 %	1.9 %
Client Net Promoter Score (NPS)	36	74
Employee Retention	78 %	90 %

Qualitative gains

• Founder Paul Ridgeway reduced involvement from 55 to 5 hours per week, focusing on strategic mentorship.

• Clients recognized the improvements in operational excellence and talent management and made Ridgeway their preferred vendor significantly increasing work volume with their existing clients.

• Trade partners reported faster RFIs, clearer schedules, and fewer change‑order disputes, boosting site productivity.

• Debt capacity increased by CAD $4 M after surety underwriters met the expanded leadership team and reviewed the stronger financials.

5. Lessons Learned

1. It takes a team to grow the business. Individual effort—even from talented successors—was not enough; real progress began once roles were clarified and leaders worked as a single unit toward shared goals.

2. Team‑training builds empathy and trust. Experiential group training and mentoring closed field‑office gaps and improved project performance.

3. Data visibility drives accountability. Real‑time financial and operational dashboards turned guesswork into evidence‑based decisions.

4. Culture travels through teams. When everyone embraces core values and functions as one team, they believe they can accomplish anything they set their minds to because they know they have each others backs.

5. Depth reassures banks and lenders. A visible, multi‑disciplinary team unlocked larger working capital lines and better credit terms.

6. Next Steps for the Family Succession

1. Initiate Transparent Communication: Begin open, structured discussions to set clear expectations, timelines, and responsibilities for the formal family succession.

2. Establish Clear Governance Through Documentation: Create a formal family constitution or governance agreement outlining roles, responsibilities, and succession procedures to prevent misunderstandings and ensure alignment.

3. Continue to Empower the Next Generation Through Intentional Development: Continue the comprehensive leadership training and mentoring to prepare successors for full responsibility and authority.

4. Clearly Distinguish Ownership from Management: Use tools such as non-voting shares and professional boards to ensure fairness and merit-based management practices, preventing ownership disputes from disrupting the business.

5. Partner with Professional Advisors: Engage experienced family business advisors who can objectively guide discussions, mediate conflicts, and help implement robust governance structures.

Grow the team around your family successors, and you’ll grow the business—safely and profitably—for the next generation.  Building leaders around the next generation of family in your business takes time and intent. Starting now ensures your family business can thrive well into the future.

Brad Gaulin

Chief Transformation Officer

MExit Inc.

June 19, 2025

ARTICLE - CASE STUDY FAMILY SUCCESSION REDEFINED - MEXIT.pdf

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