Professionalizing Family Business- Explained

The focus is on the need to have in place systems and processes so that day to day business moves from being person-driven to being system-and process-driven. Even in the absence of the key person, who may be the founder or another family member, the firm should be able to run in autopilot mode.

There comes a time in the development of every business when owners reach a saturation point after which they can no longer do everything themselves. Traditionally in India, new recruits from within the family were readily available to join the business and help take the strain, but today women are having fewer children. If growth is to be sustained, business owners must first ensure that they recognize their primary role, namely, establishing vision, direction, and a competent and committed organization. Secondly, they must spend an increasing amount of time in performing this role, leaving others to tackle the more mundane, day-to-day responsibilities. In short, the organization must become less centralized and acquire more sophisticated managerial skills that shift emphasis from control to coordination. To accommodate this change of emphasis, a more disciplined working environment must be developed than that which sufficed in the old days; the direction of the enterprise must be plotted.

 

Share This:

Comments are closed.