PROFESSIONALISATION IN FAMILY BUSINESS IN FAMILY BUSINESS 1 - - PowerPoint PPT Presentation

professionalisation in family business in family business
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PROFESSIONALISATION IN FAMILY BUSINESS IN FAMILY BUSINESS 1 - - PowerPoint PPT Presentation

PROFESSIONALISATION IN FAMILY BUSINESS IN FAMILY BUSINESS 1 Professionalisation is like Yoga or Jogging Every one agrees that good for health. Every one agrees that good for health. and yet Few do it. do it well


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SLIDE 1

PROFESSIONALISATION IN FAMILY BUSINESS

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IN FAMILY BUSINESS

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SLIDE 2

Professionalisation is like Yoga or Jogging

  • Every one agrees that good for health.

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  • Every one agrees that good for health.
  • and yet …
  • Few do it…. do it well …. Made it a way of life.
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SLIDE 3

PARALYSIS ???

  • r

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  • r

PANACEA ???

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SLIDE 4

Family Venture From Molecule to a Business

  • When complexities grow.

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  • When complexities grow.
  • When business beyond self.
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SLIDE 5

Who is Professional

  • A non-family Manager ? CA/MBA ?
  • Or one with

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  • Or one with
  • Special training
  • Rationale decision maker
  • Value neutral
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SLIDE 6

Family - Professional dynamics

DIFFERENCES

  • Training and values

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  • Worldview and the assumptions
  • Organisational and socialisation experiences
  • Management style and method of operation
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SLIDE 7

Family - Professional dynamics

IMPLICATIONS OF THE DIFFERENCES

Family member Professional

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Decision Intuitive - right brain Rational - left brain making Personal interventions Systems dependent Driven by Business/family Organisational interface needs Relate with Personal Impersonal Employees

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SLIDE 8

The Issue

‘OR’

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v/s ‘AND’

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SLIDE 9

How to Professionalise ?

The Alternative - I

Imbibe Professional competence within members of the family, most viable when

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most viable when = potential in family = continuity in values is desired Advantages = rational and judgmental - benefit of both

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SLIDE 10

How to Professionalise ?

The Alternative - II

Induct Professionals most viable when = limited family options

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= limited family options flip side = likely to create tensions within the organisation = discontinuity in ‘values’

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SLIDE 11

Entrepreneur Outside Professional

The Concern

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Family Professional Cultural change

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SLIDE 12

How to make it work ?

  • Take time to socialise in the family ways
  • Communicate clearly the values required
  • Articulate ends rather than means

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  • Articulate ends rather than means
  • Tie the interests
  • Encourage to become part of the community
  • Have role clarification and team building sessions
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SLIDE 13

To simplify …

  • It is like a kidney transplant
  • You need to make sure that there is proper match

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  • You need to make sure that there is proper match
  • You need to prepare both the body and the ‘new’
  • You need to ‘rest’ – pay attention.
  • Once settled, life is different.

Ever after …….

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SLIDE 14

Finally – SPJIMR submissions

  • Sustained growth requires transition
  • Possible to have a synergistic blend
  • Internal & External hurdles make it difficult

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  • Internal & External hurdles make it difficult
  • How and when - No ‘one size fits all’ strategy
  • Transition is a process – perfected over time
  • Need to be planned carefully and

implemented gradually….