Family Business
Helping family businesses tap on the existing opportunities and entrepreneurial resources and to build as a strong business unit with a Business/Corporate Governance Model
Is Family owned business an asset or a liability?
One key resource of the business is the family, and the prime concern is wealth and welfare of their family.
While on the one hand, the family is an asset of joy, with the passing on of time, the same larger family running into its second or third generation becomes a big liability of concern for many reasons. They have to avoid falling into family traps.
A major dilemma many of them have faced particularly in the last two decades, since economic liberalisation began, is to choose between combinations of risks and returns of business growth, and conservation of wealth of the family and its identity
However the uniqueness is that Family businesses are fascinating because of the mutual dependence of two ecosystems (family and business) that have inherently conflicting characteristics.
Their co-existence very much depends on how they evolve with the changes and time.
Need of a Corporate Governance Model in Family Business
Growing interest in corporate governance has its positive effects on family governance too especially in introducing greater level of professionalisation in business.
Adapting to the corporate governance model to make a difference in business while retaining their familial values is a greater possibility, provided there an a coordinated effort made by every one involved from the family.
A Three Tier Governance Business Model
This is where, we at Managing Next, offer family run businesses a three tier business model that creates a mutual dependence of two eco-systems via a Corporate Governance Model
Three Tier Business model
Governance
Identify
- Identify Present market situations and its challenges
- Identify your present family situations and their challenges
- Identify the family traps that three other family businesses that have got into
- Identify the family traps that you have already got into/might get into
- Identify their impact on business and family
Plan & Prioritize
Sustaining family equilibrium
- Vision/Mission
- Live & teach values
- Go beyond wealth asset to human asset Management model
Sustaining business equilibrium
- Transparent succession planning
- From a simple/complex family structure to a transformational organisational structure
- A culture of innovation and competence among family
- Build a talent pool of the family for future leadership
- Create a constant liasoning and updating with family professionals and family non-professionals
- Create forum for resolving conflicts on a timely basis
- Balance between family professionals and non-family professionals to create sustainability
Implementation
- Formation of family Commission/Committee with its role & responsibilities (find a mentor if need be)
- Create an implementation plan of action to maintain the equilibrium of family & business with its timelines (task of the Commission/Committee)
- Periodical Review Mechanism to measure its progress by yearly
Why you will need us
We help you grow quickly and aggressively over the next five years provided you are able to PLAN & PRIORITISE AND IMPLEMENT AS ONE SINGLE UNIT.
We help you to be relevant by building agility and innovation in your strcture.
We play a vital role in re-shaping its business equilibrium
We help you balance ‘governance and family’ in this highly technologically driven digitalised business world?
We help you to work out your inner differences as early as possible, work as one allied unit with a single minded focus and devotion on its vision and mission, and live it with passion for its future generation to emulate its ethos.
We, at Managing Next, offer our explored and enriched services to apply this three tier business Model, namely to create a powerful convergence of two eco-systems – family and business, in turn turning your business into a corporate governance mechanism.
Our Services include knowledge share, class-room training, personal accompanied consulting on finance and strategy, consulting tool kits, virtual support, finance and business Strategy Execution, whitepaper Analysis, KPI Implementation, Senior Executive and Overall Performance Appraisals