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 …. Made it a way of life. 2
PARALYSIS ??? or or PANACEA ??? 3
Family Venture From Molecule to a Business • • When complexities grow. When complexities grow. • When business beyond self. 4
Who is Professional • A non-family Manager ? CA/MBA ? • • Or one with Or one with • Special training • Rationale decision maker • Value neutral 5
Family - Professional dynamics DIFFERENCES • Training and values • Worldview and the assumptions • Organisational and socialisation experiences • Management style and method of operation 6
Family - Professional dynamics IMPLICATIONS OF THE DIFFERENCES Family member Professional Decision Intuitive - right brain Rational - left brain making Personal interventions Systems dependent Driven by Business/family Organisational interface needs Relate with Personal Impersonal Employees 7
The Issue ‘ OR’ v/s ‘AND’ 8
How to Professionalise ? The Alternative - I Imbibe Professional competence within members of the family, most viable when most viable when = potential in family = continuity in values is desired Advantages = rational and judgmental - benefit of both 9
How to Professionalise ? The Alternative - II Induct Professionals most viable when = = limited family options limited family options flip side = likely to create tensions within the organisation = discontinuity in ‘values’ 10
The Concern Outside Professional Entrepreneur Family Professional Cultural change 11
How to make it work ? • Take time to socialise in the family ways • Communicate clearly the values required • • Articulate ends rather than means Articulate ends rather than means • Tie the interests • Encourage to become part of the community • Have role clarification and team building sessions 12
To simplify … • It is like a kidney transplant • You need to make sure that there is proper match • 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 ……. 13
Finally – SPJIMR submissions • Sustained growth requires transition • Possible to have a synergistic blend • Internal & External hurdles make it difficult • 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…. 14
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