Family-owned Businesses have become the dynamic part of the worldwide business landscape. Surprisingly, there are businesses that have successfully emerged with the winning trophy from one generation to next generation whereas some reached the third generation intact. Succeeding generation explores varied leadership transitions in the family-owned business. This offers a cleared-eye assessment of how strenuous the path becomes when different participants are meant to excel in several roles with the same people.
The long-term growth and sustainability of family business is ensured by maintaining the balance between the requirements of the business and expectations of the family members. Owing to this, businesses suffer from several issues. These issues are:
- Vision for the future and values system
- Level of family involvement into business
- Interfamily tension among the members and relatives
- Generational issues of combining multiple generations of managers
- Pressure to stay and succeed in the business
- Division among the legitimate successors of the family business
- Psychological conflict i.e. Rivalry among siblings or shareholders of the business
- Pressure to hire more family members
LAB understands that owing to these conditions, business and families doesn’t stand still on the same path. With extensive knowledge and experience working tandemly across the world, LAB’s facilitator has made it their duty to direct the process and suggest all the necessary steps to ensure positive dynamics.
Lab’s founder is a part of 150 years old family business herself, with 6th generations growing up. This enables us to understand importance to balance between emotions, family desires and business needs. We understand that there is a very strong correlation between financial performance and family functioning. Lab’s facilitator has most efficient techniques across psychology, coaching, couple’s therapy and counseling which provided solid improvements in communication style and better planning process for the families.
On the basis of research, tailor-made programs are drafted to ensure the smooth working by maintaining an equilateral balance. The team even suggests various measures to undertake while having a conversation with their shareholders.
LAB provides its clients the necessary help in family business issues. The below-mentioned are some of the efforts initiated by us:
- Alignment of values and goals of all the family members.
- Establishment of periodic strategies and action plans to ensure smoothness.
- Formulation of rules and protocols for smooth decision making process.
- Analyzation of family member working styles to allocate responsibilities.
- Assessment of professional capabilities of family members to devise a plan for future leaders.
- Incorporation of hopes, believes, worries and expectations of family members.
All the aforementioned efforts with the assistance of LAB ensures businesses to achieve growth and transitions organically. LAB also conducts family sessions in which family members are aided with tailored questions, learning material and experienced guidance to help you succeed. The topic and theme for family sessions include:
- Entrepreneurship and innovation measure within the family.
- Family and Business reputation protection measures.
- Transitions of management/ownerships.
- Clarifying the process for control and decision making process.
- Involvement of new generation admission into business partnership.
- Compensation policies for family members.
- Risk management for Business and Family.
- Establishing hiring/firing protocols and professional requirements for family members
Asking questions helps the directors of companies to analyses the situation and detect the sticky issues. It doesn’t only provide issue information but also act as a catalyzer for the family to do the right thing.
Ultimately, serving on a family business board requires more knowledge and patience to analyses the critical areas. It’s a challenge to cope up with but LAB facilitators have made it their duty to right support that companies are thriving to avail across generations.
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