Short-Term or Modular Programs
As different businesses and individuals have different requirements with respect to their educational and business gaps, they may not choose to attend programs that are comprehensive in nature. Therefore, in order to provide a learning experience in niche/specific areas of Family Business, the short-term or modular courses have been designed. These can be availed by members of Family Owned Businesses as well as Professionals working with Family Firms.
Succession in Family Owned Businesses:
- Research on family owned businesses states that less than one-third of family owned businesses are continued by the second generation when owners (managers) retire, and only half of those make it into the third generation. Though succession planning is an important process for the ensuring the long-term continuity of the family firm, this aspect is either largely neglected or not successful.
- The founder’s feeling of immortality, the lack or abundance of appropriate successors, the lack of trust in next generation’s entrepreneurial competences, and the fear of retirement by the manager (founder) are the main reasons why some firms don’t think about succession (Leach 1991; Kets de Vries 1988; Scase and Goffee 1987). In fact, the CEO’s inability to let go is the single most cited obstacle to effective succession (Sharma et al. 2001). Moreover, problems within the family can also lead to failed successions among the family owned companies (Morris et al., 1997).
- This course helps understand the process of succession, barriers to it and strategies for effective Succession Planning in the Family Owned Business.
Developing Next Generation:
person will not be really happy in the midst of wealth, finding an enduring sense of satisfaction and meaning, if as a consequence of having it, his or her unique individuality has gone undeveloped.
- Stephen Rockefeller
The development of Next Generation members in Family Owned Businesses involves:
- Aligning with the family’s core vision, mission and values
- Finding new passion & focus for business
- Developing self-confidence, competence and work ethics
- Discovering hidden strengths and potential
- Developing positive identity with wealth
- Revising strategy as per “Modern” business practices
- Fighting for position–within, across generations
- Acquiring skills and knowledge to make effective financial decisions
This course will help explore the opportunities and focus areas for the development of the Next Generation members in Family Business.
Professionalizing Family Business:
Most often, lack of professionalization amongst family run businesses tends to hamper their growth. Many family businesses face the challenge of attracting and retaining professionals in the organization. Ultimately only a set of “loyalists” stay back with the promoters over a period of time. Eventually, promoters are forced to reward loyalty over competence.
This translates into a vicious cycle where:
- Family Business Owners don’t trust non-family member employees for taking decisions
- Non-family member employees tend to look out for better opportunities
- This in-return validates Family Business Owners perspective that non-family members cannot be trusted
This course helps identify & evolve solutions to overcome the challenges of Professionalizing the Family Owned Business.
Conflict Management & Resolution:
As a business family grows in size, more number of family members get involved in the business with different set of vision and thought process. Ideological conflicts are therefore bound to happen at some point in time. In many cases, ideological conflicts arises either due to difference of opinion or lack of communication or ego problems. In addition, conflicts in family businesses also arise due to generation-gap; older generation's desire to preserve wealth and next generation's aspiration to diversify and grow. Most often conflicts arise when the third generation comes into the picture. This is also commonly known as the “Third Generation Jinx”.
This course helps understand and effectively deal with conflicts in Family Business.
Scaling Up & Expanding Family Business:
According to survey findings by PWC (2012), family businesses, like other businesses, are facing big pressures to start expanding overseas in order to remain competitive. They are being driven by competitive pressures - or market openings due to innovation - to get past their instinctual reluctance to avoid excessive risk and are entering into foreign markets.
Many family owned businesses have an aversion to leveraging their balance sheet or mortgaging physical assets which makes raising growth capital difficult. Moreover, issues of ownership, succession, and the hiring of outside managers and unwillingness for family members to relocate can present themselves as unique challenges for business expansion.
This course helps understand issues related to competitiveness and expansion for the Family Business and offer perspectives on overcoming these effectively. Slide 12
Attracting Next Generation to Family Business:
Working in a strong family business can present itself both as a great opportunity or as burden for the next generation. It is a daunting proposition to take over a company that was led so well by a parent. At the same time, personal pressure to carry on the family business tradition is often felt. Attracting and engaging the next generation in the Family Business is hugely dependent on the degree of emotional ownership experienced by them.
So, how to foster emotional ownership among next generation? How to align the aspirations & passion of Next Gen family members with the need to successfully lead the family business?
This course helps address the above and explore greater possibilities to attract next generation into the family business.
* Disclaimer: Course syllabus is subject to change based on market needs.