Transcript Family
Coaching & Mentoring Indian Entrepreneurs Global Forum Singapore June 2011 Sentient June 2011 1 Enterprises by families Globally contribute to 70 – 90% of GDP North America: 80 – 90% of all businesses India – 70% of the companies Organization of Economic Cooperation and Development – 85% of companies in 33 member countries Sentient June 2011 2 Survival rates 45% 40% 40% 35% 30% 25% 20% 12% 15% 3% 10% 0% 2nd 3rd 4th Generation of family Sentient June 2011 3 Family Enterprises The family element brings additional dimensions into picture, that influence the various elements of the conventional framework Goal Formulation Evaluation And Adaptation Strategy Formulation Firm Family Firm Performance Strategy Implementation Environment and Market Key Dimensions of the Family Element • Family Values • Family interests • Family goals • Succession • Family business culture • Family members as managers • Siblings/Family relationships • Inter-generational issues • Non-family members as managers Through the firm, the family influences every element of the strategy framework except the Environment and Market Source: Adapted from “Strategic Management of the family business: Past Research and Future Challenges’, Pramodita Sharma, James J. Chrismam, Jess H.Chua, Family Business Review, Spring 1997 Sentient June 2011 4 Intrinsic Challenges Nepotism Overlap of family goals & business goals Professionalism Succession Family feuds Sentient June 2011 5 Why Coaching - immediate Founder has not developed his successor 2 generations of the families have difficulties communicating with each other Senior leaders hired by the previous generation Lack of clarity in roles & responsibilities Sentient June 2011 6 Why Coaching – Longer Term Economic downturn Global opportunities Imperative to learn & relearn Sentient June 2011 7 Coaching Challenges Need for advisors is recognized Validation of their own decisions No adequate follow through Professionalizing Vs hiring professionals Family role not clearly defined Need for corporate governance Succession Because of family Management skills Leadership development Sentient June 2011 8 “Almost all companies start out as family businesses, but only those that master the challenges intrinsic to this form of ownership endure and prosper over the generations. The work involved is complex, extensive, and never-ending, but the evidence suggests that it is worth the effort for the family, the business, and society at large.” —McKinsey Quarterly, Jan 2010 Sentient June 2011 9 [email protected] Sentient June 2011 10