Group 1

Ajith
Anns lalu
Session 10 Jubit
Jiya joshy
Salih
Muhamad bash
Vinayak
 Development of family business

FoB 3 dimensional development - ownership, family and business.

Business point of view

 The start up stage
 Expansion stage
 Maturity stage
Stages of development of family business

Ownership point of view

 Stage 1- Controlling Owner

 Stage 2- Sibling Partnership
 Stage 3- Cousin Consortium
Keys to success of a Family
Business
 Set some boundaries

 Establish clear and regular methods of communication

 Divide roles and responsibilities

 Treat it like a business

 Recognize the advantages of family ownership

 Treat family members fairly

 Put business relationships in writing

 Don’t provide “sympathy” jobs for family members

 Draw clear management lines

 Seek outside advice

 Develop a succession plan

 Require outside experience first

How to keep a family business healthy

 Understand the unique interrelationships between various family and business roles.
 Treat the business as a business.
 Plan for the future of the family and the business.
 Don’t be afraid to ask advice.
MANAGEMENT PRACTICES
FOR FAMILY BUSINESSES
WHY THEY ARE NEEDED

 Good management practices are as important as good family relationships in the successful functioning of a
family business.
 Family members, as well as all other employees, should be treated fairly & consistently, in accordance with
their abilities & performance.
 Following best practices can help family firms design effective management systems.
 Motivation of non family employees can be enhanced by open communication & fairness.
 Family retreats bring all family members together to discuss business & family matters.
 Family councils provide a formal framework for the family's ongoing discussion of family & business issues.
KEY PRACTICES

 Hire For the Position – Not the Person

 Set Clear Expectations
 Provide a Detailed Job Description
 Orientation to the Organization
 Create A Process To Manage Employee Performance
 Make The Tough Call