How a typical Business Continuity Program Works ?
February 12, 2025
India and China are two of the fastest growing economies in the world. They are also neighbors and share a huge boundary spanning thousands of kilometers. However, they do not share an amicable relationship. India and China have fought a full-fledged war in 1962. Even after the war, skirmishes between the two emerging nations have […]
It is a fact that India has been at the forefront of the BPO/Services revolution and its firms have garnered a huge chunk of the BPO/Services market. However, the firms that operate in the BPO space in India face their own challenges as far as the conduct of business is concerned. For instance, one of […]
Introduction Enterprise resource planning has been the forefront in providing efficiency and productivity solution to the companies all over the world. In the global and competitive environment, it is essential for companies to have some sort of ERP in place. Enterprise resource planning ensures that deployment of resources take place, and company can monitor them […]
When analyzed in financial terms, it turns out that the world is in a precarious position. However, there seems to be no sense of urgency amongst the people. This may be because of the fact that newspapers, as well as other forms of media, are not warning the people that a recession might be around […]
Outsourcing of core Logistics function of Warehousing is fast becoming popular not only for Multi National Companies with global operations but all organizations in medium and small sector too. Outsourcing may fall into two categories. One category would be the flow through warehouses, merging and distribution centers that are but a consolidation points in the […]
Family owned businesses have been the norm from the time of the industrial revolution and in fact, they were the mainstay of the business world in the early decades of the 20th century.
With the advent of technology and the services sector, the rise of the professionally managed organizations was evident.
In this context, many family owned businesses seem to be failing before the second generation takes over.
The reasons for this are many and they include making the second and the subsequent generations obligated to take over the running of the company, making all family members part of the business, and operating in silos instead of being generalists who can have a broad perspective.
On the other hand, the lack of a clear succession plan once the family patriarch or matriarch dies or retires is also a reason for failure.
Finally, infighting among the family members over who would lead which segment once the founder or the head of the family dies or retires is another important reason for failure.
Family owned businesses could avoid these traps by ensuring that they do not pressurize the younger generation to enter the family business when they are not inclined to do so.
This can be resolved by ensuring that only those family members with the aptitude and the skills as well as the attitude and temperament are asked to join the business.
This can be resolved by ensuring that non-family members are promoted based on merit and not only on familial ties.
Apart from these factors, the lack of a clear succession plan and the disunity among family members is often a reason why many family businesses fail to survive into the subsequent generations. This can be seen in the way several corporate houses in recent years have either split or have been sold off because of these reasons.
Hence, these traps can be avoided and the family owned businesses could survive into the subsequent generations by following some of the practices that management experts have prescribed.
Finally, in these times when there is a rapid turnover of ideas and concepts, it becomes imperative for family businesses to retain their competitive edge in the face of the onslaught of competition.
Hence, they need all the energy and the foresight they can to avoid some of the reasons for failure.
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