What is a Family Business?
Family Business Consultancy…
A family business is a business structure established by a family business, after which the family is primarily involved in the business. It is a social structure that reflects the unique culture and traditions of the family in the workplace.
In a family business; a family business, work affects the family. A family business purpose; to keep the company’s wealth alive by using it efficiently for the next generation. In line with this aim, it aims to ensure the protection and increase of family wealth through the institutionalization of family business. In this context, family structure. It regulates and disciplines family and business relationships.
Plus, mostly family run. It aims to protect family privacy, regulate family sharing, protect family unity, and pass the family on to new generations in a healthy way.
Family Business Consultancy
A family business is a type of business where family members hold the majority of senior management, have significant influence over decision-making, and are represented by at least two generations. There are several features that distinguish family businesses from other types of businesses and characterize these businesses. These characteristics have a great impact on management policy, appointment of executives, working style in the company, human relations, and in turn corporate culture. Family businesses can establish a systematic and independent management approach to create family businesses and asset structures that are passed down from generation to generation.
Family Business Management
An agreement with the manager is necessary because successful managers cannot undergo continuous family training and enter different areas as the company develops.
Thus, the roles of risk-taking capitalists and professional managers making wage decisions emerge. In other words, separate ownership and control. With this distinction, corporate governance comes to the fore in order to establish an effective system of work.
Family Business Capital
When invested capital is scarce, capital outflows to partnerships, institutional investors, financial institutions and individual investors are growing. Building partnerships in this way should institutionalize responsibilities between the parties. Because institutionalization guarantees the protection and development of the rights of owners from legal entities.
For this reason, introducing an institutionalized model is important for all companies, not just listed companies.
The reason public companies come to the fore is that they are in a sense public property because they have a large ownership structure. These corporate sustainability crises affect wider segments of society socially and economically.
Most of the companies in the world and in our country today are family owned. His 90% of Turkish companies are family owned, compared to around 50% globally. If you look at the lifespans of family businesses, research shows that they are proportional to human lifespans. The existence of the institution for many years depends on the institutionalization of this company. The institutionalization of family businesses consists of two partial concepts. The first of these concepts is the family business concept and scope, the second is the institutionalization implications. The combination of these two concepts indicates the institutionalization of the family business.
Who is it suitable for?
It is important to know the job, to come from the essence of the job. However, it is not enough for permanence. Family businesses have various advantages in terms of general togetherness, communication, attitudes, values and beliefs due to the nature of relationships. However, the fact that relationships are based on family ties can create the perception that talented professionals have limited opportunities for promotion in family businesses. Studies show that the biggest problems in family businesses are role ambiguity, commitment to traditional values and ‘institutionalisation’.
Why Is It Needed?
Family businesses can experience the effects of the institutionalization process at various levels of the organization. Institutionalization is necessary for sustainable success in the process of management change, growth and contraction. This process can be accomplished by internalizing changes in planning and organizational structures. The root of the problem has to do with the inability of firms to initiate research into ‘institutionalization’, even though they have reached a certain size and the necessary conditions have been met.
It is important that families approach work-related issues seriously and professionally, establish their vision and mission, and plan for communication, growth, and personal transition within the family. Institutionalization does not mean leaving the company entirely in the hands of experts and relinquishing control, but ensuring that the rules, standards and procedures relating to the company’s operations are systematic and that these processes are enforced. It means ensuring that everything is independent of the individual.
One of the main reasons for the complexity of leadership tasks in family businesses is the confusion between family and business relationships. We call it “nipples” in the company to emphasize blood ties rather than talents and achievements. Hiring and rapidly promoting children regardless of their skills and experience, creating unique sales methods within the company, and second-generation professional managers who consider themselves superior despite their experience and knowledge. tendency is a problem we face in our family business.
What is the target?
All systems go through certain life cycles and crises. This applies to any system, including individuals, families, and organizations. In family businesses, one of the main research goals is to extend the developmental period of the life cycle to generations. The basic idea is to create a supportive and trusting work environment that supports the sense of togetherness created by the concept of family.
What is the method?
We provide necessary support so that the relationship between the head of the household and the family relationship within the facility do not clash and support and complement each other. In this direction, we plan and conduct studies of all kinds of structural, cultural, business and communication changes/transformations and create follow-up systems. Using effective communication techniques provides an opportunity to overcome the loss of control that comes with growing up.
Family Business Services
We work with family businesses around the world to support their growth potential and solve their problems. AG DENETİM is ready to accompany you every step of your growth journey.