Growth in a family owned business

Growth in a family owned business

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  SMALL TO BIG
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  PRESENTATION AGENDA: 1. Stages ofgrowth 2. Peculiarity of family owned business 3. How to ensure growth 4. How can we assist WELCOME ALL YOU SUCESSFUL PEOPLE
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  Five stages ofgrowth. STAGES OF GROWTH OF A COMPANY
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  Stage 1 :Existence •Main focus : obtain customers and deliver its product service •Experiment with a number of different value propositions and business models until it finds a combination that works and gains acceptance by the market
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  Stage 1 :Keep Afloat Management style : Direct supervision Strategic Focus : Survival Process & System : Non existent Existence People Self, family & friends Measurement – Subjective
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  Stage 2 :Survival •Business is workable •Tested value proposition •Business model tested • Satisfied customers •Revenue & Expense problem – Cash flow
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  Stage 2 :Optimise Cashflow Management style : Supervised supervision Strategic Focus : Cash flow Process & System : Limited to cash flow planning Survival People Owner=business Measurement – Subjective
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  Stage 3 :Success Two choices •Grow & risk what has been created •Remain afloat and create something new The company can stay at this stage indefinitely, providing environmental change does not destroy its market niche or ineffective management reduces its competitive abilities
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  Stage 3 :Option A or B Management style : Functional Supervision Strategic Focus : Growth or Afloat Process & System : Strategic plan, budget and basic process Success People Functional manager in place Measurement – Subjective except for sales
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  Stage 4 :Takeoff •Growth a combination of organic and inorganic, might require financing •If the owner is successful, the company can grow into a big business •If not, it is usually sold at a profit, •The management team often changes from the previous
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  Stage 4 :Big Boy Management style : Divisional Strategic Focus : Growth Process & System : Refined systems and process Success People Competency driven Measurement - Objective, KPIs
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  Stage 5 :Resource Maturity •Streamlining and integrating operations after the operational inefficiencies caused due to rapid growth •Well defined process, integration by using technology •Owner and company now completely separated—both financially and operation
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  Stage 5 :Operational & Cost Efficiencies Management style : Line & Staff, Resource Maturity Strategic Focus : Growth with consolidation Process & System :Efficiency by reengineering & IT enabling People Competency driven Measurement - Scorecards & KPIs
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  Five Stages AtA Glance Direct supervision Supervised supervision Survival Cashflow Non Existent Limited cashflow Self, Family & Friends Self, Family & Friends Subjective Subjective Functional supervision Divisional Mangers Growth & afloat Growth Strategic & Basic Refined System Functional Competent Only sales KPIs Line & Staff Growth & Consolidate IT enabling Competent Scorecards
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  Family, People, Process,& Money ADDED COMPLEXITY IN THE REAL WORLD
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  Role Of Family •All family members may not be owners • All owners may not be working in the business • Business may have non owners from the family. Board of Directors Business Family Council Family Shareholder Agreement Ownership
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  Role Of Family STAGEI STAGE II STAGE III STAGE IV STAGE V Existence Survival Success Take Off Resource Maturity Manpower Money Guidance Manpower Guidance Manpower (specially for geographical growth) Governance Family involvement can hamper or stagnate the growth. Stage 3 onwards family should be involved in business based on Merit.
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  As the ownergrows its business, there is a clear tradeoff between the owner’s ability to execute and his ability to delegate Critical Success Factors – Owner’s Abilities STAGE I STAGE II STAGE III STAGE IV STAGE V Existence Survival Success Take Off Resource Maturity High Owner’s ability to execute Owner’s ability to delegate Low
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  Owners ability todelegate has a direct correlation with the process and systems Critical Success Factors – Owner’s Abilities STAGE I STAGE II STAGE III STAGE IV STAGE V Existence Survival Success Take Off Resource Maturity High Critical Success Factors Reporting tools Process & systems Owner’s ability to delegate Low Organization structuring IT tools & monitoring systems
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  Owners ability todelegate has a direct correlation with quality of manpower Critical Success Factors – Owner’s Abilities STAGE I STAGE II STAGE III STAGE IV STAGE V Existence Survival Success Take Off Resource Maturity Critical Success Factors High Mangers with larger experience Functional Managers Non family manpower Owner’s ability to delegate Low Organization structuring
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  Strategic planning becomesincreasingly important as the company becomes more complex with more offerings, markets served, and scale Critical Success Factors – Strategic Planning STAGE I STAGE II STAGE III STAGE IV STAGE V Existence Survival Success Take Off Resource Maturity Critical Success Factors High Strategic Planning Low
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  Nimble Systems • Startedin 2004 • Offices in India and Kenya • Operational in India, Middle east, East & West Africa. • Has worked in over 18 countries • Has executed more than 250 projects • Focuses in facilitating organizational growth by putting process and systems
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  How Does NimbleAssist In Growth Strategy Create the road map for the organization to ensure asset utilization and growth Organization structure Create structures for the organization ensuring the strategy is fulfilled, taking into account the culture & stage Process & Systems R&R & KPIs Create business process for the organization with reports ensuring ease of delegation for the owner. Create detailed roles and responsibilities document with measurability tools like KPIs and score card to ensure measurability and strategy implementation
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  Nimble Involvement Through TheFive Stages CEO Mentoring CEO Mentoring Org Structuring Strategy Org structuring Business process & systems Board Mentoring Board Score Card Strategy Org Structure Process & Systems Reengineering Skill set mapping Training Need Analysis Appraisal System
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  Contact Us ToKnow More About Our Offering [email protected]