Topic : Family Business Life-Cycle

Transcription

1 Theme: Governance For -Owned Businesses Topic : Business Life-Cycle NOVEMBER 15 th 2018 SAROVA PANAFRIC HOTEL NAIROBI

2 Facilitator Brief Profile Executive Education Trainer and Consultant. Specialities : Leadership & Corporate Governance / Strategy / Negotiation. Paul Ouma Over 15 years senior leadership & board-level experience in multinational companies in Hospitality, Insurance, Education, International NGOs, Agriculture sectors. International work experience in Uganda,Rwanda,Tanzania,Nigeria,South Africa, Zambia. Professional Memberships/ Certifications/Trainings: Institute of Directors International Finance Corporation ( IFC), Corporate Governance Strathmore Business School ; The Effective Director (TED) Balanced Scorecard Institute (USA) Firm Institute, Boston (USA) Academic Credentials : BA(Hons), MBA - UON(Strategy),Doctorate (DBA USIU Current) Faculty: Strathmore Business School (SBS). Founder/Director ; Institute For Business Board Chairman/Directorships:various corporate, NGOs and family business boards. Contacts : Tel: (0) pouma@strathmore.edu paul.ouma@institutefamilybusiness.co.ke Website : www,institutefamilybusiness.co.ke

3 Session Objectives: 1. Note and understand the Business Life Cycles of Business Firms 2. Appreciate the appropriate business strategies for each stage. 3. Appreciate the appropriate corporate governance policies and structures for each stage

4 FAMILY BUSINESS CYCLE

5 What is a Business. a company is a family business when it has been closely identified with at least two generations of a family and this link has had a mutual influence on company policy and on the interests and objectives of the family ( Neubaurer & Lank,2016)

6 Business : Life Cycle Transition Steady progress Steady Growth Business Revenue Progress Welfare great Dreams Satisfaction Euphoria Greed/Disorganization Previously unknown worries Succession Problems Inequality/Misuse Channelling Wealth to grow & derive Satisfaction Progress towards Self Actualization Unsteady Growth Setting up rules of Operations Newly Found/ Rediscovered friends Security Fears Defined Vision for use of Wealth Sober Assessment Despair Founder Generation 2 nd Generation 3 rd Generation 4th Generation YEARS

7 Business Unique System Business System Business - Mission - Strategy - Structure - Technology - Culture - Systems (e.g. Reward and Information) - Processes (e.g. Communication, Decision Making) Governance Governance System - Legal Forms - Distribution of Ownership - Board of Directors - Mission, Vision and Goals - Decision Making Process System - Roles and Relationships - Cultural Patterns - Values & Vision - Decision Making

8 THE FAMILY BUSINESS DIMENSIONS (Emotions Centre) Business (Capital/Wealth Engine) Ownershp (Wealth Centre)

9 Strategy is: the direction and scope of an organisation, over the long term, which achieves advantage for the organisation, through configuration of its resources, within a changing environment, to meet the needs of markets, and to fulfill stakeholder expectations. What is Strategy? An outline of how a business intends to achieve its goals (Objectives) It answers the question Where are going? How do we get there?

10 LEVELS OF STRATEGIES

11 CORPORATE GOVERNANCE BODIES Business Business Charter Office Board Charter Business Council Assembly Board Charter Business Charter Trust Deed Board of Directors/ Trustees Shareholders Agreement Parallel Governance Structures for both The and The Business

12 FAMILY BUSINESS BUSINESS FAMILY EVOLUTION STRUCTURES FOUNDER GENERATION SIBLING PARTNERSHIP COUSIN CONFEDERATION Business Form(s) Proprietor/ Company Company Subsidiaries Holding Company Subsidiaries Control/ Leadership Founder(s) Owner Manager Sibling Partnership Branches Strategy Personal Vision, Mission Consolidation Backward/Forward Linkages Non- Mngrs Diversification Joint Ventures Backward/Forward Linkages Corporate Governance Proprietor/ Company Board of Directors Company Charters Non- Bus. Mgrs Holding Boards Subsidiary Boards Charters Non- Bus. Leaders

13 Question & Answer Paul Ouma Institute For Business Contacts : Tel: (0) pouma@strathmore.edu paul.ouma@institutefamilybusiness.co.ke Website : www,institutefamilybusiness.co.ke