Bangkok--24 Oct--HayGroup
Family-owned businesses (FOBs) have a unique set of dynamics. As well as dealing with all the issues that relate to growing a successful business, there are also important factors relating to the family that need careful attention such as the transition from one generation to the next >>
It is the very human and emotional aspect of the family-owned business, which creates the ‘family values’ that influence how the company will ultimately take decisions. Also, compared to non-family-owned businesses which tend to be more impersonal and driven by short-term returns, FOBs are more focused on long-term value creation.
A special heritage
The values of a family-owned business are handed down to each generation and maintaining this heritage and family goodwill 1 is key to continuing success. Decisions about risk taking and long-term investment — the structure of the organization — who works where and for whom for example and the markets the company chooses to operate in, are often defined by the family-owned business values.
A different set of challenges
Yet ‘working for the family’ presents particular challenges. During their evolution, our clients have questions that are particular to them as family-owned businesses such as: how should we manage succession from one generation to the next? how do we professionalize our business for growth
without losing the family spirit and values? should we create a family office to manage the family
interests? what is the best way to share rewards for family and non-family members? can we attract a CEO who is a non-family member? how do we draw the line between ownership and management?
Helping to find the balance between ‘family’ and ‘business’
Hay Group helps family-owned businesses address these challenges, guiding them through the opportunities and risks posed by the business, the family, the ownership of the company. We help: confirm the company vision so that everyone agrees on what the business will look like and achieve in the future make sure the business strategy is aligned to family aspirations develop a family plan and protocols that provide governance structures as well as balance family and business control develop a leadership team that focuses on delivering business goals but is also sensitive to the values of the family create short and long-term succession plans that meet the aspirations of both family and organization set up the right reward strategy and structure that will allow retention and development of both family and non-family managers transfer the goodwill from the founder/family to the business organization through a professionalized operating model and management ensure family-owned businesses actively manage attracting and retaining talent both from within the family itself and outside.
Why Hay Group?
We understand the practice and philosophy of running a family-owned business is different from running an ‘ordinary’ company. We see getting to know the family as part of our work in supporting a family-owned business in providing a more personal ‘human’ service. Our consulting services therefore do more than just look at the business to deliver real benefit by: providing an holistic approach: combining an understanding of business, management and the family dynamics helping transform what can be highly emotional perspectives on strategy and objectives to a more rational one to achieve the right balance between ‘family first’ and ‘business first’.
Hay Group works in partnership with family business owners to address their specific needs and focus on practical implementation. We don’t just leave behind a manual of recommendations but work with clients throughout the lifetime of a project and after, if required. By transferring knowledge and capability to family-owned businesses we help them lead and manage change more effectively. In contrast to other consultancies, we do not bring an army of newly trained consultants to overrun our client’s organization. Instead, we bring a small team of experienced professionals who provide advice to senior leaders to help companies achieve their business goals.