Coaching employees in small and medium (SME) companies

“A good coach will make his players see what they can be rather than what they are” goes the popular adage. Every company needs good coaches. Coaches can be internal or external. Coaching and mentoring is often confused to be one and the same. A coach is usually a subject matter expert who engages with a person or group of persons for a specific task. A mentor on the other hand works with the mentee with no specific outcomes but for long term transformational change. Coaching sessions happen in a structured manner with a dedicated amount of time set aside for coaching. Mentoring on the other hand does not have fixed time or agenda. Coaching happens for a specific purpose and done in an official or formal manner as assigned to both the coach and to the people assigned to the coach. Mentoring is more informal and done at a personal level. The purpose of coaching is developing people for a specific task and the timeframe for coaching may end post successful completion of the task. Mentoring happens more from the angle of personal development. It could go on for longer than a year.

Coaching of employees in SME companies is important because of two prime reasons. Given the limited resources and remunerations, if not VC funded, most of the companies have limitations in attracting the top notch resources. Unlike their larger counterparts, SME have unique challenges of growing talent and control attrition. For many SME growing and investing in a loyal employees has more bottom line impact that hiring from market. An employee with long term associations would have imbibed the organizational culture, and hence the transaction costs of bonding, and monitoring as they move to newer roles would be insignificant. Coaching in the context of small and medium companies especially can work wonders in creating star performing leaders and employees. Coaching works in stretching the leadership base in the company and create a pool of second and third level ownership.

Like all organizational interventions, coaching must follow the process of select, sieve, invest, support and disengage stages. In the first stages, SME management select the individuals who show promise not just on technical stuff, but are prepare to the long haul the company is envisaging them in the newer roles. Selection should be based on 360 feedback and psychometric tests to arrive at a smaller set of potential candidates.  Rolling out a coaching program must be done with an aim of making it helpful for the participant employees in their practical situations at work. Since a coaching program is task specific it is important that the program tackles all the identified improvement areas is necessary. It is essential to make the coaching program activity based and include role plays, simulations, etc. A coach may come across several instances where an employee performs well during activities like simulations, real life situation cases, etc but when it comes to execution in the actual situation, they may fumble. Their ability to sense and respond may be not be at best in real life situations. This is where the coach must intervene, develop situation specific frameworks the employee can relate too, ask them to maintain a learning dairy so that they could monitor their progress to various stimuli.

Coaching is a process change. A coach has to plan for the initial engagement, winning of trust and acceptance and plan for disengagement.  Coach should move from how to stage to when and why of response and stimuli so that the transfer of skills and experience is sustainable and long term impacting. The trust, empathy and personal touch are key factors that play an important role in coaching outcomes. Lastly, both coaches and management must be prepared for less than 100% outcomes and setbacks.  Employee attrition, their inability to own and walk the long haul or organizational changes lead to less than expected outcomes. From a SME perspective, investing in a coaching program rather than splurging $$ on generic training programs help in motivating employees, and identify new layers of leadership.

Sindhu Raviraj

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Corporate venture funds (CVF) route to innovation and market.

Corporate venture fund (CVF) is the investment vehicle created by companies to invest in external companies including startups. A recent CB Insights report mentions that corporate venture funds invested about $12.31 billion in 2014 and they outnumbered traditional VC in many markets including mobile, healthcare, etc. The reasons to set up VC F are many. From an “open innovation” perspective, investing in outside agencies provides more opportunities to benefit from innovation, than investment in their own R&D.  Often it may be even cheaper way to access emerging technologies and resources, thus help company gain from faster response. Investment in external agencies can help the corporate to de-risk investment and resources, even if technology changes or market changes happen. Another major advantage unlike the internal R&D which may be plagued by the internal organizational dynamics, a startup can pursue the technology development without any risks of failure or constraints persistent in the parent. Consider the case of research labs that were created under quite a pomp and show by many software companies. While their initial efforts were laudable, they lost steam in the run up. Attrition of key people at top, inability to drive “outside-company” innovations, and risk-averse, process-support nature of their key businesses have thwarted these centres from becoming innovation engines, but poor super-centre of excellence an euphemism for domain heavy/process heavy resources. In software and pharmaceutical industry, CVF is an approach to access to competitive techniques and increasing the heights of patent walls for the parent company. CVF, as companies such as Intel, Eli Lilly discovered could be used to spawn the ecosystem technology development to drive their core product revenues. Similar to corporate diversification strategy, CVF makes sense when: 1) it is a related technology, 2) offers access to state-of-the art technology, 3) provides deeper access to geographic markets, and 4) provides access to a consortia. From an IT service company that has created a CVF, an investment into say a product backed by Irish Baking association or a IoT applications that helps read HMR readings of equipment makes sense. For a CVF to be successful sticking closer to the parent company markets, creating platforms for transfer of knowledge and skill sets from the funded companies and the parent, pruning investment that has gone sour and continuing to check risk averse behaviour is paramount. While CVF provides innovation leverages, parent companies must independently pursue alliance programs as alternate routes to engage other market players where no CVF investment has happened to de-risk themselves from dependency and alienation of other players.

Dr TR Madan Mohan and D. Balasubramaniam

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Setting your ward to “succeed in family business”

Family run businesses are a significant segment of any nation’s industrial structure. 5% of US GDP is contributed by family businesses and 35% of Fortune 500 is family owned. They generate close to 50% of employment and 59% of all new job creations. In India 95% of business are family run, and 30% of BSE listed companies are family owned. These companies product more than 6000 products, contribute to 45% of manufacturing output and 40% of the total exports of the country.  Just about 20% survive a first generation transfer and over 65% of the succession plans go awry.  Succession has not been smooth affair within large companies like Tata’s and Mahindra’s.   Success of succession depends on the planning and execution.   Insights from successful entry and succession of wards into family business show there are some common principles that can be easily adopted.

While planning, entry at right level and mentoring are important, setting up wards with the right gamification principles ensures success.

  1. Do not burden the successor with constant reminder on results, instead focus on outcomes.
  2. Obsession with results can induce an undue pressure on the successor and induce her/him to focus on short term gains. Remember succession is an opportunity to rewire your business, and let somebody who is going to own and run the business in future unearth suboptimal approaches, bring fresh perspective and drive down the cobwebs.
  3. Limit praise, only for genuine reasons.
  4. Undue praise, which happens every day for no significant output, takes the charm out of appreciation. Overusing praise may make the successor believe less of you and less motivated
  5. Encourage them to take risk and experience failures
  6. Nothing teaches like the dirt on their own hands. Allow successors to fold up their sleeves, trip, fall and raise up to live with the experience.
  7. Allow them to solve the problems in their own way and learn
  8. Encourage them to go to the bottom of events, what happened, why it failed, what could they learn and how they would do it next time. Senior family members must dawn the role of mentor on the sides rather than leader on the dias if succession has to be successful
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Growing leaders internally: what works and what does not

One common challenge in organizations of all colours and size is paucity of next line of leadership. While many companies have various types of employee development programs, very few of them help in creating a pool of leaders.  A recent survey of employee engagement spend indicates less than 10% of companies find returns from the employee engagement and development significant. A challenge grapple is how to turn career “managers” from short-haul oriented, self-centred individuals to leaders. Leadership is all about imbibing and living with sense of ownership, intense commitment for outcomes not just results and sense of urgency in reaching the outcomes.

Examples of failed leadership development experiences in many companies indicate three common challenges. Early push of an employee into a leadership position when he/she was not sure about the haul is the first cause of failure.  While the management may have identified the potential of the individual to be leader and pushed him/her to the pedestal the individual may have certain apprehension.  Capability or commitment required for the long haul of company’s growth, or utility of the job itself may inhibit the individual from embracing the new role. If the employee happens to come with an expiry date (an euphemism for an employee who stays in a job to a particular period so as to meet certain pre-requisites for a certification or industry experience), thrusting her/him with the leadership may not work.   Leadership experiments fail if they clear assessments are not carried out. Before even thrusting an individual to a leadership role, identify her/his strengths, values, positive orientation towards the future and overall satisfaction with the job and organization. Second area leadership development programs fail is insufficient exposure to challenges and associated experiences.  By placing the  individuals in cocoon and not allowing them to struggle in the new role limits their learning on the job. Finally, leadership development fails if continuous assessment of current skills and capabilities and gaps are not done.

Growing leaders internally is a process that requires planning, high intensity of follow through, and freedom to emerge from failures. Leadership engine can be sustained by adopting following principles.

  1. Identify and develop them early: Most successful internal leadership programs quickly identify leadership potentials and others very quickly. Look for obvious signs of quality of work, sense of ownership of team, quality of feedbacks to colleagues, penchant to DIM (do it myself), initiative for breaks with team, etc.
  2.  Leadership at all levels: Internal leadership program must not restrict to a certain layer of organization, but rather be pursued as a common program across the organization. Internal leaders can emerge at various levels and the program must be flexible enough to identify and sustain leaderships of various forms. Leadership at some level may be highly task oriented, structured, process oriented, while leadership at another level may be one of managing unstructured, complex and volatile environment.
  3.  Assess their skills and capabilities, and identify right intervention strategies: Identify their life goals, self-esteem, creativity, optimism, happiness, personal strengths and motivation of the individual. Identify their natural leadership styles and design appropriate intervention strategies.
  4.  Support them with mentors: Internal leaders require mentors who could be from the company or outside. They act as sounding boards, motivational support and dogma sinks.
  5.  Rotate: Nothing works like a comprehensive view of the organization for would be leaders. Job rotation or a new geography broadens the work experience.
  6.  Push them to network smarter: Internal leadership program can be successful only if strong network outcomes are defined and orchestrated.  Goad the identified individuals to connect with their peers in professional forums, industry events, seminars and think tanks. Encourage them to express and reach out in the social media, by curating and directing their content appropriately.
  7.  Expose them to experience, and allow them to struggle:  Internal leadership development must have 3 quarter plans that help the individual gain practical experience of leading and managing at the newer plane.  If failures or setback happens, allow the individuals to mull over and gain from the experience. While setting them to win is important, the win must be cherished as self-gained.
  8.  Help them to do self-review: Internal leadership program thrive if platforms and process to self-review without the stigma of failures or low outcomes are encouraged. Create a informal self-review mechanisms where the individual can elicit the feedback, discuss and digest and push the agenda of improvement by themselves.
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Customer funded startup: are you scaling rightly?????

India is the third largest startup country with 3,100 startups after the US which has 4,500 and the UK with 4,000 startups. While no statistical data exists, anecdotal data indicates 1 in 4 wrap up in the first year itself, 36%fail in the second year and 44% fail in the third year. Probability of failure increases if the product/service is a break through, has no external capital to support the growth or entry barriers are high.  In recent years, venture capitalists, angels and incubators have supplanted the startups with much needed capital. In the midst of chaos, there are startups that for various reasons want to grow with self-generated funds. They prefer to grow organically, gain from each customer win and experience and sustain the firm. Customer funded startups tend to preserve cash from each customer win, focus on optimization of resources and multi-skilling, and drive the growth incrementally.  Unlike their richer VC funded cousins, customer funded companies usually have their offices in backyards, hire people for their attitude, often hire from smaller schools, extensively rely on positive words of mouth to access newer customer. Customer funded startup founders major focus is on enabling great customer experiences at affordable costs.

From our analysis of customer funded startups, there are three broad stages of scaling up. First stage, is when the “relevance” needs to be established. In the initial stages, startup must play hard to prove why it can deliver better value and experience compared to an incumbent. The focus in this stage is all about smartly packaging winnable features compared to incumbent. Most customer funded startup find this stage is challenging, but albeit surmountable.

The next scale up stage happens around 6–14 months. Armed with their first customer experience, they need to assimilate, and standardize the offering so that it can work in various other settings than the initial customer environment. Customer funded startups go through this stage in an iterative “learning by doing” approach, eliminating some that did not work, ironing out the sticky corners and shaping the edges better so that the product/offering meets broad acceptance. In this stage, most customer funded startups, to gain broader experience pick orders that may not be right ones for them. Startups suffer when the engagement cost enlarge because of too much customization for the new client or they have chosen to work with a client with high transaction cost (both bonding, and monitoring costs). Many startups suffer are yet to figure out what resource to be assigned for which projects.  It is not uncommon to find their A resources working on projects of low margins!. Most of them suffer from utilization mentality rather than effectiveness. Another challenge customer funded projects find at this stage is picking up orders without a good analysis of costs and margins involved. Some do not even do a back of the envelope calculations and rely on their gut feels. Priority list of customers are not explored, no focused account mining is adopted and sales is at best reactive.  Key to scaling up in this stage is to know what customers to be dropped, what resources to be allocated when, automation efforts and reduction of overheads, and right costing. Startups have to adopt rigorous accounting principles, sales plans and reporting structure. Decisions related to industry specific versus industry agnostic or how to prioritize key customers and how to align functional process so as to enable the company to work seamlessly at higher scale need to be considered.

The next stage of scaling, emerges around 34-46 months. This is the most difficult one. At this stage, startup’s focus is more on “institutionalization”. How to ensure the culture that sustained them till this stage is preserved and extended, how to identify and encourage next level of leaders to emerge, how to formalize unique organizational practices, how to identify “intrapreneurs” who would own and drive the innovation and change, where to formalize the process and so on. And if it does have a lot on its plate already, how is execution of work going to happen?  Do they have a dedicated set of people who believe in the company’s culture, execute and deliver? Companies have to adopt some standardization and routines, bring in some formalization, even some positive bureaucracy. These are required to bring in both allocative and technical efficiency of operations.  To succeed in this stage, customer funded startups now must learn to wear the mask of the very “incumbents” they were attacking.  Evaluate the efficiencies of process and the scale at which they work, move away from optimization but focus on efficiency,  formal reporting and review to encourage decision making and ownership. While learning and aping from the “large incumbent”, the key is to understand what to assimilate, what to preserve and what to shed quickly.

Sindhu Raviraj

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Five principles of “scaling up a start-up”

Start-ups are darlings of media and investors at the moment.  While many attract huge valuations and grab headlines, many of them bite dust or fade away.  Hoping you have built a start-up, how well it grows depends upon adopting few fundamental scalability principles.

First principle is checking the fundamentals. Validate your product/service is robust, and customer segments are there to encash.  Evaluate whether you have ironed out market fitment, you are relevant to customers segments that are likely to grow and spend. Finally, you have resources in terms of people and infrastructure to support the growth.

Second principle is to formalize process, and the culture you want the organization. Template and automate the surround process.  Detail the culture and align everybody in your current organization to own and drive the initiatives.  Identify and handover the management to entrepreneurs within the organization. Automate or outsource HR and related process. They save a lot of your time and energy.  Create process and systems for an organization 10X times than what you are, not to meet current requirements.

Third principle is to charge marketing. Bring in high voltage less investment drives, right from campus drives, free rides on techcrunch or IEEE or respected incubation platforms. See if you can ride on the ecosystem of OEM’s, educational institutions, HNI’s and angels.  More free vehicles better it is.

Fourth, keep your sales engine simple and stupid. Hire for their attitude than double degree MBA’s.  Bring in a centralized sales operations role that reviews and drives sale to success. Define incentives that are idiot proof.

Finally, but most critical is evaluate well prepared is the organization for your absence. Are there enough people who loose their sleep if delivery are not met or client meetings are missed.

Unlike what mercenary VC’s think, scalability is all about creating a homogenous unit. Scalability is all about creating an entity that breathes and lives a vision, follows common system and process, people and plans.

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How effectively are you using your marketing assets…..

A senior marketing director in a recent conversion blurted out that while her marketing budget has increased YoY, the ROI seems to be elusive. What was bothering her was the fact the company spends substantially in curated events managed by respected analysts, and yet Sales find the coverage insufficient. Look familiar. This is a common problems with most companies where marketing focus on few vehicles. Some believe in only the physical networking events and other lean heavily on social media platforms. Here again companies do not follow an “embellish” strategy.  Consider the broad marketing asset a company has its disposal. On the social media front, the assets range from infographics, blogs, extended blogs, videos, case studies, white papers, publications and community platforms. On the physical front, a company could use industry events, workshops, analyst meets, association forums, and breakfast meetings. What works best is when companies know how to mesh mash both physical and online assets and the assets within each category.  One strategy that could be effectively followed is to have a quarter-wise marketing plan aligned to sales expectations. Then follow up a “embellish” strategy where in the messaging starts from basic assets and progresses to high scale assets. The advantage of this is that content development and curation can happen in stages and stronger stories and messaging emerge with each insert. For example, an infographic can be used to reward the reader with rich insights with high level cause-effect. Marketing team adopts a Tufte approach that may be high on information density and distilled functionality, focus on connectedness, and communicate through high imagery. Next level, a blog, which is used to influence, informative or thought provoking, may extend the infographic content using Kafka model. The blog could contain rich arguments and silver line conclusion. Whitepaper an extensive write up of blog may be used as a teaser before all material are tested, or position credibility and promote advocacy. Beauty of the embellish model is the content not only unfolds in a consistent manner, content is richer and all of them form independent hooks to improve visibility. Similar extensive strategy can also be used for physical platforms. Companies realize focus group meetings, followed by industry forum and curated events including analyst shows provide improve coverage and affinity. Moral of the story?. When planning for marketing, consider the complete assets at your disposal and build a embellish strategy that improves reach and richness of marketing communication complementing sales.

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Bridging the craters between Sales and Marketing

Most companies in traditional industries during the formative years typically have marketing and sales managed by a single department. On the marketing front, companies usually make rudimentary investments as part of sales efforts. They at best participate in related industry events or advertise in local media. However, as organizations grow, the need to manage marketing and sales as independent and yet complementary functions becomes necessary. In our observation, most companies run into the puddle of creating silos with no tight alignment between marketing and sales departments. In some companies the lack of synergy permeates product development and delivery functions also. The result is that product development does not use marketing to get market inputs, marketing does not use sales as their antennae in the market, and sales does not use marketing to drive a marketing led sales approach to grow revenues. The need of the hour is for greater co ordination between the two functions to succeed in the highly competitive and uncertain environment. Integration is ensuring the team coordinate and complement each other as in a relay rather than a 100 meters dash.

Mechanisms to integrate: Sales and marketing need to be consistent, congruent (same goals, support each other) and co-ordinated (event plans, time promos, content marketing with sales visits). Some mechanisms in Process, Structure, people and Goals can be used by managements to achieve integration.

Processes is all about ensuring communication flow is seamless, no information hoarding happens and internal latency is nil. Process is to ensure the owner has the complete info and authority to drive the outcomes and outputs. that are well designed and implemented are most useful. Process are effective only when the actors are embedded deeply. Defining a process for marketing where certain inputs are mandated to be obtained from sales, and outputs shared with sales can help to tie down integration and embed this in the process itself. Same thing can go for sales, where they seek marketing inputs into presentations, collateral required, target customers etc. Defining a detailed process with inputs, outputs, metrics and persons responsible is very useful.CRM systems can be used to achieve a degree of integration between sales and marketing, especially when it comes to co-ordinating marketing campaigns, lead management, getting information through call reports from sales etc. Marketing and sales have different customer experiences and information. The experience a sales person has with the customer can be very different from the experience a marketing person would have in interacting with customers. Somewhere these need to be woven together to build the real picture. When integrated with an effective CRM to provide one view, it becomes a powerful tool for insight and effective action.

Structure can be used to integrate sales and marketing. Having a common Head of Sales and marketing will allow effective integration.  In large companies, cross functional teams tasked with joint activities across sales and marketing will be useful. They will be driven, there will be ownership and it will be effective.  Though. At times, it could be slow due to consensus issues and expensive as well, due to the redundancies built in. The new trend is for companies to have Integrators or SDR (Sales Development Reps) who act as co-ordinators between sales and marketing. This can be an effective low cost structure, But the KPIs of the SDR, sales and marketing folks need to be tied down to common objectives.

People aspect needs attention as well. When the culture in the organization is such that people have too much affinity for functional areas, and there are interdepartmental politics and fights, integration is not easy, and one knows for sure that this needs to be ironed out. The level and experience of people at the boundary units (like sales) makes a big difference and determines structure, process maturity, etc. When sales persons are mature and experienced, companies can work with loose processes, informality and uncertainty. But when we have in experienced and junior teams, and there is churn, systems have to be robust to help the organization withstand the confusion at the boundaries. This is a call leaders need to take – if the role is critical and processes weak, then place mature people in such roles. Co location of product development, marketing and sales is good, especially for large dispersed companies. It builds affinity and cohesion, but there could also be some trade-offs here. On the cultural front, facilitating Informal social ties, having an open environment, being job oriented rather than individual oriented, being result oriented rather than process oriented, are issues that need attention and tweaking.

Goals Integrated: In many organizations the adage “what you measure gets done” is the norm. Companies can use common objectives and goals to tie up complementary functions. Marketing and sales responsibilities can be designed around the customer buying processthe steps that the customer goes through – some call this the revenue cycle and not the sales cycle. Hence how do marketing and sales together funnel leads through awareness, interest, consideration, intent, evaluation and purchase is the key. Earlier, only the TOFU (top of the Funnel) activities qualified as marketing and the rest was sales. But as consumers research &educate themselves, 75% of buying decisions are made even before the sale begins. Hence marketing now extends all the way to the bottom of the funnel as well. Marketing is becoming more about content while sales is more about expertise, and these need to be well knit. Incentive design and linking good performance management systems are keys to get teams to work together. A lot of attention needs to be paid here, but companies are typically weak in this area, and a schism in inter-functional coordination always exists. Job rotation programs also help in getting sales and marketing folk to appreciate the challenges on either side and enable them to work well as teams.

When the above systemic, structural, cultural/people, and goal oriented issues are analysed and designed to be integrative in nature, high levels of sales and marketing integration can be achieved, leading to substantial performance improvement.

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Strengthen M&E to gain from efficiency and impact of Government projects

Across the world, governments are the major sponsors of multi-year multi-million projects. Most government projects, whether infrastructure like hospitals or roads or developmental like vaccination or HIV intervention program often do have well defined project development objectives (PDO) and well supported investments from lending agencies such as World Bank or Asian Development Bank.  Many of these projects expect to gain from improved processes and capacity building at various governmental units.  In several cases the lending organizations tie the loan component to specific areas of improvement termed tied loans. In cases where the institutional arrangements are satisfactory, lending organizations allow block grants that may be used at the discretion of the users and the government agencies. The assumption in block grants is that consumption units can prioritize their areas of improvement, plan and allocate funds in line with their prioritization.  Despite noble intentions, many lending organizations realize the funds are misused. In China World bank funds were diverted to speculative investments. Uganda and Zambia governments reported misuse of debt-relief funds to non-scheme areas. Scams in construction, animal welfare, healthcare and other schemes in India and the subcontinent are clear indication to the misuse of development loan funds.  Administrative reforms projects, including judiciary have seen large scale misuse of funds from Philippines, Russia, Sri Lanka, Ukraine and Greece.

What is the weak link in the execution of government sponsored projects. Our analysis of several World bank lent projects reveal absence of a tight leash on the PDO, activities and outcomes is the real culprit. While World Bank and other lending organizations insist on describing in detail the project context, developmental objectives, design, key indicators , safeguards and implementations, many a slip happens between the project  fund allocation and implementations. It is not uncommon to see many department heads putting their heads together in stitching a formidable Implementation completion report (ICR) to the lending agencies for their approval or extensions. While World Bank and other lending organizations insist on using result based management framework to capture YoY outputs, Outcomes and Impact, many a gaps exist in the government organization and limited knowledge of junior consultants sent by lending organizations. No formal analysis and alignment of outcomes and secondary effects are planned ahead by the implementation agency. The result, many assets and works get completed without significant long-term effect.  Lending organizations must insist on a strong M&E organization within the government departments. Formal and up-to-date data analysis must be conducted before release of YoY grants. Half yearly reports detailing the nature of assets being created or programs planned is a good indicator of what would be the expected outcomes and impact of the investments. World Bank consultants must seek an intermediate completion report with sufficient use of latest ICT technologies including images, and videos.  New age institutional lending requires lending organizations deploying more investments in M&E to reduce fiduciary compliance.

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A structured approach to professionalizing a family business

Family businesses are a significant constituent of many economies. Family business have certain traits like high emotional involvement, unilateral decision making and optimization focus that offer unique advantages, more so in tough times. However, these very traits prove to be their Achilles heel once they start to grow and expand.  Family businesses realize a need for formalization of processes and bring in professionals at senior levels to drive focus on results and efficiency. Family businesses attempt professionalization to build newer fences and wedges at some managerial levels to drive the emphasis on outcome rather than relationships.

Professionalization of a family business is a process that folds over couple of quarters. Smart family businesses have traversed the distance pace the change in terms of short term outputs and long term intended results. Results based management is a strategic management tool that can be effectively used by family business embarking upon professionalization program. RBM has various dimensions. Results are realistic, risks are identified and managed and appropriate indicators are used to monitor the progress of the expected results. These indicators help the organization in assessing whether or not the activities are yielding the desired results. RBM helps to bring clarity on the purpose of the programme/activity/change and the desired results from the very beginning. RBM captures the process of change in short, medium and long term. Professionalization results  (in terms of formalization of process, reporting mechanisms, performance systems, outcomes management, etc) are commonly linked together in a result chain. The results are captured at three levels:

  • Short term or output
  • Medium term or outcome
  • Long term or impact

The result at each level aggregate or contributes to the goal or desired impact that needs to be achieved.  RBM integrates people, process, resources and measurements to administer the programmes and improve transparency and accountability. RBM clearly defines the activities to be performed at each stage to achieve the desired results. These activities are further segregated into allocation to different groups. Each group is reviewed based on the activities and the outcomes and outputs are consolidated at the programme level to report the impact or the final result in comparison to the objective set.

While adopting RBM for professionalization program, family businesses must use PCC-DIO framework to identify activities and the outcomes. The PCC DIO involves

  • Purpose
  • Comprehensiveness
  • Consistency
  • Delivery
  • Impact
  • Outcome

Purpose:  Each activity must meet the objective of formalizing, integrating process, functions and roles so that actions drive performance.

Comprehensiveness:  Each activity and tasks are aligned with complete consideration of the the roles, responsibilities, and different levels of learning. The focus is to ensure the tools, and methodologies are rich enough to make informed decisions.

Consistency:  Systems and activities must be repetitive and consistent in terms of data, duration and procedures for the complete professionalization program and show no deviation from the desired architecture.

Delivery: The timeliness and quality of delivery by each activity should meet the professionalization goals and be delivered within the defined time.

Impact: The impact analysis of every process on the concerned stakeholders must be done after delivery.

Outcome: On completion of each process, outcomes must be evaluated to assess what was desired and what has emerged.

While the above frameworks can offer a defined approach to professionalization program, certain critical human elements are key to the success of professionalization program. First, is the change management champion from the family who can anchor the program, imbibe the tantrums and shocks that emerge in the early days of transformation and buffer the professionalization program. Second, a trusted experienced non-family person who can work with new professionals brought into change the desired areas. Thirdly, planning and showcasing some quickly demonstrable outputs like formal employee policy manual, incentive models or documentation of knowledge management processes to convey the seriousness and commitment of family business on professionalization program.   Fourthly, preparing the business to bear the shock of untimely exit of relatives or other executives who find adopting to the program a little difficult.  Finally, family learning to clearly devise approaches to successfully manage the conflicts between family business and business of the family.

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