How robust is your succession planning strategy?
Long-term gains over short-term profit
It is usually assumed that in a VUCA environment, family businesses would have difficulty in sustaining their growth. However, we believe that wanting the business to succeed in the long run makes it easier for family enterprises to leave aside strategy, which offers only short-term gains. Many professional CEOs of companies such as British Petroleum, Rio Tinto, etc., have delivered long-term blow to their companies by focusing on short-term objectives, which is generally linked to their bonus. Tony Hayward, in his enthusiasm to take BP to the number two position in the oil industry, from the then number seven, took decisions which have so far led to an estimated $50 billion in fines and costs and over 50% erosion in market value. Today, BP is at number 17. Much has been written about how keeping his focus solely on the bottom line (and his linked bonus), Richard Fuld took Lehman Brothers down the road to bankruptcy. Family businesses are not overly concerned with quarterly results and hence, can forgo short term gains for longevity. This makes them more resilient to the ups and downs of the marketplace. In fact, research has shown that family firms do better than companies with dispersed ownership during recession.
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Denne historien er fra June 2017-utgaven av Indian Management.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Trust is a must
Trust a belief in the abilities, integrity, values, and character of any organisation is one of the most important management principles.
Listen To Your Customers
A good customer experience management strategy will not just help retain existing customers but also attract new ones.
The hand that feeds
Providing free meals to employees is an effective way to increase engagement and boost productivity.
Survival secrets
Thrive at the workplace with these simple adaptations.
Plan backwards
Pioneer in the venture capital and private equity fields and co-founder of four transformational private equity firms, Bryan C Cressey opines that we have been taught backwards in many important ways, people can work an entire career without seeing these roadblocks to their achievements, and if you recognise and bust these five myths, you will become far more successful.
For a sweet deal
Negotiation is a discovery process for both sides; better interactions will lead all parties to what they want.
Humanise. Optimise. Digitise
Engaging employees in critical to the survival of an organisation, since the future of business is (still) people.
Beyond the call of duty
A servant leadership model can serve the purpose best when dealing with a distributed workforce.
Workplace courage
Leaders need to build courage in order to enhance their self-reliance and contribution to the team.
Focused on reality
Are you a sales manager or a true sales leader? The difference, David Mattson, CEO, Sandler® and author, Scaling Sales Success: 16 Key Principles For Sales Leaders, maintains, comes down to whether you can see beyond five classic myths that we often tell ourselves about selling.
