Unity Foremost In Business

We have seen the orientation, disorientation and the collapse of the family business.
 A business, generally relies on unity.If that element is lost then the edifice would collapse.This is what we find in all the disintegrated family businesses.

Unity is hard to find. If at all it is there, it is the bare minimum we can find. Siblings do not see eye to eye. Uncles and grandfathers differ. This has been the scenario now, where each and every word matters. A word that hurts spoils the show. A model that irks condemns the behaviour. A failure in the least disrupts the functioning. So on and so forth goes the unity, wherein we cannot trace growth and prosperity.

If that be the case, it is better for the family business to divide and diversify. Each family be allotted a venture and if possible let it overseen by a common patriarch, if not go your way and have no link with the central. That could be a better proposition in the run.

Not advising of a disintegration but a spell out of a proposal that would be feasible and workable in the smooth functioning of the business.

Professioals Inside Family Business.

The family oriented business is still found in many parts of the world. They are giving way to professional management slowly.
 The families which are into business for a long time and which managed the activities are now recruiting professionals to take care.

Professionalism is indeed the need of the hour. Their perception would be loaded with exposure and training. Not that they have the meticulous modus Operandi they too have not any attachments to the business. Sentiments do not take a role. It is profit. Nothing but profit.

The company should perform. Whatever action need be taken would be implemented as soon as possible.If they find a business outdated they would hive it off and deploy the funds into a more lucrative one. That way they do not keep the funds idle.A return is a must. Idling is condemned.

Many family businesses have their own members on board and slowly incorporate other directors in who are professionals. They are at the helm for a period. They have to show results.If they fail they would be removed and another appropriate person would be brought in.

A slow but steady change is taking place silently.

The Family Business --- An Example Of A Collapse

The family business takes me on a journey, Cited examples of the large business families around me, I thought I had completed my assignments.
Last night, while I was relaxing, another family of repute came into my mind. I felt I should add this to the subject too.

Well, this family has been into business for quite a long time.They had the business in many parts of the country and also in Burma, and Ceylon. They had paddy fields in Burma and involved in banking also. The Ceylon based business comprised of tea estates and real estates. This family became wealthy, in the course of time, as they supported the British raj. The Governor Generals had a special corner for them and they on the go assigned valuable lands in and around Madras to this family.

The family was also known for usurping the properties of their kin in the guise of caretakers. Rumours still run about them. That is all history now,

They set up a university with their own donations supplemented by the collected funds. The university did impart education but as years passed it became a money spinner for the family. For each appointment right from menial to ViceChancellor percentage of the commission was fixed. So did they in engineering and medical seats. Imagine a student paying millions to become a doctor. What would be his status in the medical profession deemed to be very noble and has a call of caution around.. The graduate from the University claims himself to be a doctor. How far can the people trust him? If money is the way to becoming a professional then I and you without studying could well wear the garb. The candidate who enters the college does not apply his mind to study. He knows that his family would make him a doctor by advancing money to get through. This university has produced so many doctors of this calibre.

Oh! I have gone astray from the main. The business I was talking about flourished. The family did not interfere in the activities. It was the paid managers who oversaw. They were not in any way professionals.As there was no competition the business thrived. The family wallowed in luxury.

it so happened that the family could not beget an heir to their wealth. So the two branches as per the community's practice, adopted sons. Those two came from a much unknown families. They could not cope up with the high profile  parents. The one chose a life of his own.  He sailed abroad. The other one stayed in and discreetly took the control of the companies, set aside the father, and became invincible in the course.

The adopted father feels helpless. With his money gone and his age not by his side is trying to pull himself

from his leviathan slumber. It is too late. Very late.

An example for the wrong side.

The Family I Know----- An Example.

A family into business for generations together has kept their transactions intact. business is a venture not in a way related to anyone. They behave as fellow directors once they enter the boardroom. relationships are at the door. The brother, father, son and uncle exist not in the business centre .it is found greatly in the portals of their own homes. The fights and differences at the personal level do not find a place in the business. They are well without the circle.

This family I quote is a close knit one with three generations into it. They have set their own rules. A member who has turned 65 should retire from business. No active participation is allowed, however much the person is capable or being the only member in a particular branch of the family.The senior most position is given to the person who is the senior in age, mind you less than 65. If a member would turn 65 next year he would occupy the post for a year then automatically go into the pavillion. If there are no members above 60 and the available member is only 45 and the rest are above 65, this person takes yup the mantle. he could remain in the top for another 20 years. A way lucky,as he would have the longest slot, a way unlucky as he has to bear the brunt and responsibility for 20 years. Well, that is the rule and the way they follow it makes me put my finger in my lips and exclaim Hurrah!.

This family also has formulated one more clause. That is the most important. The females of the family are never allowed to participate in the management of the companies.  However, they could involve themselves in charities and educational services which the family runs under a trust. The women are thus occupied and their mind does not juggle and frame schemes to overthrow one another.

I admire this family's foresight and idealism. They have gone a long way. They would ,

for sure, if they keep up the rules would reach the slot of excellence in no small terms and time.

Could Family Business last Long?

Could family business last long?
Yes and no.

Some businesses have lasted for generations. Others have disappeared very soon.

To businesses to last we have to straightforward, transparent and sincere. If we think it is the entire family that is going to be benefitted, why should we work hard the very thought would dissipate the spirit and disintegrate the business. If one considers it as a business and he be the executive who has been appointed to take the company forward, then the company would ideally grow. He could take the required perquisites.

To business to disappear, you need not do anything wonderful, just start a controversy sit aside and watch how it brews and how it flares up. The tempers would fly, heated it would become and finally a division would take place.

Further swindle the money from the common pool, show loss in the business not once but continuously the business would collapse.

moreover ask the members to contribute to the company to set off the losses the business would ultimately close.

That is the end of the

Family Business.

Success In Family Business

The success of a family business lies in the unity of the family. This is the most vital part in running
 a concern purely with the family members on board. If the faith in the management gets diluted then the crash of the venture is well predicted. No amount of patch up would then result in a smooth execution.

How could this unity be preserved?

 This should be thought of with great deliberation. Unnecessary interference by the family members should be restricted. those on board should evince a keen interest in the management. They should not sleep for a while and wake up all of a sudden then come up with ideas. This would disrupt the peace of the managerial environment. A watch and go through procedure should take the priority. Intercepting each and every move should not become a practice. A check once and a while, a verification at random and an insight into what is happening should be the motivation The peep and a peek should be avoided to ensure a hurdle free running of the business.

the monthly meetings should review the scenario Then the yearly ones should be attended without fail y the directors. Issues, if at all require attention should be taken into consideration. The queries pertaining to the workings should be raised then and there. Answers should be sought. If there is a dissatisfaction then the chief should come out with a revision and then submit the annual returns to the departments The profits should be divided and dividends should be announced. The family should be impressed by the performance and should also get the maximum benefits from the company


If these are followed to the exact, then the business would prove successful.

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The Concept Of Family Business

The concept in family business is to hold the ventures together under a family's head. The liabilities and assets should be well within the reach of the family. Transactions are to be transparent. The man at the helm should be genuine and should favour none.

If there arises a misstep then the business would suffer.It should be a tread with caution, a balanced walk on a rope The policies should be discussed.  The periodical meetings should be held. The implementation of the policies should be done as per the schedules. Not any way in a hurry. A  free hand should be given to the chief executives when they have to act on an urgency or an emergency.

So any crossing or counterchecking should not be the case. The suspicion should not find  the

 way. If at all it arises then it is a total disbelief in the management. This exercise should be averted. Only sincerity would hold the business. Other flip flop activity would crumble in no time.

That way be the way to run a family business. Of course, the top level management could draw a salary equivalent to their efforts and a bonus for effectively managing the show. An understanding should never be in oral terms. All should be put in black and white and act as testimony to the managerial skill.