The Selection Of Managers--------Crucial

Barkis is willing. yes, like Barkis there are many managers who are willing to improve the performance and many more who want to bring down the promotions and lead to a disaster.

This comes to the appointment of the managers. Choosing the best is a task, not a simple one but an onerous one. It lies in your strength and it could be your weakness too.

Do not give way to likes and dislikes. Do not consider the merit alone. Do not try on the educational qualification as the only criteria. Do not rely on Yes men.

These could be for the dont's.

Coming to the do's.
Let the overall personality take the primary. The person counts, not his qualification the most. The integrity matters, no the skill alone. The sincerity works up not the result alone. Weighing all these, a man with pleasant manners, a genial disposition, an understanding capacity, a lively smile and the rapport he creates do matter.The business tact and knack are predominant and that would come under the personality.. A dull-headed person, however,

hardworking he is would not contribute to the progress. So as a brilliant one lethargic and static is equally a liability to the company. A moderation of all these should be detected in a person and he should be chosen to wear the mantle.


The choice is the essential element is running the business.

One has to watch, trace, deck and adorn. A true test indeed!.

Competition In Family Business Illustrated.

The competition that prevails would affect he running of business too.To elaborate, let us take an instance from the manufacturing industry especially the textile.

 The yarn is spun from cotton. The quality matters the most. The warp and the weft yarn go to make up a cloth. The weft yarn could have defects and could fetch a price with the unevenness. The warp has to be perfect with no faults. The strength of the cloth depends on the quality of warp yarn. perfection is a must. To get a good yarn you have to purchase appropriate staple length of cotton suitable to the counts that you spin. Cotton with much trash content would not come out as good yarn. The process of cleaning the cotton has to be doubled then.  This involves a strain a and the manufacturing cost would increase manifold.

The competitors would score off in the procurement of cotton.  Here cash plays a significant role. With down payments, you could easily bargain and buy good quality cotton for a price.. If not cash and if you opt for long payments then the suppliers would compromise on quality. There goes the
  quality  down. Competiton supersedes and the profit margin decreases. You are bound to lose the rank and the efficiency also would remarkably deteriorate.

Considering all these inputs, one has to be careful and should possess  a

liquidity to buy, manufacture and sell if he has to stay in this competitive world.

Eschewing Unwanted Elements.---Fraud,

Business is run on faith and trust. The trust if misplaced would signal a loss. Trust well placed would signify growth.

Why did I bring in the negative side first? As seen trust gets weakened as time passes and corruption finds its place. Familiarity breeds contempt  goes the adage. Definitely it is so. Service brings in experience in most cases. In others, it also takes itself to fraud. The longer the managers are in service the greater the risk of cheating.

How to curtail this indecent activity?

It is a crucial effort and should be done with caution. Let us take, for example, a plantation, Oil Palm, in Malaysia. Managing the oil palm plantation is no joke. it needs inspection. It requires control. It necessitates action. The greater the owner involves himself the lesser would be the manipulation. If the manager is let to control, he in an a course of time tries to dodge. He cheats in the production report. When actually there is a  yield of  150 tons in 150 acres, he would record say 140 Tons and the 10 tons would be shared by the manager, the Mandor, and the buyer. That way he would make a fortune in the years and would even if left unchecked would buy lands around with the revenue. it all happens in every place. certain issues are to be taken seriously others are to be cautioned and the process has to continue.
The plantation needs to be taken care off. A slow and a firm approach is essential. Start from the roots. First change the purchaser, then the Mandor and finally the Manager. let it be done in a phased manner. Their intention would be laid bare and the best could be achieved.

Dodgy Dealings.---- Management

Just a few hours back came across a pertinent issue that comes up in every business. Be it a family or a public company the problems arise. Do not think I am talking in a roundabout manner, I want to strike the point with a vehemence.
A group working in a plantation alleged that the managerial staff are cheating the management by manipulating in the yield. The manager, the supervisor and the buyer adjust the tonnage weight and take equal share during every harvest. Their booty increases as the yield increase.
The previous manager was even more greedy. He took a big portion and his staff remained subservient to him. The man who exposed this manipulation has worked in the plantation for more than twenty years..he has broken away from the scheming group for reasons best known to him. When asked, why he did not complain earlier? His reply is vague and he mumbles saying that they asked commission from him. He paid them till now. Even now, he is willing to pay but they do not entertain him anymore. Perhaps they have found a person who would pay them more.
Having heard all these came to a conclusion, it is the money that plays the game. The more you give the more you can survive.
When would the world come out of this cursed  vicious circle? God only knows.

Act Quick At The Time Of Crisis

The windfall and turbulence would be found in business. The windfalls outnumber the turmoil.  The bad days are there for every venture. Good managers would be able to predict mishaps much earlier.

They should tide over the crisis with prudence. it is hard to come out unscathed. It is harder still to bring in profits during these stormy days. But it is the duty of the managers to diminish the difficulties by opting various methods and see which could be appropriate to minimise the losses.

That is in all the managerial skill, the business acumen that is much talked about. Anyone can sail in smooth waters. it requires special capacity and foresight to predict and sail the waters when it is in a fury. The same could be said of the managers.

When the markets are down and the production is more the stock would increase affecting the rotation. Money is needed to keep the business going. If it is stacked and is blocked then the business would suffer. The managers should rise up now, They should bring down the production by cutting one shift per day. Announce a lay off for workers.That way production cost could be saved. Market the manufactured goods quickly. Allow a discount. As goods that lie for days in the godown are akin to dead bodies in the mortuary. Sell the piled stock as soon as possible. make money at the earliest. Waiting is unpardonable. it is action, immediate action is the need. G ahead. You will succeed.

The Unknown Factors. That Affect business

With the family business well into the wings. it flies sky high, the members are happy. They earn rich dividends and satisfaction prevails. that be the concept of family business.

The members have to keep in mind the turns in a business.  Unknown issues and unprecedented incidents could disturb the results of the company. These factors are to be perceived with reasonable understanding. The members have to compromise to the situation. If the influence is for the better
then there would be no issue. if it is for the bad the affectation would bring in a turmoil. This should be averted as the incidents are beyond anyone's control.

The factors might be fluctuations in prices, rise in taxes, weather conditions, power  variations, cost rise, manufacturing issues so on and so forth.

To conclude, we have to weigh all these considerations

and pass a verdict. The management if it fails in spite of the favourable trends then has to be removed and replaced by competent persons to avoid further loss and further dent to the reputation.

Business Is For Profit ----- No Place For compassion.

A thorough analysis of Family Business has led one to believe that faith is the factor that holds the business together.

Suspicion should never enter the door and even a slightest trace would cause a havoc. Tread with caution and repose unlimited faith in the person who runs the business. Give him your support and never look at him with jaundiced eyes.

A check should be on the role. it should not strangle the flourish or thrive. A verification, to put it in a mild way should enhance growth. it should be a stimulant than an interruption.

The chief should have a mind to assimilate ideas, recommendations and take them in the right spirit. He should not feel that he is the be all and end all in the management. Mind you, he should never forget that he is on deputation. He holds the post by their will and has to perform with caution and tactfulness. His prime aim should be to accomplish the task with laurels. He should satisfy, even more, enthusiastically work for profits, more profits and make his family own and extended happy.

The family business, as heard and as seen, is an onerous task.To run it successfully one has to be street

smart, has to have integrity and also sincerity. If these three qualities are not found the business is bound to slip into losses.

Remember, business is always for-profit where compassion is not to be given place.