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Family Business

February 11, 2011 By mco Leave a Comment

When you scan the internet you’ll find:

• Family Business Consulting
• Family Business Institute
• Family Succession Planning
• Family Business Governance

Many, if not all, miss a key — Business.

One third or more of all family business fail to pass on to the next generation.

There’s an old adage:

“First Generation started it
Second Generation ran it and the
Third Generation ruined it”
.

Some statistics show only 13% of Family owned businesses survive to the 3rd generation.

To paraphrase Calvin Coolidge, the business of any family business is business. Business Process Re-engineering (BPR) is not a downsizing activity. Job analysis, work flow analysis should produce valid job descriptions and job specifications.

As business changes, we add new customers, we use new suppliers, we add new equipment, we have new outputs/products; these are all causes for BPR.

Years ago at JCI, we joked about Booz Allen Hamilton, Johnson Controls’ consulting firm; it seemed every year or every other year Booz was recommending reorganization, some realignment, some BPR. Years ago, Booz was keeping us competitive, a family business needs to adjust and use BPR.

Business Process Re-engineering (BPR) requires trust. Trust is really composed of two character and competence. Most often we think about trust only in terms of character, being a good sincere person, with ethics and integrity. S.M.R. Covey makes these points his book, The Speed of Trust. Competence is your ability, skills, performance history and talents; trust really requires both of these. Character is constant, perpetual, competence is situational. Great relationships permit us to understand; share when we need help, when we don’t have the skill, proficiency or experience; and ask for help.

Packaging is an economic indicator. As an economy heats up or begins to slow, packaging is a bellwether. The Herald Tribune and other journals are starting to discuss the up-tick in as a positive to the economy.

In the book “Leadership in the Era Of Economic Uncertainty,” Ram Charan makes of number of points:

• Protect cash flow vigilantly, even daily, and use cash more efficiently
• Refocus on innovation
• Get your suppliers to be partners

These sound like “SAVE A BUCK, re-inventing ourselves and partner or perish. BPR is the shrink and grow. Organizations need to take a lesson from Covey, Charan and the Booz –Allen boys-adjust to changes, every time your customer bases changes, technology, the scope or percentage of your business-take the time and re-think, re-design and re-tool.

This should not be a special project just something we do as part of our culture.

Preserve the core.

Stimulate change and progress.

Remember while all the runners in a race compete only one wins.

Run to Win.

Do you have a comment or a story you can share, please do so below. Thanks!

Filed Under: Family Owned Business Tagged With: BPR, Business Process Re-engineering, Business Process Reengineering

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