Governance
Family Business Contribution to GDP- 60-70% of them 67% do not go to second generation, 13% survive till 3rd Generation/ 4% beyond 3rd Gen CII Family Biz Report. Speed in Decision Making, Extent of Professionalism, Succession Plan these factors create urgent need for creating apppropriate governance structures to survive the business. MSME and Big size companies are failing to succeed beyond 1st generation mainly due to poor governance.
Case 1: A first generation business with 3 partners each above 50 year age. One partner believes that the business can grow. Other two do not think so. All partners have mixed roles and responsibilities. Everybody wants to grow and or exit in some or other way but there is no taker/investor because of lack of governance. Organisation chart is merely on paper. Growth is narrowing, margin is squeezing, no internal leaders are developed, staff has high churn, finance is always an issue.
Appropriate governance structures help you to exit or survive rather than perish.
Write us if you want to imbibe the governance amongst you and your team.