Reading guide
When it comes to family business, many people immediately label it as "changing the day, arbitrariness, and unclear processes......Even family businesses are synonymous with "management chaos." It is undeniable that in some family businesses, cronyism and nepotism are intricate, and the system has lost its due authority. So, how exactly should the family business be managed?After more than 10 years of in-depth research on a number of enterprises, Longou Enterprise Management has summed up some practical experience and shared it, hoping to give you a little inspiration.
How does the family manage?When we ask this question, in fact, we have a cognitive error in our subconscious, we subconsciously think that family businesses are difficult to manage, and take "chaotic management, large arbitrariness, and change of day" as synonymous with family business.
What is a family business?It refers to an enterprise in which the capital or shares are mainly controlled by a family, and the family members hold the main leadership positions of the enterprise. By this definition, the vast majority of businesses worldwide are family-owned.
Here, I want to make a name for the family businessFamily businesses are not synonymous with "poor management".
For example, TRUMPF is a pioneer in the field of industrial production machine tools and lasers, and its founder, Mr. Christian Trumpf, opened a flexible shaft company in Stuttgart, Germany in 1923, which became the predecessor of the Trumpf Group. However, this did not stop TRUMPF from becoming a global leader in the field of industrial lasers and laser systems.
Another example is the Swiss watch and jewelry brand Chopard, in 1860, Louis Ulyssechopard (Louis Ulyssechopard) in the Swiss Jura region to establish a high-precision watchmaking factory, it is also a family business slowly developed into a world-famous brand enterprise.
Some of our domestic family businesses, such as Fuyao Glass owned by Cao Dewang and Cao Hui, New Hope Group owned by the four Liu brothers, Suning Electric Appliances owned by Zhang Jiandong and Zhang Jindong brothers, etc., are all leaders in the industry.
In other words,Most of us criticize not the "family business" itself, but the proliferation of nepotism, unclear processes, systems, and rules caused by extensive management within the enterprise. Because even a family business, as long as it is based on products, technology, management, and talents, it can become a leader in the industry.
Longou Enterprise Management: Family businesses can also be managed scientifically.
I have been in contact with the manufacturing industry, I found a phenomenon, 10 years ago, many business owners reflected the problem is "children are not willing to **", but 10 years later, I am very responsible to tell you that this phenomenon has changed, a lot of the second generation of enterprises are in the first wave, in recent years, a wave of **, 90 gradually become the main force of enterprise development.
We can't look at family businesses with "colored glasses". Every enterprise is a living body, and this life body needs to be inherited. In a heritage sense, more than 90 businesses are family-owned.
There was once an interview with Cao Dewang, when the reporter asked Fuyao Glass ** person a question, Cao Dewang responded that ** person was his son Cao Hui. Some people may question that Cao Hui is not the best candidate in terms of technology, knowledge, management, etc., but Cao Dewang said that Cao Hui has two qualities that others can never compare: First, he is Cao Dewang's son;Second, Cao Dewang owns the largest stake in Fuyao Glass.
The advantage of a family business is that the cost of credit is very low, and the management is simplified based on trust, so the management cost of the family business, especially in the start-up stage, is very low.
For example, many bosses think that I let my brother-in-law take care of purchasing;I let my brother manage the whole workshop;I let my wife take care of the finances. Because of the existence of these family relationships, I not only have the ownership of this enterprise, but also the right to operate it in our own hands. ”
In fact, its advantage is that the management cost will be very low, just like your own family, you don't need to spend too much energy and thought to consider the management problem, because the ownership and management rights of your business are unified in the carrier of family business.
But as the family business grew, its limitations became apparent. When the enterprise has formed this nepotism atmosphere for a long time, it is difficult to form a talent echelon, and excellent talents cannot enter, and even if they come in, they will be squeezed out. Some mediocre and ordinary talents may stay in the company because of nepotism, which is actually disrespectful to outstanding employees and damage to the interests of the organization.
Therefore, Longou Enterprise Management believes that when the family business develops to a certain scale, it must carry out organization, process construction and team reengineering.
Longou Enterprise Management: When the scale of family business is large, it is necessary to change the management model.
(1) Organizational reengineering
Many start-up enterprises, from the boss to the employees, unite and are invincible, but after the enterprise is big, there are conflicting interests, each with its own "small abacus", which is a problem of the organization, and the enterprise should carry out organizational reengineering.
For example, the design of the organizational structure should not be based on the person, but on the responsibility of the post. When we are "nepotism", we must pay attention to the value and responsibility that this person is to generate in the position, not the value that is generated in the relationship.
Another example is the reengineering of process-oriented organizations.
(2) Process reengineering
Establish and improve the process system of the enterprise, and only by using the process to restrain the efficiency of each individual can the overall efficiency of the company be guaranteed. It doesn't matter if he's a relative of the boss or a friend of the boss. Because the process is set for the role, not for the individual.
(3) Team reengineering
In the process of organizational reengineering and process reengineering, it is actually the process of team reengineering. On this basis, from front-line employees to senior management, every step should pay attention to the construction of talent echelon and the cultivation of talents.
Among family businesses, the most criticized are "over-the-top management" and "multi-head management". Therefore, when the organization, process, and team are reengineered, we must have a clear division of labor and responsibility boundaries, otherwise we will not be able to manage the enterprise if we talk about feelings and relationships at every turn.
In the start-up stage, relying on the boss's familiarity with the individual, it is still possible to achieve a relatively fair emotional assessment, but when the enterprise has hundreds or thousands of people, the evaluation of competency must be used to replace the evaluation of feelings.
What is competency?David McClelland said that the so-called competency refers to the objectively measurable individual characteristics of the outstanding performers in a specific job position, organizational environment and cultural atmosphere, and the resulting behavioral characteristics that can be used to lead to performance. Competency assessment, generally speaking, is a comprehensive evaluation of employees' core competencies, professional awareness, professional skills and other dimensions.
There are three characteristics of competency, which are divided into individual characteristics, behavioral characteristics, and situational conditions.
a Individual characteristics: knowledge, skills, self-perception, traits, motivational needs;
b. Behavioural characteristics: the specific application of knowledge, skills, attitudes, motivations, etc. in specific situations;
c Situational conditions: Competency is reflected in a certain work situation.
Longou enterprise management: to scientifically evaluate the competency of employees.
Conclusion
How to manage a family business efficiently?Longou Enterprise Management proposes three practical methods: first, organizational reengineering, process reengineering, and team building;Second, do a good job of a clear division of labor;Third, do a good job of competency assessment. With these three points done well, Longou Enterprise Management believes that our family business will also become a positive business model, rather than a synonym for management chaos.
Copyright Notice:**Internet, if there is any infringement, please contact to delete.