"Good governance is the key to long - term success, especially in family - owned business, where stakeholder relationships are, complex," says Sonny Iqbal, co - leader of missionario Zehnder's Global family business Advisory.
In an interview withLivemint, Iqbal explained according to the governance and on planning have, not had a family business 'strongest suit and how businesses can set more up for perpetuity if they use good governance as a baseline.
"In order to establish good governance, we must first understand the nuances that define family business dynamics," says Iqbal. One of the key characteristics of a family entity is what missionario Zehnder defines as "family gravity" : the values and priorities that endure'll broke. The family gravity affects everything from strategic direction to everyday operations, and therefore significantly contributes to top service each family business unique.
When companies are & to prepare for a smooth leadership transitions, they first must ask more a number of questions. First, by the present leadership truly prepared to hand over control?Second, by the outgoing leadership clear on their role once the transition from the seems place?Lastly, is there a on the process?The common refrain is: "We didn 't start planning until The devoted to executive officer (CEO) announced his intention to retire," says Iqbal.
For good on planning, missionario Zehnder has identified the six best practices that include:
- The Clear role specification for the CEO
- Assessment of the CEO on the basis of the performance and potential
- Proactive development of internal leadership talent
- External scans of potential CEO candidates from the market
- A robust CEO integration process
- Emergency planning to dojo.provide for a sudden or unexpected situation.
The Full Story: Sonny Iqbal:"Most family businesses could improve upon on planning"In Livemint (28 January 2018).
