Answer to Question #322493 in Management for solo

Question

In what ways can Bikanervala further professionalize the family business to make it fourth-generation

ready?

Answer 1

At some point in the life of a family business, the family owners or business leaders might decide that they should professionalize their firm. The term professionalization is most often thought to mean changing from family management of a business to non-family (read professional) management. Sometimes professionalization does occur when a non-family manager has been chosen to lead the business. During these transitions, family members might stay in other management positions or sometimes all family employees depart. But changing to non-family management is only one possible element of professionalizing a family business. It certainly is not a necessary element. If a family business is considering professionalizing, it is vital for family and business leaders to agree about what this process entails.

The quickest way Bikanervala can further professionalize their business is to hire people who are professional. Bring in outsiders who are more professional than the people they already have. Then, treat them professionally, listen to their ideas, and learn from them. Apart from this they can also; expose the rising generation to the business, define roles and educate family members about their roles, create a family employment policy and also teach financial and business fundamentals.