Asian Institute of Family Managed Business (AIFMB) is a not for profit organization to advocate the cause of Family Managed Business in Asia.
Family Business constitutes more than 80% of the economy .The dealers and suppliers of all major corporations are Family Managed Business.
Most of them are having problems managing Changing Business scenario as well as Family Dynamics. In majority of the cases the next generation does not want to join the Family Business. As these dealers make an important link between the company and its customers it is important to address these concerns.
On the basis of its knowledge and experience of Family Business Dynamics as well as SME realities AIFMB has prepared the following proposal which will motivate and develop the Young Generation of Family Business Leaders.
This on one hand will ensure smooth supply chain of the Corporation but also ensure continuity of a large number of Family Managed Business.
Faculty ProfileThe Program has been designed by Prof Parimal Merchant who is an authority on Family Business with more than 2 decades of experience in this domain.
Time DurationThe program is spread over 3 contacts of 2 days each. Ideally it should be conducted over 3 consecutive months.
PedagogyThe learning mode will be experiential with the use of real life caselets. After each contact the participant will have Assignments which will help him relate the learning to his own business. The Capstone is making of Business, Family and Role Plan. The experienced Faculty Team of AIFMB will be available to provide guidance and mentoring as and when required.
Batch sizeA batch size of 25 participants is ideal.
Contact 1 – Challenges and Opportunities of the new times
Challenges in the business
- Declining margins and increasing costs
- Growing competition
- Growing credit risk and increasing recovery cycle
Opportunities in the business
- Rapidly increasing market
- Growing appreciation of quality and brand preference
The need of new times
- Moving from product sales to services in product sales
- Moving from order receivers to order generators
- Moving from personal management to systems drive
- Moving from owner management to organization building
- Moving from status quo to rapid growth
Managing For Results
- Role of top management
- Business realities
Discuss any two business realities from the book Managing for Results, with your Mentor and/or senior persons in your business – one at a time. Explain them what Drucker says and seek their views. Ask them for some examples in your business about the same. Submit a short note on each point.
Make Table 1/2/3/4 for products (service), customers or distribution channel whichever is convenient) for your business as mentioned in MFR Chapter 3. Try to make an approximate analysis. At this stage our idea is to get an overview. Concentrate on learning and approach described in MFR
What Management is, how it works and why it is everyone's business
- Design in management
- Execution in management
1 What Value are you creating for:
1.1 Your customer, that is different and more from the existing supplier to that customer
1.2 Is it meeting any unmet needs of your customer, if yes, which is that unmet need.
2 What are the “things” that you can keep on doing(sustainable) so that you keep on creating value for your customer?
2.1 Mention three things that you plan to do in future, which can add value to your customer.
From the point of view of previous generation
- Need of induction
- Need of adaptation
From the point of view of next generation
- Being in business family a blessing
- Launching pad
- Future is different from the past
Lessons in transfer of Tacit Knowledge to the next generation
Draw the genogram and organogram.Compare people's roles in family and business
Contact 2 – Fundamental Management Education
Part I – Knowledge
Understanding the environment and industry structure
Understanding the concept of Industry Value chain
Business is customer – marketing orientation
Business is people – why do they behave the way they do and how to influence
Business is operations – what you deliver and by when makes the difference
Business is money – understanding money, costs and taxation
Study your business and understand which customers’, what need are you catering. Study what have you done and are doing differently. Understand to the extent possible the industry value chain where your business is making the contribution. Make a note and submit
Part II – Skills
Asking the right questions
Working with numbers
Communication – listening, observing and presenting
Making the decisions
Use of computers
What are the important numbers in your business. How they have been changing?
Contact 3 – Strategic Planning
Part I – Important Skill
Understanding the concept of BATNA
The concept of win-win
Part II -Business plan
Need of review and capturing the aspirations
Capturing the as-is scenario
Planning action plan
Part III - Role plan of different individuals
Assessing the aspirations
Assessing the competencies and interest
Decision on the business plan role plan fit
Part – IV Family Plan
The process of managing family dynamics
The process of induction
Reflection on the role of family women
Challenges of organisation building
Make the Business Plan, Role Plan and Family Plan