• About
  • Terms & Condition
  • Privacy & Policy
  • Contact
Tuesday, March 28, 2023

Praveen Saanker

Family Office Business Advisor, Life Coach & Psychotherapist

No Result
View All Result
  • Home
  • About
  • Coaching
  • Counselling
  • Psychotherapy
  • Family Office Advisory
  • Family Business
  • Debt Recovery
  • Contact Us

Praveen Saanker

Family Office Business Advisor, Life Coach & Psychotherapist

No Result
View All Result
Home Family Office Advisory

Family Business Ownership: The multi-generation business

Family Business Governance

Praveen Saanker by Praveen Saanker
11 August 2021
in Family Office Advisory
family business ownership_family office advisor

family business ownership_family office advisor

When a family business sustains for more than one generation, problems often arise. As the family business ownership passes hands, differences develop in opinion, mindset and skills. It becomes hard to work on a shared philosophy towards a common goal. When family-based values and professional business values clash, conflicts arise. This often leads to the downfall of the empire. These things are far away from each other in a non-family business. But in family businesses, these overlap and become interdependent. The role of a family office advisor in materializing family business governance problems then becomes significant.


The Evolution of Family Business Ownership


Studying the lineage of ownership and its effects help understand the conflicts in a multi-generational family business. The more the company spreads out and becomes diverse, the vaguer the connections and control become. It is crucial to develop a common goal and vision and a shared sense of responsibility and purpose. As long as the ownership stays within the generation of siblings, it is manageable. But as it crosses generations, more and more cousins and distant relatives come into play. And once the ownership reaches this stage of the conflict, it becomes tough to maintain unity and quarrels arise. Managing the business also somehow identifies with control over the family and thus causes unpleasant discords.


Responding to Increasing Complexity


In a situation of conflicting family business ownership, as mentioned above, the challenge becomes to manage a network of expanding interconnected families with different levels of involvement and varying skills and opinions. It leaves two options at hand. The ownership is with few hands by offering the cousins money and eliminating their claims. But this turns out to be very expensive and often leads to selling the company. Another option is to retain this complexity and case of over-involvement but keeping the problems caused by it at bay by carefully managing it. It requires setting rules and policies and keeping everything in check, which involves appointing expert family business advisors.


The Family Governance Process


The family governance process for family business owners should be based on a method that is fair, inclusive, transparent and shows clarity. It is essential to have a family enterprise advisor who takes the initiative and decides these things. This family enterprise advisor can coordinate with the whole family and set up a professional family office. The family office can then take care of the issues in terms of coordination and communication within the family. There are often two types of family opinions that often arise. One type believes that everyone should be involved from the beginning. However, the other kind believes that it should start with a few key members and others should be brought in gradually. Conflicts usually arise between them. Decisions, in this case, should be made carefully keeping in mind the goal to promote unity and inclusiveness.


Structuring Family Governance


Firstly, for family business ownership, it is essential to create organized accountability among different groups in the family and the business. With proper structural family governance, family issues and business issues can be successfully separated. An elaborate governing structure supervises all the different groups formed within the family. A family office helps to do it. The family office can create a family council, including a representative member from each of these families. The goal is to make a unanimous decision that will satisfy everyone.


Getting the Structure Working in Family Business


For the family business governance structures to work, there needs to be proper collaboration and communication between family members. Communication is a major issue here. Apart from that, avoiding situations and a lack of transparency and hidden agendas only make the case worse. A family office advisor can play a significant role here. He or She can provide a safe environment for family members to communicate and cooperate. Family members must listen to each other and try to understand each other’s views. Showing respect while at the same time, being ready to explain one’s own honest opinion is essential.

Tags: family business governancefamily business ownershipFamily office advisor
Previous Post

Strength of Family Business in India

Next Post

What is Family Business Management? The Benefits

Next Post
Family Business Management_Family Office Advisor

What is Family Business Management? The Benefits

Categories

  • Coaching (12)
  • Counselling (28)
  • Debt Recovery (5)
  • Family Business Services (16)
  • Family Office Advisory (10)
  • Psychotherapy (41)
family business succession planning

Family Business Succession Planning

11 August 2021
Family Business Management_Family Office Advisor

What is Family Business Management? The Benefits

11 August 2021
family business ownership_family office advisor

Family Business Ownership: The multi-generation business

11 August 2021
Family Owned Businesses_Family Business Advisor

Strength of Family Business in India

12 August 2021
family managed business_next generation

Problems of Family Business for the Next Generation Looking to Join

12 August 2021
family owned businesses in India

Family Owned Business in India Culture and Values

12 August 2021

ABOUT US

Praveen Saanker – Family Office Investments Business Advisor

Family Office Business Advisor, Life coach & Psychotherapist

A Life Coach, Corporate Consultant, Psychotherapist and Family Office Advisor, Praveen has exemplary postgraduate qualifications including a professional doctorate In Psychology from the Prestigious “University of Canterbury”. Mr Praveen Saanker is an accomplished Clinical Hypnotherapist & Past Life Regression Specialist with commendable experience and exemplary Educational qualifications on the subject from the”National Guild of Hypnotist”, Merrimack, New Hampshire and the”California Hypnosis Institute of India”.

Latest Posts

What is Human Givens Therapy

What is Human Givens Therapy

24 January 2022
Brain Stimulation Therapy

Brain Stimulation Therapy

24 January 2022
Experiential Therapy

Experiential Therapy

24 January 2022
legal action or litigation debt collection service

Legal Action or Litigation for Debt Recovery

11 August 2021

Our Offices Locations

INDIA
AP 676. H Block, 15th Street, Annanagar,   Chennai, Tamilnadu, India. Mobile: +91 98400 14586

BLOG CATEGORIES

  • Coaching (12)
  • Counselling (28)
  • Debt Recovery (5)
  • Family Business Services (16)
  • Family Office Advisory (10)
  • Psychotherapy (41)
  • About
  • Terms & Condition
  • Privacy & Policy
  • Contact

© 2021 Praveen Saanker - Life Coach, Family Office Business Advisor

No Result
View All Result
  • Home
  • About
  • Coaching
  • Counselling
  • Psychotherapy
  • Family Office Advisory
  • Family Business
  • Debt Recovery
  • Contact Us

© 2021 Praveen Saanker - Life Coach, Family Office Business Advisor

WhatsApp +91 98400 14586 whatsapp