Newsletter: Strategic Management of family and business

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Strategic Management

Of Family And Business

Jad Zniber, Isabell Müller Week 6: Strategic Management Of Family And Business

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STRATEGIC PLANNING - 5 Reasons Why Successful Companies Do It and Why You Should Too

By Wayne Rivers

1. Strategic planning increases the odds of successIn 2001, the Journal of Small Business Management wrote that…“planning does make adifference and can reduce the probability of firm failure,” and “…firms with no written plansexhibit slower growth than firms with more sophisticated planning.”

2. Planning allows for faster growth and more prosperityFaster growth and more prosperity are the result of strategic planning – which must include theimplementation of effective management practices. The International Journal of EntrepreneurialBehavior and Research wrote, “Effective management of growth requires formal managementpractices often missing. Clear definition and delegation of authority and responsibility, greateraccountability, and planning are necessary for effective management of growing family firms.”

3. Planning allows you to establish clear roles and responsibilitiesA strategic plan designates which departments in your company and which people ororganizations are responsible for achieving desired outcomes. This creates structure,accountability, and consensus among employees.

4. Planning allows you to avoid mistakes A strategic plan is like a map for your business. Can you imagine what it would be like to drivefrom New York to California without a map? You know what it’s like when you make wrong turnwhile driving – it creates frustration and impedes your progress. Wrong turns in business createmany corollary problems along the way: directionless employees, decreased revenue, reduceproductivity, slower growth, opportunity costs, and the list goes on…

5. Increased morale and better harmony Strategic planning allows key managers – both family and non-family – to participate andcontribute to the plan. This fosters an atmosphere of open communication among key mangersand give them a sense of ownership--both of which increase the likelihood of plan adoption andexecution. When employees understand their purpose, feel valued and included, and there is acommon vision for the organization, a company will experience increased morale and harmony.

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Mica Reflection Week 5:

• Exchange of different narratives of family businesses

• Good story telling is a talent that becomes rare nowadays and therefore needs to continuously be practiced

• Elena told her story about a very

traditional family business operating in the Italian pasta company

• Mohammed presented his story about

two friends who once founded a company together and didn’t come along at one point of their lives anymore

• Kem’s story was about a family

business in Nigeria, a country that is still highly influenced and shaped by gender differences.

• The skit of week 5 focused on

succession and different ways how to do were discussed

Ø The week’s main outcome was to

understand how important succession is and that families should consider it as soon as possible to prevent difficulties, and issues about potential successors or the company’s future in general.

https://www.youtube.com/watch?v=LkesApAMSQk This video explains how to develop a strategy for an organization, addresses the risks but also its advantages. 7 steps are presented that help to create and implement a successful strategy that guarantees growth and sustainability.

How to set up and follow a corporate strategy


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Newsletter: Strategic Management of family and business

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