Professional management essential in running family business
New leaders must be careful about ethics, transparency and preserving family values and tradition. The seminar titled ‘Family Values, Future Vision: Strategies for Sustainable Succession’ was held at the Metropolitan Chamber of Commerce and Industry (MCCI) office in Gulshan on Tuesday. MCCI, Raja & Tan Asia and AAZ & Partners jointly organized the event.
Speakers said far sight and honesty are also important in selecting leaders; competence should be preferred over rights and emotions.
Square Pharmaceuticals Managing Director Tapan Chowdhury said at the seminar that professional management is necessary in running a family business. With such a structure, it is not difficult for the next generation to run the business.
However, it is not right to bring someone to the leadership just because they are the children of the family. The most qualified should be chosen for leadership. In addition, the workforce also has to adopt these values.
In this regard, he gave various examples of their Square Group business. The employees also become like family. They work as a team like brothers and sisters. Tapan Chowdhury said after joining the business, he first worked with his father and saw how the organization is run.
Salman Ispahani, Managing Director of MM Ispahani Limited, said family values are a very big issue in running a family business. There should be equal opportunities among the members in terms of enjoying facilities.
However, a qualified leader has to be found among them. The problem is that all families consider their children qualified to lead. The selection of leadership from the family and all types of appointments and layoffs need to be done on a very professional basis. The biggest disadvantage of family businesses is that the same leadership remains for decades.
Salman Ispahani said even if the business is initially a sole proprietorship, when the family size increases, it is not possible to manage it only with relatives. Then professional management becomes mandatory. He said their business has been run on a professional basis for a long time.
MCCI President Kamran T Rahman said family businesses have been playing an important role in the country’s economy for ages. In this case, in addition to employment, innovation, preserving values and traditions, one has to be strategic in choosing the successor. To sustain a family business, it is important to pass on the family’s own values from generation to generation.
ACI Chairman Anis Ud Daula said when a generation in a family business ends, the question arises as to who will own the business. One should think it in advance. He also spoke about the need to be careful in preserving ethics, transparency and family values and traditions.
Anis A Khan, managing partner of AAZ & Partners, said, “One always has to follow a method in running a family business. If there is good management, there is no problem after handing over the responsibility to the next generation. Leadership requires foresight and honesty.
A presentation was given by Singapore-based law firm Raja & Tan Asia on family business at the seminar. It said that family business varies from country to country. However, there are many similarities in corporate practices.
To make family business sustainable, there should be an advisory board for institutionalization. This board will monitor the business activities of the entire group including the board of directors. It will take strategic policy decisions; resolve any disputes based on the family charter. They will take decisions like appointing and removing directors.
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