THE PROCESS OF PROFESSIONALIZATION OF THE FAMILY BUSINESS

26 May THE PROCESS OF PROFESSIONALIZATION OF THE FAMILY BUSINESS

Almost every family business has on its horizon a process of professionalization of its managerial functions, especially when the inevitable generational change occurs. It is a process, in many cases, as necessary as it is complex, which entails the need to establish well-defined strategies that allow to adequately prepare the development of the professionalization of the organization, and plan the generational change.

Experience advises that, in many cases and due to various circumstances, this process has the participation of professionals outside the family circle since, in general, it favors and helps to normalize the relationship betwen the different members and generations of the family that interact in the family. management of the company, and gives more importance to professional criteria both in the organization and in decision-making.

The natural complexity of this process should not mean the resignation of family members to the sovereignty of the business project they have created, but should allow sharing and clearly delimiting the functions and responsibilities, all in search of an improvement in the management efficiency and ensuring its future. In other words, it is not about incorporating professionals into managerial and executive positions without family surnames, but rather introducing in the ordinary functioning and in decision-making a way of acting not tied to conventions or personalities, but under clear and basic principles professionals and technicians previously defined.

It is common to find the case where the founder acts as CEO, while the rest of the family specializes in specific functions. In this scheme, when there is no natural substitute, the founder’s march requires reinforcing the space that he leaves free, which means having experienced professionals, specialized offices, that allow complementing the actions of family members with the gap generated. . This combination, betwen external professional and family managers, usually generates good synergies because betwen them they complement the needs of the company, minimizing the departure of such relevant figures in the operation of the company.

For these dynamics to be successful, the planning and execution of the process is especially important, and for this task it is highly recommended to have multidisciplinary teams made up of experts in different disciplines useful for society and with extensive experience, since their collaboration helps objective and professional way to all managers, whether they are from the family nucleus or external.

This type of succession is imposed in various circumstances, or when there are no adequate profiles within the family to sustain the level of growth of the company in the face of competition in its sector, when management – sometimes personalistic – no longer generates consistent returns with size, or when there is a generational change without a substitute within the family with the ability or willingness to face it.

In any case, it is essential that this step be considered, shared and accepted by the whole family unit that participates in the company, and is agreed on the objectives and goals for which it is decided to start. At the same time, and in parallel, a series of mechanisms and organs must be established to reposition the family on a new plane, which combines the concept of the owner family and the business family.

In this area, professional experts are the ones who can best help the business family to structure certain bodies that are very useful for the functioning of society, recommending in many cases the constitution of a Family Council, an entity in which the members participate. of the family unit to address issues related to the business and other issues that affect some or all of the members in the business environment. At the same time, the Management Committee is usually reformulated, where decisions are shared by managers – both family members and external professionals – and issues related to the operational functioning of the company are analyzed. In short, the process of professionalization of the family business usually comes hand in hand with a generational change, and the need to update internal functioning models and reinforcement with professional experts to minimize the possible negative impacts on the transition betwen generations. Doing it is essential, doing it well advised is essential.