Modernization has brought with it changes in the business scenario. Today with so many modern business coming up and being successful, the family managed businesses have stiff competition. Closer to the 20th century, the young generation then realised this aspect and slowly specialization in the form of graduate and post graduate education in Family Managed Business made its entry.
The Family Managed Business (FMB) is the newest and most innovative family managed business program with a global exposure and local expertise. The program aims to prepare the next generation in a FMB, with modern and global management education so that they can be prepared to take up the unique challenges of family business and also develop an understanding of the strategies required to eventually lead the business to new heights.
The program is designed for young business leaders of family businesses who intend to manage their business and for individuals who aspire to work in family business.
Family run businesses have unique businesses, as well as family challenges involving issues of ownership and management. The most complicated family business issues are not the business problems the organisation faces, but the emotional issues that compound them. Many years of achievement through generations can be destroyed by the next generation if they are not sensitized to the requirements and modalities. There also comes a time when a family member, who could also be the owner, may want to sell the business to maximize their returns. But, a family member who is an owner and also a manager may want to keep the company because it represents their career and they want their children to have the opportunity to work in the company. Decision Making, Conflict Management, Strategizing and Positioning apart from the other operational requirements, are some of the subject elements taught in the Family Managed Business curriculum. Exposure and knowledge of the said elements can help bring in the much required professionalism to manage and survive a business of this kind.
Often family members can benefit from involving more than one professional advisor from the family, each possessing a particular skill set needed for the business. Some of the skill sets that might be needed include, communication, conflict resolution, understanding of family systems and hierarchy, finance, legalities, accounting, insurance, investing, leadership development, management development, and strategic planning.
What does a candidate learn in the family business management course?
A family business management course addresses and exposes candidates to key management areas that create opportunities and also to the challenges which are unique to businesses that are run by families. Such a focus allows candidates to explore and analyse business continuity challenges and disaster management, family, and governance practices for family-owned businesses.
These courses also includes analyzing opportunities and failures and direction. 75% of businesses do not carry on to the second generation. Analyzing the reasons for this can help prevent this happening to the students’ own family-owned businesses.
As many students already have a background in family business, their contributions and experiences enrich the learning process. This makes the learning more easier, more interesting!