Post by arfanho7 on Feb 27, 2024 10:37:13 GMT
My colleague Raffaella Sadun has done fascinating research in which she documents that family run firms often fail to introduce management techniques that are closely linked to better financial performance. So it’s at least an open question whether being a family firm is an advantage. The Koç solution which I find quite fascinating is to say that day to day operations are firmly in the hands of professional managers who are brought in from the outside.
As Rahmi Koç explains in the interview it takes the managers a long time to earn their stripes. Patience avoids some of the tensions of the pure family run business. On the one hand you have a larger pool to pick talent from but by the time you get to positions of real responsibility the fact is you are almost joined at the hip with the family. Q has no hesitation Hungary Phone Number about becoming involved in the personal lives of senior executives even the non family employees. A Yes you are the professional coming in but we are extending the relationship—we are hanging out with your family we’re all going to picnics and so on. It feels a little like you are a cousin or nephew. There are parallels in publicly traded US companies.
Sam Walton was famous for having early Saturday morning meetings. Business was first but the families were all there as well. Saturdays were business and family affairs. Q Why has governance evolved that way among some of these firms A It is smart management in good part. They see the trade offs and know they can’t be an old fashioned classic family firm in an environment that is increasingly competitive and requires them to be efficient.
As Rahmi Koç explains in the interview it takes the managers a long time to earn their stripes. Patience avoids some of the tensions of the pure family run business. On the one hand you have a larger pool to pick talent from but by the time you get to positions of real responsibility the fact is you are almost joined at the hip with the family. Q has no hesitation Hungary Phone Number about becoming involved in the personal lives of senior executives even the non family employees. A Yes you are the professional coming in but we are extending the relationship—we are hanging out with your family we’re all going to picnics and so on. It feels a little like you are a cousin or nephew. There are parallels in publicly traded US companies.
Sam Walton was famous for having early Saturday morning meetings. Business was first but the families were all there as well. Saturdays were business and family affairs. Q Why has governance evolved that way among some of these firms A It is smart management in good part. They see the trade offs and know they can’t be an old fashioned classic family firm in an environment that is increasingly competitive and requires them to be efficient.