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He Jun: How Does A Family Business Become An Enterprise Family?

2011/9/6 14:16:00 55

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Looking at the form of Chinese clothing enterprises, the vast majority of private enterprises are family enterprises, most of them exist in the form of husband and wife or brothers.

Family business is only a phased formulation. Enterprise development is a process from small to large, from weak to strong. To a certain extent, it will become a social and public enterprise. This is an inevitable trend.

The management of enterprises by family system has become the universal management mode of 70%-80%'s private enterprises.

Family businesses have many advantages, such as: in the early stage of entrepreneurship, the scale of enterprises is small, and the core members are basically family members who are linked by blood and relatives. Entrepreneurs have natural parental authority and rely on family management of parent authority to ensure the smooth operation of family businesses.

When enterprises develop into social and public enterprises, there are inevitably too many bottlenecks in the management process, such as: bureaucracy of management, unscientific talent mechanism, unclear ownership, unscientific decision-making procedures, obstacles to organizational mechanisms, and lack of good corporate culture. In the final analysis, I think it is necessary to solve the internal contradictions of family businesses.

That is to say, how to solve the problem of how clothing family enterprises move towards the family of enterprises.

The family business must go to the corporate family and govern the family.

First, clearly diagnose the life cycle of enterprises: family businesses are not easy to survive.

family firm

The average life expectancy is 24 years. The life span of Chinese family businesses is shorter, and 88% of them fail to reach third generations. Only 3% of the family businesses are still operating in the fourth generation and beyond.

Why do Chinese companies like to advocate construction?

Century brand

A century old enterprise? That's because there are not many longevity businesses in China.

It is not the efficient management mechanism but the helmsman of the enterprise that decides the fate of the development of family enterprises.

Once the direction of the helmsman is inaccurate and the location is not clear, it is easy for the enterprise to enter the abyss. Where should we talk about longevity? The urgent matter for the enterprise is to recognize the present situation of the enterprise and grasp the pulse of the enterprise. We must build the family of the enterprise instead of the family business, so that we can plan and prolong the life cycle of the enterprise.

Second, formulate a scientific talent strategy: when family businesses become bigger and stronger, enterprises grow too fast, scale expansion and management complexity. Only by the management of family members obviously can not be timely, and the urgent need to introduce professional managers leads to an increase in the demand for high-level talents. The top leading organization of enterprises is the main leading position of the family members from the original family members to become a competent person to be an important position.

At this time, the most scarce thing is not money capital but human capital. When family business is pforming from "going family" to "social enterprise", the reform of the leading body must be clear, employing personnel mechanism, rationalizing the concept of employing people, making meritocracy instead of cronyism, and introducing high-quality talents. We must break the family enterprise's habit of setting up posts and set up a mechanism for hiring people.

Complete the pition from small businesses to large enterprises, from human relations companies to system companies, and complete the pition from perceptual management to scientific and systematic management.

We should reasonably resolve the sharp contradiction between family ethics and the management mechanism of scientific talents.

Third, formulate advanced management strategies:

family

The biggest contradiction of a type enterprise is the contradiction between management right and ownership.

The decision making power and management rights of clothing family businesses, the identity of the main investors and the main managers are all two.

Family businesses should put "enterprise interests" on the "family interests", and "family businesses" should pform to the innovative family of enterprises.

How to carry out a scientific and rational separation, from the original blood or affinity family members to share shareholding system reform, once the family business survives, we must consider the reasonable equity arrangement problem, and break the traditional family business operation right as the core of the business mechanism.

A board of directors, a board of supervisors and shareholders' meetings shall be established, and audit, remuneration, administration, human resources, finance, strategic planning committees and other specialized institutions shall be set up.

In short, the development of enterprises is based on the principle of "people first think, the idea goes first, and healthy development". Family businesses are looking for a way out of danger from many perspectives, such as talent strategy, business strategy, enterprise life and so on.

In the future, we will face more severe challenges, such as the internationalization of family businesses, the acceptance of global market competition, the successor of enterprises, and so on.

We hope that the garment industry can also create a number of the most distinctive Chinese family.