Introduction
The phrase family business as defined by Ward (2011) refers to a business entity in which decisions are made by people who are related by marriage or by blood. According to them, in a family business majority of middle and high level management positions are held by member of the same family. The people who operate family businesses are connected to each other because of leadership, ownership and the technical knowhow that they give to the business. Similarly, Mathews (2015) defines the terms strategic planning refers to the process of making a business profitable both in the short-term and long-term time horizons. When doing strategic planning for family businesses, it is important to incorporate family preferences and concerns …show more content…
First, succession planning – this entails preparing people to hold higher management and middle level management positions upon the demise or retirement of the existing organizational leaders. Matthews (2015) further asserts to the reality that; strategic planning in a family business help in career development and training of young family members who are future leaders of the family businesses. Similarly, Ward (2011) contends to the reality that; a research study conducted by the institute of management in the university of oxford revealed that. Good succession planning is directly linked to good strategic planning. A simple interpretation of this statement can be simplified to mean “family businesses that are planned together stay together.” Therefore, the importance of strategic planning or having a strategic plan in promoting long-term business continuity and growth, more particularly in family owned businesses should not be underestimated (Matthews, …show more content…
One, strategic planning should ensure that goals are clarified and realistic. As well as provide a clear roadmap of achieving the goals. In addition, family businesses should regularly update their strategic plans in order to ensure that employees are doing the right things. Two, a mechanism for reviewing the progress being made against the set plan should be established, this ensures focus and accountability are maintained. Three, allow family members to share their personal and business inspirations and agree to one set of goals. Other strategies that should be adopted to ensure that strategic planning in a family business is successful include; learning from past mistakes by identifying key problem areas prior to implementing the strategic plan, and using experts to lead the process if necessary (Matthews,
The phrase family business as defined by Ward (2011) refers to a business entity in which decisions are made by people who are related by marriage or by blood. According to them, in a family business majority of middle and high level management positions are held by member of the same family. The people who operate family businesses are connected to each other because of leadership, ownership and the technical knowhow that they give to the business. Similarly, Mathews (2015) defines the terms strategic planning refers to the process of making a business profitable both in the short-term and long-term time horizons. When doing strategic planning for family businesses, it is important to incorporate family preferences and concerns …show more content…
First, succession planning – this entails preparing people to hold higher management and middle level management positions upon the demise or retirement of the existing organizational leaders. Matthews (2015) further asserts to the reality that; strategic planning in a family business help in career development and training of young family members who are future leaders of the family businesses. Similarly, Ward (2011) contends to the reality that; a research study conducted by the institute of management in the university of oxford revealed that. Good succession planning is directly linked to good strategic planning. A simple interpretation of this statement can be simplified to mean “family businesses that are planned together stay together.” Therefore, the importance of strategic planning or having a strategic plan in promoting long-term business continuity and growth, more particularly in family owned businesses should not be underestimated (Matthews, …show more content…
One, strategic planning should ensure that goals are clarified and realistic. As well as provide a clear roadmap of achieving the goals. In addition, family businesses should regularly update their strategic plans in order to ensure that employees are doing the right things. Two, a mechanism for reviewing the progress being made against the set plan should be established, this ensures focus and accountability are maintained. Three, allow family members to share their personal and business inspirations and agree to one set of goals. Other strategies that should be adopted to ensure that strategic planning in a family business is successful include; learning from past mistakes by identifying key problem areas prior to implementing the strategic plan, and using experts to lead the process if necessary (Matthews,