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SMALL   TO   BIG
PRESENTATION
AGENDA:
1. Stages of growth
2. Peculiarity of
   family owned
   business
3. How to ensure
   growth
4. How can we
   assist



WELCOME ALL YOU SUCESSFUL
PEOPLE
Five stages of growth.

STAGES OF GROWTH OF A
COMPANY
Stage 1 : Existence

                      •Main focus : obtain
                       customers and deliver its
                       product service
                      •Experiment with a
                       number of different
                       value propositions and
                       business models until it
                       finds a combination that
                       works and gains
                       acceptance by the market
Stage 1 : Keep Afloat

                                Management
                                style : Direct
                                supervision
                          Strategic Focus :
                          Survival

                        Process & System : Non
                        existent

      Existence           People Self, family &
                          friends
                                Measurement
                                – Subjective
Stage 2 : Survival

                     •Business is workable
                     •Tested value proposition
                     •Business model tested
                     • Satisfied customers
                     •Revenue & Expense
                      problem – Cash flow
Stage 2 : Optimise Cashflow

                                      Management
                                      style :
                                      Supervised
                                      supervision
                                Strategic Focus : Cash
                                flow

                              Process & System :
                              Limited to cash flow
                              planning

                                People
                                Owner=business
   Survival                           Measurement
                                      – Subjective
Stage 3 : Success

                    Two choices
                       •Grow & risk what has been
                        created
                       •Remain afloat and create
                        something new
                    The company can stay at this stage
                    indefinitely, providing
                    environmental change does not
                    destroy its market niche or
                    ineffective management reduces
                    its competitive abilities
Stage 3 : Option A or B
                                  Management
                                  style :
                                  Functional
                                  Supervision
                            Strategic Focus :
                            Growth or Afloat

                          Process & System :
                          Strategic plan, budget
                          and basic process

                            People Functional
                            manager in place
   Success                        Measurement
                                  – Subjective
                                  except for
                                  sales
Stage 4 : Takeoff

                    •Growth a combination of organic
                     and inorganic, might require
                     financing
                    •If the owner is successful, the
                     company can grow into a big
                     business
                    •If not, it is usually sold at a profit,
                    •The management team often
                     changes from the previous
Stage 4 : Big Boy

                            Management
                            style : Divisional
                      Strategic Focus :
                      Growth

                    Process & System :
                    Refined systems and
                    process

                      People Competency
                      driven
   Success                  Measurement
                            - Objective,
                            KPIs
Stage 5 : Resource Maturity

                   •Streamlining and integrating
                    operations after the operational
                    inefficiencies caused due to rapid
                    growth
                   •Well defined process, integration
                    by using technology
                   •Owner and company now
                    completely separated—both
                    financially and operation
Stage 5 : Operational & Cost
Efficiencies
                                      Management
                                      style : Line &
                                      Staff,
                                  Strategic Focus :
                                  Growth with
                                  consolidation
                               Process & System
                               :Efficiency by
                               reengineering & IT
                               enabling
   Resource                       People Competency
                                  driven
   Maturity                           Measurement
                                      - Scorecards &
                                      KPIs
Five Stages At A Glance



                                  Functional    Divisional
      Direct       Supervised                                Line & Staff
                                  supervision   Mangers
    supervision    supervision
                                  Growth &       Growth
     Survival       Cashflow                                  Growth &
                                    afloat
                                                             Consolidate
       Non          Limited -
                                  Strategic &    Refined
     Existent       cashflow                                 IT enabling
                                     Basic       System
    Self, Family   Self, Family
                                  Functional    Competent
     & Friends      & Friends                                Competent
                                  Only sales      KPIs
    Subjective     Subjective                                Scorecards
Family, People, Process, & Money

ADDED COMPLEXITY IN THE REAL
WORLD
Role Of Family
• All family members may not
  be owners
• All owners may not be                   Family Council
  working in the business
• Business may have non          Family
  owners from the family.




              Board of                            Shareholder
              Directors                           Agreement


                      Business        Ownership
Role Of Family


       STAGE I        STAGE II        STAGE III        STAGE IV       STAGE V
      Existence       Survival        Success          Take Off   Resource Maturity




   Manpower      Manpower      Manpower         Governance
   Money                         (specially for
                  Guidance       geographical
   Guidance
                                  growth)




                                       Family involvement can hamper or
                                     stagnate the growth. Stage 3 onwards
                                     family should be involved in business
                                                based on Merit.
As the owner grows its business, there is a clear trade-
off between the owner’s ability to execute and his
ability to delegate

Critical Success Factors – Owner’s Abilities
                 STAGE I              STAGE II   STAGE III   STAGE IV       STAGE V
                Existence             Survival   Success     Take Off   Resource Maturity

      High
             Owner’s ability to execute




             Owner’s ability to delegate

      Low
Owners ability to delegate has a direct correlation with
the process and systems

Critical Success Factors – Owner’s Abilities
                                      STAGE I              STAGE II       STAGE III               STAGE IV       STAGE V
                                     Existence             Survival       Success                 Take Off   Resource Maturity

      High
                                                                                      Reporting
       Critical Success Factors




                                                                                        tools


                                                                                                                    IT tools &
                                                                      Process &
                                                                                                                    monitoring
                                                                       systems
                                                                                                                     systems




                                  Owner’s ability to delegate

      Low


                                                                              Organization
                                                                               structuring
Owners ability to delegate has a direct correlation with
quality of manpower

Critical Success Factors – Owner’s Abilities
                                      STAGE I              STAGE II        STAGE III              STAGE IV       STAGE V
                                     Existence             Survival        Success                Take Off   Resource Maturity

      High
                                                                                   Mangers with
                                                                                      larger
       Critical Success Factors




                                                                                    experience


                                                                      Functional
                                                                      Managers




                                                         Non family
                                                         manpower

                                  Owner’s ability to delegate

      Low


                                                                               Organization
                                                                                structuring
Strategic planning becomes increasingly important as
the company becomes more complex with more
offerings, markets served, and scale
Critical Success Factors – Strategic Planning
                                      STAGE I          STAGE II   STAGE III   STAGE IV       STAGE V
                                     Existence         Survival   Success     Take Off   Resource Maturity

      High
       Critical Success Factors




                                  Strategic Planning

       Low
Nimble Systems

• Started in 2004
• Offices in India and Kenya
• Operational in India, Middle east, East & West
  Africa.
• Has worked in over 18 countries
• Has executed more than 250 projects
• Focuses in facilitating organizational growth by
  putting process and systems
How Does Nimble Assist In
Growth
                    Organization          Process &
  Strategy                                                   R&R & KPIs
                     structure             Systems

                                                              Create detailed
                                                                 roles and
                           Create
                                          Create business     responsibilities
 Create the road       structures for
                                           process for the    document with
   map for the       the organization
                                            organization       measurability
 organization to        ensuring the
                                            with reports       tools like KPIs
   ensure asset          strategy is
                                          ensuring ease of    and score card
  utilization and     fulfilled, taking
                                           delegation for        to ensure
      growth         into account the
                                             the owner.        measurability
                      culture & stage
                                                                and strategy
                                                             implementation
Nimble Involvement Through
The Five Stages



                           CEO
                         Mentoring        Board Mentoring
                                          Board Score Card
             CEO          Strategy              Strategy
           Mentoring                        Org Structure
                             Org         Process & Systems
               Org       structuring       Reengineering
           Structuring                    Skill set mapping
                         Business      Training Need Analysis
                         process &        Appraisal System
                          systems
Contact Us To Know More About Our
Offering
pawan@nimble.in

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Growing your family owned business - stage and challenges

  • 1. SMALL TO BIG
  • 2. PRESENTATION AGENDA: 1. Stages of growth 2. Peculiarity of family owned business 3. How to ensure growth 4. How can we assist WELCOME ALL YOU SUCESSFUL PEOPLE
  • 3. Five stages of growth. STAGES OF GROWTH OF A COMPANY
  • 4. Stage 1 : Existence •Main focus : obtain customers and deliver its product service •Experiment with a number of different value propositions and business models until it finds a combination that works and gains acceptance by the market
  • 5. Stage 1 : Keep Afloat Management style : Direct supervision Strategic Focus : Survival Process & System : Non existent Existence People Self, family & friends Measurement – Subjective
  • 6. Stage 2 : Survival •Business is workable •Tested value proposition •Business model tested • Satisfied customers •Revenue & Expense problem – Cash flow
  • 7. Stage 2 : Optimise Cashflow Management style : Supervised supervision Strategic Focus : Cash flow Process & System : Limited to cash flow planning People Owner=business Survival Measurement – Subjective
  • 8. Stage 3 : Success Two choices •Grow & risk what has been created •Remain afloat and create something new The company can stay at this stage indefinitely, providing environmental change does not destroy its market niche or ineffective management reduces its competitive abilities
  • 9. Stage 3 : Option A or B Management style : Functional Supervision Strategic Focus : Growth or Afloat Process & System : Strategic plan, budget and basic process People Functional manager in place Success Measurement – Subjective except for sales
  • 10. Stage 4 : Takeoff •Growth a combination of organic and inorganic, might require financing •If the owner is successful, the company can grow into a big business •If not, it is usually sold at a profit, •The management team often changes from the previous
  • 11. Stage 4 : Big Boy Management style : Divisional Strategic Focus : Growth Process & System : Refined systems and process People Competency driven Success Measurement - Objective, KPIs
  • 12. Stage 5 : Resource Maturity •Streamlining and integrating operations after the operational inefficiencies caused due to rapid growth •Well defined process, integration by using technology •Owner and company now completely separated—both financially and operation
  • 13. Stage 5 : Operational & Cost Efficiencies Management style : Line & Staff, Strategic Focus : Growth with consolidation Process & System :Efficiency by reengineering & IT enabling Resource People Competency driven Maturity Measurement - Scorecards & KPIs
  • 14. Five Stages At A Glance Functional Divisional Direct Supervised Line & Staff supervision Mangers supervision supervision Growth & Growth Survival Cashflow Growth & afloat Consolidate Non Limited - Strategic & Refined Existent cashflow IT enabling Basic System Self, Family Self, Family Functional Competent & Friends & Friends Competent Only sales KPIs Subjective Subjective Scorecards
  • 15. Family, People, Process, & Money ADDED COMPLEXITY IN THE REAL WORLD
  • 16. Role Of Family • All family members may not be owners • All owners may not be Family Council working in the business • Business may have non Family owners from the family. Board of Shareholder Directors Agreement Business Ownership
  • 17. Role Of Family STAGE I STAGE II STAGE III STAGE IV STAGE V Existence Survival Success Take Off Resource Maturity Manpower Manpower Manpower Governance Money (specially for Guidance geographical Guidance growth) Family involvement can hamper or stagnate the growth. Stage 3 onwards family should be involved in business based on Merit.
  • 18. As the owner grows its business, there is a clear trade- off between the owner’s ability to execute and his ability to delegate Critical Success Factors – Owner’s Abilities STAGE I STAGE II STAGE III STAGE IV STAGE V Existence Survival Success Take Off Resource Maturity High Owner’s ability to execute Owner’s ability to delegate Low
  • 19. Owners ability to delegate has a direct correlation with the process and systems Critical Success Factors – Owner’s Abilities STAGE I STAGE II STAGE III STAGE IV STAGE V Existence Survival Success Take Off Resource Maturity High Reporting Critical Success Factors tools IT tools & Process & monitoring systems systems Owner’s ability to delegate Low Organization structuring
  • 20. Owners ability to delegate has a direct correlation with quality of manpower Critical Success Factors – Owner’s Abilities STAGE I STAGE II STAGE III STAGE IV STAGE V Existence Survival Success Take Off Resource Maturity High Mangers with larger Critical Success Factors experience Functional Managers Non family manpower Owner’s ability to delegate Low Organization structuring
  • 21. Strategic planning becomes increasingly important as the company becomes more complex with more offerings, markets served, and scale Critical Success Factors – Strategic Planning STAGE I STAGE II STAGE III STAGE IV STAGE V Existence Survival Success Take Off Resource Maturity High Critical Success Factors Strategic Planning Low
  • 22. Nimble Systems • Started in 2004 • Offices in India and Kenya • Operational in India, Middle east, East & West Africa. • Has worked in over 18 countries • Has executed more than 250 projects • Focuses in facilitating organizational growth by putting process and systems
  • 23. How Does Nimble Assist In Growth Organization Process & Strategy R&R & KPIs structure Systems Create detailed roles and Create Create business responsibilities Create the road structures for process for the document with map for the the organization organization measurability organization to ensuring the with reports tools like KPIs ensure asset strategy is ensuring ease of and score card utilization and fulfilled, taking delegation for to ensure growth into account the the owner. measurability culture & stage and strategy implementation
  • 24. Nimble Involvement Through The Five Stages CEO Mentoring Board Mentoring Board Score Card CEO Strategy Strategy Mentoring Org Structure Org Process & Systems Org structuring Reengineering Structuring Skill set mapping Business Training Need Analysis process & Appraisal System systems
  • 25. Contact Us To Know More About Our Offering pawan@nimble.in