<\/p>\n

Question: How do you solve conflicts?<\/span><\/b><\/p>\n

T.Shantakumar, MD, Kirtilals<\/span><\/b><\/p>\n

“When new family members enter the business, we are careful to mentor both them and the professionals already in the business.”<\/span><\/i><\/b><\/p>\n

<\/b><\/p>\n

\n
• Take conflicts offline \u2013 for one to one personal discussions with both, family members and the professionals.<\/li>\n
• Once the decision is made \u2013 then both have to align with the decision, even if they don\u2019t agree.<\/li>\n
• We are clear, that professionals who cannot align with the family values and the business culture \u2013 cannot continue with us.<\/li>\n
• We use the period of the first 90 days on the job, to gauge that alignment.<\/li>\n<\/ul>\n

  Question: How do family businesses attract good professionals<\/span><\/b><\/p>\n

  M. Banumathi, Head Naidu Hall, Kovai <\/span><\/b><\/p>\n

  “Family owned retail stores provide high emotional connect to professionals \u2013 that\u2019s why they stay.”<\/span><\/i><\/b><\/p>\n

  <\/p>\n

  \n
  • You have to attract good people \u2013 not just at senior levels, but especially at the front end.<\/li>\n
  • Family businesses provide an environment which is an \u2018extension\u2019 of the home environment.<\/li>\n
  • For us, our sales men and saleswomen are our \u201cHeroes\u201d, and \u2013 like in the movies, we want them <\/span>to be visible to the customers (audience) not us \u2013 the \u2018directors\u2019 and \u2018producers\u2019.<\/li>\n
  • We recruit for attitude not qualification or experience.\u00a0 We also ensure that we take on and solve their problems, so that they are free to do what they do best which is sell.\u00a0 (example \u2013 savings schemes)<\/li>\n
  • We encourage them to develop confidence, by getting them mentored by senior sales staff. Our staff calls seniors as \u201cAmma \/ Appa \/ Akka \/ Anna\u201d \u2013 a mark of the depth of relationship.<\/li>\n<\/ul>\n

    \u00a0<\/b><\/p>\n

    Question: How do family businesses attract good people?<\/span><\/b><\/p>\n

    M. Banumathi, Head Naidu Hall, Kovai <\/span><\/b><\/p>\n

    \u201cWord of mouth is the best advertisement\u201d<\/span><\/i><\/b><\/p>\n

    \n
    • Our sales staff help us keep our pulse on the market. They tell us what customers want \u2013 and purchase managers do regular monthly meetings to make sure that our range \/ merchandise reflect that local know-how.<\/li>\n
    • We have found, that customers in different towns (from Coimbatore to Madurai )have different tastes. By formally recording customer needs via salespeople,\u00a0 we find that our business is better, and inventory lower.<\/li>\n<\/ul>\n

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      Question: How do family\u00a0 businesses retain professionals?<\/span><\/b><\/p>\n

      Gnanasekar Kandaswamy, MD, Pazhamudhir Nilayam <\/span><\/b><\/b><\/p>\n

      “Make sure that you treat family members and professionals fairly and equally.”<\/span><\/i><\/b><\/p>\n

      <\/p>\n

      \n
      • Most entrepreneurs think that professionalism is about appointing a CEO \u2013 this is not true.<\/li>\n
      • A company is professional when it has proper systems and structures to run day to day operations without interference of the entrepreneur.<\/li>\n
      • The entrepreneur should focus on \u201cdirectionalizing\u201d\u00a0 and setting targets.<\/li>\n
      • We do not differentiate between professionals and family members.<\/li>\n
      • Both have to take the consequences of their decisions \u2013 good and bad.<\/li>\n<\/ul>\n

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        Question: How do you stop yourself from not interfering with the professionals?<\/span><\/b><\/p>\n

        T.Shantakumar, MD, Kirtilals <\/span><\/b><\/b><\/p>\n

        “Empower the professional and then \u201cwalk away\u201d \u2013 let him do his job.”<\/span><\/i><\/b><\/p>\n

        \n
        • Once you have delegated authority to a professional \u2013 then you have to give him the space to perform.<\/li>\n
        • If you interfere and micro-manage he will not perform.<\/li>\n
        • At the same time, the customer needs you \u2013 so you still need to be available to the customer.<\/li>\n
        • \u00a0Other than that \u2013 you walk away \u2013 decisions regarding the stores has to be done by the manager dedicated for that.<\/li>\n
        • If you have to override the manager in front of the customer, then after the incident, you go back and motivate the manager so he does not lose heart (or face).<\/li>\n<\/ul>\n

          \u00a0<\/b><\/p>\n

          Question: How do you stop yourself from not interfering with the professionals?<\/span><\/b><\/b><\/p>\n

          Gnanasekar Kandaswamy, MD, Pazhamudhir Nilayam <\/span><\/b><\/b><\/p>\n

          \u00a0<\/b>“Identify your core values, centralize and control only those. Leave the rest to the professionals.”<\/span><\/i><\/b><\/p>\n

          \n
          • If you are thinking about professionalizing \u2013 do not lose the core values – essence of the brand.(in the mind of consumer)<\/li>\n
          • We have \u201ccentralized\u201d\u00a0 the core values by a monthly review process \u2013 we focus on targets and the support needed to achieve the targets.<\/li>\n
          • This ensures that our presence is not needed \u2013 and that gives the professional the space to perform.<\/li>\n<\/ul>\n

            Question: How do family owned business score when it comes to adopting technology?<\/span><\/b><\/p>\n

            Amar Subash, GM Security, Commercial & Retail Biz, Tyco India <\/span><\/b><\/p>\n

            “Family owned retailers are profitable. They do not therefore view technology as a cost \u2013 they see it as an investment.”<\/span><\/i><\/b><\/p>\n

            <\/p>\n

            \n
            • The key is accessing the entrepreneur and getting enough time from him to demonstrate value.<\/li>\n
            • Once you demonstrate value, then technology adoption and\u00a0 rollout is much faster among family owned businesses than among modern retailers where decision makers span multiple levels in the hierarchy.<\/li>\n
            • Once you have built credibility \u2013 they are also far more open in terms of looking at technology to solve strategic issues. More importantly, willingness to be transparent about<\/i> the issues is much higher.<\/li>\n<\/ul>\n

              <\/p>\n

              \u00a0<\/b><\/p>\n