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Negated Hero of Family Business: The Living Organism

Author: Elif Taştan

Who is the family business that is a living organism?

I wanted to address this issue with the idea that our first job in corporate transformation is to give the foundation to the business legal entity. It is impossible for corporate transformation to occur unless there is a baton transfer from the boss to the legal entity, and as long as this transfer is postponed.

As we all know, the entrepreneurial boss is the leading player in family businesses. Everyone agrees on this. So, where is the location of the business legal entity? Who is Business? Who wouldn’t have a business without it? Whoever is sick, the business is sick, and whoever is strong is vital.

The business entity in family businesses is very similar to an adult who is still under the care of his or her family. The boss (parent) is so giving and possessive that the adult cannot stand independently. 

In family companies, company financial records are intertwined with family financial records; everyone actually works for the boss, not the company, and the performance of managers and employees, which are organs of the legal entity, is measured from the boss’s perspective.

In addition, the managers of the organs of a legal entity without authority and responsibility have the same fate as the legal entity. The legal entity must first initiate and win the struggle for authority and responsibility.

Our corporate transformation story must begin with a born and grown adult legal entity declaring its autonomy. For the sustainable future of the business, awareness of the status of the legal entity in the boss and the family, the independence of the legal entity from the boss and the family, and post-independence planning are essential.

Our first job should be to place the new hero in the seat he deserves. Our other important issue is to transfer the boss’s talent, knowledge and experience, which is why the business exists and is strong, to the legal entity and to support the legal entity to reveal its own power. The similarity of the situation of an adult who cannot take responsibility for his own life and a legal entity may lead to the use of similar techniques in corporate transformation in family companies.

As the boss, it is inevitable for the future of the business to dethrone ourselves and hand over our place to the business legal entity, which is a living organism. Starting to work knowing this situation will open many other doors.

Institutional transformation: It should be a unity that begins with the change of the leading actor and continues with the enrichment and strengthening of the legal entity in its new role.

(This article was first written in the Corporate Solution Recommendations 2017 publication of the Corporate Transformation Platform.)

Bu gönderi şu adreste de mevcuttur: Türkçe