Institutionalization is that all activities of an enterprise or organization are planned, measurable, reportable, curable and methodological, ensuring continuity, being sound and dynamic without being dependent on individuals. By institutionalization, we mean the blending of principles, rules and standard practices with the power of family culture and entrepreneur.
In our country, more than 95% of the companies are small and medium-sized enterprises (SMEs) and a significant portion of SMEs are the family companies that need to advance their corporate maturity. The average life of family companies is 25-30 years. 30% of the family companies can pass to the second generation, 12% to the third generation and 3% to the fourth generation.
Why is the life span of these companies short?
There are many answers to this problem. We can summarize all these answers as inability of institutionalization.
Some sub-headings of the inability of small and medium size (SME) companies’ institutionalization can be listed as follows:
-Failure to manage the processes with an architectural perspective, internal control deficiencies, problems in stock management, calculating the costs accurately worngly, branding, risk management (financial risks such as currency risk-interest risk, liquidity risk, clarification of strategic targets, risk of compliance with the legislation, tax risk, operational – information technology and reputation risk management, employee loyalty and qualifications, capital insufficiency, inability to access credit sources, accounting and tax risks, inability to manage cash flow, obtaining inaccurate results from financial statement analysis, lack of decision support system, inability to manage growth etc.
Often, we hear the following comments from the owners and managers of SMEs:
-How can we prevent out-of-control operations? How do we manage our business with principles, rules and standards without losing our values, agility and flexibility? Should we switch to ERP?
- What will happen to this company after me?
- How can we increase the company value?
- How can we manage fast growth?
- What jobs should we outsource, which jobs should we cosource or do with a partner? Which business areas should we leave, and which ones should we enter?
- How can we improve strategic plan and budgeting?
- How can we control speed of staff turnover? Can we create a well-functioning performance and career management system for employees?
- How can we improve sales-collection, purchase-payment, stock / production, resource / reimbursement, fixed assets, human resources, social security, law and cash management processes?
- How can we streamline the reporting infrastructure to help management make decisions?
Teolupus helps you with 10 headlines:
Initially, we conduct free preliminary examination and diagnostic work in your business. Then, in the services that we have agreed and roadmap, we combine our interviews, observations and examinations with our expertise, experience and present our solutions tailored to your institution in line with international standards.
We determine the working time in accordance with road map that we will develop together.
Based on the size of the work to be done, we complete our work between 1 and 8 months and continue to monitör and evaluate afterwork effects with you during the implementation process of the study.