Enterpreneurship and Inovation Management

Strategic Planning
for The Family in
Business
Kelompok 2
1. Purwo Panggalih (55113120187)
2. Ria Arriani Surya (55113120359)
3. Tiza Yunisca Sari(55113120280)
4. Suci Yudeni (55113120245)
5. Trissandi Febinsyah (55113120283)
6. Bisma Yustiawan(55113120356)
7. Nurendi Ibnu Hindar(55113120344)

Executive Summary
A family business must balance the sometimes conflicting concerns and
demands of both the owner`s family and the business itself.
The article presents a model of how the planner can help the family
support survive into subsequent generation using a two-dimensional
planning process (The family council and The business board ofdirectors).
The family council (actual members of the family) tasks is to develop anew
generation of family members, regulate their involvement,and alignthe
business with the family`s plans.
The planner canhelp the council by answering such question about their
family business.

The boardof directorsshould focus on such strategic planning needs a

ssuccesion governance and capital needs.

Strategic Planning for The Family in Business

Strategic planning must includes consideration of two dimension; family
desire and intention
FFI statistic suggest that family firm only has a one-in-three chance of
reaching the second generation
Why family business dont survive: family consideration can overwhelm
business realities and their consequent lack of focus on the need for business
renewal
Not every family maember inherits ownership and not every family member
works in the busniess. Those who do often make their decision based on
personal rather than on business consideration
Different criteria for making decisions between family and business negatifly
affect the business
Family find themeselve in value of conflict between demand of the business
and family
Key challenge in planning for family busines is to negotiate the boundary
between the world of family and the world of business

Two Dimensions of Family Business

Key challenge in planning for family busines is to negotiate the boundary
between the world of family and the world of business
The family council alone cannot design the future of a strong family business.
This is achieved by convening a proactive business board of directors that
represents the needs of business
The family council alone cannot design the future of a strong family business.
This is achieved by convening a proactive business board of directors that
represents the needs of business

The Work of The

Family Council

The family
council must plan
to secure the
future of their
family
enterprises in
four areas.

Mission and Values

Next-generation development
plan
Guidelines for family
involvement
Ownership and transfer policies

Ownership and transfer policies

The Board of Director

The board of directors focuses on

four areas of strategic planning :
Business
renewal

Capital
needs
business
and owners

Key
employees
leadership
team
succession

Succession
governance

Factors Contributing to Business Stagnation

Value
loyalty
over
results

Difficult
to let
anyone
go

No new
blood
shaking
things up

Dont
confront
the
founder
or each
other/har
mony
reigns

Focus on
internal
politics
/power
struggles
rather
than
customer

Oriented
to past
triumphs
rather
than
future

No longrange
plan for
develop
ment

Little
inovation
in system
or
products

Focus on
existing
markets
and
customer

Employes
lack
ability to
handle
new
demands

Planning in Two Dimensions

Strategic Planning for family in business is a two-dimensional process:

looking at the business future but also understanding that such a future
lies within the context of family ownership and control

Two types of planning can proceed either consecutively or concurrently

The best path is for the two groups to interact in many ways through a
set of communication links

Conclusion
Forming a family council and using its board of directors as
an active force.
The board cannot do its planning without having input
from the family about its desires, values. And priorities.
Each group working on its own, but also having frequent
communication and interaction.
Family business is a such a complex system that ony a
complex and multi-faccted method of planning will be able
to help it move ahead.