RS/XYZ/U-FAQs/ March 03, 2015
The XYZ Group: Being ‘Professional’ yourself…..
Attention: Chairman & Members of the XYZ Family Executive Board:
My Answers to Unasked FAQs (U-FAQs):
1. Yes, you are really the Supreme Management Decision Making Team of the Group, answerable and reporting to the Chairman & Members of the Family Business Board who are in turn Stakeholders/ Shareholders/ Partners in the XYZ Group Businesses.
2. Yes, the CEO of each Group Company, whether an FMB – Family Member in Business – or a Professional Non-Family CEO, is answerable to the Executive Board on his Company’s plans and performance.
3. Yes, even if the CEO is an FMB, and a brother or a cousin, he is answerable to the Executive Board, and the Executive Board needs to evaluate his performance, on behalf of the Stakeholders of the Group.
4. No, he is not the sole owner of the Company of which he is CEO, in the present Group Structure. You are all owners of the Company, equal owners as Families. You all have a stake in the Company’s performance, and therefore in the CEO‘s performance.
5. The FMB CEO has been nominated by the FBB, to protect the Group’s interests, and not because he is the Sole Owner of the Company.
6. Yes, if you find it difficult to question a CEO because he is an FMB, it is desirable to appoint Professional Non-Family CEOs who can be held accountable for their performance, without fear of family sensitivities. This matter needs urgent consideration as over-all performance of the Group is in ‘Stagnation’ mode primarily because of the absence of competitiveness, and of performance demands, because of soft family sensitivities.
7. Yes, the Chairman and Members of the Executive Board of the XYZ Group have 24×7 responsibility and accountability for the successful functioning and performance of the Group and of all the Group Companies.
8. Yes, the Chairman and Members of the Executive Board should be available and accessible to each other by person or by telephonic or by internet communication or by any other means 24×7 on a need-to-contact basis, even when on a vacation.
9. Yes, the Chairman and Members of the Executive Board can be in contact and discharge their responsibilities wherever they are in the World at whatever time to protect the interests of the XYZ Group.
10. No, the Chairman and Members of the Executive Board can never have the excuse of not being able to do something because they are ‘away from Office’…..they are supposed to be in command of their resources, to get things done, even under the most difficult circumstances.
11. Yes, in today’s world, you cannot really be ‘away’ when you are needed most, because of the critical position that you hold. Yes, of course, you cannot be held responsible if you give up the position you hold, and want to have nothing to do with the Group’s businesses. Till then, you are accountable, because you are drawing benefits from it.
12. Yes, if you really are a Visionary, inspiring, and motivate great performance all around, today, and into the future, as Members of the Executive Board, you can aspire and demand for a better reward system, for yourselves. Nothing wrong. Totally justified.
13. No, justification for rewards for hard work is not in riding a treadmill all day…..you are really going nowhere…..You need to get off the beaten path to run, and to achieve.
14. Ask yourself this fundamental question: “should Inheritance boost capacity to achieve, or should inheritance give you the right to be complacent”? Who wins in the end???
& Advisor to Family Business
PROMAG Consultancy Services
Apt. 206 Brigade Rathna
42 Ranga Rao Road
Bangalore – 560004 INDIA
Tel. +91-80-26676298/ Cell: 9845271498
Strengthening Family Dynamics for Family Business Growth…….since 1985