The Management Disadvantages of Family Enterprises and the Way to Break Through

        I have seen too many dirty words about family businesses, but they are there, not because the world has changed, they no longer exist, not to mention because of criticism, they consciously do not engage in family businesses.

       Is a family business really a monster in a flood? Where is their confidence in going their own way? Or what is their business philosophy? Why have their management been criticized so much, and where is their ultimate breakthrough?

       Like other businesses, family businesses are also a legitimate entity, which is beyond reproach. I have seen too many family businesses collapse overnight, but there are still many family businesses thriving. Why is this?

       The relevant personnel of a certain enterprise management software (referred to as Company A) said that in their extensive communication with customers, the most common words they heard from family type enterprise bosses are: "Meat rots in the pot," "Fat water does not flow into outsiders' fields," "Everyone at home is at ease," "Everyone at home is united," "Fighting a tiger requires a close brother," "Ten chopsticks are held in a ball, outsiders want to deceive without negotiation," and so on. And when they say it, they all carry a sense of pride and benefit. It can be seen that first of all, this deep-rooted concept has given them a lot of determination to start a family business and the courage to persevere.

       They firmly believe that only their relatives and friends can help them develop their business and help them in difficult times. At the same time, as the business develops, they also allow their families to follow suit and achieve the best of both worlds. Moreover, in ancient times, there was no avoidance of kinship among virtuous people, so it was reasonable for a company, from its boss to its employees below, to have aunts and uncles engaged in cleaning and hygiene who were either relatives or well connected fellow villagers.

       It is reasonable to say that there is no harm in doing so, but why should they be criticized? Because their ideas and modern enterprise management concepts are almost contradictory. Modern management concepts emphasize efficiency, quickness, and a clear distinction between power and responsibility, while family businesses are concerned with human relationships. When problems arise, they can be covered, and when they can cover the past, they can cover the past. The result of doing so is that face is saved, while enterprises accumulate more and more destabilizing factors.

       When facing a large number of such enterprises, Company A was also unable to understand at the beginning. Later, with the increasing number of projects, many bosses of family businesses also hoped to use modern management tools - ERP - to achieve a leap in company management. When they were unable to understand, they gradually pondered - where is the path for family businesses to break through? Is it feasible for them to eliminate all their relatives at once and take the path of modern enterprise development in China? Facts have proved that it is absolutely impossible. They prefer to see a kind of improvement, gentle improvement, that is, standardized management without touching various interests and relatives, and improving efficiency.

       So how to improve it? The management experts of Company A start from practice and come up with a solution - to use ERP software that integrates modern management concepts to scientifically and reasonably organize their processes, and then use advanced concepts such as ISO to strengthen division of labor and cooperation. With the help of efficient execution training and management, everyone in each position can reasonably solve the problems they are currently facing. This will create a positive atmosphere throughout the company. The specific approach is to achieve the first time conversion and exchange of resources and information through software sharing and transparent platforms, further reducing the contradictions and communication costs caused by the non circulation of information in various departments. With the accurate positioning of each position, highlighting the specific work responsibilities of each person, to help family members better adapt to the development needs of modern enterprises faster and more efficient services, and continuously promote executive training, Let them virtually accelerate their work pace, match the company's operational rhythm, and better match the software's process needs and reaction speed needs. Only through this three-pronged approach can family businesses achieve the goals and achievements of modern enterprises while retaining family members.