Governance is one of the most coveted terms in the IT industry. That is why many family-owned companies are practicing governance and benchmarking to their competitors. But, conventional methods adopted by these family businesses restrict new innovations and talent. This will hamper their scope to flourish in the digital age.
Therefore, the digital quotient of the venture should be aligned with its business plan. In this article at the Business Times, Jonathan Ho explains the need for good governance in a family business to upbeat the rapid transformation of digital trends.
Adopt Digital Approach
The growing rage of technology has given new challenges to the family businesses, apart from the conventional cost concerns. These new challenges are posed by new startups that can disrupt the present ways of business. The startups are smart to woo the new age consumers in the fast-growing digital economy.
The family businesses also need to bring compliance with growing regulations around good governance, cybersecurity, and data loss. They need to have a sustainable business plan, active governance and right people to handle everything.
The author quotes an instance of leading family-run brands like Samsung, IKEA, and L’Oréal. They are constantly on the top rank in their respective industries due to the supervision provided by their loyalists.
Infuse a Hint of Innovation
Further, if the family businesses really want to foster new technology beyond their core practices, they need to keep in mind the significance of innovation in the digital arena. However tough it is to push new ideas in a conventional setup, the family businesses need an ‘innovation champion’ to explore new horizons. Even the long-term assets of the company, the employees, need to take responsibility for setting the tone of innovative culture by becoming a part of it.
The author suggests implementing a compact governance structure to digitally transform a family business and lift its extant market position to ensure better future growth. Read the uncut version by clicking the following link: http://www.businesstimes.com.sg/magazines/the-sme-magazine-mayjune-2018/governance-in-the-digital-age