“Without a question, digital transformation is the way of the future for businesses, even family-owned businesses.”
The initial phase of digitalization – phones, computers, emails, etc., has moved on to a lot more. Digital transformation is a part of corporate innovation.
Digital transformation means how companies can better compete better through the use of their technology platform. In the case of family-owned firms, this process overlaps three distinct realms – the 3 circles of the family business: the company, the corporate governance framework, and the family. Therefore, the board of directors – champions of the company’s long-term sustainability – is so critical, especially their role in guiding the firm’s digital transformation for building a legacy.
Why do families in business need virtual family meetings?
Family meetings have typically been very sensitive, emotional, and low-tech situations in which family members gather to express their concerns. Families in business require timely, honest, and open communication. Even in prosperous times, when there is uncertainty about the route forward, hindering family business growth.
Low-time-consuming, high-frequency family interactions enable lighter, more focused, and strategic interactions while maintaining sanctity in the relationships.
Video conferencing has reshaped the way families can connect. Virtual meetings can provide the opportunity for shorter, crisp, and frequent communication. Families and organizations that are using virtual meetings for quick check-ins and updates find that the increased frequency of these “virtual connect” of caring and connection nurtures and builds on a family’s sense of identity and bonding. More so, when virtual meetings are approached with humility, vulnerability, transparency, and the acknowledgment that all family members perform well as per their capabilities, all the time.
Trusting relationships are the foundation of the family business – they are a family’s most precious resource. Relationship management should remain a primary focus for business-owning families. Video conferencing is proving to be an efficient technique for accomplishing this fundamental pillar of togetherness in the family business.
Benefits of virtual family meetings
Virtual meetings are ideal for business leaders who are constantly on the go, putting out fires and adapting to new needs. While they may not be able to attend a full day off-site at this time, joining a virtual call with a focused agenda can be the ideal approach to connect an ownership team and conduct essential and relevant discussions that should not be postponed.
Family members find great difficulty in aligning their calendars for the family and business. Often, they are perceived as avoiders and non-comital. Virtual platforms are best for availability and alignment irrespective of hectic schedules.
The emerging generation can be better prepared for new positions and greater responsibility by using virtual meetings to facilitate ongoing education, mentoring and developing their leadership skills.
The family members though physically distant remain socially connected all the time.
Why do Family Businesses need a Virtual Board?
Increased workload, addressing routine issues, travel commitments, etc chew away a lot of the time of the business leaders. They hardly find time to come together to strategize for the future.
Family businesses that have a Board of Directors or a Board of Advisors and Independent Directors, must use virtual platforms to bring their boards together with increased frequency.
The shorter monthly or even weekly virtual sessions enable boards to assist leaders as they pivot strategies.
Benefits of a Virtual Board in a Family Business:
The simplicity and cost-effectiveness of virtual meetings in a family business, make them quite useful for offering responsive guidance in a world that is changing very quickly.
An agenda-driven virtual board meeting in a family business, helps the family business make decisions more quickly and with more focus.
Virtual board meetings are a fantastic method to review strategies frequently and track success.
As coaches and mentors for the younger generation, they are also extremely helpful for continued guidance on focussed functions.
Strategic decision-making, Succession Planning, and Generational transition requiring continual and effective hand-holding can be ably managed through high-frequency interactions with the competent and experienced Virtual Board of the family business.
Virtual CEO's provide continual support to the next generation of the family business while being quite cost-effective.
ADDVALUE is one of the leading Family Business Advisors assisting members of family businesses to enhance their revenues through Virtual CEO services and manage them under the guidance of the Virtual Board.
Nilesh Arora is BTech. (Mech), IIM – Ahmedabad Alumnus, Certified Corporate Director, and Certified Management Consultant having more than 20 years of global experience in the field of Strategic Management, Family Business Management, Operational Excellence, and Business Excellence.
As a Global Family Business Coach and Executive Advisor to many Family-Owned Businesses (FOBs) he has assisted more than 100 families and 250 organizations to date across Africa, Middle East & Asia (AMEA) in manufacturing as well as the service sector, enhancing their revenues and equity value
Specialities: Family Business Advisory, Succession Planning, Entrepreneurship, Business Coaching, and Business Excellence
ADDVALUE was recently conferred the “BEST PERFORMING CONSULTING ORGANIZATION” award by the Government of India.
