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Cover Story The guide provides a corporate governance framework that is practical and What is the reason adaptable for both listed and unlisted companies. that only two out FOBs are flag bearers of their own unique management style and business of 100 businesses culture. Often this is the reflection of the owner’s philosophy and succeed till the fourth management aspirations. Though it is a unique differentiating trait of such organisations which speed up decision making, after a certain point, this generation? Various unique culture prevents the organisation from its transformation into an studies have shown institution. A recent survey by PwC on family business highlights that over numerous factors 40% of the respondents agree that professionalising the business would be a key challenge over the next five years. The introduction and integration of negatively affecting the professionalism is dependent on a number of factors including: sustainability of these businesses. a. Founder’s commitment to transfer their power and authority to the managers b. Stage at which the founders commit to transfer their powers c. The maturity and intention of the managers to embrace this added power and responsibility Usually factor (c) is found in organisations where professionals are hired by the organisation. The management is willing rather, at certain times, frustrated with the lack of intentions from the owners. However, there are instances when the case is vice versa. Hence, striking a fine balance of these factors is quite difficult. Another major factor that prevents organisations from professionalising the business is the attraction and retention of quality managers. For argument’s sake, even if factors (a) and (b) above are present in the owners of the business, if the quality of the management is not up to the mark, transfer of power is certain taking a fall in a hole. It is usually the informal culture or the general perception of management style of such organisation that deter fresh and experienced professionals from seeking a career in such organisations. Although such organisations present a more hands on experience of the industry, the vulnerability of its existence and sustainability is a major negative that deters potential employees. Innovation in product ranges and ways of operation is also becoming a major area of concern for family business. Over 72% of respondents in the survey conducted by PwC highlight the fact that they need to be working on innovation and harnessing of digital means to stay abreast of the competition. This issue is inevitable where ownership and management involves the same set of mind and where professionals are apprehensive in joining the organisations or are not given the power of decision making. Conclusion The unique feature of the businesses is already showing its significance in the world in terms of its economic dominance throughout the world. Sustaining the business and increasing the mortality rate of such institutions is dependent primarily on the ability to professionalise the family and the firm, structuring business succession plan, following corporate governance guides, etc. Doing one and not the other will only create tension and possible conflict, especially if outside managers are brought in at executive level. Professionalising the July - September 2015 The Pakistan Accountant 23