Business Disorganisation, how to avoid it!

Ever since the industrial revolution and the upsurge of commerce and industry, business organisation and development took on a dramatic change from the primitive working practices of the 18^th and 19^th centuries, to high level, forward thinking entrepreneurial strategies, which led companies into the 20^th century.

However those same entrepreneurs who took businesses into the 20^th century are also, in part, responsible for the deterioration of these philosophies in the 21^st century.

Building a successful business from scratch is a huge accomplishment, especially if the business owner had very little education or no formal qualifications. Experience, determination and perseverance, as well as hope of a better future for the family and the economy were probably more of a driving force, than hanging up a qualification on an office wall.

Unfortunately, the factors that contributed to first generation business owners’ success are no longer applicable in today’s business environment.

Other factors, amongst others, that need to be considered are:

• The current economic situation and other macroeconomic factors
  

• Today, a strong reliance on family, friends, relatives, government officials, and other associates is mostly considered as nepotism and bribery

• Children entering the business and starting immediately in management and/or authoritative positions, not from the bottom up, causes rifts with qualified, non-family member, employees

• Family feuding amongst siblings who take over from original owners when they retire, divorce or pass on, could disagree on how and who should run departments or divisions

• Second and Third Generation relatives entering the business, bringing with them their own ideas and philosophies as to how the grandparent should have ran the business, and how Uncle A or Auntie B should have not listened to Auntie A and Uncle C and Brother A should not have said this or that with Cousin B and C!

Nowadays, such companies are suffering from the "Second and Third Generation Syndrome”, and “Business Disorganisation”. The original owners, who may themselves have been deprived of an education and academic achievements, ensured that their children got themselves a first-class education, so that they could enter the company in an important, top executive position, to enable the business to continue to flourish.

For businesses to continue to be successful, they have to be run by fully trained and qualified personnel, who are employed on the basis of doing the job the right way, rather than filling posts with people who oblige the owners to hire them, through some type of “hold” that they have.

Therefore, it is wise to consider that a combination of qualifications, know-how and a zest for purpose and passion for reaching goals will ensure continued growth and development rather than disorganisation.