Most of the companies in the world and in our country are family companies. Made in the form of family research shows that companies of more than 90% of companies established in Turkey. Although there are strengths such as family culture and the existence of shared values, commitment to the company, and being able to make quick decisions, the average life span of such companies is 30-40 years.
The reasons for the short life of companies are that they do not adopt corporate governance principles, minor disputes within the family cause company divisions, and there are no family constitutions.
In addition, many negative factors such as the prominence of personal egos, favoring family members, bringing incompetent people to work, inability to question mistakes, and lack of dialogue between generations prevent family businesses from being successful. Considering that one of the main objectives of family businesses is to ensure the continuity of the companies and transfer them to the next generations, it is of great importance to adopt corporate governance principles in terms of sustainability. Institutionalization is ‘to become a system’.
In family businesses, not only the company should become a system, but actually family relations should become a system. Corporate governance; It survives with the principles of transparency, accountability, responsibility and fair management. In family companies, boards of directors are generally composed of family members. In fact, if there are independent board members in family businesses, many problems will be resolved. Branding is also a very important factor for family businesses to be successful and sustainable.
In our rapidly changing and transforming world, while the markets lose their old classical structure, production forms are rapidly transforming. Parallel to these, the process of earning, protecting and investing money is getting more and more complex. It is not easy to follow all these at the level of family members and to produce solutions. As a matter of fact, according to researches, approximately 80 of every 100 family companies established are demolished in the life of the founder. Since the most important problem that has come to the fore for a Family Business since its establishment is the existence of the institution, the most valid way of this can be achieved by having an institutional infrastructure, arises from the examples and scientific research results both in the world and in our country. At the core of the institutionalization work for family companies; Determining the basic values of the family and embellishing it with the equipment required by the modern management understanding and forming the basis of operation in a set of rules. Transforming family businesses into foundation businesses can also help solve problems. Our consultants prepare family businesses for the future by researching the internal dynamics of each company and producing the most accurate and useful solutions.