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Based from my reading and understanding, governance and professionalization is the key factor for successful leadership because professionalizing a particular family business is to ensure that the successful of their company in the long period of time. Professionalizing can be defined as a professional structure to an entity and its processes and procedure.

The challenge is lack of succession plan. Lack of strategic and operational plan will not help the business to go further. There will be more threats arise and if there is no enough plan to backup, they couldn’t withstand it and lead to close down the business.

How to overcome the challenge is by creating a strategic plan before started any business. A firm owner must know the process of business strategy. The family business should follow the four state of  process in planning for their business succession which is initiation, selection, education and transition.

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AMANDA NOREEN NAPOLEON M. MOJUGA (BB14110099)

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AMANDA NOREEN NAPOLEON M. MOJUGA (BB14110099)

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Based on my understanding, governance and profesionalisation in family business is the factor of successful leadership because it can expand the business through out the country. The outsider business expert is needed to get a professional advice and guidance on business matter. Other than that, there are problem with a young generations doing a task because they will less committed on their task. But if they provide more practices than it could be learn better.

The challenges is not understanding the environment or focusing on results. Planning teams must pay attention to changes in the business environment, set meaningful priorities, and understand the need to pursue results.

Next is how to overcome the challenges is the management should have the leverage skills and know-how to understand more about the company.

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Based on my reading and understanding, professionalisation involved in the development and alignment of professional purpose, knowledge, behavior, and expectation of management. Family business usually face the challenges in the wealth management. Families need a strong capabilities for managing their wealth, that usually held in liquid assets, semiliquid ones such as investments in hedge funds or private-equity funds, and stakes in other companies. It can be overcome by diversifying risk and providing a source of cash to the family in conjunction with liquidity events then successful wealth management helps preserve harmony.

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In my opinion,the governance of a family business is more complicated than for non-family owned companies because of the central role of the family that owns and typically leads the business. Then for the professionalisation in family business it typically involves incorporating the systems and structures of a competitive company while keeping the unique culture and family values your firm was founded upon. This is to make the firm more profitable, growth-oriented, and competitive. In professionalisation in family business, it will be more formal in the management.

Challenge: The problem is that this informality often leads to a lack of strategic planning. For example unwillingness or inability to change such as the company and strategic plan must be quick and able to adapt as market conditions change.

How to overcome: People in that company should recognize risk and take action for their company before anything bad happen to their company. This is because the first thing that we should do in the company is preparing the best strategies it is to know about risk for our company in future. Without the best strategies the company will did not have a goal to achieve.

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Based on my reading and understanding of governance and professionalization in family business is the key factor for successful leadership. Family business will faced challenge of professionalization for example, failing to keep non-family employees happy.  The non-family employees feel that there is an obstacle to their career progression within in the firm. Since they are not family, they may face difficulty to get the top positions and think that they don’t have a chance to move forward in their job position.

The leader of family business need to do something to retain their employees and make them feels that the firm’s success benefits them as well as your family. If not, the employees will not motivated by the career of job. Consider  that allowed employees an ownership stake or initiate creative compensation scheme. Besides that, give some bonus or offering some share of the firm’s profits can help their interests with the firm’s and motivated to stick with the firms.

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ALFONSO AWILEANG BIN YOHANSYAH (BB14110093

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ALFONSO AWILEANG BIN YOHANSYAH (BB14110093

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Based on my understanding, Professionalization in family business is allowing a family firm to grow more rapidly for example opening more branches either worldwide or in their own country. Furthermore, it also attracting higher quality employees and giving family members the professional education they need to manage the business effectively. Besides, it will assist the firm in preparing for valuation or the search for capital from private equity, patient capital, or traditional lenders and Planning for succession. The professionalization challenge in family business is it will be complicated to manage the employees in other country because in other country there will be different culture that the employees are used to be on doing their work for example if other country have 8 hours’ work but in our own country usually work for 10 hours hence it will be a problem for the company and the employees. The way to overcome this problem is they must follow the culture of the country where they develop their company because it is important to satisfy the employee, because if the employee is satisfy the production and profit of the company at the same time will also increase.

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Based on my reading and understanding, governance and professionalization in family business is the key factor for successful leadership because professionalising a particular family business is the key step to ensure the long term success of a family business. In addition, the professionalization can be explained as enhancing a particular family business rather than make something which is considered too complicated and does not suit or related with the objectives of the family business.

However, there are also some professionalization challenges that need to overcome and solve in a family business. For example, one of the professionalization challenges is board of directors might be the non-family members in the family business. This is because sometime the outsider business expert is needed during the professionalization of a family business in order to get professional advice and guidance on business matter. However, conflict and argument might happen between the non-family members and the family member in the family business. Therefore, an open communication is needed in order to overcome this professionalization challenge and ensure the sustainability of the family business.

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Based on my understanding, professionalization is the key to business survival depends on how large extent of its ability to be well managed by family business.  Furthermore, professionalization also important to impose a professional structure to the family business in improving processes and procedures carried out by the business.

The challenge that can occur in professionalization is elder and younger generation in the family business has a different opinion on the approach, style of functioning and outlook toward of the business journey.  Members of the younger generation are less committed to the members of the older generation in doing a task or work together. There is also some agreement made by a family business makes the members of the younger generation became the owner or manager of the business. Normally, businesses that lead by the younger generation cannot develop properly due to a lack of experience in the business world. In addition, task or works that do by younger generation in business are also less efficient.

This problem can be overcome by giving early exposure to the younger generation in the business, such as appointing a younger generation working from the lower position in that company. They must be given adequate prior experience before providing higher position to them. In addition, younger generation should familiarize themselves in business operations and gain a better understanding of what the company are doing. When they have enough knowledge and exposure in the business world, then they can be appointed to high positions. The benefit of the younger generation is that they have a conscious, independent and likes to take risks in running a business.

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In my own opinion, as a business grows in size and complexity, however, more formal governance and management practices are required to ensure smooth operations. In that context, therefore, professionalising the family business usually means moving from the entrepreneurial management style of founderowner start-up businesses to the more formal structures, processes, and practices of larger businesses that are managed by professional managers. In the context of family businesses, sometimes the term ‘professionalisation’ simply refers to hiring senior non-family executives who, not being family, are assumed to be more professional than family members. The challenges are same to any type of business whether family or otherwise. But, one of the potential danger to family business was a talent retention. In order to overcome this type of challenges, an essential need to growth and success of family business was to have a solid, balanced mix of skills within workforce. That means, retaining the talented non-family employees who can provide the unbiased guidance necessary to help a particular company grow well. Moreover, the best way to retain this talent is to offer a conflict-free work environment committed to offering merit-based advancement opportunities.

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The challenge : Some business owners do not know about succession planning, while others think they are too young to worry about death or incapacity.

How to overcome it : Any business owner embarking on this process of succession planning should identify one or more potential successors who have a demonstrated passion for the business and are interested in running the business.

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Governance and professionalization in family business is essential to attracting higher quality employees and giving family members the professional education they need to manage effectively. Professionalizing your business typically involves incorporating the systems and structures of a competitive company while keeping the unique culture and family values your company was founded upon.

The example of professionalization challenge in family business is the company need to adopt more formal processes and structure. The challenge of professionalization is to adopt the formality necessary to grow as a business without compromising the benefits of being a family business.

It should build family or non family management teams that provide complementary skills at the top and set benchmarks for running the family business professionally. This is to sends a clear signal to non family managers that career opportunities are available. Moreover, it should involve non family managers in business planning and succession planning.

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NUR SALIHAH BINTI ABDUL KADIR BB14110505

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NUR SALIHAH BINTI ABDUL KADIR BB14110505

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The governance and professionalism in family business is very important in the family business to makes it success and can attain their goals.

The challenge : the father have to decide whether to choose his son or other people to lead the                  company.

How to overcome :  The father must be fair to the son and the other candidates. If his son is really capable to handle the job, he must give the position to the son. If not, he must choose other people to replace him so that the future of company is brighter.

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BB 14110197
In family business literature, business professionalization is often simplified into a binary characteristic, that is the presence of non-family manager. This may influence organization performance. The professionalization process encompasses many different aspects that a firm must address, such as the development of a sound corporate governance structure including a board and possible other required governance bodies to supervise and control the organization. Professionalizing family business typically involves incorporating the systems and structures of a competitive company while keeping the unique culture and family values of business that was founded upon. This process is designed to make the firm in family business more profitable, growth oriented, and competitive. However, there always have the challenges need to face when professionalization in family business.

1. Challenge
By definition, a family business is a business organization in which two or more family members are involved and majority controlling stake lies with the family. Based on the nature, family business can be consider as the oldest form of business organization way.
As the oldest forms of business organization, family business has its weakness which lie in the name of family too. Without a doubt,  working with parents, siblings, uncles/aunties and cousins can generate a high level of synergy, trust and commitment but it can also lead to tension, resentment and conflict. Professionalizing a business can be difficult, but professionalizing a family business is even harder because it involves decisions of the ‘heart’. There is an old Chinese stated that 'wealth does not surpass three generations'. In fact the transition from the first generation to the next one is usually the trickiest one.  There is always a conflict between benefit.

2. Way to Overcome
As the family business continues to grow and the business continues to expand, succession only gets progressively harder, giving rise to the need for a more demanding structured succession planning. Therefore, professionalizing the family business may govern the interactions between the family and business. Family business need to be more innovative. The family business should improve in organization should as specialize the job unit such as Human Resources Department , Financial Department and Marketing Department. In ways to strengthen the expending of family business in this tougher business environment.

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Professionalisation means moving from the entrepreneurial management style of founder owner start up businesses to the more formal structures, processes, and practices of larger businesses that are managed by professional managers.

Challenge: Deciding who will be involved in Family Business
-Generally parents force their children to involve in family business. They do not pay attention what their children want to do.

To overcome this challenge,  parents should provide the opportunities for their older children to engage in their business because the older children is easier to understand what is in the parents guidance. Then, parents should regularly monitor their children works.

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‘Professionalisation’ refers to hiring senior non-family executives who, not being family, are assumed to be more professional than family members, or are more likely to introduce or follow conventional management practices.

The Challenges:

Succession Planning- Sooner or later in every family office, the time comes when it is necessary to pass the reins to the next generation. Having a clear and detailed plan in place to help manage this critical transition is essential to the success of your business.

To overcome this challenge is by clearly defining company goals and outlining the roles and responsibilities of every family member, you can avoid internal conflict and ensure the continuity necessary to maintain growth and protect your bottom line.

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Alll businesses face challenges, whether it is dealing with the changing economy, finding and hiring the right employees, or increased competition in the market. Based on my understanding, professionalization is normally associated with taking a business to the next level. For example from a sole proprietorship to a private company or when a company lists on the stock exchange.
The challenge in family business is lack of succession plan. A family business do not have a effective plan for handling the power to the next generation, leading to great political conflicts and divisions. Another challenge is vision and mission. Each family member has a different vision and mission of the business and different goals.
How to overcome it is the family business should have a plan for succession often determines whether family businesses survive or fail. Having a clear  and detailed plan in place to helps overcome  this critical transition is essential to the success of family business. By clearly defining company goals and outlining the roles and responsibilities of every family member, of course can avoid external conflict and ensure can maintain growth and profit.

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While family business can be understood as a business empire built and managed informally by the family members involved, professionalizing family business can be explained as a more formal structure in organizing and managing a larger business. Professionalization in family business is a general phenomenon that every family business will have gone through if they successfully expand their business, leading to a new page of their career. Professionalizing a family business is not easy, as it formalizes the management and structures of the organization, which contrast from what it used to be. Conventional management practices will be held by these family business in order to conduct formal governance structures and to maintain a professional work environment.

This professionalization, however, seems to be a tough task for every family business because most of the family members are not professionals but they are still holding high positions due to their initial contributions to the business. Some of the senior family members even refuse to leave their current positions as it represents their status and pride. Though they remain on their positions, they are lack in pursuing long term goal which can increase the risk their family’s wealth and control of the business. Besides that, another problem arises from family members who involved in organizational structure is that this informality often leads to a lack of strategic or succession planning, and can limit the business’ access to outside expertise and capitalization.

Thus, the priority way to overcome this ongoing challenge is to set up a new and formal organizational structure. Proper management and replacement of the positions for family members will be conducted in order to professionalize the environment of the workplace. Recalled to the initial objective of the business, understand the needs of the business and remain family members who are professionals and are able to contribute without involving in prejudgments and bias. In some ways, simply taking family members out or minimizing their role may not be conducive to achieving the outcomes. Nevertheless, reduction of family roles in family business is necessary if those family members are not capable in their tasks anymore. To become successful, entrepreneurs have to break out of prescribed mold and determine their own futures.

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Professionalising the business means typically involves incorporating the systems while not changing the family values of the firm was founded upon. The process is helped to improve the firm with more profitable, growth-oriented, and competitive.

Challenge - Sometime it more happened to accountability in finances.

For first case, there are two man handle a business and one of the man’s wife was handling the finances. Besides, the thing about lending money to family members. This action can be categorized as one of the worst things whose did it. The probability is to get back that money in time maybe around a half of hundred percent.

How to Overcome It - Thus, the other man unsatisfied with that situation because of that women is on the side of the other man. Here need the neutral person like somebody non-related that runs the finances. Instead of someone handle finances on one side. Second situation, try to create some principles that business money is for business purpose only in other word is separate the entity of owner and the businesses

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In the context of family businesses, the term ‘professionalisation’  refers to hiring senior non-family executives who, not being family, are assumed to be more professional than family members, or are more likely to introduce or follow conventional management practices.
Challenge:
The challenge faced are to identify what structure and processes can remain informal and what requires a greater degree of formality (or professionalisation) to manage the interface between family and business.
How to overcome:
every family member should be able to separate between personnel and work business.Nepotism act between family members in the firm should not be practice .Selection of employee must be based on their skills and abilities.

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Professionalisation  is need the professional managers including family and nonfamily to build a modern organization structure in the company. Professionalisation also need with the firm's strategy, information, control system, policies and procedures to promote delegation and institutionalization. Family governance is a system of joint decision making by family and the leader of company.

1) The challenge- Nepotism
While nepotism is arguably the most widely stereotyped feature of family business. The significant challenge to governing the family-business or family-wealth relationship is a family-first attitude in selecting managers and employees for the family enterprise.

2) How to overcome
To enhance the perception of the quality and fairness of the succession decision through the way by shifting responsibility away from the family members. Not only that, the third-party stamp of approval increases receptivity to the new company leader with enough capacity on the part of both key nonfamily managemant and family members.

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Professionalising the family business usually means moving from the entrepreneurial management style of founder owner start up businesses to the more formal structures, processes, and practices of larger businesses that are managed by professional managers.

Challenge

Emotion.

The example of emotion challenge is divorce, separations, health or financial problems also create difficult political situations for the family members.

How to overcome

Becoming a professional and learn how to separate personal and work problem.

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Professionalising the family business usually means moving from the entrepreneurial management style of founder owner start up businesses to the more formal structures, processes, and practices of large  businesses that are managed by professional managers.

Challenge -  To identify what structures and processes can remain informal and what requires a greater degree of formality (or professionalisation) to manage the interface between family and business.

How to overcome - Able to overcome family drama from affect ed the business, incorporating new ideas while retaining the competitive strengths that made them successful in the first place.

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Professionalisation is to impose to a professional structure to an entity and its processes and procedures.

challenge:- attracting and retaining talent.
family business need to be pass down to the next generation. Thus, attracting and retaining talent in the family business is one of the challenges faced by family business.

How to overcome
The next generation of the business need to be train and develop their skills on how to handle and maintain or bringing the family business farther in the industry. Other solution is to bring in non-family professionals and outside expertise to create and add value to the family business.

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Professionalization is the amount of family involvement in the top level of the family business and the choice between a family manager and an external nonfamily.
The challenge:  when the senior management (the son) always absence/truancy from work to settle personal problem.

-Challenge:  how to encourage coming office ,what action should he take to make fair with every worker and how to help him to solve his problem without always absence.

To overcome: Be professional, follow the annual leave rule and give warning letter.

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BB14110723
Based on my understanding, governance and professionalization in family business is important to make successful they own business. which is as the process to control their companies. Professionalization also is the social process by which any business or occupation transforms itself into a true profession of the higher integrity and competence.

One of the professionalization challenges in family business is the achievement of self-escape and that no strategic planning. The challenge will be give the negative impact especially to the business family because the member of employee among family business.

How to overcome it, the family business must be highlight the strategic plan usually have three major. The first is a vision or mission statement that set out a relatively lofty and aspiration goal. The second major initiatives construction project that the organization will carry out in pursuit of the goal in business family. This is way to increase the achievement self-escape to get professionalization in family business.  The third major plan the financial and set up the future of business. The family business should be hire the profession employee among the owned family business to perpetuate the management in the business.

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Based on my understanding, professionalisation in family business is a members of the same family are together fully own and manage the business vehemently argue that theirs is not because they believe that only a business fully owned by the family and without a single non-family worker is a family business. Professionalisation family business management rests on formal and cultural of the former is explicitly recognized in current family business.

The professionalisation challenge frequently happen in family business. As example is an agency problems that involving the family and non-family conflict in the family business called accusatioms of nepotism. In a family-owned business, members are often given jobs merely because they are related to the owner. This can extend to an owner’s siblings, spouse, children, cousins, and nieces and nephews. These workers may find it necessary to prove themselves, especially in family businesses that hire non-family members. For those who inherit ownership of a business after a relative retires, employees and others in the community may have difficulty accepting the new owner. More than that, while the family might be interested in being sustainable or treating their employees well and after all their name is above the door. It will leads to confusion and underperformance in family business.

There are some effective ways, which allowing to make compromise between employees and the eliminate the nepotism for cultivate a fair in family business. Leaders in family-owned businesses must make an extra effort to enforce policies uniformly to ensure things are fair for non-family members.

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Professionalization need professional managers where included family and nonfamily, a modern organization structure aligned with the firm’s strategy, information and control systems and policies and procedures that promote delegation and institutionalization, not ad-hoc or continued founder-dependent management.

One of the professionalization challenges is high operational costs. When there is high operational cost in professionalizing a family business, it will be very hard for them to compete with other businesses. Because high cost in input (raw materials), machinery, spare parts and other consumables, energy and so on.

To overcome this high operational cost, they should identify all the taxes that need to pay such as to local governments, to state governments, and then to federal governments. They can make a budgeting where their operating cost cannot more than the budget. Besides that, they must calculate all the cost carefully in the business. They must fully use their resources without wasting all the resources that available in their business.

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The professionalisationin the Family Business is important to make the business will achieved their goal to make their own profit. When growing a family business, family business owners often find themselves at a crossroads  on one hand, there’s the wish to keep things ‘in the family’ and on the other. There are outside business coaches and consultants urging them to be more profession in their job.

The challenge

In family business the most challenge is Lack of transparent and professional. The challenge like this will give the negative impact to the management in the company. This is due to the person that involved in the management of business is not really know about their responsibilities. This challenge actually must to avoid because the long of person that manage the business the more probability business will down. To make the successful profit in the business is must have the good management in the business.

How to overcome it
The family business must make the best decision to choose the best person for manage the business. The selection can be done by meeting all of family. This will can the best person that have higher responsibilities and most confident can take the position as a manager. This is will reduce the Lack of transparent and professional in the family business.

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NOR SHAFIKA BT MOHAMED SHAH ( BB14110473)

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NOR SHAFIKA BT MOHAMED SHAH ( BB14110473)

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Professionalization is the meaning that occurs when the changing from family management to non family management. This happens when the non family business has been choosing to lead the business. The company will regard as a professional when has the same high level performance and ethics.

The challenging:
Lack relationship between employees and firm, it’s because if your non family doesn’t happy to work with you it will be effected on your company process to be successful and it also can damaging your firm ability to retain a talent among employees. Most of the non family employees feel that there is a ceiling to their career position within the firm.  When they are not family member, they may be barred from the top position in the business and they have a no way to move forward in their career.

How to overcome:
To overcome this situation you must make your non family employees as your family with appreciate their talent and their position in your firms as well. The firm also can take initiative with create compensation scheme, give bonus to employees when they achieve a company objective to success and offering them some share of the firm profit to align their interest with firm and motivate key non family employees with your firm as well.

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BB14110518
Family governance can be defined as the structures and processes for the direction and control of companies. Meanwhile, professionalism in family business refer to how the management put aside personal issue even it is regarding the family members when managing the business.

In family business, the most challenging factor is professionalism itself where it is hard for the family members to put aside the personal matter and focus only on their work. One of the issue is sibling rivalry or conflict due to satisfaction on governance in the business itself.  Besides, having a family working together, they might be arguing over small matter or acting unprofessionally.

In order to overcome this issue, a family business can make an agreement which stated that any matters that unrelated to business concern must be put aside. The strict action must be taken for those who breach the agreement. This will develop the professionalism while working together

Secondly, a top management can promote healthy competition among siblings where the position offered must be based on skills and qualification to avoid bias.

Finally, trust issue in one of the challenges where any work and decision must be made based on procedures and protocol in the company to achieve efficient and effective result.

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Professionalization entails multiple dimensions that combine in different ways in various modes among family firms. It assessed the impact on business performance based on these underlying dimensions. Professionalizing is about enhancing the family business rather than making it into something overly complicated which doesn’t suit the family’s objectives.

1)    The Challenge

Challenge will occur if there is no any strategic planning in any particular family firm. Lack of strategic and operational planning will lead to less succession. Without planning, any firm wouldn’t be able to further increase it succession. More threats will arise and the firm won’t be able to withstand it, thus causing it to close down. There are several firm that still doesn’t have a detailed and systematic business portfolio review which is should be carried out to identify the non-performing businesses.

2)    How to overcome it

Lack of strategic and operational planning in a firm can be overcome by a creation of well-defined approach to succession. A firm’s owners must know the process of business strategy. It is needed to accommodate the needs and demands of family members and introduce external profesional managerial talent where critical competencies are absent within the family. This approaches can enhance the level of professionalization in a particular firm.

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Challege of professionalisation in family business:  Lack of knowledge in the formality structure . For example,  Mr Jack and his family members operated a small business  restaurant. Their operation structure business is just simply have a small meeting between them in the restaurant. As their business get into the professionalisation, they will hard to adopt the formality because maybe some of their family members have no knowledge in the field of paper works and professional management skills.

To overcome: Hire professional services firm to increase the professionalization of the management and within the field. For example,  accumulating and codifying knowledge surrounding wealth management, growth, internationalization, and family succession.

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NURUL FAZIRA BINTI MUHAMAD NIZAM (BB14110540)

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NURUL FAZIRA BINTI MUHAMAD NIZAM (BB14110540)

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Professionalizing management of the family is an evolutionary process that led to each family businesses have an interest in sustainable growth. The success of a family business exists because they survived the transition process. If the transition process is ignored and not taken care of properly, it can bring the conflict to the family business.

One of the challenge in family business is lack of strategic planning and succession. Not having any plans that are effective and pose a threat to the family company. No other spirit or have other interests outside of their business or want to maintain a strong image of a business because the business is already well-known in the local area or in any other country.

One way to overcome it by establish the succession plan. Succession planning is very necessary to ensure that businesses can be passed from one generation to another. However, it is very important to carefully planned succession process before going any disaster befall a business owner. Managers and business owner must identify the role of active and inactive all family members involved in the business. It is recommended that family businesses follow a four-state process in planning for succession which are initiation, selection, education, and transition. Through these steps, it can help family businesses establishes outside interests, creating a solid financial foundation for retirement, as well as confidence in the ability of successor.

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Professionalisation is actually to impose a professional structure to an entity and its processes as well as procedures in family businesses. Professionalisation is to enhance the family business rather than making it into something overly complicated.

One of the example of professionalisation challenge is unincorporated enterprises. They normally do not have the functional board of directors as well as the mission and vision statements which will also not ensure good corporate governance.

The way on overcoming the professionalisation challenge above is to endevour to incorporate their enterprises with Corporate Affairs Commision (CAC) to be in better position which can lead to having mission and vision statements, operate with functional boards of directors, engaged in strategic business plans, attract good hands and have the ability of attracting reputable consultants and high credit rating.

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(Bb14110727)
The challenges: Same to any type of business whether family business or otherwise. But one potential danger to a family business is nepotism.

How to overcome: Immense scope for this and it can undermine the total effeciencies of the business. Professionalism in the management is the only way. Suffer from professionalism, absence of expertise in the area of finance, marketing, etc and revolve around a single person. Often second line of control will be absent. Part time profesionals, consultant could be engaged to overcome this deficiency.

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In family business, professionalizing can be known as impose a professional structure to an entity and its processes and procedures

1)      The Challenge: Lack of Succession Plan: A family business did not have an effective plan pose threats to family enterprises such as the threats of family conflicts, letting emotions run the business, and losing non-family employees and no succession plan.

2)      To Overcome: The family business should put in place succession plan that can ensure that the enterprise moves from generation to generation. The family business should follow a four-state process in planning for succession which is initiation, selection, education and transition.

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In context of the family business, professionalisation refers to the more formal structures, processes, and practices of larger businesses that are managed by professional managers from moving from the entrepreneurial management style of founder-owner start up businesses. Besides that, professional also means hiring senior non-family executives who are assumed to be more professional than family members.

One of the example of the professionalisation challenges in the family business is to adopt the formality necessary to grow as a business without compromising the benefits of being a family business.

To overcome this challenge, entrepreneurs should challenge conventional management wisdom. They should do the things what others tell them cannot to be done. Entrepreneurs more likely to break out of prescribed moulds and determine their own futures rather than the live by rules made by other people.

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Professionalising  the family business usually means moving from the entrepreneurial management style of founder owner start up businesses to the more formal structures, processes, and practices of larger businesses that are managed by professional managers.

Challenge : Mr. Jong Kok suggests his businesses need to adopt more formal processes such as documentation of business report every month and structure as they mature. The challenge is to adopt the formality necessary to grow as a business without compromising the benefits of being a family business.

How to overcome ? : Normally, small family businesses suffer from professionalism,  absence of expertise in the areas of finance, marketing etc and revolve around a single person. Therefore, to be more professional, he can recruit part time professionals,  consultants and go for training could be engaged to overcome this problem.

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1) The Challenge: When the CEO (the father) need to pick one of his sons/siblings to lead the company - Challenge: who to pick, how to pick (on what bases).
2) To Overcome: be professional, follow the standard recruiting procedure, bring to management/board meeting for mutual decision.