Three classes of factors affect what an organisation can and cannot do. Same goes with the family.
- Resources: These are the most visible of the factors that tell us what an organisation or a family can and cannot do.
According to Clayton M Christensen, Kim .B. Clark Professor of Business Administration at HBS, resources for an organisation include people, equipment, technology, product designs, brands, information, capital, relationships with suppliers, distributors and customers.
Resources for a family include people- parents, friends, extended family, education, finance, career, professional and social networks.
Resources are visible, tangible and can be hired and fired, bought and sold, depreciated and enhanced. Still, same resources given to the organisation or families cannot provide same results because what will transport these inputs into an outstanding output depends largely on the other two factors – processes and values.
- Processes: Organisation and families use the resources at their disposal to create products or services or to raise the new generation (children) of greater worth.
According to Christensen, the patterns of interaction, coordination, communication and decision making through which they accomplish these transformations are called processes.
Organisations use formal, informal or cultural processes to perform specific tasks eg: an organisation uses research based processes to explore the consumer behavior and to gauge consumption insights. They would have structured questionnaires, interview techniques to do the same. For investment related decisions, processes to be followed will be different.
In a family, there are traditional processes which have been around for generations while there are processes which children imbibe from their parents. Some processes are new and family specific which depend on the dynamic of that particular family.
Organisations need to let go of inflexible processes which restricts their ability to grow and change.
Families need to balance their need for new processes with the tested old processes.
Eg: A family can use automated fitness bands to track their exercise regime everyday but they need to follow the old processes of healthy eating.
3. Values: Values are broad criteria about what a company can do and cannot do. Values for organisations have an ethical bent. At the same time, firms had to ascertain what is acceptable gross margin for them, how and where do they want to be after 5-10 years.
Families emphasise on moral values more than in organisation and values form an integral part of growth of a family. Values of a family give its members a reference about what is acceptable and what is not.
As families and organisations grow big, their values change.
Technology is changing core values within organisations and families. Innovations in different fields are leading to major lifestyle changes.
We have entreployees in organisations who work for organisations while they are allowed to invest 20 -30% of their time into some personal project of their choice.
Career choices have changed the way a family would think about a secure, stable career.
If we can figure out RPV framework for our organisation as well as our family, our scenario planning is done for next decade.
Dr. Swati Lodha is an Author, Entrepreneur, Motivational Speaker, Parenting expert based in Mumbai. Having written Bestsellers like Come on get set go & Why Women are What they are, her book on Parenting will be published soon. Currently, she is running Life Lemonade which offers unique Training Programs on Life Transformation, High Performance Leadership, Women Issues and Parenting.
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