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‘Traditionally Managed Companies’ require transformation into ‘Professionally Managed Companies’

After my graduation in Finance & Banking and MBA, I started my career as a Management Trainee in manufacturing in 1997 and ended in 2017 as a Professional CEO. During my professional life, I had the opportunity to work in 7 different companies in Bangladesh in different roles with different responsibilities (like; Project, Supply Chain, Planning, Marketing, Factory Operations, Strategic Management and Leadership).

Figure: Professionally Managed Company means where a company is fully structured and each action and process is defined with a specific hierarchy.

At the starting of my career, I worked under my supervisors and later on in my career I had to lead teams working under me to design and execute to make things happen.

The experience to work with different types of organizations with different levels of management (From traditional to semi-professional to professionally managed) gave me valuable insights and helped me to endeavor my ultimate career in consultancy, solving business issues and working closely with management and professionals to help design and execute the changes required.

What I found very interesting is the way of getting things done varies widely form a traditionally managed company to a professionally managed company. I would try to share my views on the benefits of transformation from traditional to professionally managed company to get feedback so that I can make the necessary changes to become more useful as a consultant.

I would define a company as ‘Traditionally Managed Company’ where every decision is made by the owner. On the contrary, define a company as ‘Professionally Managed Company’ where a company is fully structured and each action and process is defined with a specific hierarchy.

What is not measured and defined can’t be controlled. In a traditional organization, everything is dependent on the owner and therefore it is hardly any necessity to have an organizational mission, vision, strategic plan, structure, defined roles and responsibilities.

This could give the owner a false feeling of having everything under control unless fails to take advantage of the Synergy possible to attain through utilizing the capabilities of the members of an organization.

As the organization grows in size the number of inefficiency increases and sometimes works negatively for individuals who want to work efficiently. There is also the risk of organically grown clouts that works against positive individuals or collective initiatives within the organization through manipulated information/reports or praising the owner which ultimately works against the organization.

The invention of a limited company that allowed companies to the last generation after generation necessitates the development of the next generation who would lead in the future. It takes time to groom and prepare the next generation so that they can continue towards the desired trajectory. A limited company running like a traditional company would make the transfer of power to the next generation more challenging.

Finally, with the advent of 4.0 and Covit-19 driven ongoing changes, probably big traditional companies are in greater need to transform their organization to professional organizations as a quantum change is going through in personal, economic, social and political scenarios all over the world.

No doubt the process of transformation is challenging and has risks involved, unlike any other business decision. But under proper risk-return simulations and a firm commitment from the top management to transform is worth taking the risk. The important thing is to commit and pursue till implementation is completed that takes a couple of years depending on the size, nature and portfolio of the organization.

If anyone has any feedback or input regarding the published news, please contact: info@textiletoday.com.bd

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