The “Akbank Family Company Academy” established by Akbank in association with the Sabancı University Executive Development Unit EDU will help family companies institutionalize and become sustainable.
The Akbank Family Company Academy held by Akbank and the Sabancı University Executive Development Unit EDU aims to increase the competitive strength of family companies, achieve healthy growth, and support efforts towards sustainability and institutionalization.
The program covers many aspects that the leaders of family companies may need, from strategic management to business development and innovation, institutionalization, finance, management best practices, legal issues, and human resource management. Theoretical knowledge will be put into practice over examples from Turkey and the world.
Courses have been designed for family companies that wish to evolve into a corporation, keep up with current developments through academic training and plan to handover company management to the younger generation, and will be given by EDU advisors who are subject matter experts and long-time executives in business, as well as the trainers of program partners Deloitte Turkey and Pekin&Bayar. Factory visits will be made to Sabancı Holding companies, and a Sabancı University Executive Development Unit EDU certificate will be awarded to participants who complete the training.
Participants will be able to purchase consultancy programs that include the actions they will need to take for institutionalization and the creation of a family constitution from program partners at special discounts.
Speaking on the program, Akbank’s Vice President of Small and Medium Enterprise Banking Bülent Oğuz said that the main reason for some family companies failing at sustainability was the lack of a specific plan and defined processes for transition across generations, and added:
“Family companies are governed by rules as well as emotions. In an emotionally-sensitive environment, companies must evolve into institutions to carry on to future generations. However, many family companies in Turkey and the world lack specific planning for the future, evolve according to the needs of the present, and grow to include more family members over the years. Many family companies are unable to achieve sustained growth and financial success due to family disagreements in the long term, and the challenges faced by professionals in family companies. Company owners have to deal with family issues on one hand and competition on the other. Companies that have grown and thrived on the hard work of family members over the years come to the brink of ceasing to exist. Research suggests that 35% of family companies are able to carry on to the second generation, and only 15% to the third generation.
“These facts were our motives behind the ‘Akbank Family Company Academy.’ Through our comprehensive partnership with EDU, we have designed a program to educate family companies in family constitutions, tax planning, company valuation, objective setting, management of the institutionalization process, and strategic management. We regard this program of critical importance because we believe family companies are essential to the growth of the economy in Turkey.”
Sabancı University Executive Development Unit EDU Director Dr. Cüneyt Evirgen said the following about the program:
“When family companies have difficulty in taking steps towards institutionalization or are not assertive enough, problems arise in company continuity and achieving sustainable growth. Since these companies comprise a large segment of the Turkish economy, enabling family companies to make effective use of the latest management tools and methods, and increasing their competitive strength will have significant contributions to the growth of these companies with sustainable profitability, and the part they play in the Turkish economy. We are beyond discussing the necessity of change and sustainability, and looking into ways of enabling these. Therefore, as EDU, we are happy to be a part of our ‘learning partner’ Akbank’s Family Company Academy to play our part in this important initiative.
“Akbank Family Company Academy was designed completely with family companies in mind, bringing the most relevant content together with the most effective learning approaches. Family companies taking part in this program will have taken an important step towards keeping up with the evolving world and becoming a business based on sustainability.”
The three-month program between October and December 2014 is open to family company owners or family members working in their family companies. The “Akbank Family Company Academy” will begin on October 16th, and applications may be made through www.akbank.com.