transfer of management

Management Transfer

The goal of a management transfer is twofold. The main objective is to define the role of the new managing director, but there is also the objective of putting in place a new management team, one which in some cases includes managers from the old team.

As will be discussed in the section Transfer Process , a management transfer can take many forms. To understand the fundamental issues in this type of transfer, it is essential to examine closely the factors that influence it. They are not the same for incumbents and successors (or buyers) because of the different roles that these actors play in the transfer process.

Factors Influencing a Management Transfer

If you are the current managing director (the incumbent):.

What do you hope to achieve by the management transfer?

• Do you hope to ensure strategic continuity, foster business growth, renew the business strategy, or perhaps develop new business opportunities (e.g., through internationalization or new products)?

What are the competencies necessary for the management positions to be filled?

What resources and strategies do you think should be deployed to accomplish this management transfer?

• Would you like members of your family to remain on the management team?
• An exhaustive evaluation of current human resources would help you to answer the following question: At the present time, who at the business could take on a management position?
• Should new talent be brought in through external recruitment?
• Name the most competent persons at the business, independently of who they are and where they come from.

At what pace do you wish to see the management transfer accomplished?

• In accordance with your schedule and the type of transfer that is favored, you will be able to create a plan for providing support and training to the successors, so that they can develop the knowledge and the competencies necessary to take on their future positions as managers of the business.

If you are the successor who is taking over management and ownership of the business :

Whom are you taking over from?

• When you take on the role of managing director at a business that you have just acquired, the management transfer will differ depending on whether you are taking over from a family member, from your ex-boss, or from a complete stranger.

What do you expect to achieve by taking over the management of this business?

• What will be the time frame and the pace of the management transfer process? What kind of training, experience, and learning will be required to take on this role?
• What will be the role of the current managing director (joint management, mentoring, financing, etc.)?
• What will be the role of the current management team and the current board of directors during the transfer process and afterwards?
• Ensuring continuity through joint management with the current managing director;
• Creating a medium-term partnership with the current managing director so that he or she can train you for your new position;
• Making a rapid management transfer and quickly taking over the business.

If you are only taking over management of the business :

What is the context in which you are doing so?

• You are succeeding a relative who will continue to own the business.
• You are a member of the incumbent management team who has been nominated by the new owner(s) of the business.
• You are a new managing director who has been recruited externally by the new owner(s) of the business.

What do the new owner(s) of the business expect from you?

• Eventually you will become the (co-)owner of the business.
• You only have to ensure continuity during the succession process (as a bridge manager).
• You must instill a spirit of change into the business.
• Saint-Cyr, L. & Richer, F. (2003). Préparer la relève : neuf études de cas sur l’entreprise au Québec . PUM.

Whole Farm > Transition & Estate Planning > Transferring Assets & Management

Updated July, 2016 File C4-15

Transferring business management.

A successful two-generation business arrangement depends on the smooth transfer of management. Below are some approaches to help make this transition.

For a business arrangement to succeed, participation in management by both parties is important. The younger party should be given an increasingly important role in management. This transfer will not occur if the parent always pulls rank or persists in saying “ I decide ” rather than “ we decide .”

While the parental objectives of taking things easier and eventually turning over control of the business are honorable ones, too often a hidden objective is present. Taking things easier often means the young person does much of the hard physical labor, while the parents continue doing all the planning and decision making. Also, eventually turning over the business often means training the young person until he/she thinks pretty much the same way the parents do.

A young person often comes into the business wanting to contribute his/her knowledge. However, the ideas of the younger party are often subject to questioning by the parents, and friction develops. Soon the parties assume traditional child-parent roles. The parents give decrees and try to discipline the young person. The young person becomes rebellious and resentful for being treated like a minor child.

Both parties must realize that initially the young person is going to make his/her share of management mistakes. One of the objectives of the business arrangement is to provide a training ground for developing the young person’s management expertise.

Goals and Objectives

Management decision-making is the way in which goals and objectives are achieved. Therefore, it is important that family members reach consensus on the relevant business goals and objectives, otherwise business decisions will be in conflict.

For example, the farming child may want to have the largest farm unit in the county, but the parents’ goal may be to eliminate all farm debt. So, conflicting management decisions are occurring. However, the conflict is not with the management decisions, but rather with the incompatibility of the goals. Once the parties reach consensus on business goals, the management conflict should disappear. It may be helpful to establish a time each week or month, depending on family needs, for discussions of business affairs, goals, and objectives.

Decision-making Authority

The key is to find a decision-making structure that develops the younger party’s management ability while protecting the parent’s financial interest and desire for control. Two general structures are presented below.

General Manager With this approach, one party has final authority (general manager). Logically this may be the older party. Both parties have responsibility for on-going operating decisions. The young person is involved in major decisions, but the final authority rests with the older party. This provides a managerial learning process for the young person by placing him/her in a position to make on-going operating decisions while being involved in overall decisions. This approach works best in the early stages of a two-generation arrangement. As the young person gains management skills, the role of the general manager can be decreased, transferred to the young person, or modified.

Equal Voice Another approach is to give each party an equal voice in decision making. With this method, both parties are more involved in decision making than with the general manager method. This approach often works best in the middle or later stages of a two-generation arrangement.

This approach may contain a provision for final authority if there is disagreement. Methods of final authority could be:

• vote by all parties;
• vote weighted by size of capital contributions;
• one party given final authority; or,
• outside arbitration.

Each party should understand how the final authority mechanism works in resolving disputes. Ideally, few disputes should ever reach the final authority process.

Division of Management Responsibility

Business arrangements are often more effective if the daily management responsibilities are divided between the parties. This will result in management specialization that may cause better decision making. The division may be based on individual interests and skills. Dividing management responsibilities reduces disagreements between the parties and promotes the development of the young person’s management skills. Overall decision-making can be accomplished with one of the methods discussed above.

Enterprise Division One party may be given management responsibility over the cropping program while the other is given responsibility over the livestock program. Each party can make operating decisions as long as they conform to the overall objectives of the business. Decisions of major importance or decisions involving the overall business would need to be approved by both parties.

Functional Division The division of management responsibilities can be based on business functions such as marketing, finance, or production. For example, a party with interest in record keeping and computers may be given financial management responsibilities while the other party may have the responsibility for marketing decisions. The parties must communicate these decisions to each other. Any decisions that directly affect both functions can be made jointly. For example, the marketing decision of selling grain affects the financial cash flow of the business.

Management Styles

People have different management styles because they have different personalities. Some managers are analytical and like detail (such as record keeping). Others rely on strong interpersonal skills and are good at networking and team building. Still others are drivers and enjoy competition and risk-taking.

Examine each management style and the styles of all parties in the business. What are their strengths and weaknesses? A two-generation arrangement may be more successful if the parties have different management styles. Managers with different styles often complement each other and compensate for the other’s weaknesses. For example, an analytical decision maker may get too involved in facts and details and not seek the advice of other family members. Conversely, a manager with strong personal skills may be overly concerned about the needs of individuals and have difficulty making decisions that are in the best interest of the business. However, in certain situations, the parties may have management styles that clash.

Withdrawing from Management

Every two-generation arrangement reaches the stage where the older party withdraws from active management of the business. This is often a difficult stage for them. It is important that it progress smoothly. The young person may facilitate the transition by asking the older party for advice on management decisions.

Don Hofstrand, retired extension agricultural business specialist, [email protected]

Don Hofstrand

Retired extension agricultural business specialist view more from this author.

Wachstumsregion Asien-Pazifik pp 31–41 Cite as

Management Know-how Transfer by Multinational Corporations in Southeast Asia

• Horst Günter &
• Oliver Nass  

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Zusammenfassung

The transfer of management know-how can be divided into three levels: 2

knowledge, i.e. the conceptual tools and techniques concerning management (e.g. quality control, systems analysis, linear programming)

skills, i.e. the ability to implement and effectively use management tools and techniques (e.g. decision making techniques, controlling systems)

attitudes or management philosophy, i.e. the underlying perception of managers concerning managerial tasks, human beings or environmental settings.

Prof. Dr. Horst Günter (1939), Universitätsprofessor für Volkswirtschaftslehre (seit 1973) und Leiter der Abteilung VWL;Finanzwissenschaft, Technische Universität Braunschweig; Leitung des an der Tongji-Universität in Shanghai eingerichteten Studiengangs „Managementtechnik“ (1985 – 1989); Beteiligung am Neuaufbau der Wirtschaftsfakultät der Universität Magdeburg als Leiter des dortigen Instituts für Volkswirtschaftslehre und Gründungsdekan (1990 – 1993).

Oliver Nass (1968), Studium der Wirtschaftswissenschaften in Fribourg, Bern und London (1989 – 1994); seit 1994 Doktorand an der Abteilung Volkswirtschaftslehre;Finanzwissenschaft, Technische Universität Braunschweig; Stipendiat der Studien-Stiftung des deutschen Volkes; Forschungsaufenthalte 1994;95 und 1996 in mehreren Ländern Asiens, u.a. am Institute of Southeast Asian Studies, Singapore; Forschungsaufenthalt 1996 an der INSEAD, Euro-Asia Centre, Fontainebleau.

This article summarizes a lecture given by Prof. Dr. H. Günter at the conference „Changing Consumer Behavior and Life Style in Asia: Relevance of the Western Model?“ at INSEAD Euro-Asia Centre, Fontainebleau, on February 9th and 10th, 1996. The authors thank Howard W. Barnes, Professor of International Business, Marriott School of Management, Brigham Young University, Provo, Utah, USA, for his critical reading and comments and Jenny Stiller for her translations.

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Günter, H., Nass, O. (1997). Management Know-how Transfer by Multinational Corporations in Southeast Asia. In: Sierke, B.R.A., Dietz, K. (eds) Wachstumsregion Asien-Pazifik. Gabler Verlag, Wiesbaden. https://doi.org/10.1007/978-3-663-07780-0_3

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Knowledge Transfer Management Process Examples & Framework

by Rob Manfredi | Aug 26, 2020 | Products , The Bamboo Team Blog , The Business of SharePoint

Knowledge Transfer Management: What it is and How to Apply It

In a perfect world, all our best employees would stay with the company forever, but unfortunately, relocation, retirement, and resignations are all eventualities that business owners have to navigate.

Companies need to be proactive about dealing with staff turnover to cushion themselves, and knowledge transfer management is one of the more essential ways they can do this. If implemented correctly, a knowledge transition process can save your company a lot of heartache and headaches when a team member leaves.

We are going to dive into building a knowledge management system and making it accessible and durable.

What is Knowledge Transfer Management?

Knowledge transfer is the process of sharing or disseminating knowledge from one part of the organization or individual to another. With employees, this process involves storing and sharing their knowledge and best practices. This includes implicit (competence), explicit knowledge (procedures and processes), and tacit knowledge (experience). It is up to the company to collate the knowledge and information from these three areas so that they can be passed on to others in the event that an employee leaves the organization or is unavailable.

An efficient knowledge transfer framework is one in which companies establish a central source of company information that can be accessed by current and future employees. It takes a multidisciplinary approach—from administration to information systems and others, and focuses on organizational objectives.

In order to transfer knowledge, you have to look beyond training, which is only a part of it. No single knowledge-sharing method addresses all three types of knowledge perfectly. The complete process involves the harnessing and dissemination of the adaptable skills and abilities of your team members.

Importance of Knowledge Transfer Management for Businesses

Having a clear knowledge of what your employees know and how to transfer that knowledge is critical for businesses. For one, organizations that have developed effective systems to transfer knowledge are more productive and more likely to survive the loss of a critical member of staff.

It’s well-known that employee turnover comes at a high cost to companies. In hard costs alone, one study by the Center for American Progress found that employers spend six to nine months of an employee’s salary finding and training their replacement.

If employees know their success is vital to their company, they will perform better. A harsh learning curve creates a negative experience for your new hire, which hurts your culture, productivity, and quality control and ultimately leads to higher attrition. Organizations that use knowledge management systems have more confident, competent, and satisfied employees than those relying on informal, haphazard onboarding procedures.

Even where it doesn’t cost much, teams that apply efficient knowledge transfer management are more motivated and agile when it comes to adapting to new processes, which drives company growth.

Once competence is achieved, employees are free to focus some of their energy on improving your business, which pays incalculable dividends.

Four Tips for Improving Knowledge Transfer Management

Without an effective way to retain and transfer knowledge, organizations have a difficult time onboarding new employees and providing uninterrupted service to customers. Knowledge transfer skills in an organization can be developed through four main steps:

1. Identify and Cultivate Key Information

Deciding what kind of information should remain available to people on your team is mostly about identifying valuable information. Valuable information includes both everyday information such as how to log timesheets or basic customer processes, as well as complex knowledge, like business strategies.

To simplify it, ask yourself, “What knowledge would I want a new employee to have if Employee X left the company?”

It is often said that the lowest level employees know the most about what is and isn’t working; ask them and their managers what knowledge they find most essential or had to learn “the hard way.”

The answers are not likely to be comprehensive, and this is where cultivation methods come in. Cultivating this information is based on the different ways information is transferred from one person to another. Knowledge management examples of this are:

• Brainstorming
• Troubleshooting
• “KT sessions” such as mentoring and coaching
• Collaboration and teamwork
• CHAD, ADDIE, or agile development frameworks

Through the above, organizations are able to generate knowledge that they should document. Remember, you can’t ask too many questions during information gathering. It may also be beneficial to engage professional instructional designers or project managers to help with this type of detailed analysis.

 2. Capture that Knowledge

Now that you have determined what knowledge is unique and valuable, the next step is to document it. For some information, Word documents, spreadsheets, and presentations are sufficient. However, proper knowledge capture is more than just having a virtual and physical file cabinet. A complete knowledge library consists of reports, visuals, knowledge portals , CRM systems, and more.

To populate this, a standard process of documentation is needed. Organizations that use knowledge management should have an outline of how, when, and where employees should save information.

3. Choose Your Platforms

Your knowledge transition management infrastructure is only complete when the information is easy and quickly accessible to everyone. Knowledge management examples include policy databases, shared folders, communication infrastructure, regular mentor/coaching sessions, in-person training, virtual training, a video channel, and meetings to discuss best practices, etc.

You may decide that all you need is a way for employees to look up policies and procedures, rather than any kind of training platform. Ask yourself questions like:

•  How often do I want to engage in intentional knowledge-sharing activities?
• Do I expect my employees to effectively self-educate as part of their work duties?
• Will knowledge resources be used during customer interactions?
• How will I assess knowledge?

The right platforms to facilitate knowledge transfer will either have or support integration with external software such as these:

• Easy to organize.
• Easily accessible.
• Requires little effort to save information.
• Standardizes and automates information storage.
• Allows for information updates and identifies duplicate content.
• Enables employees to save and share information in a variety of formats.
• Learning management software (LMS) support which allows completion tracking, knowledge assessment, and virtual training capabilities.

Reusable learning object (RLO) support allows content to be easily maintained instead of recreated uniquely every time.

4. transfer and share knowledge.

Having information available in one place is a game-changer, but policies and procedures change; the content must be maintained and disseminated.

Through the right application, knowledge transfer can be done regularly and to all departments. Virtual communities , mentoring, and social networking are all ways that successful knowledge transfer can take place. These processes depend on the nature and size of your company, so they should be custom-created and continuously adjusted to suit your needs.

Does your organization need to implement a knowledge transfer management strategy?

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