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Improving Successions Process of Family Business with Organization Health Index : Indonesian Clinical Laboratory Business Case Study
Ratih Rachmasari, Badri Munir Sukoco

Airlangga University, Surabaya Indonesia
Magister management Program
JL. Airlangga, No. 4-6, Airlangga, Kec. Gubeng, Kota SBY, Jawa Timur 60131
*ratih.rachmasari-2017[at]feb.unair.ac.id


Abstract

Indonesia-s health spending estimated will growth on 14.9% CAGR over the period 2012 – 2018, JKN program which was launched on 2014 drive this growth, industrial external conditions are conducive and provide great opportunities. PT.X is a clinical laboratory with a family ownership, now widely spread into 18 branches all over Indonesia. Family company has a very strategic contribution, 95% of companies in Indonesia are owned by families, with revenue at US $ 5-10 million, total wealth reach 25% of Indonesias GDP. Behind this huge opportunities and family ownership company contribution, there are issues in maintaining its sustainability. Sustainability of family business depends on success of succession, implementation of succession is a failure factor on family business continuity. Since 2017, PT. X experienced joint management stage succession, an evaluation is need to knowing whether the process is going well for achieving business sustainability. Business performance is a valid indicator for measuring business succession effectiveness, external environment and internal organization prespective usually used to define business strategies achieving excellent performance. Because the external conditions have supported, the research will be carried out on the companys internal organization with McKinsey Organization Health Index approach. OHI scores obtained from the survey indicate that PT is a health organization but not excellence. It is recommended that organizational behavior improvement refer to market focus basic model, especially in practice clarity of strategy ,sharing vision and using mentors from outside experts to assist the succession process is needed

Keywords: family business, succession process, Organization Health Index (OHI), clinical laboratory

Topic: Management, Enterpreneurship, and Leadership

Link: https://ifory.id/abstract/XET2FcLyPHad

Conference: The 3rd International Research Conference on Economics and Business (IRCEB 2019)

Plain Format | Corresponding Author (Ratih Rachmasari Sumarko)

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