Clan Value

What is the Clan Value?
What effects does the Clan Value have?

What is the Clan Value?

In business the short-term profits from stock have become the measure of all things. Entrepreneur Elisabeth Heller shows a different way. Instead of counting on the shareholder value she successfully relies on the Clan Value. Clan Value is a new management concept which not only boosts turnover but also gives higher quality and better satisfaction in work. Because: “Alone you are not able to reach anything” the author is convinced. In fact it is a functioning network of employees, partners, colleagues, customers, relatives and friends – welded together by joint values and visions – that guarantee success and sustainability. That is what numerous famous clans demonstrate again and again: Adriano Celentano, Jim Jarmusch, the Swarovskis and of course the Scottish clans.

After a decade of self-orientation Elisabeth Heller forecasts a reversal of trend for business and society: Away from the “Me-corporation” towards the “We-principle”.

Small and medium sized enterprises, but also departments of large concerns profit from the new Clan Value management concept. It outlines a fascinating and above all worth-living model of a long-term successful entrepreneurial future.

The clan as formula for success for the SME of the future
The structures of the clans open up new chances above all for Small and Medium sized Enterprises. One of their many topics: successor establishment. In most cases enterprises have to be closed because they are lacking a proper successor. A company operating according to the Clan Value is prepared as it thinks not only in quarters but also in generations. That means the build-up of a balanced age pyramid within the clan which is also important for successful customer relations. And of course thais also requires the sponsorship of young clan members.

Learning from the Scottish Clans or the Hip-Hop Stars Wu-Tang
Let us learn from successful clans of this world recommends Elisabeth Heller. She examined numerous clan-like companies, such as the Denver clan, the Celentano clan, the Kennedy clan or the Japanese Yakuza clans.

Tips for Entrepreneurs: the Way to Your own Clan
“Live in the clan, then you live richer” – that is the credo of the book. On the way to his own clan the reader receives recommendations and instructions: from a code of behavior within the clan to the best assignment of each single clan member and a profile of qualification for a clan leader. Examples from various cultures and many case studies about the secrets of success of clan-like companies make the animate and very personal book a reading pleasure.

Clan: a committed community of people also of diverging origin, who jointly pursue an economic purpose and who are moreover connected in manifold ways.

Clan Value: added value created by the clan; arouses through the consequent involvement of employees, relatives, friends and above all business partner, customers, suppliers and service providers.

What effects does the Clan Value have?

Clan value offers instructions with a plenitude of soft facts that are very often neglected within traditional management consultancy:

• What to do when the friction between family and business is too big and the results therefore too small
• What to do when an essential department of a large concern produces envy, demoralization and intrigues instead of results?
• What to do when the three generations of a family business are at loggerheads with each other during the search for the best successor solution?
• What to do when a marriage breaks down and the resulting pile of shards is erected in front of employees, customers and suppliers?

Categories such as braveness hope, civil courage or joy in experimenting are as important in realizing the Clan Value as are free of anxiety communication or passion and respect.

Being a long time entrepreneur and employer Elisabeth Heller of course knows that the hard facts need not be neglected. The Clan Value produces:

Fewer Sick Leaves
Cooperation in a company clearly reduces the times absent. While hierarchically led organizations e.g. ministries denote yearly times absent of 3-4 weeks and more (next to vacations) within a clan-like managed company these sick leaves and other times absent are kept to an acceptable 1 week per year.

Reduced Fluctuation
A 5% decrease of fluctuation means savings worth a medium-sized vehicle per year for a handicraft business with 20 employees.
A high-tech company is able to reach a 10% increase of returns with a 5% decrease of fluctuation. An industry business with 180 employees could likewise create 6 new jobs in the long-run with the savings through a 5% reduction of fluctuation.

Successful Cooperation with Business Partners and Suppliers
Putting your suppliers under pressure could backfire. After a short-term reduction of purchasing conditions you are confronted with lacking quality and lacking support in terms of product training. That again means higher efforts and rising costs for your company. In addition long-term suppliers are more tolerant in difficult times, conjointly elaborated product improvements and individualized supply structures lead to a win situation on both sides. The result is an optimized value chain.

Long-term and profitable Customer Relations
Customers are – next to the employees – the most important clan sympathizers. A rule states that nearly 80% of all customers change a supplier because they did not receive the attention they felt they deserved. Neither price nor quality are the decisive factors for the change of a business partner, it is neither the intensity of marketing. It is the quality of the relation between the customer and the company.
Customers want to feel appreciated; they do not want to feel neglected by a vendor who does not remember their names or special needs.

Growth through an optimized Mix of regular and new Customers
Customers are important multipliers. An empiric rule indicates that for gaining a new customer seven times more effort, time and cost must be expended than in selling new products to an existing customer.
It is even more effective to win satisfied customers as multipliers who open up new markets through positive word-of-mouth.