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Holding Company Regulations

Regulations of the holding company are a tool (technology) for organizing (reorganizing) the activities of a holding company, a system of functional and technological business processes of the company that make up the activities of the holding company

General provisions

The purpose of the holding company’s activities

The objectives of the holding company’s activities

The business cycle of the holding company

The structure of the holding company’s activities

The functional structure of the holding company

Principles of organization of the holding company’s activities

Applications

Consumers:

The owners of the company, members of the Board of Directors, heads of holding companies and potential candidates for these positions

Consumer benefit:

Improving the efficiency and personal competitiveness of the head (applicant for the position of head) of the holding company. The use of these regulations encourages the head of the holding company to do only what is really necessary to achieve the purpose of the holding company’s activities, and not to do anything that does not meet this goal, or that just came to mind.

An applicant for the position of head of a holding company may be a very qualified and experienced specialist in managing an individual company, but at the same time have a very vague idea of what the purpose of the holding company’s activities is and how its activities should be organized. This regulation allows you to form a clear idea within a few days (and within 2-3 months of practical application – sustainable practical skill) on the organization of the holding company’s activities, which allows the head of the holding company to clearly distribute the functions of the holding company among its structural divisions, as well as establish the order of their interaction, which, in turn, allows the heads of the relevant structural divisions of the holding company to clearly organize the activities of their divisions in terms of the distribution of functional responsibilities of employees of the division and the definition of the order of their interaction.

When the functions of a holding company are clearly distributed among its structural divisions, it is immediately clear which division (more precisely, its head) shows effective work, and which one is underworking. At the same time, it is immediately clear what exactly (what specifically) is being done wrong, what needs to be fixed.

The use of these Regulations allows the owner (owners) of the company to transfer the process of operational control over the results of the activities of the companies belonging to the holding company to the holding company, while being sure that, following the requirements of these Regulations, the effectiveness of managing his (their) property will be ensured by a high level of qualification of the head of the holding company and a clear organization of the activities of the holding company

The main difference:

As you know, properly organized processes produce the right results. Proper organization of the process simply guarantees the right results. The regulations of a holding company allow you to organize its activities (and its structural divisions) in strict accordance with the purpose of its activities.

All companies, regardless of the field of activity and the type of products (goods, services), have the same structure of their activities. They differ from each other only in the main production process (technology of production, provision of services), all other functional business processes of all companies are identical. With some exceptions, the marketing process, which is essentially identical for all companies, but in choosing a specific marketing technology, the company directly depends on the main production business process, more precisely, on the specific consumer properties of the company’s products.

Unlike commercial companies, the consumers of whose products are buyers (external consumers), the consumer of the services of a holding company are the owners of this company (companies that are part of the holding). And, accordingly, a holding company differs from commercial companies in both the purpose of its activities, the objectives of its activities, and the technology of its activities

The cost of the offer:

In comparison with the growth of income (which can amount to millions, tens or even hundreds of millions of dollars) received from improving the managerial qualifications of the head of the holding company and the clear organization of the holding company’s activities, the cost of the offer ($150,000) is a fairly modest amount

Payback period:

The payback period of this offer is from 2 to 6 months of practical use

Note:

It should be noted here that the proposed regulations do not imply the substitution of the management bodies of companies belonging to the holding company by the management bodies of the holding company. The companies included in the holding may differ greatly from each other in size, types of products, and production technologies. Therefore, they can be effectively managed only by their management bodies, their specialists, who can only see the internal problems of the company and solve them effectively. The role of the holding company is reduced to the organizational support of the activities of the holding companies, operational control of the effectiveness of management decisions, strategic planning of the development of the holding companies

See more:

Company Regulations

Company Development Strategy Regulations

Management Accounting Regulations

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