In a family business, the success and longevity of the business depends on the fucntional and healthy bonds between the family members. When anger is part of a family's tradition, it carries forward to the future generations, too. The wider the spread, the more difficult the anger is to contain. Intergenerational conflict, sibling rivalry and succession issues lead to multitude of negative emotions, including anger.
If expressed appropriately, anger can serve as a positive emotion. Smooth, positive... Read More
A growing body of research shows that stakeholders in nearly every corner of the world, and in particular customers, feel more confident about buying from a family owned company, as compared to a publicly owned, non-family firm. In order to differentiate themselves from non-family businesses and help bolster their overall brand, a host of large and small family business like BIRLA, TATA and BAJAJ etc. have been promoting their family brand identity.
Branding the company as a family business can not only ... Read More
Succession planning can be a difficult exercise for any organization, but in a family office environment, where emotions run high and competing priorities are prevalent, the process is especially challenging. With a wide variety of issues on hand to deal with, family members often seek the the support of trusted advisors who can be seen as the most relied external source of advice and knowledge that family businesses draw on.
Trusted advisors improve the efficacy of the succession process by mentoring bo... Read More
Family businesses are notorious for confusing the business and family systems. Like all companies, they are concerned about profit but in addition, its owners must deal with complex interpersonal family relationships that they must balance with the interests of their business. It is no different when it comes to compensation. Family members are usually cast outside of the compensation policy used to reward the rest of the employees. The issue of who gets how much money and on what basis has a high potential for ... Read More
In today’s turbulent times, family firms lead a tenuous existence. Few are able to survive beyond the first generation. The reasons for the demise of these firms include poor economic conditions, lack of capital and resources, and incompetent management. However, a study conducted on family firms indicated that the ability to adapt to international cultures also plays an important role in determining whether the firm can continue successfully and expand its reach.
Whatever sector the business is in... Read More
Family businesses constitute between 80 and 98% of all businesses in the world's free economies, however, only 30% of such businesses make it to the third generation. Lack of a shared vision and weak next-generation leadership are the main threats to long-term success. Smooth transitions occur only when the heirs are better prepared to take leadership positions.
Identifying the right successors, who will take the business forward, is an integral step of the succession planning. Training the successors is... Read More