During my consultations, family business owners (FBOs) often speak to me about non-family CEOs in the business. When I look back at all such conversations, there are some common threads across all. These include the following thoughts expressed in a variety of polite and not-so-polite words: "you know how much we paid for a professional CEO? But he was ineffective"; "He came and wanted to take control of our business"; "He (always a he!) had no regard for the people who helped me when I started the company"; "He... Read More
Family values form the core of any family. In a business family, the values of the family become intertwined with the business of the family. Studies have shown that these values are the foundation of a successful family business. In fact, the common thread that binds all multi-generational family businesses is the focus on the core family values.
It is worthwhile to note that family businesses fail to perpetuate beyond a generation. Only 30 per cent of all family businesses make it to the second generat... Read More
The transition from one generation to the next is a delicate time for family businesses. Studies from across the world have highlighted the fact that more than 70 per cent of all family businesses fail to transit into the second generation. Of the ones that do, more than 90 per cent do not make it to the third generation. It is only an elite 3 per cent that make it to the fourth generation or beyond.
One of the key reasons for this high mortality of family businesses centers around succession or the lack... Read More
Family and conflict within a family is a fact of life. Conflict within a non - business family impacts only the members of the family but in a business family conflict impacts the life of people even outside the family. A collection of individuals is most likely to have a set of divergent views and opinions on all matters. When these views are about the business that they are all part of, it is only natural that the divergent opinions result in disagreements.
The divergent or different views held b... Read More
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