Speed is a competitive advantage inherent in entrepreneurial firms resulting from the overlap of ownership and management. But as businesses and families grow, speed and flexibility of decision-making get affected on account of conflicting views and interests across generations, which in extreme cases become fertile grounds for turf wars.
Family values, legacy and the renewed sense of purpose brought on by a multi-generational vision are the anchors of a continuity plan. Whilst families grow in numbers and wealth, the erosion in foundation is taking place due to lack of a structured communication process amongst its key stakeholders. It is well known that most family businesses have a very short life span after their founders move on; some reports say 95% of family businesses do not survive the third generation of ownership. This is primarily due to lack of preparation of subsequent generations to handle the demands of a growing business and a larger family. The other important issue is the lack of a structured communication process amongst the family on business matters.
Moving away from the traditional one-size-fits-all approach to a more structured & customised approach, coupled with our insistence on consensus amongst all stakeholders has helped many family-owned enterprises to improve their odds of survival. Our focus on precise documentation, well-thought-out review mechanisms, setting up of structured communication process and setting the right governance structures in place has helped clients to arrive at a consensus on sensitive issues. We have tackled issues relating to ownership, rights and responsibilities, competence of family-member managers and a strategy that is best for business and family.
Our experienced team has resolved issues for traditional Hindu families and those under Muslim law. Our extended involvement has ensured a fine balance is maintained between the business goals, personal aspirations and needs of family members, transforming the enterprise from being family owned & managed to a family owned and professionally managed enterprise.