'It is Transformation That Lays the Groundwork for Succession'

DR SRINATH SRIDHARAN is a prolific writer, a co-author and editor of Time for Bharat and a columnist for many publications, including BW Businessworld. He has been an executive coach and a strategic counsel for foremost corporate enterprises across three decades and is an independent director on the boards of several companies, all of which amply reflect in his latest tome, Family and Dhanda - A to Z of Succession Planning for Founders and Successors. Excerpts of Sridharan's conversation with Madhumita Chakraborty

- Madhumita Chakraborty

In your nearly three-decades of experience as a corporate leader and an advisor to large corporates and business families, which of the following strategies - transformation initiatives, succession planning or scaling business ventures — did you feel, have the most significant impact on Indian family businesses today?

The elephant in the room - succession planning — has the most lasting impact on Indian family businesses today. Nearly 80 per cent of Indian businesses are family-owned and managed, whether they are large conglomerates including many listed entities in Nifty 500 or even the small neighbourhood kiranas (grocers). While transformation and scaling are critical for immediate relevance and growth, it is the thoughtful transfer of leadership and ownership across generations that ultimately determines the long-term continuity and emotional well-being of both the business and the family.

In family-run businesses, there is often a reluctance to openly discuss succession. This silence can lead to uncertainty, emotional stress, and potential fragmentation. However, bringing structure to this conversation - acknowledging it, addressing it, and creating a clear, actionable plan — is often the first, and most transformative, step. When done right, it not only secures the future of the business but also strengthens the emotional bonds within the family, ensuring that both business and legacy thrive across generations.

The complexities businesses face today are heightened by shifting consumption patterns and the evolving demographic needs and wants of a growing and diverse population. These changes, combined with rapid technological advancements, demand that family businesses adapt quickly.