Conflicting Views Can Build Strong Businesses

Families must respect divergent opinions and give autonomy to next generation leaders so that they can Function without Fear.

- Satya Narayan Bansal

Family businesses have been the growth engines of the economy the world over. Some of the largest and most successful global corporations such as Nike, Volkswagen and Samsung are, in fact, examples of well-run multigenerational family businesses. The family behind a business is one of the most critical internal stakeholders that can affect the fortunes of the business. Like no two businesses are similar, no two families behind businesses are alike.

While it is important to view a family business as independent from the family that runs it, it is an established fact that the fundamental strength, values, principles and people that underlie the fabric of the family unit always have a strong bearing on the business. In this context, the next generation is a key pillar that supports and furthers the fortunes of a family business.

In our experience, while working with various Indian and NRI families, there are quite a few challenges in setting the Gen-Next on a growth path.

First and foremost, having a succession plan encompasses business succession, ownership succession and also values succession. A structured approach to addressing transition in business management, while accommodating individual interests and addressing conflict, is a key factor in enabling subsequent generations to succeed.