Management Advice

KAVIL RAMACHANDRAN PROFESSOR OF ENTREPRENEURSHIP (PRACTICE) AND SENIOR ADVISOR, INDIAN SCHOOL OF BUSINESS (ISB)

- KAVIL RAMACHANDRAN

What are the key challenges that Indian family businesses now face and what advice will you offer to overcome them?

First, family governance. Companies lack clear policies and processes governing ownership and management of the business in the second generation and beyond and is a big challenge particularly with the disappearance of joint families and weakening traditions. Second, professionalism as a value is often not understood, nor practiced by family members who wear both ownership and management hats. Third, families are struggling to decide on ownership and management of individually initiated new ventures often financed by the family.