Managing transitions in family businesses

Abstract

All the factors that normally would help the family businesses on the business side of the transition may end up being a drag on the family side and vice versa. The distinguishing features of family businesses are their longevity and trans-generational continuity. The underpinnings of these features of family businesses are their ability to impart the family values, identity and the business knowledge in the younger members of the family so that when the time comes for the elder generation to move out, the younger members are able to take on the reigns and continue with the task of nurturing the business health and family wealth. The realized experiences of family businesses on this count are varied. While many top Indian business houses that dominated the seventies and eighties have continued to thrive and have retained their identity, there are also many family businesses that have failed to master this process of trans-generational transition. Even in the best of times, the challenge posed by this transition is formidable. But when the world around the family businesses is changing rapidly – in social, economic and business terms- the challenge of this transition gets magnified. All the factors that normally would help the family businesses on the business side of the transition may end up being a drag on the family side and vice versa. One may even term this a paradox of family businesses. A couple of illustrative situations will help to underline this paradox. Read more at: https://www.forbesindia.com/article/iim-bangalore/managing-transitions-in-family-businesses/45811/1