'Biz families shouldn't let age & ego ruin ties'

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11月 10, 2021
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Board and CEO AdvisoryCEO SuccessionExecutive Search
Executive Summary
Times of India report features findings from our ‘Asian Family Businesses: Challenges and Opportunities for the Next Generation’ report.
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Excerpt from the article originally published in Times of India by Namrata Singh.

Russell Reynolds Associates report ‘Asian Family Businesses: Challenges and Opportunities for the Next Generation’ was featured in the Times of India article, "'Biz families shouldn't let age & ego ruin ties'" The article is excerpted below.

Mumbai: Asian family businesses are undergoing a pivotal shift, with over 30% of them likely to see a generational change in the next five years, says a report by Russell Reynolds Associates. Family businesses in India are increasingly looking to build consensus among members to resolve conflicts as the new generation comes with a different world view. TOI spoke to Marico chairman Harsh Mariwala for his insights on how family businesses can better manage the dynamics. His advice: Keep communication channels open to identify conflicts. “They should not be dictated by ego and age,” he says. Mariwala is in talks with the Indian School of Business and SP Jain Institute of Management and Research to develop case studies for students based on his book ‘Harsh Realities’, co-authored by management thinker Prof. Ram Charan. Excerpts:

Despite rising feuds around succession planning, not all promoters realise the importance of managing such dynamics... What’s your advice?

When a new generation enters the family business, it usually comes with an advanced educational background as compared to older members. The new generation is equipped with more knowledge and, in a fast-changing environment, it is far more tuned to the latest trends. More so with digital initiatives. They are living this change and have age on their side. They are not conditioned by the past unlike the older generation, whose understanding of the current changes may not be as good as that of the younger ones, though I am not saying they are not updated. The new generation usually is more ambitious and wants to create an impact. This is a very critical juncture in a family business. History has shown that whenever the next generation comes in, it brings in a certain degree of discontinuity in the way the business is handled. The key challenge for families is integrating the views of the younger generation with that of the older ones while keeping in mind what is good for the business.

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