How India Inc 2.0 can transform familial privilege into impactful leadership

This article was first published in the Economic Times on April 13, 2025. Co-author: Kavil Ramachandran; https://economictimes.indiatimes.com/news/company/corporate-trends/how-india-inc-2-0-can-transform-familial-privilege-into-impactful-leadership/articleshow/120237165.cms?from=mdr

From a distance, the heirs of India’s eminent family-run conglomerates seem favoured by destiny. With access to elite global education, rigorous mentorship, and unparalleled resources, they appear poised effortlessly for leadership. But beneath the apparent privilege is a daunting reality. The successors of family dynasties like Reliance, Godrej, Adani, Birla, Tata, and Bajaj face formidable challenges—legacy burdens, intense public scrutiny, the delicate task of honouring tradition while innovating for the future, and the challenge of finding one’s own voice in a business built by towering patriarchs. 

The weight of Legacy

Inheriting a family business is a paradox: simultaneously a blessing and an overwhelming responsibility. The second or third generation inherits more than businesses—they inherit legacy. Mukesh Ambani's children—Akash, Isha, and Anant—bear not only the weight of managing Jio, Reliance Retail, and new energy ventures but must also live up to the legend of a father who turned Reliance into a $250-billion empire. Similarly, Nyrika Holkar, part of the fourth generation at Godrej, has stepped into a business synonymous with Indian identity—from locks and soaps to real estate and agrochemicals and beyond. 

The problem with legacy is that it sets an invisible benchmark. “Can they ever be as visionary as their predecessors?” is an unspoken question they constantly confront. Even when these inheritors are Ivy League-educated, McKinsey-trained, or battle-tested within their firms, their every move is compared to the founders. The daunting challenge of being in the ‘founder's shadow’—the psychological weight of comparisons that threaten autonomy and individuality in leadership roles, is real! It’s a double-edged sword: the legacy opens doors, but it also limits room for error. 

Balancing Tradition with Transformation

A prominent challenge facing these heirs is navigating between respecting inherited traditions and meeting contemporary demands. Traditional Indian family businesses emerged in regulatory environments defined by protectionism, limited competition, and incremental change. Today's successors must manage rapid digitisation, sustainability imperatives, and stakeholder capitalism, often within organisational cultures that remain anchored in hierarchical, conservative decision-making.

While Sanjiv Bajaj, now Chairman and MD of Bajaj Finserv, has been widely credited for pioneering financial innovations and building a fintech powerhouse, he did so while carefully navigating the strong legacy of Rahul Bajaj’s manufacturing-centric vision. The message to other next-gen leaders is clear: real success lies in transforming without erasing. 

Structured Grooming: Beyond Formal Education

To their credit, most of India’s business families have become much more structured about grooming their heirs. Business education is no longer left to osmosis. Formal mentoring, shadowing senior executives, and rotations across group companies are standard. Many also bring in external CEOs to create professional buffers. For instance, Aditya Birla Group’s Kumar Mangalam Birla gave his children an extended runway, encouraging internships and hands-on training across businesses, including time spent in overseas ventures. Gautam Adani, chairman of the Adani Group, has articulated a clear succession plan, aiming to transition control to the next generation by the early 2030s. 

These measures provide not just technical acumen but also crucial credibility with professional managers. Yet, structured mentorship is not a panacea. The successors must still confront the psychological isolation of leadership, what is often described as the “loneliness of command.” Peer relationships can often become transactional, while relentless media scrutiny denies privacy, significantly affecting emotional resilience and personal identity development.

Family Dynamics: Navigating Collaboration and Conflict

Effective succession in large business families hinges on alignment more than mere capability. Divergent visions between generations can become severe impediments. The recent Godrej family restructuring, where brothers Adi and Nadir Godrej amicably split consumer and real estate arms, is a rare example of smooth succession planning. Conversely, disputes within many Indian family groups escalate publicly, harming reputational capital and performance.

Mitigating family conflict necessitates clear governance structures. Research consistently highlights that robust family constitutions, shareholder agreements, and professional advisory boards can depersonalise family decision-making and facilitate constructive dialogue. Yet, siblings in large family business groups must still demonstrate their ability to effectively manage interpersonal conflicts, notwithstanding the presence of established family governance structures.

Moving from Entitlement to Meritocracy

The shift towards merit-based succession has significantly reshaped India's family businesses, underscoring the need for next-generation leaders to earn their place through tangible achievements rather than relying solely on lineage. Rahul Bajaj famously remarked, "Get me someone who is more capable to run Bajaj Auto than Rajiv," demonstrating his openness to professional capability over familial entitlement. This emphasis on meritocracy proved prescient, as Rajiv and Sanjiv Bajaj subsequently steered Bajaj Auto and Bajaj Finserv to new heights, innovating across automotive and financial services sectors.

Such a meritocratic approach can be further strengthened by instituting advisory councils comprising independent experts, providing objective guidance to ensure strategic decisions are made transparently and competently. Moreover, embracing a pluralistic approach to leadership allows next-generation members the flexibility to find roles aligned with their unique capabilities and passions, fostering an environment where meritocracy genuinely thrives.

The Road Ahead: Redefining Legacy Leadership

India stands at an inflection point, witnessing generational transitions not just politically and culturally, but significantly within its economic landscape. The future of India’s largest family-run conglomerates rests on the ability of their next-generation leaders to transform legacy leadership from a mere entitlement into a purposeful commitment, defined by humility, cohesion, and holistic vision.

Ratan Tata's ascension as Chairman of the Tata Group in 1991 vividly illustrates this journey. Stepping into the colossal shoes of the legendary J.R.D. Tata, Ratan initially faced considerable scepticism. Yet, he went on to not merely sustain but substantially expand the Tata legacy. More importantly, he established himself as a globally respected leader and an icon, demonstrating that inheritors can indeed honour their predecessors while courageously forging their unique path.

Today's successors in iconic Indian business houses are similarly positioned. Their true challenge lies not simply in protecting or expanding business empires but in upholding foundational values, fostering organisational cohesion, and breaking down silos to embrace integrated thinking. In doing so, these inheritors will not merely replicate past successes—they will meaningfully shape India's trajectory, creating legacies defined by integrity, innovation, and a profound commitment to the greater good. 

They have the opportunity to transform familial privilege into impactful leadership. Hopefully, they won’t just wear the crown—they’ll redefine it.

Why corporate gains alone aren’t enough for true gender equality

This article was first published in the Financial Express on April 10, 2025; https://www.financialexpress.com/business/industry-why-corporate-gains-alone-arent-enough-for-true-gender-equality-3804891/

Corporate India is making significant strides—women directors have risen from 5% in 2014 to 20% in 2025, and the Female Labor Force Participation Rate surged from 23.3% in 2017–18 to 41.7% in 2023–24 (Press Information Bureau, Government of India, 2023). Despite these promising advances driven by proactive government and institutional initiatives, true gender equality remains an unfulfilled promise. Without a shared commitment from both men and women to challenge traditional norms, progress in the workplace risks remaining isolated from broader societal change. This dual reality sets the stage for our exploration of a Tale of Two Spheres—where impressive professional breakthroughs coexist with enduring traditional expectations at home.

A Tale of Two Spheres

Professionally, women have made remarkable advances globally, including in India. Even as workplaces evolve, the domestic sphere continues to demand an unacknowledged “mental load”—the invisible cognitive labor of managing household tasks, scheduling, caregiving, ritualistic religious demands, and keeping track of endless family needs, forcing many women into a relentless cycle of planning and multitasking that is rarely recognized. This imbalance forces capable women into making excruciating choices: pursue professional advancement while juggling disproportionate domestic duties, or retreat from the workforce entirely.

Even when they remain in the workforce, the persistent gender pay gap ensures that their contributions are systematically undervalued. This reality not only stifles individual potential but also curtails broader societal progress (World Bank, 2021; International Labour Organization, 2020).

Entrenched Patriarchy

Patriarchy—a social system where men wield more power than women based on the belief in male superiority, a notion that has seeped into the mindset of both genders.

It is said that good cinema often mirrors the society. Let us consider the 2020 short film Ghar ki Murgi, featuring Sakshi Tanwar, which delivers a potent commentary on domestic realities. In the film, a housewife longs for a moment of respite—a simple, human desire to reclaim personal time. Yet when she contemplates taking a break, her family immediately calculates the financial cost of her absence, reducing her vital contributions to mere numbers. Ultimately, she decides against taking the break, reasoning that she cannot leave her family because vacations are meant to be shared—a decision that underscores her deeply internalized belief that women are not entitled to self-care or personal fulfillment.

Similarly, the OTT-Zee5 film Mrs., a 2024 Hindi-language drama starring Sanya Malhotra, portrays unyielding domestic expectations. The film shows a world where the men are entitled and even the other women, steeped in patriarchal norms, fail to imagine a life beyond traditional roles like cooking and housekeeping.

But what is bothersome are the discussions that erupted on social media and WhatsApp groups following the release of Mrs. Many men questioned why women should be lauded for performing household chores, dismissing tasks like running a washing machine or making rotis as trivial—completely missing the underlying point. At the same time, some women were quick to blame themselves for not raising their children to break this cycle, worrying that such discussions might upset the equilibrium of society. This duality—of external dismissal and internalized self-blame—lays bare the pervasive influence of patriarchy, one that not only restricts women's roles but also perpetuates the very beliefs that keep them confined.

A Collective Call for Change

While economic shifts have boosted women’s participation in formal employment, many men remain insulated by traditional roles. This selective inattention perpetuates a domestic environment where change is painfully slow. Genuine progress, therefore, cannot rest on women alone; it demands a collective, inclusive effort.

True gender equality is not a zero-sum game. It is not about elevating one gender at the expense of the other but about creating a society where every individual—regardless of gender—is empowered to realize their full potential. This vision requires a fundamental rebalancing of responsibilities in both public and private spheres. It is about recognizing every contribution, whether paid or unpaid.

For equality to be truly realized, the progress seen in boardrooms must be mirrored at home. Every breakthrough in the public domain must be accompanied by a corresponding shift in domestic life—a transformation that requires the active participation of both men and women.

In the Final Reckoning

As we stand at the crossroads of progress and possibility, let our rallying cry echo from boardrooms to living rooms. Let this be our clarion call—a future where every daughter, every son, every partner, and every individual can dream freely, work equitably, and live without the weight of outdated norms. When the scales of responsibility and recognition are finally balanced, true freedom and human dignity will flourish. In dismantling these age-old shackles together, we do not simply liberate one gender—we set humanity free.

Next Gen, Family Office, and Fear of the Unknown

This article was first published by Forbes India on February 28, 2025; https://www.forbesindia.com/article/leadership/next-gen-family-office-and-fear-of-the-unknown/95434/1

Every generation believes it knows what is best for the next. Parents worry when their children make choices different from their own. In business families, this gets amplified. Today, as many heirs to business legacies choose to manage family offices rather than directly running traditional businesses, a familiar skepticism has emerged.

There are murmurs that the next generation is taking the easy way out—that instead of building businesses, they are choosing to invest, trade, and manage wealth. The assumption is that real work only happens on the factory floor, in corporate boardrooms, or while scaling tangible businesses.

Is this right? Or is it simply resistance to the unknown—a pattern we have seen before, only to later recognize its value?

Resistance to change

The doubts surrounding family offices today echo past resistance to changes in business. Ecommerce faced pushback; many were convinced customers would never trade traditional retail for online shopping. Within organizations, a transition to professional management over family-run decision-making was seen as a betrayal of legacy. 

Some of today’s most celebrated successes were once dismissed. Motorcycles were deemed unsafe, the Indian Premier League (IPL) was seen as a gimmick, and the iPhone was mocked for lacking a keyboard. Netflix, Tesla, and Airbnb all faced early predictions of failure—until they redefined their industries.

This is not to say that every change is automatically good—but simply that new paths deserve a chance before they are dismissed. The fear of the unknown often masks the potential for progress. Could family offices be at a similar inflection point. Is it a reimagining of the responsibility by the next gen, not necessarily a retreat?

Evolution of the family office

There was a time when family wealth was managed informally — invested back into the core business, parked in land, or lent within networks. Often, these investments lacked structure, transparency, and accountability, leading to disputes that stretched across generations.

Now family offices offer an alternative—one that is structured, professional, and forward-looking. While still in their nascent stages in India, globally family offices have evolved into far more than mere investment arms. They act as custodians of family legacy, ensuring values, vision, and governance structures remain intact. They manage philanthropy strategically, channeling wealth into long-term social impact initiatives. They handle legal and compliance matters, protecting assets from unnecessary disputes and liabilities. And they support entrepreneurship, funding both family-led and external ventures.

If done well, a family office does not just preserve wealth, it deploys it in ways that drive growth and impact.

Many next-gen leaders are making bold, strategic moves—modernizing businesses, investing in new industries, and ensuring their families’ wealth is managed effectively. They are not just preserving assets but deploying them intelligently.

It is easy to highlight the handful who take the easy route. It is also necessary to acknowledge those who are shaping industries, embracing technology, and driving change. The real question is not whether heirs run factories or manage investments, it is whether they are creating value.

Not us vs them

The debate is often framed as a generational divide, as if the senior and next generations are on opposing sides, locked in a battle of tradition versus change. But this is not about us vs them, it is about "us."

When the next generation succeeds, the entire family, the business, and the economy benefit. Their success ensures that wealth is not just preserved but strategically deployed, that businesses evolve rather than stagnate, and that the legacy of previous generations grows stronger.

And if they stumble? It is not failure—it is an opportunity to learn, adapt, and try again. Every generation has faced setbacks and found ways to rise stronger. The next generation must be given the same space to experiment, fail, and grow.

The senior generation’s role is not to resist change but to guide it wisely. Every great business family has adapted, whether by shifting from manufacturing to services, expanding from local to global markets, or transitioning from family-run operations to professional management.

Every new idea faces resistance before acceptance. Family offices may be misunderstood, or seen as the easy way out, but with the right support, they can drive economic growth, governance, and impact.

Rather than viewing the next generation as avoiding responsibility, can we see them as redefining it? Instead of dismissing them, let’s engage, mentor, and collaborate—because business is not about holding on to the past, but building the future.

I speak FOR family businesses. Remember Shah Rukh Khan in Chak De! India (2007)?

"Mujhe states ke naam na sunai dete hain na dikhaai dete hain… sirf ek mulk ka naam sunai deta hai—India."

(I don’t hear the names of individual states, I only hear the name of one country—India.)

Let’s not hear senior generation vs. the next generation, or traditional businesses vs. family offices. Let’s hear the echo of shared goals, continuity, success, and responsible stewardship of wealth.

Sibling Rivalry in Family Businesses: Navigating the Fault Lines

This article was first published in the Economic Times on  February 12, 2025. Co-author: Agarwal, Shailendra; 

https://economictimes.indiatimes.com/news/company/corporate-trends/sibling-rivalry-in-family-businesses-navigating-the-fault-lines/articleshow/118147295.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Family businesses, often celebrated for their resilience and commitment across generations, face unique challenges that are deeply intertwined with personal relationships. Among these challenges, sibling rivalries stand out as a recurring theme with far-reaching implications. Recent high-profile disputes, such as those involving the Lodha brothers and the Kalyani siblings, underscore the relevance of this issue in today’s business landscape. These conflicts highlight how sibling dynamics can impact not only business operations but also the emotional and strategic framework of family enterprises.

Sibling rivalries have been a persistent theme throughout history, from the mythological Mahabharata to modern-day corporate conflicts. Such rivalries often have deep roots in childhood dynamics, often exacerbated by declining values and modern pressures. These tensions, if left unchecked, can evolve into significant barriers to collaboration and growth within family businesses, jeopardizing succession planning and it’s long-term success, trust, and overall family and organizational health.

Tackling Sibling Rivalry in Family Businesses

Rivalries and conflicts cannot always be avoided. But when their ugly face begins to surface, their effective management requires addressing their underlying causes and implementing strategies to foster harmony. Sibling rivalries can be deeply ingrained and multifaceted, but thoughtful interventions and proactive measures can transform these challenges into opportunities for growth. Below are key approaches to mitigate these challenges:

Understanding the Roots of Rivalry: Sibling rivalry often originates from childhood experiences, where perceived favoritism or competition for parental approval creates emotional fault lines. These feelings can intensify in adulthood, especially in a business setting, where power dynamics and financial stakes amplify existing tensions. Recognizing these roots is essential for addressing the rivalry constructively.

Establishing Defined Roles and Governance Practices: Ambiguity in roles and decision-making processes often exacerbates sibling conflicts. Clearly delineating responsibilities within the business ensures transparency and minimizes misunderstandings. Implementing governance structures, such as family business boards and formal decision-making protocols, promotes accountability and fairness. These frameworks help shift the focus from personal rivalries to collective business goals.

Strengths-Based Collaboration: Acknowledging and leveraging each sibling’s unique strengths fosters mutual respect and cooperation. Publicly recognizing each other’s contributions can build trust and reduce competition. By working to complement rather than compete with one another, siblings can create a collaborative environment that enhances business performance and stability.

Prioritizing Communication: Miscommunication and assumptions are common sources of conflict. Open and structured communication channels are essential for resolving misunderstandings and fostering trust. Whether through regular meetings or facilitated discussions, prioritizing clear and respectful dialogue helps maintain healthy relationships.

Encouraging Shared Recognition and Vision: Siblings often seek individuality and acknowledgment, which can lead to competition. Sharing credit for successes and working toward a shared vision helps align goals and reduce tensions. A unified vision provides a common ground for siblings to focus on the long-term success of the family business.

Seeking Professional Mediation: When internal efforts fail to resolve conflicts, seeking external help from a neutral, professional mediator can be transformative. Mediators create a safe space for siblings to express grievances, facilitating constructive dialogue and resolution. Professional intervention ensures that deeply ingrained issues are addressed effectively, preserving both familial and business relationships.

Managing deep-rooted sibling dynamics is never easy, but it is possible. In some cases, like the Hinduja Group, the realization of the benefits of unity came at a significant cost—the death of the patriarch prompted the siblings to end disputes and collaborate. Conversely, families like the Godrej Group have proactively avoided disputes through transparent communication, defined responsibilities, and shared goals. Though challenging, addressing sibling rivalries early is worth the effort. Let’s not wait for a crisis to act.

Conclusion

As a childhood story goes, each finger on a hand may seem small and powerless on its own, but when they come together to form a fist, they become strong and unstoppable. In the same way, siblings working together can achieve greatness that, though not impossible, no individual effort could match. For family businesses, unity is not just an ideal; it is a necessity for enduring success.

In the ever-evolving landscape of family enterprises, the ability to rise above rivalry and collaborate effectively is what separates lasting legacies from lost opportunities. Family businesses that prioritize harmony and shared purpose will not only thrive but also set an example for generations to come.

Lessons from the Kalyani Feud: Business, Bonding, and Beyond

This article was first published in the Financial Express on January 14, 2025; 

https://www.financialexpress.com/business/industry-lessons-from-the-kalyani-feud-business-bonding-and-beyond-3715186/

Behind the dazzling success of family businesses lies an often-untold story—the story of tangled emotions, power struggles, and fractured relationships. While these enterprises drive economies and legacies, they can also unravel spectacularly when trust erodes and clarity falters. The recent Kalyani family feud reminds us that even the most illustrious dynasties are vulnerable to internal discord. It’s a cinematic tale of ambition and inheritance, but unlike Bollywood, there’s no guaranteed happy ending. Here’s what today’s family businesses must learn if they wish to avoid their own Shakespearean tragedy.

Simplify Ownership: Don’t Let Shares Become Shackles

If assets and shares are the kingdom, let there be no pretenders to the throne. Clearly defined ownership structures and a single, ironclad will are non-negotiable. The will’s existence, location, and witnesses must be transparent, even if its contents remain confidential. Think of it as writing the script to avoid future drama—the kind where the climax unfolds in courtrooms rather than boardrooms.

Professionalize the Company: Let Business, Not Battles, Define You

A family business must be a fortress, impervious to emotional storms. By bringing in non-family executives, independent directors, implementing strong governance, and creating a culture of accountability, the business can weather any familial discord. Think of this as hiring the best defense—not just for the company, but for the family’s dignity. After all, the world respects businesses that rise above personal feuds.

Don’t Pass Down the Baggage: Leave a Legacy, Not a Mess

The scars of one generation’s disputes can become the chains that bind the next. Messy inheritances and unresolved tensions drive away the very heirs who could lead the company into its future. Don’t make your children the custodians of your unfinished battles. If clarity eludes you, seek counsel from those who can guide you—before it’s too late.

Build Bonds Before Businesses: Family First, Always

What is a business empire worth if its architects are estranged? Strong family values and deep emotional bonds are the real bedrock of a legacy. Invest in open communication, shared values, and meaningful traditions. As one Hindi movie taught us, “Bade bade shehron mein chhoti chhoti baatein hoti rehti hain.” But let’s ensure those “chhoti chhoti baatein” (or even bigger ones) don’t snowball into public scandals.

Create a Playbook for Peace: Disputes Need Rules Too

Even the closest families clash. The key is to argue constructively. Pre-agreed mechanisms like family councils, mediators, or arbitration can transform battles into dialogues. Think of it as putting a referee on the field—someone who ensures the game doesn’t turn into a brawl. This simple step can prevent internal strife from spilling onto the streets (or the headlines).

Conclusion

Family businesses are a delicate dance between legacy and liability, love and loss. The Kalyani saga is a sobering reminder that the current generation of family business owners must put their house and business in order. As you reflect on the lessons above, remember: “You’ve got to hold on to what you’ve got, it doesn’t make a difference if we make it or not…” Those Bon Jovi lyrics remind us that what truly matters is holding on—to the business, yes, but more importantly, to each other.

Udaipur: A Dream in Every Detail

I recently returned from Udaipur, and even now, the city’s magic feels like it’s lingering in my heart. Known as the City of Lakes, Udaipur is a harmonious blend of romance, culture, and history. Its beauty unfolds slowly, like a story you don’t want to end. From tranquil lakes to grand palaces, from delicious food to enchanting music, Udaipur is a symphony of unforgettable experiences.

Adding to this unforgettable journey was a meeting with Maharaj Kumar Sahib Dr. Lakshyaraj Singh Ji Mewar of Udaipur. A gracious host and a remarkable individual, Lakshyaraj Ji welcomed us warmly, and our conversations spanned a range of meaningful topics—from family enterprises to philanthropy, from education in schools to advancing gender equality. For our next generation, it was a unique opportunity to meet and connect with the 77th generation scion of the Mewar dynasty—a living symbol of Udaipur’s rich history and legacy.

A Cup of Chai Under the Moonlight

One of my most cherished memories is of sipping chai by the lake. Now, you should know I’m quite picky when it comes to tea made outside. But in Udaipur? Every cup was perfection—smooth, comforting, and made exactly how I like it (after a few instructions, of course). Imagine this: a warm cup in hand, the moonlight shimmering on the water, and majestic palaces standing tall around you. It wasn’t just tea—it was pure magic.

The moon itself was a star of the trip. Every night, it rose over the city with an effortless grace, lighting up the clear skies and reflecting off the tranquil lakes below. Its beauty was almost hypnotic, making every evening feel like an ode to quiet wonder.

And then there were the flowers. Bright, vibrant, and blooming everywhere, they added splashes of color to every corner of the city. Whether cascading over walls or lining pathways, their beauty was a reminder of nature’s quiet ability to charm.

Sunsets, Reflections, and Palaces

If Udaipur’s nights are enchanting, its evenings are nothing short of breathtaking. The sunsets here are some of the most stunning I’ve ever seen. The sky transforms into a canvas of gold, orange, and pink, casting its hues over the city and its lakes. Watching the sun dip behind the Aravalli Hills, with its colors spilling across the water, was a sight I’ll never forget.

And then there are the palaces—grandeur personified. Built centuries ago, without the technology or machinery we rely on today, these architectural marvels are stories etched in stone. The intricate carvings, the sprawling courtyards, the attention to every detail—each palace whispers tales of royalty and vision.

The lakes, too, play their part. They don’t just surround the palaces—they become a part of their beauty. Whether in the soft glow of morning, the blazing light of day, or the fading hues of sunset, the lakes reflect the palaces in a way that feels like a work of art in constant motion.

Savoring the Flavors of Udaipur

Food in Udaipur is an adventure in itself, and for someone with a Marwari palate, it was an absolute delight. From ghee-rich daal baati churma to flavorful kair sangri, lehsan ki sabzi, and even papad ki sabzi, every meal felt like a warm embrace of tradition.

And yet, even something as simple as Maggi became special here. On a cool day, steaming noodles, I found joy in the simplicity of the moment.

Sukhadia Circle, with its small shops serving everything from chaat to sweets, was another highlight. And for fine dining with a view, places like Amrai and Darikhana at Jag Mandir combined delicious food with unforgettable settings. Eating by the lake, with palaces glowing in the distance, is an experience that elevates every bite.

Rajasthan in Rhythm

Udaipur’s cultural heartbeat comes alive in its folk dances and music. Watching Ghoomar, with its flowing skirts and graceful circles, is an unforgettable sight. The vibrant costumes and rhythmic movements create a spellbinding visual treat.

Dhola Maaru, a hauntingly beautiful ballad of love, struck a deep chord. Even without understanding every word, the melody felt universal, carrying emotions that transcend language.

What made these performances even more magical was the setting. Whether by a tranquil lakeside or within the historic courtyards of a palace, the atmosphere added layers of depth to every note and movement. It wasn’t just entertainment—it was immersion into Rajasthan’s living traditions.

Lakes and Legacy

The man-made lakes of Udaipur are a marvel of both beauty and ingenuity. Built centuries ago to meet the water needs of this arid city, they are lifelines disguised as romance. Whether it’s the iconic Lake Pichola, with its serene waters mirroring the palaces, or the picturesque Fateh Sagar Lake, framed by rolling hills, each one adds to Udaipur’s timeless allure.

The museums in Udaipur are equally captivating. The City Palace Museum offers an intimate glimpse into the lives of the maharajas, with its intricate designs and rich history. The Vintage Car Museum is a treasure trove of rare automobiles, each one telling its own story of elegance and style. And the Crystal Gallery? It’s beyond words—chandeliers and artifacts so exquisite they feel almost otherworldly.

A City That Stays with You

Udaipur isn’t just a place you visit; it’s a place you feel. Its lakes, palaces, food, and music weave a story that stays with you long after you leave. Meeting Lakshyaraj Ji added another layer to this journey—a chance to connect with the legacy of the Mewar dynasty and reflect on the values that continue to shape this historic city.

As I left, I realized that Udaipur isn’t just a destination—it’s a reminder of how deeply art, culture, and history can touch our lives.

Legacy in Action: Continuity, Storytelling, and Archiving at the TATAs

This Book Review was first published in the Economic Times, December 13, 2024; https://economictimes.indiatimes.com/news/company/corporate-trends/legacy-in-action-continuity-storytelling-and-archiving-at-the-tatas/articleshow/116273631.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

In Jamsetji Tata: Powerful Learnings for Corporate Success, R. Gopalakrishnan and Harish Bhat provide an intimate view into the Tata Group’s legacy, revealing the values and vision that have helped this family enterprise endure across generations. This book benefits from the insider perspective of authors who have “lived” within the Tata ethos. Throughout the book, three core principles stood out to me for their relevance to family businesses everywhere: continuity, storytelling, and archiving. Through these pillars, the Tata Group has not only survived but has actively contributed to India’s growth story for over a century.

Continuity as the Backbone of Purpose

In family businesses, continuity is the anchor that keeps purpose alive. The Tata Group is a compelling case in point, where continuity is not a passive inheritance but a deliberate practice. Jamsetji Tata envisioned an institute of higher education in India and his son, Dorabji Tata, carried this vision forward by establishing the Indian Institute of Science, a foundation for India’s scientific advancement. Later leaders, like Naoroji Saklatwala and Ratan Tata, stayed true to Jamsetji’s goals by expanding the group’s initiatives in healthcare, education, and rural outreach, including regions like the underserved Northeast.

What emerges through Jamsetji Tata is an argument for continuity as more than tradition; it is an evolving legacy that serves as both compass and anchor. Without continuity, iconic Tata projects like the Cancer Research Institute or the Northeast Initiative could have easily become fleeting ventures. Instead, they are legacies, continually renewed by successive leaders. The Tata story suggests that if family businesses seek to last, their purpose must be deliberately preserved and adapted across generations.

The Role of Storytelling in Building Legacy

Gopalakrishnan and Bhat show that in Tata’s journey, storytelling has played a central role in transmitting values and keeping the organization’s mission alive. In business, it’s easy to lose sight of purpose, but stories—especially those that explain the “why” behind values—make those principles memorable and accessible. Storytelling within Tata has preserved a cohesive narrative, reinforcing the organization’s commitment to community, integrity, and resilience in the face of adversity.

Consider the story of Mithapur, a drought-stricken settlement in Gujarat that Tata helped turn into a thriving township. In today’s era, where discussions often revolve around work-life balance, the dedication that went into transforming Mithapur may seem almost unimaginable. Tata’s story in Mithapur illustrates what’s possible when companies invest beyond profit, in places that need development. They offer insights into the ethos of purpose-driven enterprises and inspire budding entrepreneurs to envision business as a force for societal good.

As the spouse of an entrepreneur, the story of Dorabji Tata and his wife Meher Bai, who pledged their entire wealth to save Tata Steel, resonates deeply with me. I know how tough these decisions are. Tata’s stories don’t merely showcase business achievements—they reveal the spirit of sacrifice and conviction that make up the core of the organization’s legacy. And, storytelling isn’t just a tool for marketing but a way to instill values that resonate across generations and communities.

Archiving as a Pillar of Organizational Memory

Perhaps the most understated yet powerful aspect in Jamsetji Tata is the emphasis on archiving as a tool for continuity. By meticulously preserving letters, speeches, and records, Tata has built a repository that keeps its past connected to its future. This archive doesn’t just record facts; it captures lessons, insights, and the reasoning behind key decisions, providing a resource for current and future leaders alike, cultivating a living memory.

For other family businesses, the Tata archive is an inspiring model, underscoring how documenting history and values can build a lasting legacy. Preserving history this way is more than nostalgia; it’s a strategic resource that reinforces Tata’s purpose, ensuring that its ethos remains as powerful today as it was a century ago.

A Blueprint for Family Businesses Seeking Enduring Success

Taken together, continuity, storytelling, and archiving create a framework for sustaining purpose over generations. Gopalakrishnan and Bhat’s account is both a tribute to Tata’s rich history and a guide for family businesses grappling with the challenge of building a legacy that lasts. This book invites business families to consider how they might nurture a shared purpose, disseminate stories that resonate across generations, and preserve the lessons of the past for future growth.

Through their insider perspective, Gopalakrishnan and Bhat reveal that in a world often consumed by the pursuit of growth and innovation, Jamsetji Tata is a timely reminder that true legacy is not merely built, but carefully tended—through continuity in purpose and values, storytelling, and preservation. The authors offer an enduring truth: success may be measured in quarters, but legacy is crafted across centuries.

Indian Family Businesses: Few clear on succession, why others need to worry?

This article was first published in the Financial Express on November 07, 2024; Co-author: Shailendra Agarwal; https://www.financialexpress.com/opinion/indian-family-businesses-few-clear-on-succession-why-others-need-to-worry/3658620/

Succession is one of the most important issue facing family businesses, yet only about 21% of the 106 family business leaders surveyed agreed to having a robust, documented and communicated succession plan, in India (PwC India Family Business Survey 2019). Other global surveys tell a similar story highlighting a serious oversight that could lead to business failure, family disputes, and the erosion of wealth that has taken generations to build.

Family businesses form the backbone of India’s economy, but many struggle with the complexities of succession. Take the Singhania family of JK Group as a case in point. Once one of India’s most illustrious business families, the Singhanias faced protracted legal and family disputes when succession planning took a backseat. Disagreements among family members over leadership of the iconic Raymond brand left the company embroiled in controversy, impacting both business operations and family relationships. This example highlights the importance of clear, proactive succession planning to avoid potential instability and disputes.

While succession planning is widely discussed, many family enterprises fail to act in time. Delays or ambiguities in leadership transitions can destabilize both the family legacy and business stability. In this article, we explore why proactive succession planning is critical, along with strategies for navigating the emotional and family dynamics that often accompany generational transitions.

A Legacy in Limbo

Succession in family businesses is about more than passing on a title; it’s about preserving a legacy. Without a formal, proactive plan, businesses risk destabilization, internal conflict, and financial loss. Consider the example of Beri Constructions (names disguised). Founded by Jayesh Beri's grandfather, the company was left vulnerable when his uncle, refusing to step down, blocked Jayesh’s advancement. Frustrated, Jayesh left to start his own venture, leaving Beri Constructions rudderless. Eventually, it was sold under duress at a fraction of its worth. A lack of succession planning had cost the family dearly.

In contrast, Shah Motors, a billion-rupee enterprise, took a different route. The founding brothers initiated succession planning early, training and mentoring the next generation. By aligning family goals with business needs, they created a smooth leadership transition that preserved both family unity and business prosperity.

The Emotional Roadblocks

The complexity of succession planning often lies more in emotions than in economics. Founders may struggle to step aside, fearing a loss of control and identity, while successors feel frustrated or entitled. The key lies in managing these dynamics openly and with empathy. Founders who proactively mentor successors and gradually hand over responsibility foster a healthier transition. This approach not only strengthens business resilience but also keeps family bonds intact.

Strategies for Effective Succession

For family businesses to thrive through generational change, succession planning must be intentional and structured. Here are five proven strategies:

·       Start Early: Succession planning should begin years before the transition, giving successors time to build experience and competence.

·       Prioritize Merit Over Entitlement: Choose successors based on capability, not family hierarchy. Future leaders should have the skills and vision necessary for business continuity.

·       Clarify Roles: Defining family and non-family members' roles within the business minimizes confusion and conflict.

·       Mentorship, Not Micromanagement: Founders should act as mentors, not controllers, allowing successors to lead effectively while providing guidance.

·       Plan for Contingencies: Succession plans should include contingencies for unforeseen events, ensuring stability in crises.

Redefining Roles for Smooth Transition

One overlooked aspect of succession is the incumbent’s transition. Rather than clinging to day-to-day leadership, founders should gradually step back, redefining their role to ensure continuity. This gradual handover not only stabilizes the business but also helps the outgoing leader adjust emotionally.

The Choice is Yours

Succession in family businesses is inevitable. It can be a smooth handover or a chaotic scramble—depending on how prepared you are. As with Shah Motors, a thoughtful succession plan can protect your legacy and keep your business resilient. Without it, the family’s hard-earned wealth and reputation risk fading into obscurity.

Failing to plan for succession is like handing over the keys to someone unprepared: the journey might continue for a while, but it’s bound to derail eventually. The choice is clear: prepare now or pay later.

When a Series Became My Unexpected Lifesaver

Picture this: you’re drowning in an ocean of thoughts, and the shore is nowhere in sight. It’s not the majestic kind of ocean we see on Instagram reels. No, this is the relentless, chaotic sea of an overactive, restless mind. Concentration slips away, irritability grows claws, and your favorite books, shows, and even people seem unappealing, distant. You’re caught somewhere between anxiousness and inertia—trapped in a limbo of your own making. And, honestly, you’re not sure what it will take to break free.

Then, as if sensing the tides within, someone close nudges (okay, more like pushes) you to watch a particular series. You roll your eyes, but something in you listens. “Fine,” you think. “It’s just one episode.” At first, you watch with reluctance, slightly annoyed even—why this, of all things, when you can’t focus on anything else? But for the love of that person, you start watching. Soon enough, episode one turns into episode two. Somewhere around episode three, you start noticing the quiet hum of calm returning. And with that, you realize the chaos in your mind is slowly retreating to the background. Healing, as reluctant as it began, is underway.

For me, that healing came through watching Kabhi Main Kabhi Tum, which quickly became my accidental anchor. This show isn’t just a romantic drama; it’s a world of characters who, despite their flaws, grapple with love, ambition, and vulnerability with heart and humor. Sharjeena, a character full of practicality and intellect, somehow managed to soothe my own scattered thoughts with her steady resilience. Mustafa, the somewhat laid-back, unhurried spirit, was like that reminder to breathe when life feels like it’s rushing too fast. Their interactions—a blend of wit, misunderstanding, and undeniable chemistry—brought a lightness to my mind, making me smile when I hadn’t for a while. Together, they began to replace my own overthinking with their messy, real, yet endearing way of stumbling through life.

What’s intriguing is that this effect, as life-changing as it feels, isn’t just in my head. Psychologists call it Distraction Theory, which is the concept of redirecting the mind’s focus away from troubling thoughts by giving it something else to engage with. Distraction theory isn’t about avoiding problems forever—it’s a way to create mental breathing room. When I immersed myself in Kabhi Main Kabhi Tum, my mind had something new to chew on, and the noise began to fade. The series became an emotional palate cleanser, helping me return to myself a little steadier than before.

Then there’s Narrative Transportation Theory, a fascinating idea that explains what happens when we become fully absorbed in a story. Imagine watching a show so captivating that, for a while, your worries feel like they’re part of a different reality. As I delved into the world of Kabhi Main Kabhi Tum, its drama, characters, and plot twists became a world where I could rest my own worries. Psychologically, this immersion is powerful—it’s almost like visiting a world outside of your own, offering a refreshing mental reset without the need for elaborate escapes or forced relaxation.

In the realm of management, there’s also the concept of Emotional Resilience—the ability to recover from life’s challenges with a sense of calm and adaptability. Watching the characters in Kabhi Main Kabhi Tum stumble, recover, and find joy despite their own issues had a subtle effect on me, like a gentle reminder of my own ability to bounce back. It was as if their resilience reminded me of my own, and with each episode, I felt better equipped to face my own day. The show built my resilience, episode by episode, encouraging me to regain balance with a little less effort than before.

And then there are friends who are our lifelines, sometimes in understated ways. They may not storm in with grand gestures or “fix” everything, but they are there, unwavering and patient. The friend who nudged me toward Kabhi Main Kabhi Tum was exactly this kind of presence: always there, quietly persistent, and deeply intuitive. She knew that words or advice weren’t what I needed—just a nudge, a push to something soothing and steady. These friends are the kind of people you reach out for in life’s storms, a steady hand when everything else feels like it’s slipping. They may not be shouting encouragement, but they’re like the firm stick you hold onto, even when you’re not quite sure how to keep going. I can’t help but feel grateful for the simplicity and depth of that kind of support.

What’s magical about moments like these is how they remind us that healing doesn’t always come in grand gestures or planned retreats. Sometimes, it arrives quietly, disguised as a beloved series that makes you laugh, cringe, or even cry a little. In a safe space, without pressure or expectations, you can start finding pieces of yourself again.

Kabhi Main Kabhi Tum didn’t just give me an escape; it gently encouraged me to re-engage with the world outside my thoughts. It was a lifeline that reminded me of the comfort in storytelling, the power of stepping back, and the beautiful surprise of discovering healing in the most unexpected places.

In short, sometimes it’s not about facing your problems head-on. Sometimes, it’s about sitting back, turning on a good series, and letting your mind wander just enough to come back to you, lighter and a little more at peace. So, here’s to the shows that save us—and to the friends who know exactly what we need—even when we don’t know it ourselves.

Breaking the Cycle: Business Families Must Lead in Safeguarding Women

This article was first published in Business Standard on September 12, 2024; https://www.business-standard.com/opinion/columns/breaking-the-cycle-business-families-must-lead-in-safeguarding-women-124091201362_1.html

The recent tragedy at RG Kar Medical College has once again thrust the issue of women's safety into the national spotlight. As the horrific details emerge, the frustration and anger felt by many are palpable. For those of us who vividly recall the outcry following the Nirbhaya case, this feels all too familiar. Despite the countless articles, protests, and promises of reform, here we are again, grappling with another atrocity that shakes our collective conscience.

Frankly, I don’t want to write this article. After Nirbhaya, there was an outpouring of words, and yet, what has changed? The news of another young woman brutalized makes my blood boil, and it’s hard to see how more words will prevent the next tragedy. But there is something I can say, something I can urge: Business families, the backbone of our economy, it is time to take a stand. The nation needs you to be the change.

The Potential Power of Business Families

Business families wield immense power—not just in terms of economic capital, but also in shaping societal norms. The decisions made within these families often set the tone for how women are perceived and treated, not just within the family business, but in society at large. Unfortunately, these decisions are too often swayed by outdated cultural norms, where women are relegated to the background, serving as silent supporters rather than active participants.

Take a moment to reflect: how many women in your family are truly involved in the decision-making processes of your business? Are they empowered to lead, to innovate, to drive change? Or are they merely rubber stamps, there for the sake of appearances?

The Case for Inclusion: A Lesson from Apollo Hospitals

Consider the example set by the women of the Apollo Hospitals family, who recently released a powerful video message pledging to ensure a safe working environment for all women within their organization. These women, who are not just figureheads but active leaders, understand the impact they can have in creating a culture of safety and respect. Their commitment sends a clear message: when women are empowered, they can drive meaningful change.

Business families have the unique ability to foster gender-neutral environments, where women are given equal opportunities to lead and influence. Yet, many remain bound by the constraints of tradition—whether it’s the expectation that daughters will leave the family business upon marriage, or the belief that sons are the rightful heirs to leadership.

But imagine the impact if business families across the nation decided to break free from these constraints. Imagine if they championed their daughters, daughters-in-law, wives, sisters, and mothers, encouraging them to take on leadership roles, to be the voices of reason and compassion in boardrooms dominated by patriarchal norms.

The Responsibility to Lead by Example

The onus is on business families to lead by example. By promoting women within their own ranks, they not only strengthen their businesses but also contribute to a broader cultural shift. A woman who is empowered in her family business is likely to advocate for the safety and well-being of all women in the workplace. She is likely to challenge norms that have long gone unchallenged and to inspire others to do the same.

It’s easy to feel powerless in the face of such heinous crimes as the one at RG Kar, but business families are anything but powerless. You have the resources, the influence, and the platform to effect real change. You have the ability to make your businesses not just profitable, but also pillars of safety and equity.

A Call to Action

I urge you—business families, family businesses—don’t let this moment pass without taking action. Empower the women in your family to be leaders, not just in name but in deed. Create policies that protect all employees, particularly women, from harm. Use your influence to advocate for a society where safety is a given, not a privilege.

Be the change. The nation is watching, and it needs you to lead.

Build a legacy where names like Nirbhaya and Abhaya are never repeated, and candles are lit only in celebration, not in mourning. Pass your enterprises from one generation to the next, while ensuring that what we women hand down to our daughters is empowerment and safety, not candles.

Strategies for Effective Implementation of Family Business Constitutions

This article was first published in the Economic Times on May 22, 2024. Co-authors: Anil Sainani & Kavil Ramachandran. The article can be accessed here: https://economictimes.indiatimes.com/news/company/corporate-trends/strategies-for-effective-implementation-of-family-business-constitutions/articleshow/110339892.cms

The awareness and prevalence of Family Business Constitutions (FBCs) amongst the business families in India is rising. While many families boast of meticulously crafted constitutions, a significant gap often exists between aspiration and reality. Despite their existence, these documents frequently remain dormant, failing to permeate at the strategic, operational, and even familial dynamics level. This article explores strategies for the effective implementation and bridging the divide between the aspirational ideals outlined in the constitution and the lived reality of day-to-day interactions, long-term strategies, decision-making processes, and familial aspects of harmony and togetherness.

Strategies for Effective Implementation

Cultivating Mindset and Behavioural Shifts: Central to successful implementation is a paradigm shift in mindset and behaviour. Embracing new modes of thinking and interaction aligned with constitutional principles demands investment in communication skills, conflict resolution techniques, and emotional intelligence. This shift is not merely about compliance with rules but about cultivating a culture of trust, collaboration, and shared purpose within the family and across the business.

Fostering Structured Meetings and Support Systems: Structured gatherings, such as family council and family business board meetings, provide dedicated spaces for reflection, dialogue, and decision-making. These meetings serve as platforms for discussing key issues, reviewing progress, and making strategic decisions in line with the constitution's principles. Establishing a family office can further streamline the implementation process by providing logistical support for scheduling, agenda creation, documentation, and follow-up actions. This centralized hub ensures continuity and focus, freeing up family members to focus on substantive issues rather than administrative tasks.

Clarifying Roles and Responsibilities: Clarity in roles within the various institutions of family governance, such as the family council, family business board, next-gen council, or the family office, is pivotal. Designating individuals to lead specific institutions/committees fosters accountability and progress. By delineating responsibilities and expectations, families can ensure that everyone understands their role in upholding the constitution and contributing to its effective implementation. This clarity promotes alignment and coordination, minimizing misunderstandings and conflicts arising due to ambiguity.

Leveraging External Guidance and Expertise: In navigating the complexities of family governance and conflict resolution, seeking external guidance from experts can provide invaluable insights and support. External advisors with experience in family business dynamics can offer impartial perspectives, facilitate constructive dialogue, and provide best practices tailored to the unique needs of the family enterprise. Their guidance can help families navigate challenges more effectively and enhance the likelihood of successful implementation.

Embracing Specific Practices: Embedding practices into daily routines reinforces commitment and values alignment. Initiatives like starting meetings with a family prayer and regular updates on personal and business developments promote cohesion and shared understanding. Additionally, incorporating rituals and traditions that reflect the family's values and heritage can foster a sense of identity and belonging, reinforcing the importance of the constitution in guiding family affairs.

Continual Revision and Adaptation: Finally, continual revision and adaptation are essential to ensure the constitution remains relevant amidst evolving family dynamics and external influences. As family members grow and change over time, so too must the constitution evolve to reflect their needs, aspirations, and values. Regular reviews and updates ensure that the document remains a living, breathing framework that guides the family's collective journey towards sustainable growth and prosperity.

A Breathing and Evolving Document

Implementing a FBC transcends the mere creation of a document; it embodies a transformative journey of commitment, patience, and collective effort. By embracing proactive strategies and recognizing challenges as opportunities for growth, families can breathe life into their constitution, shaping a legacy of sustainable prosperity amidst an ever-evolving landscape. Ultimately, the true test of its efficacy lies not in its existence but in its embodiment in every facet of family and business life, enriching relationships, fostering trust, and paving the way for a future filled with promise and possibility.

An exemplary instance of successful implementation can be found in the GMR Group, one of India's leading infrastructure conglomerates. By embedding their core values and principles into their operational framework, the GMR family has demonstrated a steadfast commitment to their constitution, fostering a culture of integrity, innovation, and sustainable growth across generations.

The FBC is a journey rather than a destination. Its implementation must acknowledge the dynamic nature of family businesses, emphasizing resilience and adaptability in navigating inevitable challenges. As the world around us continues to change, the constitution serves as a beacon of clarity and stability, binding the family together and guiding them through both calm seas and stormy waters. By embodying these principles, families can ensure their constitution is a living document that supports sustainable growth and cohesion across generations.

Writing is Easy, not Living: Challenges in Implementing Family Business Constitutions

This article was first published in the Economic Times on May 22, 2024. Co-authors: Anil Sainani & Kavil Ramachandran. The article can be accessed here: https://economictimes.indiatimes.com/news/company/corporate-trends/writing-is-easy-not-living-challenges-in-implementing-family-business-constitutions/articleshow/110339950.cms

Drafting a constitution for the family business has gained popularity, with many wishfully viewing it as a cure-all for their current and future challenges. While creating a constitution is essential, families should understand it merely marks the initial phase in fostering a cohesive family business. In reality, numerous families face difficulties in actualizing the principles outlined in the document into practical, everyday reality. We discuss here the key challenges encountered in implementing a family business constitution.

Concept of Family Business Constitution (FBC): There are fundamental differences in the two systems of family and business, necessitating clarity across various levels to ensure the enduring strength of the combined entity. Serving as a guiding document, the FBC is instrumental in preserving harmony, values, wealth, and the long-term sustainability of the family business. It establishes a foundational framework governing diverse aspects of family dynamics and their interplay with business operations, encompassing pivotal areas such as decision-making processes, roles and responsibilities of family members, and mechanisms for conflict resolution spanning multiple generations. While many families opt for a written constitution for its clarity and specificity, an unwritten constitution relies on shared understandings and traditions transmitted across generations.

The Implementation Conundrum: Despite recognizing the importance of a FBC, many families struggle with its implementation. They often follow a familiar pattern: first creating the constitution, then faltering in translating its provisions into lived experience. The reasons for this failure are multifaceted and complex.

Lack of Comprehensive Understanding and Preparation: Family members often lack a comprehensive understanding of the need for a constitution, its significance, and the importance of strategic planning for family resources. Without proper education and preparation, they may view the constitution as merely a document for wealth preservation and management rather than a guiding framework for family governance and sustainability. The absence of formal education on these matters, often overlooked by consultants, results in a lack of preparedness to adapt to changing situations, ultimately impacting the implementation of the constitution. Multiple family businesses in Europe and US invest in regular educational sessions amongst family business members, spanning over 6-12 months, before creating their FBC.

Underestimation of Challenges: Families may grossly underestimate the complexities involved in implementing the constitution, leading to disillusionment and disengagement. Initially, there is often a sense of optimism and enthusiasm about drafting the document. However, as the realities of implementation set in, families realise the magnitude of the task at hand, covering careers, performance, rewards, resource allocation, power, and accountability. Without proper preparation and realistic expectations, they struggle to navigate the intricate web of family dynamics and business operations.

Length and Complexity: The length and complexity of FBCs pose challenges for family members in remembering and adhering to key provisions. The extensive nature of these documents can overwhelm stakeholders, fostering confusion and ambiguity, particularly when FBCs are rules-based rather than principles-based. Moreover, the legal and technical language complexity tends to estrange family members not proficient in such matters, impeding effective implementation. Encouraging a focus on the spirit of the constitution rather than fixating solely on its literal interpretation is crucial for fostering a shared understanding among family members.

Lack of Guidance: Families may lack the necessary expertise to effectively plan, conduct, document, and follow up in organizing effective meetings of Family Council and Family Business Board. In many cases, family members are not adequately trained or educated in governance practices and conflict resolution strategies. Without access to external resources and guidance, they struggle to navigate complex issues and make informed decisions, leading to inefficiencies and roadblocks in the implementation journey.

Scheduling Difficulties: Finding time to convene meetings and discussions amidst busy schedules proves to be a significant hurdle. Family members are often involved in various personal and professional commitments, making it challenging to prioritize constitution-related activities. After all, the impact of any delay in business decisions is felt immediately, whereas delays in non-adherence to a constitutional policy may not! Consequently, important discussions and decisions are delayed or postponed, impeding progress and momentum in the implementation process.

Communication Barriers: Lack of a tradition of open discussion where members express diverse ideas, disagreements, and concerns openly and listen to others intently are major challenges, leading to communication breakdowns, misunderstandings, and conflicts.  All these undermine effectiveness of the implementation efforts.

Fear of Conflict: Family members may avoid challenging conversations for fear of hurting feelings or creating tension within the family. Conflict avoidance becomes a barrier to addressing critical issues and making difficult decisions. As a result, underlying tensions and disagreements remain unresolved, simmering beneath the surface and impeding progress towards implementing the constitution effectively.

Neglect and Discrediting: Over time, when people do not follow the provisions of the constitution and the same goes unchallenged, the document loses its sanctity and relevance in guiding family dynamics and business operations. Neglecting to uphold the principles and values outlined in the constitution undermines its credibility and effectiveness. Without accountability and enforcement mechanisms in place, family members may disregard the constitution's provisions, leading to erosion of trust and cohesion within the family business.

The Beginning. Not the End: Implementing a Family Business Constitution demands unwavering commitment, diligent effort, and a profound understanding of its significance from all family members. Yet, the journey doesn't end with the drafting of the document; it begins there. It's about translating words into action, turning intentions into reality, and upholding the values enshrined within. The proof of its efficacy lies not in its existence but in its embodiment in every facet of family and business life. As exemplified by visionary families like GMR, who have embraced their constitutions as guiding beacons, let us heed their example and embark on a journey of transformation, where the constitution isn't just a document but the cornerstone of a legacy, ensuring enduring prosperity for generations to come.

Navigating the Crossroads

This article was originally published in Business Standard, May 07, 2024; Co-author: Kavil Ramachandran

https://www.business-standard.com/opinion/columns/impact-of-divisions-in-family-businesses-motivations-and-consequences-124050601237_1.html

The recent trend of ownership restructuring and vertical splits amongst prominent Indian family businesses, exemplified by the division within the Godrej Group, has brought to the forefront the complexities and challenges associated with managing large, multi-generational enterprises. While opting to split the business may appear as a strategic manoeuvre to navigate differing visions and aspirations within the family, it necessitates a thorough examination of both the potential benefits and drawbacks. This article delves into a comprehensive perspective on family business divisions, scrutinizing both the motivations propelling such decisions and the adverse consequences they may entail at both familial and corporate levels.

The Positive Aspects

Complexity of Managing Large Conglomerates: As family businesses expand and diversify, managing the intricate web of operations and stakeholders becomes increasingly challenging. Formations of smaller clusters, each having its own strategic business units, allows for streamlined management structures and clearer accountability, leading to enhanced efficiency and agility in decision-making. For instance, the Adi-Nadir and Jamshed-Smita clusters will enable the entities to focus on their core competencies and strategic priorities, driving operational excellence and value creation in their respective sectors.

Unlocking Value and Growth Potential: A split can unlock the individual value and growth potential of different business segments. Specialized focus allows each entity to tailor strategies, attract specific talent, and pursue targeted investments, ultimately leading to greater success and profitability. The division of the Godrej Group into separate entities controlled by different family members should enable each cluster to capitalize on their respective strengths and market opportunities, drive innovation, and value creation.

Accommodating Growth and Aspirations of the Family: As family businesses expand across generations, differing opinions on strategy and management can arise, leading to conflict. Dividing the business offers autonomy to individual branches, fostering ownership and accountability while reducing discord. For example, the Birla Group split allowed each faction to pursue independent growth, leveraging diverse skills. Additionally, younger generations may seek opportunities aligned with their interests, driving innovation. For instance, the Bajaj Group's diversification into finance empowered the next generation to pursue their entrepreneurial vision.

Learning from Past Experiences: Observing the challenges faced by other business families during succession or disputes can serve as valuable lessons. Proactively choosing to divide the business allows for a planned and amicable transition, ensuring the preservation of family relationships and the brand's reputation. The Bajaj family's decision to split the Bajaj Group into separate entities facilitated a smoother transition of leadership and ownership, mitigating the risk of future legal battles and reputational damage, while preserving the family's unity and legacy.

Ownership and Rewards: A strategic and amicable split within a family business can enable individuals to have greater "skin in the game" and receive rewards commensurate with their contributions and aspirations, ultimately fostering harmony and prosperity within the family. The Mittal family, for example, founders of the Mittal Steel Company, decided to amicably split the business to align ownership with individual aspirations and rewards.

Moreover, the division of the business not only aligns ownership with individual aspirations and rewards but also serves to minimize politics in decision-making processes. By decentralizing control and empowering each cluster within the family, quicker decision-making is facilitated, eliminating the need for seeking approval from numerous stakeholders.

While the preceding discussion highlights reasons that motivate families to split, it's essential to recognize that divisions entail inherent risks and complexities too. Below, we discuss some negative impacts of splitting.

Unintended Downsides

Loss of Synergy and Economies of Scale: A unified conglomerate often benefits from synergies between diverse business segments, leading to cost efficiencies, shared resources, and heightened bargaining power. For instance, the Tata Group's diversified portfolio leverages synergies across industries, bolstering its competitive edge and financial performance, including a cohesive brand identity. However, the division of such conglomerates, as seen in the case of the Ambani family's split of the Reliance Group and the TVS group, risks diluting these synergistic advantages, thereby impacting profitability and competitiveness.

Potential for Family Conflict and Rivalries: While division may aim to address existing disagreements or differing aspirations within the family, it can inadvertently give rise to new challenges and rivalries between the separated entities. The battle between two hero group entities, post the split, regarding the use of the brand name ‘Hero’, highlights the potential for discord arising from family business divisions. Such conflicts can impede decision-making processes, hinder strategic alignment, and erode shareholder value.

Challenges in Succession Planning and Leadership Development: Staying unified provides access to a broader talent pool, both from within the family and externally, ensuring continuity and strength in leadership across the organization. The Murugappa Group's robust leadership development programs serve as a prime example, facilitating seamless succession planning and talent pipeline management across its diverse business verticals. However, splitting the business may curtail these opportunities, making it more challenging to ensure a seamless succession process and maintain robust leadership across the separated entities.

Emotional and Cultural Impact: Family businesses often pride themselves on strong cultural identities and shared values that underpin their success. The Murugappa Group exemplifies this with its deep-rooted cultural ethos of trust, integrity, and entrepreneurship, which has fostered a cohesive organizational culture and sustained business performance over generations. However, division poses a risk to this unity and shared purpose, potentially leading to emotional challenges and a loss of cultural cohesion within the family.

Growing Wealth Disparity: Past business splits have revealed that while divisions may start out equitable, over time, one faction often amasses more wealth and resources. For example, the Ambani brothers' feud over the Reliance Group's assets led to a significant wealth gap between Mukesh and Anil Ambani. These disparities can fuel family tensions and perpetuate financial inequalities, highlighting the socioeconomic impact of family business divisions.

Harmonizing Family and Corporate Choices

In navigating the complex terrain of family business divisions, it becomes imperative to acknowledge the nuanced interplay of motivations and consequences. While the prospect of splitting a conglomerate may offer avenues for addressing immediate challenges and accommodating evolving aspirations, it also entails significant risks and losses, both at the familial and corporate levels. The case studies of prominent Indian business families, such as the Ambanis, Birlas, and Munjals, underscore the intricate dynamics and far-reaching implications of such divisions, ranging from wealth disparities to emotional upheavals.

By embracing a proactive stance towards addressing emerging challenges, family conglomerates like Godrej could potentially have emerged as global powerhouses, wielding not just economic influence but also shaping the broader political and societal landscape. However, by choosing to split, these conglomerates risk diluting their legacies and missing out on transformative growth opportunities. Ultimately, the path forward for family businesses lies in striking a delicate balance between tradition and innovation, unity and autonomy, to ensure sustained success and relevance in an increasingly competitive global landscape. We can only hope that the sum of the parts is eventually greater than the whole, in numbers, as well as in family harmony, togetherness, and impact.

A Country Called Childhood

When reading "A Country Called Childhood- A Memoir" by Deepti Naval, I became nostalgic and reminisced about my childhood. I recall the Shree Ji stores in Ramgarh which used to be my favorite shop. It rented out comics for Re 1 a day. Sometimes 4-5 Amar Chitra Katha or other comic books would be bound together and they would charge a slightly higher amount for renting it. Ramgarh did not have a library and that store filled the gap for me. They also had various candies and gift items that used to fascinate me.

I also recall the samosas and sweets of Rajasthan Kalewalaya and their dahi kachori on special occasions. Later, when I was slightly older, they started selling a sweet called Madhuchakra that became my favorite.

Priya Sweets was for special occasions. Especially when I went to the main road and the elder accompanying me was in a good mood and had a few extra rupees to indulge me. There used to be the occasional curry puff, pineapple pastry, and beetroot cutlet.

Then Mangal Singh's shop was perhaps the most aspirational shop. You went there to buy an odd pencil box or water bottle. But there were so many things I liked. There used to be games, fancy tiffin boxes, or water bottles, that were often out of bounds.

For as long as I recall, we bought dresses only from National Stores. It was a very fancy store for it's times. It looked glossy, clean, and neatly arranged. We bought very few dresses but bought only from there. In hindsight, it seems like a lesson in quality over quantity.

One distinct memory I have of Ramgarh during my growing up years is the mela that used to be put up every year during December and would go on till Jan 26th. It used to have the Maut ka kuan, the Ferris wheel, a circus, and various shops selling toys, clothes, utensils, etc. There is a memory of buying iron utensils such as kadhai and tawa from there on more than one occasion and getting the knives sharpened. I also remember buying Khaja- a sweet- that I used to love eating, from there. Mounds of colourful sweets on both sides of the road. But we would buy the Khaja and occasionally Balushahi. I remember going to this mela 3-4 times during the one month that it was there, every year.

Another favorite shop of mine was Sishu Gyan Kendra, and later its sister concern, Gyan Bharti. We would go there for all our stationery, notebooks, and books. I remember the rolls of brown covers and the carefully selected book-label stickers. It used to be a big exercise before the beginning of every new class and before the summer vacations ended. 3-4 people at home would be involved in covering all books and notebooks with those brown papers. I still remember the feel and the smell of the newly covered books and notebooks.

Another place I remember is the fruit market, just off the main road. I remember going to that market with my father on the bike and occasionally with my mother or aunts on rickshaw.

There was one dosa wala on Main Road. I recall everyone saying that his sambhar was awful. It used to look a dirty yellowish brown rather than a bright yellowish-reddish-brownish that good sambhars are supposed to look. I also remember it used to have mashed pumpkin. And I hated pumpkin. But somehow, the taste of that sambhar lingers in my mind. Fondly. I used to finish it. Perhaps because eating outside food was a rare treat. And dosa in Ramgarh was a rare treat, unlike in the South of the country where it is a staple.

Another vivid memory is the movie dialogues echoing from a shop behind our home in Saudagar Mohalla. Now, as I listen to books on Audible, I appreciate that even movie dialogues can be listened to. Back then, however, I couldn't fully understand why anyone would want to listen to movie dialogues.

The Deepti Naval memoir sent me down my own memory lane. I am surprised at the memories that the mind stores. 

And of course, I also revisited the three all-time favorite movies of her- Chashme Buddoor, Saath Saath, and Kisi se na Kehna. She will always be Miss Chamko for me.