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.