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.