How next-gen scions can steward family businesses amid global uncertainties

This article was first published in Forbes India magazine, May 29, 2025. Co-author: Kavil Ramachandran; https://www.forbesindia.com/article/leadership/how-nextgen-scions-can-steward-family-businesses-amid-global-uncertainties/96070/1

Family enterprises—which underpin economies worldwide by contributing over 70 per cent of global GDP and employing nearly 60 per cent of the workforce—now find themselves at the epicentre of a transformation unlike any before. The convergence of rapid technological advances, mounting climate imperatives, shifting consumer values and geopolitical realignments have all created what strategists term a BANI environment—Brittle, Anxious, Non-linear and Incomprehensible. For family firms long defined by multi-decade horizons and incremental evolution, the imperative falls on the incoming cohort of heirs to merge institutional memory with digital fluency, entrepreneurial daring and a restless drive to convert disruption into renewal.

The Shrinking Horizon

At the heart of the disruption challenge lies the brutal acceleration of product and corporate lifecycles. A report by Innosight showed that in 1965, the average tenure of a company in the S&P 500 exceeded thirty years; by 2016 it had fallen to twenty-four and is forecast to contract further to twelve years by 2027. For successor generations accustomed to inheriting legacies built over lifetimes, this shrinkage demands a marathon-sprinter’s mindset: heirs must deploy rapid experimentation, continuous skill-building and lean decision loops to stay ahead of digital-native rivals, even as they preserve the family’s enduring values.

Bruce Lee used to say, “Empty your mind, be formless, shapeless, like water,”—advocating a state of perpetual readiness, adaptability and strength. And he was not talking only about martial art! 

Future-Focused Strategy in Action

Consider two of India’s most venerable family business groups. The Tata Group, founded over 150 years ago, has become as much a technology and services conglomerate as it is a steel manufacturer. Its digital arm, Tata Consultancy Services, invests billions in cloud computing and artificial intelligence to offset the gradual commoditisation of legacy offerings. Mahindra & Mahindra, similarly, has pivoted from tractors and utility vehicles to become a global player in electric mobility, forging partnerships with tech firms in Silicon Valley to accelerate R&D. Heirs at Tata and Mahindra did precisely what the moment demanded. Those were essential moves to catch up with rapid technology shifts and establish footholds in adjacent markets.

Today’s successors confront an entirely new mandate: they must trust their own capabilities and provide steward leadership to drive transformation within their families. By leading from behind, they shape outcomes across multiple fronts. Family governance, business strategy, entrepreneurship and wealth management are among the areas that demand fresh perspectives.

 

Each circle in the chart ‘Nextgen Leadership’ represents a core dimension of successor stewardship:

• Strategist - As a custodian of the future growth of the business, a successor has to envision the emerging environment and chart the family firm’s horizon by scanning technological trends and market shifts to align capital allocation with emerging value pools.

• Professional Manager - They must facilitate practice of professionalism as a value by benchmarking and introducing best practices such as clear KPIs and process rigour alongside family executives, and elevate operational performance.

• Serve Society- Business families have all along been connected closely with the society they live. Nextgen must help shape philanthropy, ESG and community partnerships to reinforce the family’s and enterprise’s social  relevance and long-term reputation.

• Value / Heritage Custodian - As family stewards, younger generation must lead by translating founding values and principles into actionable norms, ensuring that legacy values guide strategic and cultural choices.

• Groom Nextgen - They should not wait for the seniors to groom them; rather the initiative must come from them since they are the change makers.

• Family Governance Custodian - Nextgen must take upon themselves the responsibility to enforce transparent governance in the family. They will thus be living by example the principles and policies of high quality family governance. 

• Wealth Creator / Protector- Younger generation understands the significance of structured wealth management more than the seniors. They must help balance bold investment in growth areas with prudent risk buffers and diversification strategies to preserve intergenerational capital.

In sum, whereas the previous cohort sprinted to catch the wave of disruption, today’s successors must surf the entire storm.

Governing with Agility

Amid relentless disruption and ever-accelerating change, robust governance becomes the linchpin of resilience. Effective governance now demands far more than static rules—it requires a learning culture that reconceives the family’s role in business. Central to this is comprehensive family education: each member must grasp how the family’s identity and purpose interact with a swiftly shifting environment. Traditional models built on extended-family norms no longer suffice; in nuclear or geographically dispersed families, notions of fairness and togetherness must be re-negotiated. Accordingly, family policies, processes and practices should be revisited collaboratively, with formal forums to debate and codify new charters that foster harmony and mutual accountability.

Equally important is the recalibration of governance vehicles. The Family Business Board remains the enterprise’s guardian of strategy and risk, while the Family Council safeguards cohesion by enforcing the charter and resolving disputes. The Owners Council, however, assumes an expanded remit: it must incubate entrepreneurial initiatives through transparent venture-financing guidelines, clear ownership stakes and performance-linked rewards—effectively treating new ventures as corporate-venturing projects. In all bodies, respected independent directors are essential to uphold rigour, test values of trust and transparency, and temper the inevitable interplay of logic and emotion. In practice, many group structures will evolve into holding-company frameworks, with each subsidiary managed as a strategic business unit under its own performance matrix. This architecture recognises that heirs often seek both individual agency and collective purpose—and it ensures that “I-Me-Mine” ambitions remain anchored within a unified family vision.

Generational Duality

Interwoven with strategy and governance is the delicate balance between senior-generation stewardship and next-generation dynamism. The former brings deep institutional memory, extensive networks and a long-term orientation that has underpinned stability for decades. The latter embodies fluency in digital ecosystems, comfort with ambiguity and a restless pursuit of new value pools. When harnessed constructively, this generational duality can become a formidable competitive advantage. The story of Lavanya Nalli, who transformed and expanded her family’s ninety-year-old silk business into a thriving e-commerce platform within five years, exemplifies how next-generation initiative can amplify a legacy brand’s reach and relevance.

However, generational tensions can turn unpleasant and acrimonious if roles and expectations are not clearly defined, underlining again the need for next-generation heirs to act as steward leaders. They cannot afford a narrow, self-righteous stance in such a dynamic world. They must recognise that their future is at stake and that it is their responsibility to ensure continuity and change simultaneously. Leadership and ownership succession remain among the trickiest challenges in the life of any family business. Cyient, a multi-technology company, has successfully undergone major changes in its business portfolio during and after the transition of leadership from Mohan Reddy to his son Krishna. Cyient has been adapting proactively to disruption.

Impact and Purpose

If governance forms the backbone of resilience, then a compelling social and environmental purpose defines the family firm’s licence to operate. As regulatory regimes tighten carbon-emissions norms and stakeholders demand rigorous ESG performance, heirs can no longer defer sustainability to a later date. Too often, family enterprises underinvest in low-carbon strategies even as climate-related liabilities mount. 

Successors must therefore educate the wider family on the business case for embedded sustainability—aligning priorities, capital allocation and executive incentives with long-term ecological stewardship. Moreover, a unifying purpose binds the family together; without it, cohesion frays and the risk of fragmentation rises.

Heightened scrutiny of corporate conduct and social impact are reshaping brand narratives. Younger consumers prize purpose-driven enterprises, and family firms enjoy an inherent credibility if they can demonstrate consistent community support and ethical probity. Next-generation leaders must therefore embed social and environmental impact at the strategic core—transforming purpose from a peripheral concern into a driver of resilience, reputation and sustained growth.

The FAMILY Framework for Resilience

Underpinning all these practices is a holistic FAMILY framework, integrating six mutually reinforcing pillars (see chart ‘Family Framework’). This framework operates not as a static checklist but as a living operating system—one that demands rigorous discipline, continual upskilling in new domains and regular recalibration. At its heart lies the proactive agency of the next-generation, ensuring a genuinely future-focussed orientation (see chart ‘Dynamic Family Framework’). 

Dynamic Family Framework

 Disclaimer: Generated using AI

In conclusion, the nextgen in family enterprises has the responsibility to take on the role of the nerve centre of renewal. Externally, they need to reconceive their business models through the lenses of digitalisation, sustainability and global agility. Internally, they must drive an agile governance and talent ecosystem that unites generational wisdom with new-economy dynamism. The FAMILY framework—with its emphasis on future orientation, governance agility, meritocratic culture, purpose fidelity, financial prudence and generational inclusivity—offers a practical roadmap.

Stewardship in today’s turbulent seas means more than preserving tradition: it requires embracing change as a source of renewal. As Bruce Lee taught, true mastery demands speed, fitness and an unencumbered mind ready to flow like water. Only by dancing on a globe in rough seas—ever ready to pivot, learn and hold fast to enduring values—can family businesses convert the pressures of disruption into engines of sustained growth. In this new era, those who master the art of agile resilience will not merely survive; they will redefine what it means to endure.

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.