Raman, everything in family business starts with getting trust, confidence and support of family members and critical few old timers, so the strategy starts with first understanding the whole family dynamics, role played by different family members and influence they are having in the business. Initially, we ahve to build great rapport with all…[Read more]

External adviser can play a great role in shifting the mindset change, which is the first step for change in this kind of set up. External consultants can help them in realising the need of change in the business without any bias but it will happen only when he or she is able to generate trust and confidence amaong family members.

Sneha, very important question, you have raised here. Whole change process starts by understanding the importance of relationship plays in family businesses and their intent to make it profession set up.

I have personally experienced, all the family managed businesses wants to be transformed professionally and they talk a lot on this but they have always a fear in their mind related with the changes in terms of loosing control on the business, breaking personal relationships among different stakeholders, according trust to very few old timers etc.

Inherent fear of loosing control, lack of trust, limited opportunity given to new incumbent coming out of family makes it very difficulty for others to take the charge and ownership and here is the beauty of family business.