In another article in the Times of India, 62 year old Max India Chairman Analjit Singh has stepped down from the Chairmanship of his companies, making way for professionals to run his companies.
An admirable step if you consider that scores of companies are today still being run by almost octogenarian patriarchs. This is a leading issue in family businesses where the next-generation get frustrated waiting for the previous generation to hand over and let go.
In fact this could be a very good example of how to handle succession, where the senior generations could make way for the next-gen or professionals to take over and run the companies while the seniors plan the next steps in either floating a new venture, mentoring someone, looking after the charitable interests of the family or even pursue a long desired passion! What is important however is, that this new activity keep them fully occupied.
In any case, this is a good example worth emulating for the many family businesses all over the world.
A recent article in the Economic Times on 29th Dec, 2015 mentions about the owner family the Gandhis, filing cases seeking settling of some family and business issues.
Both sides have made claims and counter claims against each other, alleging diversion of funds to some other companies.
The article makes for some interesting reading, but is a prime example of successful families feuding, which oftentimes is first harbinger of troubled times. The business is the first to get adversely affected and the cash flows, which had led to the success of the family gets affected.
Increasingly, there is a need for families to have a structure in place and to work out these issues well before hand, before things are decided in courts.
This is the underlying logic for family structures which are an important topic in family business planning, covered in the SPJIMR course outline.
Readers of this blog may be interested in a one day workshop to be held later this year in SPJIMR which will seek to address this issue and what families can do to avoid such scenarios. contact me if you are interested in being put on the mailing list to be informed for this program.