FFI Certificate in Family Business and Wealth Advising

I am happy to announce that I have just received my FFI Certificate in Family Business and Wealth Advising by the Family Firm Institute, USA. The press release is here( CFBA.CFWA Press Release.). 

The certificates are presented to individuals who have achieved comprehensive professional knowledge and gained significant expertise that can be used as value to family business owners and family wealth clients.

“Through completion of the certificate programs, Rajiv Agarwal has gained a deeper understanding of the needs of family-owned enterprises and the many roles family business and non-family members play, “ said Judy Green, President of the Family Firm Institute. The Family Firm Institute (www.ffi.org), an international professional membership organization of over 1800 individuals and organizations across 88 countries, is dedicated to providing interdisciplinary education and networking opportunities for family business and family wealth advisors, consultants, educators and researchers.

It is particularly a proud moment as I become the first Indian to get this dual certificate. Thank you all, for your support and good wishes which helped me reach this milestone.

FFI-Certificate-Seals-Business-RGB GEN-CFWA-Seal-RGB

Succession at the House of Godrej – Best practices to be learnt

The house of Godrej was always one of india’s most respected families. True to its reputation, they have put in a succession plan which can be the example for the other business families to follow.

In a recent ET article, a few key points stand out:

Adi Godrej removing himself from the daily operations of the companies, choosing to let the next-gen manage the show. This is a show of confidence in the next-gen sending a clear message to the rest of the organisation of who is really in charge, and that the baton of power has moved on. Additionally, the fact that Adi Godrej did not interfere in the decisions but was available for the next-gen as an advisor, ensured that the hand holding, mentorship was available, whenever needed. This also proved to be an encouraging trend to build up the confidence of the next-gen without any possible costly mistakes.

Working along with professionals builds the team spirit and at the same time, encourages collaborative efforts to drive the business growth.

Further, the encouraging of newer ideas to change the businesses as they saw fit, helped to rejuvenate businesses and help these face the challenges in the new economy.

These are valuable lessons which most other families could do well to learn from!

 

Gaekwad vs Gaekwad – Lessons in Conflict Resolution – Value of Time.

ET has an article covering the Gaekwads of Baroda settling their long pending conflict. it is instructive to read about the foresight demonstrated by the cousins Samarjitsinh and Pratapsinh to settle a Rs. 20,000 crore battle.

Key learnings were: the family became at peace and looked forward to a brighter, more constructive future for all the family members. And that they first decided that the settlement had to be made at any cost, and then the compromises made, were easy to implement.

I think that this insight is key, for settling conflicts  in families. Often, I have seen cases originating from  issues which may not seem relevant over time, but are the root of conflict, (like ill treatment, unjust or depriving of rights, actions regarded as unfair, etc.)

While this may be held as precious by the family members who may have been subject to this, the subsequent generations may not see this with the same degree of emotion. This could be used as a stepping stone to resolve a family conflict. I remember working with two families at conflict, where the reason for the conflict was not clear but everyone vaguely remembered that it was something that their great grandfathers had been involved in !

But i think that the point that most families miss, in all this highly charged up emotional states, is the amount of time and energies that they spend in keeping the conflict alive. additionally, they seem to forget that this same energy and effort if channelled into something more productive, would yield results which would enhance the status of the family more than winning any brownie points in any conflict.

Furthermore, this also becomes a part of the family legacy which perpetuates down the generations, and this adds negativity to the family lore. Think about it.  Why add a negative thought to the family stories? ( eg. your granduncle deprived your grandfather from all the right wealth and hence we are not speaking to them since then…)

Thus, if we were to summarise the key points to think about….

  1. Is continuing the conflict worth the effort, time and resources ?
  2. What is the key issue? are we addressing that or is it something more personal to an individual?
  3. Is this something which would be relevant for the future generations?