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!

 

Analjit Singh steps down at Max India

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.