India is poised to be the 4th largest economy in the world overtaking Japan and by 2030, it is expected to overtake Germany to become 3rd largest economy. The family-owned businesses continue to be principal driver of the economic growth and key employment generator in India as well as globally.For a business to become multigenerational, passing off of the family legacy to the next generation, although critical, is equally an overwhelming task if the same is not addressed adequately by the senior generation. In order to achieve perpetuity, it is pertinent that the senior generation shapes the next generation by inclusive approach with continuous mentoring.
The process of making next generation business ready needs to have a formal structure and a well thought out plan. However, just making a plan for encouraging the next generation may not work in favor of the family business since different members have different expectations in family business. It is important to translate such plans and discussions into concrete actions which are aligned to next generation’s skills, capabilities and actions.
Having the next generation involved in the family business early on inculcates not only an emotional attachment but also results in shared vision of perpetuity of family business legacy.
This paper seeks to touch upon some of the key focus areas that needs to be addressed to achieve the goal of a multi-generational business.