The
question of succession planning is
prominent one when it has been important to discuss who will lead after the
founder will be passes away or superannuated. It is a natural perception to
assume that a family member /heirs will assume next generation of business in
case of family managed businesses. Many times,
it has been observed in the past that family members (immediate heirs) have no
interest in business continuity and founders are forced to sell the enterprise and their hard earned reputation.
Passing the baton
infer that who will lead the key management and leadership positions in
upcoming years in a business enterprise. In organic
enterprise point of view, each position must be carefully identified and
followed by adequate leadership pipeline
development. Having a strong leadership bench might offer strategic edge to
a family entity as it offers great leadership support and motivation to
existing stakeholders.
Family Legacy and
Philosophical Foundation
Any
family business can be investigated from the point of its philosophical
foundation. The legacy enshrined by Tata group has its root back from its
inception in the 19th century. It has enriched the corporate world
from philanthropic practices and business polices oriented towards social cause
led by J.N Tata to Mr. Ratan Tata of modern
time. The reliance group is working on having a profound succession plan for the
next generation of leadership, by introducing the family based learning from
its founder Late Dhirubhai Ambani and considering the features of outsider
succession plan of Walton family.
Imperatives for Start-ups
The rising trend of unicorn start-ups indicates that the
transition for having a profound corporate board will require adequate
succession planning and management in a timely fashion. The shifts in founder’s attitude, strategic reshuffle and non –availability of visionary leadership
are some of the challenges faced by new age start-ups.
Conclusion
It can be summarized that having a successor for next generation of business is indeed important. In
the age of emerging technologies, the business
models are changing rapidly so the need of hour is to nurture strong
leadership pipeline. The Indian family owned corporations might work on proactive succession plan which ensure business continuity. Even, succession management is ongoing process
with futuristic outcomes so any steps of this generation will affect business survivability for generations
to come.
