Succession Challenge in Family owned Business (FOB) decoded in a recent research
Succession in Family owned Businesses (FOB) is not a simple business challenge which can be addressed and solved by an advisor, consultant or business experts. Even the person with expertise and specialisation in succession management have difficulties to solve this problem permanently without having in depth understanding human design.
Around 85% of the businesses in India is Family owned, which contribute for approximately 79% in the national GDP of the country. These family owned business are run and managed by the founder who has started the business and then by the family members and legal heirs of the founder.
As per the research conducted to understand the overall contribution, opportunity and challenges of FOB in this country. Succession planning has emerged as one of the most important and challenging challenge in FOB.
It is categorised as the most challenging because it has bigger impact in the existence of the business in transition and in the future of the business. At the same time there is not any business or mathematical formula, model, dashboard or KPI to manage and monitor the succession.
Succession in business is a human design challenge where control and management of the business is transferred from the current owner (a human) to the next generation person or legal heirs (a Human). In this period of succession, the overall business and its operation remain same and even most of the people, process and system which constitutes the operation of the business entity is going to remain same.
The 2nd important point relating to the succession in FOB is that there is never going to be a complete succession of business from the hand of the 1st generation to the hand of the next generation, It always happens while the 1st generation management is still active in the business and the next generation is allowed to get involved in the business activities in any role and responsibility where they considered to be good and fit in depending on their education and interest which they feel they are good at.
The 3rd important point relating succession in FOB is that the process of succession never get competed till the earlier / 1st generation owner is physically active. They are always in the business and all the impacting decisions are made with the earlier generation owner or by his consent.
I am not here to explain what is good and bad in FOB, their management style and other things but to detail the challenges only relating to succession in family business.
If properly planned there is more than enough time available to executed the succession in any business and handle the related challenges and issues in any FOB around the world.
Coming to the point as mentioned earlier, Succession in FOB is a human to human transfer of control and management of the business from one generation to another generation in the family to the legal heirs. So, the professional with deep understanding of Human Design and expertise in business management can only do a best succession plan and execute this smoothly by coaching and empowering the both generations of the business family on human design framework. The methodology of this business coaching is scientifically designed based on the research conducted on many business owners and professionals with guaranteed success.
Let’s understand how this framework is so effective in handling the most critical challenge of Business Succession in FOB. In a family the son has the highest level of resentments with his father. In his life he does not want to do the things which his father is doing. And this is applicable for all human being on this earth. The next generation of the FOB is also grown with the same resentment against his father and he is ready to do any thing on this earth except what his father is doing and the way his father is doing (managing) and hence he does not want to be the part of the business and do what his father is doing. Hence succession in family business is very challenging and full of complexity. This is so true that if you are reading my post now just think about yourself and ask whether you were ready to do what your father was doing. There are many examples of this is available in this world, with little brainstorming you can find the examples and name.
And why this resentment of son with his father is there? we explain this in detail in our business coaching which is developed based on human design understanding. This resentment of son is acquired resentments which we can dismantle through our process and the person discovers himself as a new person with his own world and clarity about what he wants to do in his life.
He becomes a transformed person with wisdom of many business management capabilities to not only become a better successor but empowered to take this business to the next level of growth and profitability.
At the same time, he/she discovers their self-expression and Fulfilment, which could never be possible earlier.
The writer of this blog is Dr. Dhirendra Gautam, who is a Business doctor, leadership advisor and Business coach. He is the only Coach in India who did his certification on human design and completed his research to become a Business Coach & doctor. He strongly believes that “Without Empowering a Business owner, you cannot transform their business” and without understanding the business leaders & owner if you advise the business leader the result will be temporary. Do visit at www.dhirendragautam.com to know and understand more about him. Do write us for any query and question you have in your mind relating succession planning, business coaching and Leadership Advisory.