Family Business Education Key To Governance
Outlook Business|August 2024
Farhad Forbes, global chair of Family Business Network and co-chair of Forbes Marshall, talks about what family businesses must do to survive in an interview with Ayaan Kartik and Neeraj Thakur
Ayaan Kartik and Neeraj Thakur
Family Business Education Key To Governance

There is a theory that family businesses do not survive beyond three generations-is this true?

The perception that family firms do not last is incorrect. Family firms do last. The question is why they last a limited number of generations. The fundamental issue is business challenges. Over 60-90 years, the business environment changes, technology affects things. If you do not keep up, businesses fail or get taken over. This happens with nonfamily firms too.

What is unique for family firms is the need to address family governance issues. If not addressed, problems arise, especially at the point of succession, leading to conflicts that divert attention from the business, causing them to fail. Corporate governance is as necessary for family firms as for non-family firms, but family firms also need to focus on family governance.

Indian families do spend enough time on family governance, leading to these issues. However, many family firms [across the world] do invest in family governance and survive for many generations. We have examples of Japanese firms in our network that are 12, 18 and even 30 generations old.

How can family businesses get governance right?

Denne historien er fra August 2024-utgaven av Outlook Business.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra August 2024-utgaven av Outlook Business.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA OUTLOOK BUSINESSSe alt
'Automation is Redefining Efficiency and Precision in Jewellery Manufacturing'
Outlook Business

'Automation is Redefining Efficiency and Precision in Jewellery Manufacturing'

Increasing brand consciousness and awareness among consumers is helping expand the organised jewellery retail industry. MP Ahammed, chairman of Malabar Group, discusses prominent trends in the jewellery industry

time-read
1 min  |
November 2024
BATTLE TO WIN THE AI RACE
Outlook Business

BATTLE TO WIN THE AI RACE

In Supremacy, Parmy Olson tells the astonishing and behind-the-scenes story of the battle between the world’s two leading artificial intelligence firms, OpenAl and DeepMind and the continuing rivalry of its founders Sam Altman and Demis Hassabis respectively

time-read
5 mins  |
November 2024
A LEADER WHO EMPOWERS
Outlook Business

A LEADER WHO EMPOWERS

Anshul Arzare, MD and CEO of YES SECURITIES, wants to ensure a workplace where employees not only contribute to the company's vision but also feel content

time-read
2 mins  |
November 2024
EV Unplugged
Outlook Business

EV Unplugged

Electric vehicles are crucial to India’s climate change plan. But reliance on China for imports and technology constraints remain hurdles the sector needs to overcome

time-read
6 mins  |
November 2024
Every Lamborghini Owner is a Brand Ambassador
Outlook Business

Every Lamborghini Owner is a Brand Ambassador

Regional director of Automobili Lamborghini, Francesco Scardaoni, talks to Prachi Khanna about the brand’s approach to fostering a sense of community among its vehicle owners. Edited excerpts

time-read
3 mins  |
November 2024
NO ZEST FOR ZED
Outlook Business

NO ZEST FOR ZED

A government initiative to green MSMEs is not finding enough takers

time-read
4 mins  |
November 2024
SMALL PLANTS, BIG TROUBLE
Outlook Business

SMALL PLANTS, BIG TROUBLE

Climate-triggered stress is placing an unprecedented burden on small businesses. But a lack of access to climate aid hinders the sector's ability to adopt greener methods

time-read
6 mins  |
November 2024
'We Think About the Rider More Than Any Other Company
Outlook Business

'We Think About the Rider More Than Any Other Company

Rapido co-founder Aravind Sanka talks to Neeraj Thakur and Deepsekhar Choudhury about how flexibility and fair pay helped his company disrupt the Ola-Uber duopoly. Edited excerpts

time-read
3 mins  |
November 2024
LABOUR PANGS
Outlook Business

LABOUR PANGS

Rising cost of living in a fast-growing economy is making workers restless

time-read
5 mins  |
November 2024
'Hustle is No Virtue'
Outlook Business

'Hustle is No Virtue'

It has become fashionable to talk about the verb “hustle” these days, especially in professional settings.

time-read
3 mins  |
November 2024