SOFT RULES FOR BUSINESS FAMILIES
Outlook Business|August 2024
Managing a family business is complex.
JANMEJAYA SINHA
SOFT RULES FOR BUSINESS FAMILIES

In addition to managing the business, the family also needs to manage itself. Countries and jurisdictions impose well-established structures with well-defined rules and roles to manage a business-boards of directors, board committees, required audits, chief executives' management teams and executive directors-with clear goals and incentives.

These do not exist for a family.

At a minimum, the family needs a mechanism to align its views as a family. As families grow, alignment is harder to achieve. So, many families create family. charters, constitutions and rules for behaviour. They also create forums for families to meet and discuss and agree on issues in respect of their ownership of the business.

These rules cover a set of subjects-family values, purpose of business, rules regarding the distribution of wealth and benefits, a definition of the family, rules around exit from the family business, rules of management and employment, succession and selection of business leaders, principles around entry into politics, and methods of conflict resolution. While some of this is required, the extent of specification varies by family. But what most families neglect is to have a system to manage the emotional well-being of family members.

People Get Hurt

In its ideal form, a family is about love, affection, fairness, respect and trust. And yet, every family member understands that frustrations and major fights can arise over seemingly trivial issues. People get hurt. Conflicts about hurt feelings are rarely about right and wrong. They frequently cannot even be reduced to material issues like money or self-interest. These 'hard' issues are easier to identify and even resolve logically.

Rather, conflicts often spring from the well of hurts, slights to self-esteem and 'soft' emotional issues. Once these issues start, they are difficult to heal.

This story is from the August 2024 edition of Outlook Business.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the August 2024 edition of Outlook Business.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM OUTLOOK BUSINESSView All
The New Imperialism
Outlook Business

The New Imperialism

The EU has approved a new environmental regulation that will impact global value chains. Small businesses will have to bear the brunt

time-read
5 mins  |
October 2024
VISION FOR THE INDIA OF 2047
Outlook Business

VISION FOR THE INDIA OF 2047

In India@100, Krishnamurthy Subramanian argues that India can be a 55trn economy by 2047 if it doubles down on the economic policies implemented in the last decade to grow at 8% annually. Although middle-income trap has plagued many developing countries in the past, he is convinced that India is well-equipped to avoid obstacles in its growth odyssey

time-read
3 mins  |
October 2024
BUSINESS MINT: CELEBRATING EXCELLENCE, ONE AWARD AT A TIME
Outlook Business

BUSINESS MINT: CELEBRATING EXCELLENCE, ONE AWARD AT A TIME

Ensuring that Firms and Entrepreneurs Receive the Recognition they Deserve since 2018

time-read
3 mins  |
October 2024
DR. PAVANI KADIYALA: DRIVING INNOVATION AND TECHNOLOGICAL ADVANCEMENT IN EMERGING INDUSTRIES
Outlook Business

DR. PAVANI KADIYALA: DRIVING INNOVATION AND TECHNOLOGICAL ADVANCEMENT IN EMERGING INDUSTRIES

Celebrating Dr. Pavani Kadiyala's Accolades and Contributions to Emerging Technologies

time-read
2 mins  |
October 2024
INSPIRING EXCELLENCE: THE JOURNEY OF NALANDA EDUCATIONAL INSTITUTIONS:
Outlook Business

INSPIRING EXCELLENCE: THE JOURNEY OF NALANDA EDUCATIONAL INSTITUTIONS:

Honoring the Vision of Sri Manthena Suryanarayana Raju Through Innovation and Holistic Development

time-read
2 mins  |
October 2024
THE RISE OF VARUN REALTORS
Outlook Business

THE RISE OF VARUN REALTORS

Leading the Charge: Varun Kaliga Named Emerging Real Estate Influencer of the Year for Innovative Impact

time-read
2 mins  |
October 2024
R.C. RATUL: BRIDGING THE WORLDS OF ENTERTAINMENT AND REAL ESTATE
Outlook Business

R.C. RATUL: BRIDGING THE WORLDS OF ENTERTAINMENT AND REAL ESTATE

The Visionary Behind the Convergence of Entertainment and Real Estate

time-read
2 mins  |
October 2024
CYBERABAD BUILDERS ASSOCIATION: LEADING THE CHARGE IN SHAPING
Outlook Business

CYBERABAD BUILDERS ASSOCIATION: LEADING THE CHARGE IN SHAPING

Recognized as the Emerging Builders Association of the Year 2024,’ CBA is setting new benchmarks in real estate and construction excellence in the heart of Hyderabad.

time-read
2 mins  |
October 2024
FROM PAPERBOY TO POWERHOUSE: THE INSPIRATIONAL JOURNEY OF VENU KALYAN
Outlook Business

FROM PAPERBOY TO POWERHOUSE: THE INSPIRATIONAL JOURNEY OF VENU KALYAN

Celebrated with the Most Admired Real Estate Sales Coach of the Year 2024’ Award for Transformative Impact and Innovative Coaching

time-read
2 mins  |
October 2024
OUTLINE MEDIA: SHAPING TOMORROW'S BRANDING AND ADVERTISING TODAY
Outlook Business

OUTLINE MEDIA: SHAPING TOMORROW'S BRANDING AND ADVERTISING TODAY

Redefining Branding and Advertising

time-read
2 mins  |
October 2024