Amit Rathi of AnandRathi Brokerage talks about Kavil Ramachandran’s book
The general conjecture is that inheriting a business is a cake walk. It is as good as stepping into a pair of custom-made shoes; all it takes is an easy slide and Viola! But Kavil Ramachandran’s book – The 10 Commandments for Family Business, sheds light on the ‘dark side of the moon’. The book tries to showcase the difficulties that more than often pose in carrying forward a legacy of business. Amit Rathi, Managing Director of AnandRathi Brokerage, says that the book highlights those obstructions faced by a family when the family business is transferred from one generation to another.
The book addresses the challenges Indian family businesses generally come across— the burden of generations of family culture and hierarchy on such businesses in today’s world. Ramchandran’s elicits that the complex interaction between family members is more of a “doubles game” (of tennis). “The leader has to realize that “attitude and skills for playing doubles are different from playing singles the way he has practiced it all along”.
Kavil mentions, “For example, at least in the Indian context, though leaders may understand the importance of succession planning, they hesitate to plan one or resist retirement or feel compelled to hand over key responsibilities to the eldest when the younger is more capable.”
Amit Rathi said, “The book addresses the challenges Indian family businesses have to always contend with — the burden of generations of family culture and hierarchy on such businesses in today’s world.”
A former faculty at IIM-A, Ramachandran is now executive director at the Thomas Schmidheiny Centre for Family Enterprise, ISB, Hyderabad.
Amit Rathi added, “As key members of a family business, my family and I have overcome a sea of challenges. And, as facilitators of takeovers, we have also witnessed other family businesses traverse tough times, including Emami’s takeover of Zandu, an example which the author uses to emphasize the importance of managing ownership challenges. So, I have always known that the reason we have had a successful 20 years in financial services is because we have been getting something right. There were several moments in the book when I thought- Got that one right! .”
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