Could relate to KavilRamachandran’s book, says AmitRathi of AnandRathi Financial Services
KavilRamachandran’s book -The 10 Commandments for Family Business, breaks the age old myth that rakes business inheritance to be a piece of cake- easy to carve, easier to enjoy. A former faculty at IIM-A, Ramachandran is now executive director at the Thomas Schmidheiny Centre for Family Enterprise, ISB, Hyderabad. He tries to talk about the problems that most of the business families face at a point when business transition takes places from one generation to another.
AmitRathi, 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 contains detailed analysis of eight family business groups, along with charts, templates, caselets and action points. They also reflect the author’s wide-ranging knowledge and coverage, penetrating insights and considered suggestions, resulting in “commandments” such as ‘build business entrepreneurially’, ‘professionalize or perish’, ‘preserve and practice’, ‘redefine roles but don’t retire’, ‘successfully manage succession’, ‘long-term strategy’, ‘family philantropy’, and his sound conclusions about the family as an institution.
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.
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.
As key member of a family business, AmitRathi has overcome a sea of challenges. And, as facilitators of takeovers, Rathi familyhas 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.