“ We don ’ t inherit the world from our parents, We borrow it from our children. ” Sioux Indians

1. “We don’t inherit the world from our parents,We borrow it from our children.”Sioux Indians

2. Centres of Family Business Learning Harvard Business School Babson Business School IMD Business School INSEAD Business School Kellogg School of Stetson University School of Management Business Administration

3. Research • Families may fail to recognize that family business conflict results from a lack of participation and limited opportunities for the family to constructively explore individual differences related to values, goals and vision • T.Hubler, ‘The Ten Most prevalent obstacles to Family-Business Succession Planning’, Family Business Review, XII(2)(1999) 117-21 • Craig Aronoff and John L. Ward, based on their as family business consultants, suggest that such family meetings teach communication skills, encourage independence and build self-esteem • C.E.Aronoff and J.L.Ward, Family Meetings: How to Build a Stronger Family and a Stronger Business (Marietta, GA: Business Owners Resources, 1992)

4. Research • 80% of the families have gone bankrupt, or have sold or acquired over the past 50 years. Families business statistics offer a similar picture, with only 3 out of 10 family businesses surviving into the second generation, and only 1 out of 10 handed down to a third. The average life span of family firms (after a successful start-up) is 24 years, which coincides with the average time the founder is associated with the company. • Beckhard, R. and Dyer, W. (1983b). ‘Managing continuity in the family-owned business,’ Organizational Dynamics, 12: 5-12.

5. Family Constitutions Global FamiliesIndian Families Ford Motor Company GMR Group Marriott International Dabur Group Cargill Murugappa Group Perrier Mineral Water Apollo Hospitals Heineken Beer Godrej

6. The Family Business Opportunity

7. India Tops in Family Feuds over Family Wealth Source: Barclays Forty percent of the globe's wealthy population have direct experience of their family fortune leading to disputes, but the percentage is even higher in India, where 61% of the rich have seen relationships deteriorate into feuds over money, according to a new report. In contrast, 53% of respondents in Singapore, 51% in Hong Kong have experienced family tension as a result of wealth, as against just 11% in Qatar. 35% of global high net worth individuals do not have confidence in their children to protect their inheritance.

8. Continuity Planning Medium Term Business Strategy Estate, Investment and Safety Net Ownership and Management Succession Development of NextGen

9. Capitalism v/s Socialism Business Family

10. Perspectives in Family Business Governance FAMILYHealth, Prosperity, Continuity role, Communication, Education, Values, Goals OWNERSHIPLiquidity, Capital Allocation, Assuring Succession, Strategic Direction, Performance BUSINESSOperations, Finance, Employees, Supplier and Customer Relationships Source: Renato Tagiuri and John Davis

11. Evolution of Business Families

12. Decisions Partners Must Make • How shall we take decisions? • What will our code of conduct be? • What will our leadership model be? If a single CEO, who will that person be? • How shall we accommodate the simultaneous goals of the family and the business? • Who shall our advisors be? Who should be on our board of directors? • How will we make this business grow? What should our strategy be? • How will we communicate with non-family executives? • What policies will we put in place?

13. Sample Policies Rights and Obligations of Individuals/Women/Non-Employed Owners Role of Family Members in the Business Employment/Compensation/ Performance Evaluation Policy Family Fun/Bonding Safety Net Media Policy Conflict of Interest Family Education and Mentoring Policy Philanthropy

14. Sample Processes • Managing Succession • Managing Differences • Constitution Review • Information /Reports

15. Sample Structures Family Council Family Business Board Independent Board Non Business Family Forum Family Safety Fund Family Office for Investments

16. Some Ownership Policies Conditions for ownership and voting rights Dispute resolution process Dividends / Drawings Redemption process Business valuation methodology Buy-sell agreement (shareholder’s agreement) Rights and responsibilities of non-employed owners Rules for travel and other major expenses Addressing family member’s financial problems

18. "There is a tide in the affairs of men. Which taken at the flood, leads on to fortune; Omitted, all the voyage of their life is bound in shallows and in miseries.”William Shakespeare

19. Resources and Acknowledgement • Family Businesses: The Essentials, Leach, Peter, 2007 • 9 Elements of Family Business Success, Fishman, Allen E., 2009 • Getting Along in Family Business: The Relationship Intelligence Handbook, Hoover, Edwin A., Hoover, Colette Lombard, 1999 • Perpetuating the Family Business, Ward, John L., 2004 • Business Maharajas, Piramal, Gita, 1997 • Family Meetings: How to Build a Stronger Family and a Stronger Business, Craig E. Aronoff, Ph.D. and John L. Ward, Ph.D., 2002 • Developing Family Business Policies: Your Guide to the Future, Craig E. Aronoff, Ph.D. , Joseph H. Astrachan, Ph.D. and John L. Ward, Ph.D .,1998 • Family Business Values: How to Assure a Legacy of Continuity and Success, Craig E. Aronoff, Ph.D. and John L. Ward, Ph.D .,2001