Having a competent person rather than hereditary is the KEY for long-term survival of any enterprise.
Bal Thackrey to Uddhav Thackery, Indira Gandhi to Rajiv Gandhi & now Rahul Gandhi, Mafatlals , Most Birla group companies are struggling barring KM Birla Group, and many other organisations have suffered due to this mind set of hereditary succession plan, competence irrespective.
Look at Infosys, Tatas, MNCs like HUL,Colgate and Others. These companies focus on long term survival of the business and entity rather than own family managing it. Distinct arms length between ownership and management.
Interesting things to look at is next succession at Reliance Group.
Famous sayings like - Wealth does not sustain beyond 3 generations and 1 out of 3 business fails in 2nd generations , requires serious attention while planning family business succession.
Reasons could be :
No passion, Changed landscape, High expectation pressure, Disconnect from ground realities as was possible when enterprise was first generation, Too much attachment with successful business models.
Having a advance leadership grooming and competence based succession plan in place for family managed large /public companies requires closer attention and priory for the present owners. Why business, it applies to every organisation be it business or politics { even GENEXT is not interested in family business }.
Ask NOW - "Who could be my Cyrus ?"
