Journal of family business management india & Conflict in family business and its resolution-Family Business

1.  HOME ABOUT US SERVICES RESOURCES CONTACT US Family Business Consulting Services Family Business Governance Family Constitution Family Mentoring One of the best mechanisms tor ensure that a family A family business needs to have ground rules for An outsider might mentor family members in a family business is professionally run is to establish and managing the family and business interface better. business to bring new ideas and skills. An external implement Family Business Governance Structure. Such  drafted & documented rules are commonly mentor can share industry trends, best practises, and Create the roles and incorporate it in the Family referred to as a Family Constitution. They provide new ideas that can help the business develop and Business Structure to establish rules and create guidance to the family members & business flourish. External mentorship offers objective counsel boundaries. executives and clearly defines the principals and and guidance. practices Know More Know More Know More Family Business Strategy Family Business Mission Family Business Succession Planning Strategy is the heart of business success, more so for What the family stands for and what it aspires for are An important factor for the survival and continuation the family business as it involves not only business very critical questions. Clarity on the same helps of a family business is a well-thought-out succession strategy, but also needs to deal with the ever-evolving develop harmony among the family members as well plan. The fact remains, those who are running a family ownership and family challenges. Some of them being: as gives them a sense of belonging for what they business today will not be able to continue in their role Separating family and business issues, Buy-in from all stand for. A mission statement is a tool that helps the forever. If the aim is to survive through generations, the family members… family achieve this purpose. During the process, the time to start planning for eventual succession is today, family discovers their core values and principles on when the current team is active and away from which it operates, which becomes the guiding force for retirement and the next generation is in its productive all decision making for the family in personal as well as years in business life. Know More Know More Know More

2. Family Business Council Mortaring for Family Business Managing Conflicts Mortaring in a family business is bringing together Communication is one of the keys to the success of a The root of disagreements starts with dilemmas and different generations of family members to improve family business. Family business council is one of the deviations which are the seeds for disagreements. ties and work together to achieve goals. Any family mechanisms that foster communication and help the Long pending disagreements culminate into conflicts. business relies on family members’ collaboration to family plan and develop the family business better. Hence the family must learn to manage the conflicts succeed. Mortaring can be difficult since it involves and resolve them faster, so it does not pose harm to family members from different generations with the family business. Every family business faces diverse business goals, viewpoints, and tactics. conflict at one point or another. However, it is necessary for corporate success and family harmony. Know More Know More Know More Shareholders Agreement Family Business Importance of independent Board Family Business Advisory Board Transfer of ownership is one of the triggering events for Family Business Advisory Board consists of individuals disputes. To have clarity on the sale, transmission, and A Board of Directors is a group of individuals who are who are not affiliated with the family business, but who transfer of business ownership among family either elected or appointed to oversee the operations have extensive business experience. Utilizing an members calls for guiding principles. The same can be of a business and make important decisions on behalf Advisory Board can be invaluable for a family business, achieved through a Family Business Shareholder of the business. They have an important role to play in as it promotes governance within the business. Agreement. terms of approving the strategic business plans in line with the long-term business direction of the business. Know More Know More Know More Wealth Management Family Retreat Family Business Contracts The major beneficiary of the family business is the Communication and transparency are the corner As the business and family evolve, newer and newer family itself. Generally, the family is heavily invested in stone of any successful and sustaining family challenges emerge for the business owners, many the family business. But as the business grows larger, business. As the family grows and the number of times they are not equipped to handle those they will have to start thinking about creating personal family members increase, the family needs to plan challenges and things can get complicated. While

3. wealth and creating a suitable mechanism to build a hiring an employee, we typically enter into specific events to be together – where they can understand moat to protect their wealth. Effective wealth agreements that specify their role, responsibilities, and each other, communicate their views, and develop a management strategies include succession planning, deliverables from them against the compensation that shared goal for the family and the business. This is an managing and administrating wills, estate planning, they will draw. However, family-owned businesses important activity, as the family now comprises of and creating various mechanisms to manage often ignore the need to have a formal agreement people from different age group, with different life personal wealth through trust and family office. with family members who work for or otherwise are experiences, possesses different skill sets, and has affiliated with the family business. different exposure. Know More Know More Know More Exit Strategies Amicable Separation Selling a family business can be a complicated The major beneficiary of the family business is and emotional matter, with many pieces and the family itself. Generally, the family is heavily moving parts. It is part of a sustainability exercise invested in the family business. But as the where owning a family’s decision plays an business grows larger, they will have to start important role. If you decide that it’s time for a thinking about creating personal wealth and change, various options should be reviewed creating a suitable mechanism to build a moat to before you decide on selling your family business. protect their wealth. Effective wealth The family needs to be convinced about why the management strategies include succession sale or should they pass it on to a new set of planning, managing and administrating wills, family successors? How the sales proceeds will estate planning, and creating various be utilized or invested?  mechanisms to manage personal wealth through trust and family office. Know More Know More Our Services Useful Links Get In Touch To know how our services can Sandesh Vasant Mestry Family Business Governance Resources   help your family business reach Family Business Consultant and Family Constitution Our Blogs   its potential – Mentor Family Business Strategy Articles   101, New Chandralok CHS, Ground  +9198 2001 4999 Floor, Near, Veer Savarkar Marg, Succession Planning Succession Planning Survey    +919029523314 Tembhi Naka, Wealth Management Our Services   Thane West, Maharashtra 400601   +9122 7961 4770 Family Business Advisory Board Enquire Now   sandesh@mestry.in Managing Conflicts  Exit Strategies  