Growing Family Business by adopting modern management concepts

Growing Family Business

Dr. Pavan SoniInnovation.evangelist@gmail.co

mwww.pavansoni.com

Forbes 2000 India’s on the 2016 List

# 121 # 278 # 453 # 899

# 901 # 1121 # 1228 # 1228 # 1527 # 1670

# 1693 # 1732 # 1773 # 1920 # 1993

# 755

16 of 56 firms are family-run

Indians on 500 of World’s Richest People

Mukesh Ambani#36 $23.4 billionReliance Industries

Dilip Shanghvi#44 $16.5 billionSun Pharma

Azim Premji#55 $15 billionWipro

Shiv Nadar#88 $11.5 billionHCL Group

Cyrus Poonawalla #133$8.6 billionSerum Institute of India

Lakshmi Mittal#135$12 billionArcelorMittal

Uday Kotak#184$8.1 billionKotak Mahindra Bank

Kumar Birla #196$8.7 billionAditya Birla Group

Sunil Mittal #219$6.7 billionBharti Airtel

Desh Bandhu Gupta#233$5 billionLupin

Shashi & Ravi Ruia#270 $5.6 billionEssar Group

Micky Jagtiani#338$4.2 billionLandmark Group

Most businesses originated from Rajasthan, and spread across India

Marwaris form ¼ of all billionaires in Forbes list

The secret of longevity

Family business is not limited to India!

In the US, family firms account for 35% of all the firms.In S&P 500 alone, they account for 95% of all firms, cornering 50% production, and 42% employment.

In Germany, 80% of firms are family businesses, accounting for over 60% of the national product.

Longevity of Family Business

Financial discipline

Frugality and Parsimony

Risk appetite and

adaptability

Family over individual

Building social capital

03/05/2023 Pavan Soni | www.PavanSoni.com | 10

Financial discipline and sharp accounting skills

03/05/2023 Pavan Soni | www.PavanSoni.com | 11

Frugal means and Parsimony

03/05/2023 Pavan Soni | www.PavanSoni.com | 12

Adaptability and risk appetite

03/05/2023 Pavan Soni | www.PavanSoni.com | 13

Family over individuals: The seed of trust!

03/05/2023 Pavan Soni | www.PavanSoni.com | 14

Building strong social capital, aka Brand

03/05/2023 Pavan Soni | www.PavanSoni.com | 15

Why do several family businesses fail?

Succession planning

Operational autonomy

Ideological conflicts

Science versus wisdom

03/05/2023 Pavan Soni | www.PavanSoni.com | 16

Professional education perspective networkvocabulary pedigree

03/05/2023 Pavan Soni | www.PavanSoni.com | 17

Taking half-chances and seizing opportunities

03/05/2023 Pavan Soni | www.PavanSoni.com | 18

Power of science in management

03/05/2023 Pavan Soni | www.PavanSoni.com | 19

An innovation

culture: Chaos +

Discipline

Pavan Soni | www.PavanSoni.com | 209/24/2016

Professionalism in business

Culture of Innovation

Professional education

Take half-chances

Power of delegation

Scientific methods

India’s most valuable startups

Sachin Bansal

Bhavish Aggarwal

Vijay Shekhar Sharma

Pranay Chulet

Deepinder Goyal

Rohit Bansal

Kunal Shah

Ashish Goel

Naveen Tiwari

Operational Excellence

Wider network

Technology adoption

Vision and planning

Operational autonomy For Small &

Medium Biz.

Operational excellence: Waste reduction Proper documentation Lean principles

Pavan Soni | www.PavanSoni.com | 259/24/2016

Wider network:

Beyond community

Beyond location

Beyond business

03/05/2023 Pavan Soni | www.PavanSoni.com | 27

The power of delegation

Technology adoption New customers Online Real-time

Vision and planning:

Product expansion Brand building Market expansion

Think &

Grow