As businesses succeed, business leaders acquire greater power by virtue of their success. Oftentimes they are not equipped to handle this power as efficiently as they handle their businesses. It is usually described as “letting power go to one’s head.” When power goes to someone’s head, he tends to become a megalomaniac, unable to see […]
Family businesses area especially prone to power plays since there are several opportunities for people to abuse positions of power. The immediate family of the founder and the other family members are all in positions of power that can impact the business. Sometimes, the matriarch of the family acts as a power centre instead of […]
Power of one of the primary human needs – closely linked to the need for achievement and for affiliation. The use and abuse of power has been the subject of much study through history. Power impacts not only the person subject to the power but also one wielding it – it leaves the person changed. […]
An interesting factor that changes corporate culture is the external political environment. In an atmosphere of rampant government corruption, businesses adjust their operating methods to suit the external realities. When there is a strong government that clamps down on corruption, business once again re-orient their operations to suit best practices. At FABRIC, we help family […]
In one of our earlier posts, we spoke about how culture is in the DNA of an organization. It is created from within and deeply engrained in the psyche of an organization. Therefore it is difficult to change culture arbitrarily as and when needed. A better course of action is to intentionally create it from […]
How can a founder consciously build his family’s human capital? Here are some ways: 1) “This too shall pass” Children should learn the philosophy of transience from an early age. The idea that all things change, including wealth and status and therefore to not peg one’s identity on both is a powerful force that keeps […]
In a previous article, we wrote about one of the deepest issues facing family businesses today, that of entitlement. With a digitally connected world and a global fast-paced lifestyle, many business scions are at the risk of squandering their precious heritage on illusory image-building. This chimera can destroy both the family member and the family […]
Entitlement is also exacerbated by changing lifestyles (that get better and better with the growing business) and attendant pressures of social comparison and the need to live up to or above one’s peers. Most of the times, it is because the family member is immature in his or her approach to wealth. He has no […]
The great Indian management guru Chanakya said, “dharmasya moolam arthah” (money is the root of dharma). Nevertheless, like two sides of every coin, money can also be the root cause of all adharma. One of the deepest issues many family businesses face is the problem of entitlement. Entitlement is when members of the family believe […]
An interesting way in which hierarchy is played out in Indian family businesses is between mothers-in-law and the daughters-in-law when they are both involved in the business. The mother-in-law might expect the hierarchical relationship at home to be reflected at work, which might not sit well with the daughter-in-law. This can also be an issue […]