A few years ago, the founder of one of the family businesses we consult for passed away. When the time came for the will to be read, it came to be known that he had appointed three trusted people to execute his will, one of them his close friend of many years. Now, this friend, […]
There are also different kinds of trust depending on people’s personalities and capabilities. One can trust someone’s ethics but not competence. One can trust someone’s competence but not her attitude. One can trust someone’s attitude but not time sense. One can trust someone’s sincerity but not discretion. One can trust someone’s intentions but not ability. […]
Trust is one of the key ingredients in any successful relationship. It is however next to impossible to have absolute trust in someone completely and at all times. There are varying degrees of trust. Let us explain this. There are basically two kinds of trust – one based on relationship and the other based on […]
Many times, the power struggle between competing leaders in a family business are in effect, competition for the founder’s trust. For example, when the founder’s brother and the founder’s son are in responsible leadership positions in the company, they each vie for the founder’s trust. When they take opposing positions on an issue, the founder’s […]
The success of a business is largely dependent on the success of its people. The success of the people depends on how successfully they work with each other to achieve common goals. Every business breakdown is basically a breakdown in the ability of people to work with each other. There is however a magic ingredient […]
Boundaries can help people work with more discipline. For example, following the budget takes great discipline. It also fosters innovation – for example, when people have to work within a tight budget, they are forced to work out innovative solutions. As with everything else, boundaries can also be used negatively. When boundaries are used as […]
In a previous post, we talked about the nature of boundaries in the context of Indian families. What is true for families is also true for family businesses. The concept of boundaries is especially relevant, since there is very less emotional demarcation between families and their businesses. There are many kinds of boundaries that play […]
Boundaries help uphold positions of respect and decorum. They are used as a practical mechanism of checks and balances. For example, a typical family would segregate food at home based on what has been eaten from, what is untouched, what is fresh, what is uncooked etc. There are strict rules on entering the kitchen after […]
One of the most popular imagery in Indian mythology is that of the Lakshman-Rekha – the magical, protective line drawn by Lakshmana around their hut, asking his sister-in-law Sita to not step out of that boundary while he went in search of his brother Rama. Everyone knows that she does indeed step out of it, […]
The third lesson in managing power is to practise empowerment. As a leader gets more and more power, she should empower those below more and more. The organization then becomes more dynamic and powerful as a whole – instead of being centred on a single individual centre of power. The fourth lesson in managing power […]