Coaching & Mentoring Indian Entrepreneurs

1. Coaching & Mentoring Indian Entrepreneurs Global Forum Singapore June 2011

2. Enterprises by families • Globally contribute to 70 – 90% of GDP • North America: 80 – 90% of all businesses • India – 70% of the companies • Organization of Economic Co-operation and Development – 85% of companies in 33 member countries

3. 40% 45% 40% 35% 30% 25% 12% 20% 3% 15% 10% 2nd 3rd 4th 0% Generation of family Survival rates

4. Family Enterprises The family element brings additional dimensions into picture, that influence the various elements of the conventional framework • Key Dimensions of the Family Element • Family Values • Family interests • Family goals • Succession • Family business culture • Family members as managers • Siblings/Family relationships • Inter-generational issues • Non-family members as managers Goal Formulation Evaluation And Adaptation Strategy Formulation Firm Family Firm Performance Strategy Implementation Environment and Market Through the firm, the family influences every element of the strategy framework except the Environment and Market Source: Adapted from “Strategic Management of the family business: Past Research and Future Challenges’, Pramodita Sharma, James J. Chrismam, Jess H.Chua, Family Business Review, Spring 1997

5. Intrinsic Challenges • Nepotism • Overlap of family goals & business goals • Professionalism • Succession • Family feuds

6. Why Coaching - immediate • Founder has not developed his successor • 2 generations of the families have difficulties communicating with each other • Senior leaders hired by the previous generation • Lack of clarity in roles & responsibilities

7. Why Coaching – Longer Term • Economic downturn • Global opportunities • Imperative to learn & relearn

8. Coaching Challenges • Need for advisors is recognized • Validation of their own decisions • No adequate follow through • Professionalizing • Vs hiring professionals • Family role not clearly defined • Need for corporate governance • Succession • Because of family • Management skills • Leadership development

9. “Almost all companies start out as family businesses, but only those that master the challenges intrinsic to this form of ownership endure and prosper over the generations. The work involved is complex, extensive, and never-ending, but the evidence suggests that it is worth the effort for the family, the business, and society at large.” —McKinsey Quarterly, Jan 2010

10. mohan@sentientconsulting.in