For family companies to thrive and survive for generations to come, mentoring is a crucial resource. Mentoring offers a special chance for older members of a family business to pass on their wisdom to the next generation. It’s a great way to strengthen family bonds while also laying the groundwork for the next generation of leaders in the family business.
There are several obstacles that a family business must overcome, such as professionalisation, governance, and succession planning. Mentoring can help family companies overcome these obstacles and thrive for generations to come.
What is Mentoring?
The term “mentor” or family business consultant refers to the more experienced person in the connection, while “mentee” refers to the less experienced person (the mentee). The mentor plays a crucial role in the mentee’s professional development by providing them with direction, encouragement, and sound counsel. In family enterprises, where it is especially important to pass on knowledge and skills from one generation to the next, mentoring is an invaluable instrument for professional development.
How do business-owning family members benefit from a mentor relationship?
Members of family companies might benefit greatly from mentoring or family business consultant because it can assist them in dealing with issues like:
Passing on the values: In family companies, the history and culture of a business have been passed down from one generation to the next in the same family. The ideals and traditions of the family company can be passed on from generation to generation with the help of mentors.
Career Advancement: Mentorship programmes enable family members to acquire the professional competence essential to fulfilling their positions in the family business. The ability to lead, manage, communicate, and make decisions are all part of this category.
Managing Succession: Challenges in succession planning are common in family enterprises. A peaceful handover of power and continued success of the family business can be ensured through mentoring the next generation of leaders.
Building relationships & resolving conflicts: The complicated interplay between family relationships and business operations makes family firms especially vulnerable to disputes, which must be resolved. Conflict resolution skills are essential to the long-term health of any organisation, and mentoring business strategy and consulting can assist family members in learning how to use them effectively.
Fostering Better Communication: Communication and trust within the family company can be greatly improved through mentoring connections between family members. As a result, family members will feel more invested in the company.
Some of the Mentoring business strategy and consulting Success Stories from India:
The Grand Bhagwati Family:
The Grand Bhagwati Group of Hotels is an Indian hospitality company run by a single family. Mr Natvar Bhagwati founded the company and passed away in 2003, leaving it to his sons. The sons had trouble steering the company due to poor professional management and governance.
Mr Amitabh Chaturvedi, an advisor with expertise in hospitality and business management, was brought in to help the family overcome these obstacles. To create a more professional management structure and enhance governance processes, Mr Chaturvedi collaborated closely with the family. He also offered advice on business strategy, advertising, and client satisfaction. Thanks to their guidance, the Grand Bhagwati Group of Hotels has risen to prominence as one of India’s premier hotel groups, renowned for its high standards of comfort and service.
Rajesh Masala Family:
The Rajesh family has a spice manufacturing and distribution business called Rajesh Masala in India. The company was founded by Mr Rajesh Shah, who unfortunately passed away in 2007. His son now runs the company.
The family brought on Mr Sunil Kakkad, an industry veteran and mentor, to help train the next generation of executives in the spice business. Mr. Kakkad collaborated extensively with his family to map out a path to leadership and pinpoint skill gaps. He also offered suggestions for improving the product’s design, advertising, and distribution channels.
The company’s product line has grown, and it now has a larger portion of the market thanks to the guidance it received from its mentor. The family has grown and matured, with the son increasingly taking on a leadership role in the company.
Story of Shakti Pumps:
Shakti Pumps is an Indian water pump manufacturer and distributor run by a family. After Mr Dinesh Patidar, the company’s founder, passed away in 2018, his son took over the reins. The son had no prior experience managing a manufacturing company or formulating a plan for expansion, both of which proved to be significant obstacles as he attempted to expand the company.
The family sought advice from Mr Narayan Murthy, an expert in manufacturing and business strategy, to help them overcome these obstacles. Mr Murthy collaborated extensively with the family to refine the production process and create a growth strategy. In addition, he offered advice on fiscal management and board oversight.
The company now has a larger portion of the market – thanks to the guidance it received from its mentor. The family has grown and matured, with the son increasingly taking on a leadership role in the company.
In a country like India, where family businesses are so vital to the economy, mentoring is a crucial resource for the members of those firms. Succession planning, professional growth, resolving conflicts, and strengthening relationships are just some of the issues that can be helped by mentoring in family companies.
Mentoring or business strategy consulting may have a huge effect on the growth and longevity of family businesses, as evidenced by the small Indian enterprises used as examples in this blog post. Family businesses can benefit from the knowledge and guidance of experienced mentors in the areas of management, governance, and expansion.
When it comes to the long-term profitability and sustainability of a family business, mentorship and business strategy consulting is an essential tool for the members of that business.
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