ENSURING FAMILY AND AT INDIA CASE Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

ENSURING FAMILY AND AT INDIA CASE Case Study Solution

Is Rao over-emphasizing family governance?

In my opinion, Rao is not over-emphasizing the family governance due to many reasons. The family governance is a valuable processes or structure that provides control and direction of business and the relationship amongst family members. It provides forum for the constructive communication, discussion, decisions and problem solving about the family. The family governance is suitable to opt for setting the vision, maintaining & uncovering the values by which the family tends to operate, educate family members about responsibilities & rights of the ownership, values, and prepare for the future. The family governance mainly aimed at keeping the family member informed regarding the business challenges, strategic direction and accomplishments, communicating the family mission, values and vision to all the members.

Governance is uppermost in today’s everybody’s mind. No matter what is the size of the family business, often volatile and unique mix of the personal family dynamics, ownership criteria and business strategy tend to create the emotionally charged environment that help to reach to the decision making. As a founding succession, generation ages and power problem in family business can create the cascading issues /concerns. The family governance has helped the business in improving its governance and this preserving family harmony.

In initial period of time, Rao was in need of family governance to maintain the health family relationship, harmony, peace and long term strategic vision and growth, also to leverage the special or key strength of family in mitigating various risk related to the family business such as infant mortality and foster stewardship to promote the long term sustainability of the group. Also, he contemplated to ensure the family governance for the purpose of limiting the potential disputes and conflicts in family members, this in turn has allowed the group to realize objectives, goals and visions. Thus the visions of the family business have been directed to maximize the potential wealth of the future and current generations of the family members.

Since, the group has been growing with the pace of time in the market, the group had a need for structures either informal or formal to deliver the family governance in the company, fostering communication & providing education within the family business. Such have been achieved through establishing a family council, conveying family assembly and holding family meetings with the support of the family constitution.

As such, family governance is crucial to the sustainability and long term growth of the business. So, Rao has done incredible job of ensuring the family governance focusing on the family matters and developing policies in a family constitution. They play vital roles in long term viability of the family run business because, all of the constitution tend to govern the matters that are significant for the success of group. It has helped the group in making the strategic decisions for the benefit of every person who has been connected or associated, resolving highly emotional concerns in the objective in calm manner. In short, in my opinion, Rao is not over-emphasizing the family governance (C, 2018).

Is this a sustainable model?

Yes, a family governance is the sustainable model that is widely and extensively used for the purpose of assisting the family owned business to become sustainable over multiple-generations. Not only this, the family governance also makes sure of the productive and sustainable family relationship. It is one of the considerable factor that influences the family running business’ performance. It also ensures the long term sustainable development of the company.

GMR group in India is one of the example of the early succession and governance planning. The founder and chairman G.M. Rao has prepared a comprehensive succession plan, developing a family constitution which has been prescribing the process for managing the differences in the members of family, stipulating the rules and regulations, and providing the code of conduct for the family members. The family governance enables the business to grow. It is noteworthy that the family governance constitutes the business climate for the number of internal activities within company. Also it tends to assist the family businesses by infusing stringer internal auditing, better management practices, as well as greater opportunity for development and growth in forthcoming years. Additionally, family governance also encourages or promotes the families to work collaboratively and communicate more effectively, and it is always pivotal to the growth & success of the family running business. By adopting governance at both business and family level, it provides the exceptional and better solutions to the family ownership challenges, & these measures are crucial or necessary for the success and growth of the family running businesses. The family running businesses with effective and better family governance practices, policies and procedures are more likely to carry out the effective and successive planning. At its core, family governance is a joint decision making, the family governance is designed with an intent of formalizing those processes and providing forum to family members in which to express visions and opinions for the future. The family governance also provides opportunity to share her or his ideas or visions for the family.

The family governance or family constitution bring the new strategic outlook, also it tends to enhance the competitiveness and entrepreneurship of the company. Also, the family governance creates employment standards for the upcoming generation, career development procedures or policies for the family employee, family compensation, and succession plan that involves the age of retirement.

Shortly or generally, the family governance maintains and builds the understanding of the family unity, values and success of the business, establishes measures and benchmarks of accountability for the family business’ performance, investment and foundations. It also assists in developing a long term strategy for the optimal development and growth of family running business. A solid family governance assists in resolving the emerging conflicts or disputes within the family settings, thus allowing the member of family to emphasize on the key business issues. To sum up, the family governance holds significant importance in conflict management, long term strategic direction and plan, also it helps in smooth transition from one generation to another generation (Alfred Sarbah, 2014).............

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