Family business ready reckoner
Every year, business school IMD awards one family business from around the world. BT picked the award's selection parameters and asked three experts in family business to rank each parameter's relevance in the Indian context.
Every year, business school IMD awards one family business from around the world. BT picked the award's selection parameters and asked three experts in family business to rank each parameter's relevance in the Indian context.
| A. VELLAYAN, Chairman, Murugappa Group | KAVIL RAMACHANDRAN, Professor, ISB | NABANKUR GUPTA, Chairman, Blue Ocean Capital | ||||
| Importance of the factor | Adherence to the factor by Indian business families | Importance of the factor | Adherence to the factor by Indian business families | Importance of the factor | Adherence to the factor by Indian business families | |
| FAMILY VALUES | ||||||
| Adherence to mission across generations | HIGH | MEDIUM | HIGH | LOW | HIGH | MEDIUM |
| Active collaboration across generations | MEDIUM | LOW | HIGH | MEDIUM | HIGH | MEDIUM |
| True to background/ values/ heritage | HIGH | MEDIUM | HIGH | HIGH | MEDIUM | HIGH |
| Faithful reinforcing of core family values/ business values/ strengthening the soul of the company | HIGH | LOW | HIGH | MEDIUM | HIGH | MEDIUM |
| Loyalty to employees, shareholders, clients, suppliers and the community | MEDIUM | MEDIUM | MEDIUM | MEDIUM | HIGH | MEDIUM |
| Must have reached at least the third generation of family ownership and management | MEDIUM | LOW | LOW | LOW | MEDIUM | LOW |
| Contribution to the society | MEDIUM | LOW | MEDIUM | MEDIUM | MEDIUM | LOW |
| BUSINESS VALUES | ||||||
| Excellence in performance standards | MEDIUM | LOW | HIGH | MEDIUM | HIGH | MEDIUM |
| Family values-driven | HIGH | MEDIUM | MEDIUM | MEDIUM | MEDIUM | LOW |
| Growing and profitable company | HIGH | MEDIUM | HIGH | MEDIUM | HIGH | HIGH |
| Credibility of the communicated strategy | MEDIUM | MEDIUM | HIGH | MEDIUM | HIGH | LOW |
| Global in business scope | MEDIUM | LOW | LOW | LOW | MEDIUM | LOW |
| Clarity of the communication strategy => corporate sponsorship (marketing), corporate reputation (identity/branding) | MEDIUM | LOW | MEDIUM | LOW | HIGH | MEDIUM |
| Personal, hands-on, engagement of much of the family | MEDIUM | LOW | MEDIUM | HIGH | MEDIUM | MEDIUM |
| Brand (reputation) building | MEDIUM | LOW | HIGH | MEDIUM | HIGH | MEDIUM |
| SUCCESSION | ||||||
| Excellence in governance—selection, development, independence, unifying the family | MEDIUM | MEDIUM | HIGH | LOW | HIGH | LOW |
| Sharing learning within the family | MEDIUM | MEDIUM | HIGH | LOW | HIGH | MEDIUM |
| Strategically adaptive over time and generations | HIGH | LOW | HIGH | MEDIUM | HIGH | MEDIUM |
| Clarification: These ratings are indicative as generalisations across family businesses cannot be made. Use this grid to benchmark and self-appraise rather than for direct comparison with another business family. Full IMD methodology at www.imd.ch/research/centers/lodh/Family-Business-Award.cfm | ||||||
