Beyond three generations – Definite guide to building enduring Indian family businesses - Book review

In the world of business today – ideas are the coin of the realm. We get these ideas from multiple avenues and from our individual preference of a ‘muse’. Perhaps the cheapest and the most democratic way of obtaining it,  is through reading. Reading helps us learn ,observe, live an experience and most importantly pensively think on topics. Each book has a medium we conjure in our minds – a movie where we see images, a poem where the similes and language embellish meaning , prose which clarifies our thoughts and then there are books which are drafted like a discussion – a panel discussion – this is what you get from – Beyond Three Generations – Definite guide to building enduring Indian family businesses !

The book builds on the surmise that most family businesses lose its sheen and verve after two generations and become a lame caricature of themselves. It curates practical wisdom and nuances around institution building , entrepreneurship and family business business management. The book contains very instructional topics around the subject of family business narrated in a non-pedagogical and unpretentious way. While much of the text elucidates concepts from the experiences of twelve Indian companies, there is also a rich checklist of frameworks, templates , questions that help the reader to ponder and great insights disguised as fables. It is a master class from the lens of two entrepreneurs , a business advisor and a senior journalist. It presents itself as a tapestry which threads of different colours and dimensions weaved together as a fine mosaic of learning.

Each of the companies chronicled are different – the industries they serves, different family situations , different product/ service offering and most importantly different business concepts. Their comments resonate well with you and you often hear it in their voices – that makes it authentic and the air of they being on stage and talking. For some of us in TiE Kerala who have heard the proverbial wisdom of Johny Sir – who often uses stories and anecdotes who explain ideas or a V K Mathews – whose erudite insights are often peppered with data and instructional wisdom you often highlight in a text book – there is a sense of déjà vu in some of these paragraphs. With references from the gurus  – Prof Kavil , Prof Joh Ward and a host of frameworks – it is also a treasure trove of ideas and lego blocks – 5Ds , 7 Cs , DJID, IADE and a lot of others

The text itself is in the voices of Navas – who has that phenomenal way of saying insightful points like a joke , Firoze – who speaks in a measured fashion , MSA who laces a lot of humor and laughter to pithy words. . I have not met George Skariah – but he has done the unenviable task of editing these distinct styles and editing them in the form of a fabulous conversation where you hear each of their voices in different parts and context – Kudos !

The book is also divided into key ideas in each chapter and for the impatient reader , you can also dive into a particular section depending on your interest. The concepts covered are around

• The mindset for the long haul – Thinking big , Staying focused and taking balanced risks
• Strategy – deliberately choosing a different set of activities to deliver a unique mix of value
• Governance – managing the fine balance of Family and business through documents like family constitution, practical advice on scripting them , board of directors , external advisors
• Managing Multigenerational transition – finer points of succession planning, anecdotal wisdom from the experiences of families et.al
• Beyond the family – deep dive into professionalization and performance management – very practical insights and learnings on dos and donts, building the inner circle of advisors
• Power of intangible assets – using brands to not only building teams but defining common shared purpose in families as well
• Leveraging the External Environment – playing a role in public policy , leveraging CII , TiE and allied bodies
• Going Global – taking that domestic success to the outside – key learnings and tactile ideas on choosing partners , markets and products
• Unlocking value and wealth – a very insightful chapter on infusion of VC / PE capital , exits , re-investing
• What not to do – some Aesopian learnings and pointing out to a laundry list of potential roadblocks
• Outsiders as Insiders – the imperative pf family advisors and mediators and the benefit of the third party mediators

MSA Kumar sums up each chapter with some of the learnings and expert take aways.

It is a fine exposition of Family , Ownership and Business – the interplay of each of them , Juggling family and business , using the head and heart ( not mixing it ) and most importantly – the need for every family business to sit around the table and prepare the soil for the current generations and a viable foot print for the future generations. I am sure this will be an important book that will set you thinking and leaving you with three magic words – READ THIS BOOK ! 😊

APPENDIX – Companies covered

1.       Arvind Eye Care System ( Madurai )

2.       Bhima Jewellers ( Kochi )

3.       Dodla Dairy ( Hyderabad )

4.       Eastern Condiments and Group Meeran ( Kochi )

5.       ELICO Ltd ( Hyderabad )

6.       Evolve Back ( Formerly Orange County Resorts & Hotels , Bengaluru)

7.       Gera Developments ( Pune )

8.       House of Anita Dongre ( Mumbai )

9.       IBS Software ( Kochi and Singapore )

10.   OmniActive Health Technologies of Sanjaya Mariwala Group ( Mumbai )

11.   Popular Automobiles ( Kochi )

12.   Sandu Pharmaceuticals ( Mumbai )