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How to tame the spoilt brats of India's business families
Summary
A new book offers a roadmap on succession planning strategies for family-owned businesses in India
Business families are not immune to the presence of spoilt brats and individuals who may exhibit undesirable behaviour within their ranks. Whether due to entitlement or lack of accountability, such individuals can pose significant challenges to the harmony and success of the family enterprise. Their actions and attitudes may undermine teamwork, erode trust and create tension among family members and employees alike.
Spoilt brats within business families pose a significant threat to the stability and longevity of the family enterprise. Their privileged upbringing often results in a lack of appreciation for the values that built the business. The absence of self-discipline can manifest in reckless decision-making, entitlement issues and an overall disregard for the hard work that went into creating the family wealth. These individuals, accustomed to instant gratification, might lack the resilience to navigate the challenges of running a business. Their unchecked behaviour can lead to internal conflicts, as family members witness a deviation from the core principles that define the family’s success.
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In the context of succession planning, the presence of spoilt brats can complicate matters. Their sense of entitlement might clash with the merit-based approach necessary for identifying competent successors. This dynamic introduces an element of favouritism and undermines the principles of fair leadership selection. Strengthening family values becomes imperative as a countermeasure. Instilling a sense of responsibility, work ethic and gratitude for the family legacy can mitigate the negative impact of the entitlement. A deliberate effort to cultivate humility and a deeper understanding of the family’s journey is crucial for aligning these individuals with the values that sustain the business.
Spoilt brats within business families not only jeopardize the internal cohesion of the family unit but can also erode stakeholder confidence, causing tangible harm to the business. When family members exhibit entitled behaviour, engage in public scandals or make questionable decisions without accountability, stakeholders, including investors, employees and customers, can lose faith in the business’s leadership.
Such publicized family conflicts can result in a loss of trust from stakeholders. Investors may become wary of potential disruptions to business operations, and customers may question the company’s ethical standards. Employees, too, may feel uncertain about the company’s future direction, impacting morale and productivity.
Spoilt brats who are perceived as taking undue advantage of their family’s business can be a liability, causing reputational damage that goes beyond the confines of the family. Stakeholders value stability, transparency and ethical conduct in businesses, and any deviation from these principles can lead to a loss of confidence.
The grooming of the next generation within a business family is a critical responsibility that goes beyond providing financial privileges. While it may seem cute or endearing when children display confidence or assertiveness due to their family’s wealth, the long-term implications of allowing wealth to shape behavioural arrogance can be detrimental to both the family and the business.
At an early age, the confidence displayed by affluent children may be perceived as harmless, even charming. However, if not tempered with a sense of humility, responsibility and empathy, this early display of entitlement can evolve into a pattern of arrogance as they mature. The danger lies in the fact that wealth-driven arrogance can manifest in entitlement, a lack of respect for others, and an assumption that success is guaranteed without the need for hard work or ethical conduct.
As these children grow older and assume roles within the family business, their behaviour can impact relationships with employees, partners and even family members. Arrogance can lead to a disconnect with the workforce, hinder effective collaboration and create a divisive atmosphere within the family. Moreover, stakeholders, including customers and investors, may distance themselves from a business perceived as being driven by arrogance rather than merit and competence.
In addition to the challenges of spoilt brat syndrome, there is a risk of the current generation and children in subsequent generations succumbing to vices, bad habits and undesirable company. As business families accumulate wealth over generations, the temptation of indulgence and excess can overshadow the values instilled by previous generations. This phenomenon poses a significant challenge for business families, as they must not only pass on their wealth and legacy but also ensure that their successors embody the values and principles that underpin their success.
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Moreover, the proliferation of modern distractions and temptations, exacerbated by easy access to wealth, further complicates the task of steering successive generations towards a path of responsibility, integrity and purpose. Thus, business families face the daunting task of navigating these external influences while imparting the necessary values and discipline to their heirs, safeguarding both their family cohesion and the integrity of their business legacy.
One illustrative example is the case of a prominent business family whose scion, due to unchecked arrogance, publicly made derogatory remarks about employees. The incident not only caused internal turmoil but also led to a significant backlash from the public and damaged the family’s reputation.
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To avoid such pitfalls, the previous generation must instil values that prioritize humility, respect and a strong work ethic. While financial privilege can provide opportunities, it should not become a shield against the realities of life and business. Encouraging the next generation to understand the value of hard work, to appreciate the contributions of others, and to approach success with a sense of responsibility can prevent the emergence of toxic behaviours associated with wealth-driven arrogance.
However, addressing the issue requires a delicate balance. Heavy-handed tactics may exacerbate rebellion, while a laissez-faire approach risks an unchecked erosion of family wealth. This necessitates a nuanced strategy, blending discipline with empathy. Proactive intervention through mentorship programmes, exposure to the realities of the business and, if needed, external counselling can redirect the energy of spoilt brats towards constructive contributions. Encouraging them to forge their identity within the context of the family legacy rather than against it can harness their potential positively.
Families need to handle such situations with sensitivity and discretion, recognizing the potential impact on both the business and the family’s reputation. Addressing issues related to spoilt brats and bad apples requires clear communication, setting boundaries and enforcing consequences for inappropriate behaviour. Family leaders must strive to uphold the values and principles of the business while fostering an environment of accountability and mutual respect.
Moreover, families may need to seek professional guidance or support from advisors experienced in family dynamics and conflict resolution to navigate these challenging situations effectively. By addressing issues promptly and decisively, families can mitigate the negative impact of spoilt brats and bad apples on their business and reputation, ensuring the long-term success and sustainability of the family enterprise.
Excerpted with permission from Family and Dhanda: A to Z of Succession Planning for Founders and Successors by Srinath Sridharan, published by Rupa. The book is out on 20 March.
