Family Tradition, Values and Leadership Shriji Arvind Singh Mewar 76 th Custodian of House of Mewar Eternal Mewar The Palace Udaipur Rajasthan India 1ISB Family Business Conference Feb 8, 2009

Creation of State of Mewar Without shedding a drop of blood. Without compromising core values such as self-respect and independence. It was founded on Vedic principles of Guru- Shishya parampara. 2ISB Family Business Conference Feb 8, 2009

Custodianship Birth in the 8 th century of a unique form of family governance. When the world only knew governance of State by kingship. How does it differ: – In kingship, you are the undisputed absolute owner to do your will. – In custodianship, you preserve and pass on what you inherit in trust to your successors. – Custodianship survived because the continued will to do so was voluntary and self-imposed. 3ISB Family Business Conference Feb 8, 2009

Custodianship – (cont’d) How does it differ: – Custodianship is not an office of profit or a political appointment. – The fundamental difference between Custodianship and Kingship lies in the approach and attitude towards governance. – Even as late as 1947, Mahatma Gandhi endorsed the custodian form of governance saying,“wealth was to be held in trust for the benefit of all people.” 4ISB Family Business Conference Feb 8, 2009

Custodianship ‘in practice’ in Mewar It is an unequivocal fact that the House of Mewar continues to adhere to this guiding principle of Custodianship. It is because they have the faith in these family traditions and culture. These are the values we aspire to bequeath to the next generation. 5ISB Family Business Conference Feb 8, 2009

Dynamism in Custodianship Over the centuries, Mewar Custodians have demonstrated that they have, at all times, been able to connect to the real world. – Remain relevant and contemporary. Because of changing challenges, in different times, there is flexibility of adaptation. – Mewar Custodians have been foresighted, ready to embrace change, not fearful of its inherent dynamism. 6ISB Family Business Conference Feb 8, 2009

Dynamism in Custodianship (cont’d) This dynamism, over a period of time, transforms itself into tradition. Similarly, this dynamism translates itself into a family culture, as well. The ability of the family to continuously recognize and practise this dynamism is the secret of our sustainability. 7ISB Family Business Conference Feb 8, 2009

My learnings as 76 th Custodian Lesson 1: The faith and adherence to this time-tested principle of Custodianship form of governance is imperative. 8ISB Family Business Conference Feb 8, 2009

My learnings as 76 th Custodian Lesson 2: Preserve the core at all costs. 9ISB Family Business Conference Feb 8, 2009

My Learnings as 76 th Custodian Lesson 3: Be equitable at all times. 10ISB Family Business Conference Feb 8, 2009

My Learnings as 76 th Custodian Lesson 4: Involve only those who are committed for preserving for future generations. 11ISB Family Business Conference Feb 8, 2009

My Learnings as 76 th Custodian Lesson 5: Develop management structures for future preservation. 12ISB Family Business Conference Feb 8, 2009

My Learnings as 76 th Custodian Lesson 6: Critical need for formalizing and documenting arrangements. 13ISB Family Business Conference Feb 8, 2009

My Learnings as 76 th Custodian Lesson 7: Element of ruthlessness as a last resort and in the larger interest of preserving the legacy. 14ISB Family Business Conference Feb 8, 2009

The way forward…. Pathway 1: Don’t abandon your moral responsibilities as ‘heads’ of families. 15ISB Family Business Conference Feb 8, 2009

The way forward… Pathway 2: Develop personal as well as individual wealth management mechanism for it is a requirement with every passing generation. 16ISB Family Business Conference Feb 8, 2009

The way forward… Pathway 3: Let wealth sit easy: it takes generations to understand, ‘digest’, the power of wealth. 17ISB Family Business Conference Feb 8, 2009

Thank you, ladies and gentlemen! 18ISB Family Business Conference Feb 8, 2009