1. Coaching & Mentoring Indian Entrepreneurs Global Forum Singapore June 2011 Sentient June 20111

2. Enterprises by families  Globally contribute to 70 – 90% of GDP  North America: 80 – 90% of all businesses  India – 70% of the companies  Organization of Economic Co- operation and Development – 85% of companies in 33 member countries Sentient June 20112

3. Survival rates Sentient June 20113 45% 40% 35% 0% 20% 30% 25% 15% 10% 40% 12% 3% 2 nd 3 rd 4 th Generation of family

4. Family Enterprises Sentient June 2011 4 Through the firm, the family influences every element of the strategy framework except the Environment and Market Goal Formulation Firm Strategy Formulation Environment and Market Firm Performance Evaluation And Adaptation Strategy Implementation Family Key Dimensions of the Family Element Family Values Family interests Family goals Succession Family business culture Family members as managers Siblings/Family relationships Inter-generational issues Non-family members as managers The family element brings additional dimensions into picture, that influence the various elements of the conventional framework Source: Adapted from “Strategic Management of the family business: Past Research and Future Challenges’, Pramodita Sharma, James J. Chrismam, Jess H.Chua, Family Business Review, Spring 1997

5. Intrinsic Challenges  Nepotism  Overlap of family goals & business goals  Professionalism  Succession  Family feuds Sentient June 20115

6. Why Coaching - immediate  Founder has not developed his successor  2 generations of the families have difficulties communicating with each other  Senior leaders hired by the previous generation  Lack of clarity in roles & responsibilities Sentient June 20116

7. Why Coaching – Longer Term  Economic downturn  Global opportunities  Imperative to learn & relearn Sentient June 20117

8. Coaching Challenges  Need for advisors is recognized Validation of their own decisions No adequate follow through  Professionalizing Vs hiring professionals Family role not clearly defined Need for corporate governance  Succession Because of family Management skills Leadership development Sentient June 20118

9. “Almost all companies start out as family businesses, but only those that master the challenges intrinsic to this form of ownership endure and prosper over the generations. The work involved is complex, extensive, and never-ending, but the evidence suggests that it is worth the effort for the family, the business, and society at large.” —McKinsey Quarterly, Jan 2010 Sentient June 20119

10. mohan@sentientconsulting.in Sentient June 201110