 we will talk about family business. Family business is a very common case of entrepreneurial firm. Globally as well as in India, family business contributes to over 70 percent of the GDP. In case of India, this could be even more because if you go deeper into economy, almost every small enterprise is family run. According to the survey conducted by Price Waterhouse Coopers in 2019, family businesses have grown in last two years and all the respondents expected to grow in next two years. I am saying expected because today we are sitting when the global pandemic of COVID-19 has engulfed the economy. So, probably this finding about expecting to grow may not be valid, but when the survey was conducted in 2019, large number of corporations more than 80 percent were expecting the business growth in next two years. 49 percent of the surveyed companies which were the family owned entrepreneurial firm have fully costed, formalized and communicated mid-term strategic plan. Out of remaining 51, 43 percent did not have the fully costed, but still they had a formalized and well communicated strategic plan. So, strategic planning is very much there in most of the business firms in India as per the survey conducted by PWC. In 2016, similar survey in 2016, 75 percent of those interviewed said that business had grown over the last 12 months, that trend is largely unchanged and 2019, 76 percent of the family business surveyed in 2019 mentioned that business have grown. Significantly, while 16 in 2016, 16 percent of the business experienced a reduction in sales, only 9 percent reported reduction in sales in 2019. It is also heartening to note that 58 percent of the family businesses had achieved double digit growth compared to 34 percent globally. PWC also conducts the global survey of the family family owned businesses. So, there is also a comparison given in the global survey findings and the India specific findings. Another 18 percent of the Indian businesses grew between 3 percent and 9 percent, while 15 percent of the Indian businesses experienced stability in business operations. You can look at the importance of the family businesses and the health of family businesses based on this survey. What are the values and approach to social responsibility of the family business funds? PWC found that 89 percent of the family businesses feel that they have a clear sense of the agreed values and purpose as a company compared to 79 percent globally. Further, 85 percent says that family which owns the business has a clear set of values as against 75 percent globally. Higher ranking of business leaders and family owned businesses on both aspects can be attributed to the Indian social and family structure and a belief that ingrained values are the foundations on which businesses have been built. 70 percent of the family business leaders in India have in fact set up a foundation individually or jointly with other families. So, this is this data is about the social responsibility. Most of the CSR activities by the corporations for whom this is a mandatory requirement according to the new amendments in the Companies Act, 75 percent of the family owned businesses they carry out the CSR activities through a foundation. Investing in the philanthropic ventures is however not enough and 58 percent of the business even try to measure the success or impact of these CSR activities which is significantly higher than the global average of 28 percent. So, this survey indicates that family businesses are important. They are aware of this importance of clarifying the values. They have clarity about the values. They also have clarity about their strategic orientation and the path of strategic success. They also mostly are responsible towards society and most of them are genuinely engaged in the CSR activities. Some of the unique challenges of the family owned businesses or family owned entrepreneurial firms are institutional overlap, pressure to hire family members, compensation, succession planning and lack of formal systems and processes. Institutional overlap as we discussed in the previous part of this session is about overlap of the roles in family and firm. As a chairman or the MD of the firm, father might has to take a stern action against the son or daughter or other relatives and that kind of situation can create a dilemma and that is what is called the institutional overlap. Pressure to hire family members when firm is family owned, family member think of themselves as entitled to have job or position in that firm. Many a time it may not be easy, it may not be feasible according to the competency requirement in a particular role. So, that may create a challenge and pressure on the owner of the firm. Compensation is another challenging issue. If family owned business has mostly employees coming from the same family, then how do you decide the compensation? If everybody is coming from the same family, can we have differential in the compensation? If son and son-in-law both are employed in a family firm, can we differentiate the salary even if their roles are different? That might those might be a tricky issue and that is why it becomes a challenge at times. Succession planning as I mentioned before can be one of the trickiest issue in the family owned entrepreneurial firm. When family owned entrepreneurial firm grows and if grows based on the personal ties and the social ties, they may lack in the formal systems and processes. At times family owned firm from the micro to become small to become medium-sized corporation even without strong and explicit formal systems. But if the family owned firm has to survive as a medium-sized corporation or has to grow as a big corporation, they have to establish formal systems and processes and that becomes challenging because in that process they have to many time prune the roles of the family members. At times they have to restructure the compensation, they have to restructure the organization, authority, organization design. Many time they have to give more authority to the professional managers and curtail down the authorities of the people coming through the family ties or the social ties. These things become very difficult and very challenging for a family owned firm and that has to be taken care of in a very sensitive and professional way. These are some of the major challenges of the family owned entrepreneurial firm. Some of the prominent OD interventions are role and goal clarity, explicit contracting and family therapy. Role and goal clarity related interventions are important in the birth stage, survival stage and even the growth and succession stage in an organization. It is always good to calibrate the expectations of the different members of the family involved in the business and to demark the role of different people involved from the same family in the entrepreneurial firm. Similarly, goal clarity is also important because without goal clarity we cannot assess the performance of the different members. Without assessing the performance other decisions like compensation, giving authority, their further role, their position in the organization design all such decisions cannot be made without the goal clarity of the different members of the family owned firms. Explicit contracting can be part of the previous OD intervention or can be done independently in a family owned enterprise. That means, writing down, documenting the different aspects of running a business and making decisions about it. PWC survey which I mentioned just now also has one question about value clarity and documentation of the values. PWC found that companies which have documented their values have more clarity in their performance and they have little better performance record in comparison to those companies which might have the clarity about the values but values are not documented. Family therapy is one of the most popular OD interventions in issues related to family and it is also relevant for the family owned entrepreneurial firm if they face an issue. Family therapy can be of the three types which can be relevant for the entrepreneurial firm, bovenian types, structural type and strategic type. Bovenian form of family therapy is best suited for the situation in which individuals cannot do or do not want to involve the family members in the treatment. This is built on two core concepts triangulation and differentiation. Triangulation means our natural tendency to vent or distress by talking to a third party. By talking to a third party they are able to look at their own behavior and disposition in the family situation. Differenciation meaning distinguishing the emotional aspect of an issue and factual aspect of the issue. So, differentiation is useful to become less emotionally reactive in the family relationship even when the matter is related to business. Second form of family therapy is structural. Structural therapy focuses on adjusting and strengthening the family system to ensure that the parents are in control and that both children and adults set appropriate boundaries. It is very similar to the role and goal clarity. In this form of therapy the therapist joins the family in order to observe, learn and enhance their ability to help the family strengthen their relationship. In this kind of therapy, consultant may sit through the family meetings or the business meetings. Consultant can also talk to the senior managers or the out of the family employees working in the entrepreneurial firm and get the data about the dispositions and the general temperament of the different family members. Identify the enabling patterns or the dysfunctional patterns of the family members interactions. Make the family members aware about that and ask for some explicit contracting about change in the behavior or adopting new behavior. Strategic intervention related to the family therapy is the form of a therapy which is more brief and direct in which the therapist assigns homeworks to the family. This homework is intended to change the way family members interact by assessing and adjusting the way family communicates and makes decisions. The therapist takes the position of power in this type of therapy which allows other family members who may not usually hold as much power to communicate more effectively. This is particularly relevant about the questions related to succession planning. Even if there is a one one probable successor or there can be couple of probable successor this therapy can be used. Specific assignments can be given as a part of the family therapy to the prospective successors of the company coming from the family. The family members performance in those assignments make them aware about their special competencies and temperament that will also make aware of the family members about their competency and temperament about solving or addressing some issues. And that process can give a more objective data about making a decision about succession. Succession as we know is a very important part perhaps the trickiest part of managing the family owned businesses. Now, we will discuss about the succession planning. This exhaustive model proposed by Wetley can be useful to understand the best practices about the succession planning in a family owned form. Again like many other models it may look overwhelming, but I will invite you to look at this model and understand this model in a step by step manner and then you will see it is a fairly simple but very useful model. What it says that succession planning first be started taking into account of the industry context as well as the family context. What is the family context? Family context is family dynamics, family influence on the business decision and how the family council or how the family has been functioning till now. Naturally the family context come from the social context. If we take the example of India there are a lot of communities where large number of people own the family businesses. So, society or community also provides a very strong context to the business and that must be accounted in the succession planning related issues like who is the probable successor, who can follow the family tradition, who has the better rapport within the community and society, who has a ambitions which are aligned to the ambitions of other family members. These questions must be taken into account. We also need to take into account of the industry context. Industry context meaning how the business is growing, how the industry is looking like, what are the challenges in the industry. Incumbent and successor have to negotiate, have to develop a common understanding about the industry context. They need to look at what are the issues, what are the challenges and how they would like to take forward the company in the near future. And they must come to agreement. Some of the elements might be very different from the way business was managed by the predecessors. But succession planning must be informed by the strategic context, but there must be a common understanding about how the successor will take forward the organization. That agreement must be written down, must be agreed upon. Once we choose the incumbent, identify the based on the family context and the industry context, the succession process starts. What we suggest that succession process must start with setting the ground rules, how the development will take place, what will be the selection criteria, what are the range of candidates, identifying the potential successors, leadership partition plan and transition, ownership partition plan, what these indicators are suggesting that the ground rules and the blueprint for succession must be created as the first step of the succession planning. Next step comes the next step is about nurturing or development of the successors. That is establishing the gaps between what is required a successor should have to lead the business successfully in the when when when Reen comes when Reen is in his or her hand, identifying the developmental need, identifying the training programs or the ways of addressing those developmental need. Also identifying how the progression of the successor will happen in the organization, what will be the first step, which are the projects or which are the businesses, the incumbent will take care of, incumbent will work upon before or before the succession is completed. Then the selection process if there are more than one incumbent, selection process has to be carried forward, selection if there are more than one incumbent, then selection process must be carried out, which include designing a legitimate process, the final selection criteria, selection committee, persons, selection of CEO all these things have to be done in a transparent and explicit ways. Last but not the least is the process of handing over and the transition process. Once a incumbent is identified as a successor, then comes the process of handing over the chart and this also must not happen in a haphazard way, this also must happen in a systematic way. Shadowing is one process followed by many owners of the family owned businesses, where a successor for sometime many years just observe and take part in a limited way. So, transition process has generally the two step, one process is the managerial development or leadership development, which includes shadowing, which includes taking over the key projects first and then gradually being being prepared to take up the role and responsibility of managing the whole business and the second part is the transfer process. Transfer process may involve the transfer of the shares, control, management control, identifying the formal and the formal systems and the contracts about who will manage on what, what will be the role of other family members, what will be the financial autonomy or the financial what is the extent of the financial control given to the different family members and the firm, all these are to be identified in a legal in a in a way according to the prescribed and approved in the regulatory system. So, these are the ways and these are some of the very important things in the transfer of the power to the successor. So, Whitley has given this comprehensive model, the different elements given in this comprehensive model can be used as a checklist to successfully conduct the succession planning in a family owned firm. There are few concepts in Indian culture which can be relevant for organization development in the family owned businesses. First concept is Chamavani Perv. Many of you might have heard about the Perusion Perv followed by the Jain community in India. The Perusion Perv go on for about fortnight 15 days and one of the day is dedicated to asking for the forgiveness and this day is called Chamavani Perv. This is the day when we explicitly ask for forgiveness from our loved ones, from all our relatives and friends for whatever wrong we have done consciously and unconsciously. So, this concept can be used in the family business firm as well. When a family is involved in the business, there might be an institutional overlap, there might be a role overlap and in order to negotiate the roles properly and in order to take forward the business in the desirable direction, many a time one family member might have to be viewed or have to take stern action against the other family members. Same way, some family members may misperceive the decisions of owner family member and because of that misperception, they may hurt the owner who is a head of the family, who many time might be the head of the family. So, they can use this spirit of Chamavani Perv if not every day, every week to ask for forgiveness and explaining why they behaved rudely, why it was inevitable or why it was important and this kind of communication. If ends in forgiving each other, family members may find way to take forward their family interaction as well as business interaction in a pleasant and a productive way. Another Indian concept which is very commonly used in our society is called vanaprasth. Vanaprasth is a stage of life. According to the traditional cultural values, human life goes through four stages, brahmacharya, grahastha, vanaprasth and sannyas. Brahmacharya is competence building phase where you acquire knowledge and in the ancient time it was considered to last till the age of 25 because human life was supposed to be of 100 years. So, up till 25 years or one fourth, first one fourth part of life is related to the competency building. Second phase of life is grahastha meaning a role of a householder, taking care of the family, establishing businesses, earning money and that becomes a earning money, running business or the profession. Up till the 50 years you have to actively engage in business and the money generation or economic activities as well as taking care of your family, nurturing your family that. So, same way up till the age of 50, grahastha ashram these are stages of the life also called ashrams. So, grahastha ashram last by the age of 50 and after 50 vanaprasth starts. Vanaprasth the word the meaning of the word vanaprasth is going to forest, not literally going to forest, but it is about excluding from the day to day affairs of the business or economic activities and empowering the family members to take the main role in the economic matters or business matters. We need to at times remind the older family members about the value of vanaprasth. Many times owner of the family firms are very reluctant to hand over the autonomy or power to the young generation even when the owner reaches to the age of 70 or 75 and the successor may reach to the age of 50 or 160. This situation can be avoided if we convey the importance of vanaprasth which starts around the 50 years of age. The essence is that when you are active that is the time when we start giving and start we start giving the autonomy to the family members so that they become trained in front of our eyes to make the to grow the business. Third concept in our Indian system is captured in this popular shloka which says that meaning love your kids first five years, discipline them for next 10 years and as they reach 16 treat them like your friends. If we follow this value there can be less frictions in the family owned business we will be more open to accept the ideas of each other. The different generations can work more harmoniously and work towards growth of the family business wherein the the business is benefited by the energy of the young family members and the wisdom of the older family members. So, these are some of the concepts prevalent in the Indian culture which can be relevant for the OD in the family owned businesses. So, with these points we come to the end of this session. In today's session we looked at holistic approach of diagnosis in the entrepreneurial firm, firm planning, role clarification, organization design, strategic planning, team and career planning, succession planning are the major OD interventions used in the entrepreneurial firm in different stages. Those stages are birth stage, survival stage, growth, success and succession planning stage. Family owned businesses require a unique approach of diagnosis and intervention that requires more sensitivity. We also discussed the different OD interventions especially suitable for the family owned entrepreneurial firms and we in more detail discuss about the family therapy and succession planning as OD intervention in the family owned firms. Thank you.