The document summarizes a study on togetherness in Indian family businesses. It found that there are three dimensions of togetherness in family businesses: familial, business/operations, and trans-generational. When family members do not communicate well, it can lead to assumptions, differences, and ultimately destruction of the family business. The study concludes that families must discuss policies to improve togetherness by appreciating these three dimensions, with an emphasis on not taking togetherness for granted, having shared family goals, attention to family governance, appropriate business structures, and mechanisms for managing exits.

1. Togetherness in Indian family
businesses
Kavil Ramachandran, PhD

2. Family business - Kavil
Kavil Ramachandran, PhD, Thomas
Schmidheiny Chair Professor of Family
Business and Wealth Management, Indian
School of Business, shares the findings of a
recent study on ‘Togetherness in Indian family
businesses,’ during a brief interaction on
February 26, 2014.

3. Changing society
• Indian society is changing rapidly.
• The meaning of being together within families
is varying.
• Reasons:
Individualism, aspirations, opportunities.

4. Break up
• Business families break up, and get into
trouble, sometimes painful, when
togetherness is destroyed.

5. Study
• To understand what they mean by being
together, we received 276 responses from
Indian business families.

6. Conclusions
There are 3 dimensions of togetherness:
• Familial (emotions, celebrations, ceremonies –
non economic).
• Business and operations (involving
power, money, opportunities).
• Trans-generation (starting new
ventures, inheriting shares).

7. When family members do not
communicate well
• That leads to assumptions
• Which in turn cause differences, and
• Ultimately result in destruction.

8. Remedial measures
• Families have to sit down and discuss policies
required, to improve the quality of
togetherness, by appreciating these
dimensions.
• This is particularly relevant to Indian
context, where we assume that the elements
of joint families are still in place.

9. Also…
• Do not take togetherness in families for
granted. Have a family shared goal. Pay
attention to family governance.
• Appropriate business structures are needed.
Develop mechanisms to manage exits.