The panel discussion focused on how family-run businesses can professionalize while retaining their family values and culture. Key points included: 1) Businesses need professionals to scale operations but professionals must be aligned with the family's culture and values. Families introduce professionals to their culture through informal meetings. 2) Both families and professionals go through an adjustment period when integrating. Conflicts should be addressed privately and decisions supported publicly once made. 3) Family businesses attract good professionals by providing an environment that feels like an extension of home. They recruit for attitude over qualifications and support staff's problems. 4) To retain professionals, family businesses must treat family and non-family equally and give professionals autonomy over their

1. Panel discussion: Professional Outlook in the
Family Run Retail Business

2. T.Shantakumar, MD,
Kirtilals
M. Banumathi, Head
Naidu Hall, Kovai
Gnanasekar
Kandaswamy, MD,
Pazhamudhir Nilayam
Amar Subash, GM
Security, Commercial &
Retail Biz, Tyco India
Moderator: Sanjay
Badhe, Consultant, Retail
and Marketing

3. Do family run businesses need professionals?
• Businesses need professionals to scale.
• Professionals bring in discipline, process and
systems.
• The entrepreneur, though, brings in a level of
customer connect that the Professional cannot.
• The challenge is to get the professional aligned to
family culture and business values.
• We do several informal meets, lunches with
senior professionals when they join. Our purpose
is to empower each Store Manager so that they
can engage and connect with the customer, the
same way that the entrepreneur can.
Both family members and professionals go through a period of adjustment
when professionals join the business.
T.Shantakumar, MD,
Kirtilals
Moderator: Sanjay Badhe,
Consultant, Retail and Marketing

4. • Take conflicts offline – for one to one personal
discussions with both, family members and the
professionals.
• Once the decision is made – then both have to
align with the decision, even if they don’t agree.
• We are clear, that professionals who cannot align
with the family values and the business culture –
cannot continue with us.
• We use the period of the first 90 days on the job,
to gauge that alignment.
When new family members enter the business, we are careful to
mentor both them and the professionals already in the business.
Moderator: Sanjay Badhe,
Consultant, Retail and Marketing
How do you solve conflicts?
T.Shantakumar, MD,
Kirtilals

5. How do family businesses attract good professionals
You have to attract good people – not just at senior levels,
but especially at the front end.
• Family businesses provide an environment which is an
‘extension’ of the home environment.
• For us, our sales men and saleswomen are our
“Heroes”, and – like in the movies, we want them to be
visible to the customers (audience) not us – the
‘directors’ and ‘producers’.
• We recruit for attitude not qualification or experience.
We also ensure that we take on and solve their
problems, so that they are free to do what they do best
which is sell. (example – savings schemes)
• We encourage them to develop confidence, by getting
them mentored by senior sales staff. Our staff calls
seniors as “Amma / Appa / Akka / Anna” – a mark of the
depth of relationship.
Family owned retail stores provide high emotional connect to professionals –
that’s why they stay.
Moderator: Sanjay Badhe,
Consultant, Retail and Marketing
M. Banumathi, Head
Naidu Hall, Kovai

6. • Our sales staff help us keep our pulse on the
market. They tell us what customers want – and
purchase managers do regular monthly meetings
to make sure that our range / merchandise reflect
that local know-how.
• We have found, that customers in different towns
(from Coimbatore to Madurai )have different
tastes. By formally recording customer needs via
salespeople, we find that our business is better,
and inventory lower.
“Word of mouth” is the best advertisement
Moderator: Sanjay Badhe,
Consultant, Retail and Marketing
How do family businesses attract good people
M. Banumathi, Head
Naidu Hall, Kovai

7. • Most entrepreneurs think that professionalism is
about appointing a CEO – this is not true.
• A company is professional when it has proper
systems and structures to run day to day
operations without interference of the
entrepreneur.
• The entrepreneur should focus on
“directionalizing” and setting targets.
• We do not differentiate between professionals
and family members.
• Both have to take the consequences of their
decisions – good and bad.
Make sure that you treat family members and professionals
fairly and equally.
Moderator: Sanjay Badhe,
Consultant, Retail and Marketing
How do family businesses retain professionals?
Gnanasekar
Kandaswamy, MD,
Pazhamudhir Nilayam

8. How do you stop yourself from not interfering with the professionals?
• Once you have delegated authority to a
professional – then you have to give him the
space to perform.
• If you interfere and micro-manage he will not
perform.
• At the same time, the customer needs you – so
you still need to be available to the customer.
• Other than that – you walk away – decisions
regarding the stores has to be done by the
manager dedicated for that.
• If you have to override the manager in front of
the customer, then after the incident, you go back
and motivate the manager so he does not lose
heart (or face).
Empower the professional and then “walk away” – let him do his job.
T.Shantakumar, MD,
Kirtilals
Moderator: Sanjay Badhe,
Consultant, Retail and Marketing

9. • If you are thinking about professionalizing – do
not lose the core values - essence of the
brand.(in the mind of consumer)
• We have “centralized” the core values by a
monthly review process – we focus on targets
and the support needed to achieve the targets.
• This ensures that our presence is not needed
– and that gives the professional the space to
perform.
Identify your core values, centralize and control only those.
Leave the rest to the professionals.
Moderator: Sanjay Badhe,
Consultant, Retail and Marketing
Gnanasekar
Kandaswamy, MD,
Pazhamudhir Nilayam
How do you stop yourself from not interfering with the professionals?

10. How do family owned business score when it comes to adopting
technology?
• The key is accessing the entrepreneur and getting
enough time from him to demonstrate value.
• Once you demonstrate value, then technology
adoption and rollout is much faster among family
owned businesses than among modern retailers
where decision makers span multiple levels in the
hierarchy.
• Once you have built credibility – they are also far
more open in terms of looking at technology to
solve strategic issues . More importantly,
willingness to be transparent about the issues is
much higher.
Family owned retailers are profitable. They do not therefore
view technology as a cost – they see it as an investment.
Moderator: Sanjay Badhe,
Consultant, Retail and Marketing
Amar Subash, GM
Security, Commercial &
Retail Biz, Tyco India

11. Panel discussion: Professional Outlook in the
Family Run Retail Business