The Legacy Family

1585 Words4 Pages

Family Dynamics Communication The communication style between the parents and children stems from an authoritative parenting style. Dhirubhai was definitely in charge, and he “would reprimand Mukesh and Anil and impose a solution” when needed (“Family Business” 348). He also communicated well enough with his sons that they felt they were included in the family business even before they took the reins (“Family Business” 349). Communication between the two brothers seems to be lacking. During the tumultuous first years after their father’s death, many unilateral decisions were made. For instance, Anil decided to get involved in politics and decided to start a new venture using Reliance funds without consulting his brother …show more content…

As Hausner states in The Legacy Family, “the odds are clearly against multigenerational transition,” leading me to believe that significant legwork is required on the part of the previous generation in order to increase the chances of success (125). Since both sons had different strengths and weaknesses, a well-defined succession plan could have divided the business in a way that would play to each one’s strong suits. Additionally, working out the plan before succession is necessary would allow the next generation to give their input regarding what they envision to be the best succession …show more content…

Creating such a plan would help to address the idea that certain types of wealth related decisions can either reinforce or weaken family ties (Hartley 8). If each brother had been forced to consider the potential impacts of their decision on the family, they might have been more willing to find middle ground. Instigating these types of discussions also highlights the importance of open communication, relationships and RQ to the family business (Hoover 36). Delineating a structure for the architecture of ownership would also have been a good idea. As ownership is spread between multiple descendants, the need for structure becomes more salient (Hoover 155). Creating this type of structure would have allowed Mukesh and Anil to have a forum in which they could discuss business issues like capital expenditures and the use of profits, then incorporate the “family” part of the business (i.e. core family values and estate planning) into the final decisions (Hoover 156). Takeaway The takeaway that I would like to highlight is the glaring fact that things will run more smoothly and transition to the next generation with greater ease when the proper paperwork is in place. We’ve learned in this class that laying out a family constitution, communication and behavior expectations, and a clear, universally accepted, succession plan are key to the longevity

Open Document