Family Business: Bump & Beyond

Succession planning is one of the biggest governance challenges I observed in the family business I analyzed. The second generation still leads the company with strong involvement, and while the third generation has started working there, their future roles aren’t clearly defined. It feels like everyone knows succession will happen someday, but there’s no real structure or timeline. This creates uncertainty and not just for the successors, but also for employees and external advisors. I’ve come to realise that succession isn’t a single event, but a process that needs early preparation and open communication. According to Le Breton-Miller et al. (2004), successful succession involves aligning values, developing talent, and planning leadership transfer long before it’s urgent. For this family business, introducing formal mentoring and clearer planning could turn an emotional topic into a strategic opportunity. Reference: Le Breton-Miller, I., Miller, D. and Steier, L.P. (2004) ‘Toward an Integrative Model of Effective FOB Succession’, Entrepreneurship Theory and Practice, 28(4), pp. 305–328.

The Ambanis (mainly Mukesh) seem to function via holding firms. A family constitution, strategic succession planning and boart roles ensure control and compliance within. This might be the driving force to their success as a family business. #AmbaniFamily #Ambanis #IndianBillionaire Ref: Snehaa. (2025, May 7). Mukesh Ambani’s Succession Strategy: A Blueprint for Stable transition. Medium. https://medium.com/%40realsnehaa/mukesh-ambanis-succession-strategy-a-blueprint-for-stable-transition-48da1ed27b82

In many family businesses, things run on trust, intuition, and shared understanding—especially in the early years. But as the business grows, and as more family members join, this informal approach starts to show its cracks. Without clear governance, even well-meaning families can end up with confusion around roles, blurred lines between ownership and management, and difficult questions about who decides what. A good governance structure doesn’t take away the “family” part—it protects it. Whether it’s through a family constitution, a family council, or a proper board, governance helps everyone stay on the same page. It creates space for honest conversations, clear decisions, and smoother transitions—especially when it comes to succession. As the IFC (2011) puts it, family governance allows businesses to grow without losing their roots. It’s not just a system—it’s a sign that the family takes both its values and its future seriously. references: IFC (2011). Family Business Governance Handbook, 2nd ed. International Finance Corporation.