The concept of family businesses can be likened to a “three-legged stool” where the stability of an enterprise depends on the equilibrium among family members, business operations, and ownership aspects according to Tagiuri & Davis (1982). The balancing act of family, business, and ownership represents Icon World of Tile's top strength since its founding by Mr. Rameshbhai Patel in Morbi, Gujarat.
Our Structure:
Over 60 shareholders from three family generations now own Icon. Mr. Sanjay Patel leads the Duracon unit and my uncle Mr. Mahesh Patel directs the operations at Avlon. Six distinct units of Icon World of Tile operate under separate family member management but function together as a single brand entity.
Family: My cousin Priya and I receive leadership guidance from our elders during family gatherings that serve as business board meetings.
Ownership: The extended family holds shares yet many members choose not to engage in day-to-day management. Mrs. Shilpa Patel who holds shares in our company primarily commits her time and resources to social initiatives instead of participating in business operations.
Business: As our business expands into Europe and North America professional managers such as Mr. Amit Shah who serves as a non-family COO have gained more involvement.
Framing the Paradox:
The Three-Circle Model provides insights into the complexity of our decision-making processes. During the family meeting about starting a new eco-friendly tile line my father focused on maintaining our legacy and reputation but my cousin Priya advocated for innovation to gain market share. Our external advisor Mr. Amit Shah focused on financial risk and operational feasibility.
The "family orchestra" metaphor fits our situation because each section (family and ownership and business) needs to perform together yet strings (tradition) and drums (innovation) often battle for dominance. Real Example: Upon his decision to promote his son Karan to a senior role, Uncle Mahesh faced skepticism from family members regarding whether Karan's abilities aligned with the position's requirements. This sparked a debate: Which should come first in our decision-making process: maintaining our family legacy or recognizing professional merit? We decided Karan would shadow Mr. Shah for one year before assuming greater responsibility which demonstrates our blended management approach.
References:
Tagiuri, R., & Davis, J. (1982). Bivalent attributes of the family firm. Family Business Review, 9(2), 199–208.
Gersick, K. E., Davis, J. A., McCollom Hampton, M., & Lansberg, I. (1997). Generation to generation: Life cycles of the family business. Harvard Business Press.