39th Annual Meet of Organization of Plastics Processors of India (OPPI)
39th Annual Meet of Organization of Plastics Processors of India (OPPI) was held on Friday 4th August 2023 at Grand Ballroom, Taj Santacruz, Mumbai.
Mr. Sunil Kant Munjal, Chairman, Hero Enterprise was the Chief Guest and delivered a talk on -“Managing Transition In Family Owned Business”. Mr. Dilip Parekh in his Welcome Speech said – “Mr. Sunil Kant Munjal is a second-generation member of the family that founded the Hero Group, India’s premier automotive manufacturing group that has evolved from being the world’s largest bicycle-maker to the largest two-wheeler maker. He is now the Chairman of Hero Enterprise, with interests in insurance, distribution, steel-making, real estate, corporate training and an active Investment Office”.
President, OPPI further informed the participants – “Mr. Munjal sits on the boards of the Indian Institute of Management, Ahmedabad(IIM-A), Indian School of Business(ISB) which is a leading Business School in India, Shri Ram College of Commerce(SRCC), India’s leading College for Commerce and also University of Tokyo. He is also on the board of trustees of the Carnegie Endowment for International Peace”.
Mr. Sunil Kant Munjal in his talk on – “Managing Transition In Family Owned Business” made extremely important and highly educative observations. Some of these observations are as given below :-
- Only 6% Family Owned Companies survive beyond 3rd Generation.
20 years after the best seller book -“In Search of Excellence” was published, a research was done by Mr. Nitin Nohria, Dean of Harvard University. It was observed that 20 years later most of the Companies mentioned in “In Search of Excellence” were doing badly.
- There is difference between “Ownership & Management”
- It is necessary to train the next generation to be Good Managers & Good Owners.
- “Building & Retaining Relationships” played very important role in Family Owned Businesses.
Transition is a turbulent time for the Organization, next generation as well as the teams coming in because they do not know how the next leader will behave. Therefore it is necessary to encourage the
youngsters to spell out there interests, likes & dislikes as well as aspirations.
- Communication is an amazing tool. It helps to resolve the issues. Clear & Open Communication is very
important. Over Communication is preferable to Under Communication.
- One should be willing to be criticized because that is the best tool for improving yourself.
- Learning is a very important part of transition. We ask our people when they go out to fnd out what
others are saying about the company and who is doing better than us.
- When one steps back, he should stay step back. However he should be available as a guide, sounding
board, as a safety net, as a mentor but not as an operator. Change the position from the driver’s seat to that of the navigator / passenger on the rear seat.
- Different groups of Managers in the company taking pot shots at each other is a sure shot formula for
- Try and train yourself. Constant learning is available online, and through many other sources. Consulting firms can advise families to define the roles better.
- Family is the custodian of the value and philosophical underpinning.