Last week, I caught up over coffee with Amit Gupta, Past Chairman of the Global Board of Trustees, TiE. What began as a casual conversation quickly turned into a serious brainstorming session on why family businesses—despite contributing over 70% to India’s GDP and nearly 80% of jobs—tend to overlook one vital pillar: family governance.
Governance in Family Business: Your Seatbelt for the Long Drive Ahead
They drive with passion and for the long haul but often suffer from weak internal governance.
• That doesn’t mean lack of control—it often means:
🔸 No Family Charter
🔸 Avoiding difficult conversations
🔸 Role overlaps between family members and silent assumptions
🔸 And lack of clarity in succession plans
And yes, many founders hesitate to bring in external advisors or coaches. Common reasons I hear:
🗣️ “Privacy. How can we share our concerns with professionals?”
🤷 “Will an outsider understand our family dynamics?”
⛔ “Not sure how they can add value”
We understand those concerns. But here’s a fresh lens:
👉 Governance isn’t a burden. It’s your business’s seatbelt. You don’t wear it after the crash—you wear it to avoid one.
Much like preventive healthcare, a good governance framework—
👥 Family Councils
📜 Shared Values and Rules
🎯 Clearly defined roles and responsibilities
…can reduce friction, enable better decisions, and help the next generation step in with confidence.
Let’s also demystify the term “Family Constitution.”
It’s not a 100-page legal manual. Think of it as a simple Family Charter—a collaborative roadmap created by the family to define how you work together with clarity, respect, and shared purpose.
And here’s a modern twist:
💡 Governance without AI today is like driving without GPS.
Smart families are beginning to use AI tools to enhance decision-making, bring transparency to operations, and future-proof the business—while still honouring legacy and values.
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🧭 Bottom Line:
Start early.
Structure wisely.
Scale across generations.
👇 What’s the biggest governance challenge you’ve observed in family businesses? Let’s exchange notes.
More info: www.partners4growth.in
Harsh Chopra
Family Business Advisor & Coach
Partners 4 Growth
partners4growth.in