MBA in Family Managed Business

With the Indian economy undergoing a tremendous transformation, and family businesses comprising of more than 70% of the top 500 firms in country, the segment is emerging as a specialized field of study in Indian business schools. As the family businesses are the backbone of the Indian economy and growth drivers for the country; it is natural to see this niche segment developing as a specialized field of learning. The need for formal management programmes for members of business families will eventually prove to be a turning point in terms of management of family owned enterprises in our country.

Academic and industry leaders agree that such courses are instrumental in equipping family-managed business owners to handle succession planning, bring in professionalism and better awareness of governance practices. Developing next-generation leaders who have the wisdom to understand the complexities of the globalized world, have sound knowledge of several fields that is essential to successfully manage a business and also have the acumen to manage competition for the benefit of all stakeholders is the need of the day and management programs for family managed businesses provide the right impetus in that direction. They create opportunities for inculcating family governance, defining the roles and goals of the owner-managers, assess their performances, take care of family’s welfare and wealth management issues and develop the mindsets of younger members for leadership.

What is the difference between a MBA and MBA/PGDM-FMB?

• MBA trains manpower for handling jobs in Corporates / MNCs whereas FMB trains its participants to take over and grow the business started by their fathers/forefathers
• MBAs are tailored to create employees whereas, FMB students are trained to be employers
• MBA trains graduates to operate in one functional area i.e. Marketing, Operations, Finance, HR, whereas, FMB provides knowledge of all functions as required by the head of the company
• Young MBA graduates are, typically, not responsible for major decisions of the company in the early stages of their career whereas, FMB participants are mentored to take important decisions for their own company almost every day
• MBA program imparts a general understanding of business /corporate world whereas a FMB program help a budding scion to understand his/her own business better
• MBA programs are designed to sustain the needs of the company whereas; FMB program is designed for the rapid scale up of business.

What is its scope as a career option, can one start one’s own business after studying or will there still be a need to work under a professional?

The young leaders of family businesses who intend to manage their business and for individuals who aspire to work in family business, especially the women who are slowly but steadily entering the family business bastion, and are wanting to up-scale the existing operations this kind of an educational opportunity will prove to be a major stepping stone in their career paths. Earlier, may be they were not so clear about what to do after completing the course but at the end of it they have a definite business growth perspective in mind.

Increasing globalization means enhanced global awareness and understanding of business and cultural values across boundaries. The FMB program including interventions like classroom teaching by prominent faculty from leading schools, industry visits, interaction with government officials and top management of leading companies during a visit to observe and understand the unique and highly productive work culture should be sought out. International visits are found extremely useful to students interested in knowing more about the global practices from foreign companies.

With Indian business families turning their ventures into huge global firms; there are several examples of severe conflicts leading to family splits and those of a smooth transition as well. Exposure to high quality family business processes as well as management studies will therefore be extremely useful for Indian family businesses going forward.

-- Prof Dr.Sriniwas Gondhalekar

Dean-Operations and Head –PGDM (FMB), WeSchool