Leadership of a large company should not be just a matter of being born into the right family
The next generation cannot assume leadership will be conferred upon them. They have to be groomed and mentored. And they have to work for it.
Achieving big dreams and impossible-looking goals is all about getting the right people and the right leadership.
All seniors Founders included -- should now yield to the highly competent, extremely committed, and incredibly promising young leadership talent in their respective businesses.
During the pandemic, work from home has enabled all of us to spend more quality time with our children, spouse and parents. In future, technology will offer even more exciting ways of hybrid and virtual work. This has also given them time to think about future and handing over baton to next generation.
For years,Indian Billionaires have studied the ways in which billionaire families, from the Waltons to the Kochs, passed on what they'd built to the next generation. and have now started working on Succession.
A generation of aging tycoons across Asia are grappling with the transition from creating wealth to passing it on. Products of the region's explosive post-Second World War growth, these empire-builders founded industries, turbo-charged development and made unprecedented fortunes of trillion Dollars and are set to change hands between Asia's first-generation founders and their heirs over the next decade.
How Asia's richest individual handles succession could inspire others in the region to think more carefully about how they transfer family wealth and power.
The current crop of Asian tycoons is acutely aware of the risks posed by succession, given the travails of prominent families elsewhere.
Client inquiries on family succession and governance matters in the Asia-Pacific have doubled from before the onslaught of Covid-19 to the experts in the field.
A model that keeps the family central but delegates management has obvious appeal for Indian Billionaires, given his history.
More than a third of Asia's family empires are owned by first-generation founders and over the next decade almost 100 of these companies will be looking to transfer control and wealth, often to heirs who may have been educated abroad and have been exposed to Western business models.
One of the unspoken planning angel is to use Succession Planning to ring fence family from the impending Inheritance Tax, which was earlier called Estate Duty (abolished in 1985 due to very high administrative costs). During 1st Lock down even senior Income Tax Commissioners (IRSs) have also suggested bringing in Inheritance Tax and in recent past also FM had indicated on this.
In Western Countries, Inheritance Tax is 30-40% and that can have material impact on family fortunes of many of these Billionaires.