Driving growth through change
of the next gen think it’s important to continuously innovate products and services.
have clear ideas on taking the business forward.
of next gens want to bring in external expertise to address current challenges.
feel that it’s necessary to have a strategy fit for the digital age.
PwC conducts a Global Next Gen Survey once every two years. This year, we spoke to 137 next generation leaders globally and 45 next gen in India.
Each successive generation reinvents, regenerates and adapts on account of changes in thought processes across generations as well as changes in the external environment. This could not be truer today when we see technology both disrupting and enabling business enterprises. In our study, we discussed what steps the next gen have taken to handle some of the business challenges. How are they bringing about change in their business and their views on business strategy? How are they enabling their businesses to adapt to and adopt digital and technology? What are their views on innovation? How are they making themselves heard by family business leaders? How are they exploring the set-up of their own ventures?
The next gen we spoke with are keen on growing and strengthening the family legacy and are making inroads in their family businesses. A key component for their success is having a culture which supports their efforts, gives them room to make mistakes and provides for independent decision making. As family businesses expand and more next gen are inducted into the business it is imperative that companies and families put in place family constitutions and protocol and ensure there is transparent communication around ambitions, outlook, expectations and roles.
Family businesses advance keeping their long-term vision in mind, and at times, become more absorbed with the day-to-day functioning of the business. Amidst all this, medium-term planning around matters such as technology and talent gets ignored. An overwhelming majority of India’s next gen leaders told us that it is necessary to put in place a clear mid-term strategy to bridge the gap between short term and long term and to ensure success for the business. At present only 8% of the Next Gen felt their companies performed very well on this front.
While most family businesses may have envisaged a long-term strategy, 67% of the next gens in India feel that it’s important to have it clearly documented, perhaps to ensure that the organisation remains focused and goal oriented.
50% of the next gen said they expect to manage the business one day, though only 19% acknowledged that this had been agreed with the current generation. Another 16% are in senior roles or expect to take on senior roles in the business but don’t expect to manage it. The next gen also emphasise that seeking the help of external consultants and experts is necessary as businesses navigate ever-changing political, economic and growth environments.
81% of the next gen in India have clear ideas on how to take the business forward. Additionally, while 42% strongly feel that they have clear ideas on how to take the business forward, 33% so far have taken concrete steps to implement these ideas and 17% of next gens have clearly articulated their plans for the business.
We spoke to Kaushal Dugar of Teabox and Arjun Jindal of Machino Polymers Ltd., to find out how they are tackling some of the key issues faced by next gen leaders.
“The idea was that I could still do what I wanted to do and create my own niche without affecting or disturbing the existing family businesses.”
“Preparation starts from when you are born. I've been going to the office with my grandfather for as long as I can remember.”