PROJECT

ENTREPRENUERSHIP             2018-05-02

Succession Planning

An Interesting trend is observed in succession planning of Apollo Hospitals. Four sisters at Apollo Hospitals have adopted the succession by rotation model while maintaining cordial bond with each other.

Succession Planning-Tool for Wealth Protection and Continuity of Legacy

More often than not, the business lose value post succession. Numerous examples would illustra¬¬-te the fact that the next generation depleted the wealth created by their forefathers. There are examples which are on the positive side as well, however, the need is to address downside of succession on business.

While ‘business’ need to be protected from the ‘family’; likewise ‘family’ needs protection from the ‘business’ risk. ‘Business’ needs focus on performance while ‘family’ need to focus on legacy, unity and harmony. Thus ‘Economic asset’(Business) need to isolated fromemotional asset (Family).

The key focus areas for an efficient succession planning are:

  • Maintain business continuity- Segregate ownership and management. The best sibling runs the business or a professional CEO/Board appointed by the owner.
  • Create structure to avoid warring siblings resulting in dysfunctional Board/Shareholders meetings.
  • Address taxissues in transitioning of wealth.
  • Clear and Strong Structure.
  • Explain the next generation with absolute clarity; so as to avoid conflicts and confusions arising out of interpretational issues.
  • Pass on family legacy and ethos. Involve spiritual guru if needed.

An Interesting trend is observed in succession planning of Apollo Hospitals. Four sisters at Apollo Hospitals have adopted the succession by rotation model while maintaining cordial bond with each other.

Family constitution is an important document. The heirs follow rules and regulations laid down by their forefathers to run the business.