Research Paper By Vijay Kumar Karai
(Executive Coach, INDIA)
Executive Summary:
The intent of this paper is to discuss the opportunities and the role of coaching in family businesses. The role of coaching in family business is unique as the issues that hold back family business from succeeding are mostly emotional in nature. Unlike, consulting or mentoring, Coaching is best designed to succeed as it doesn’t ‘run away’ from emotional issues nor does it take sides or talk down to any one client.
Having said that, the paper also explores how the coach can make meaningful contribution in helping the client reach his/her potential. The role is also challenging as these clients are owners and managing such challenging clients comes with the territory. Building awareness and advantages of coaching, especially to the Asian family businesses is one of the biggest challenges. But once these clients become awareness of coaching and start appreciating the value that it offers, the opportunities are huge. The satisfaction of coaching such clients (who are keen on change) is immense as the results are very visible.
Introduction:
Family businesses world over form the back bone of market economy contributing more than 70% of the world GDP per year, according to the Family firm Institute. Inspite of such a huge impact that these businesses have on the economy, the success rate of family run businesses is alarmingly low. While, most of the studies and data have been taken from Indian family run businesses, the findings are universal and maybe used all over the world, while keeping the country’s legal and cultural issues in mind.
Family business can be defined as
owner-managed enterprise where family members exercise considerable financial and/or managerial control.
(Ward & Aronoff,1990).