Managing Perspectives Success Mindset for Family Businesses

Each of the growth stages has a prevailing need and consciousness that aligns with Maslow's theory around hierarchy of human needs. Richard Barret & Associates also adapted and evolved this theory to organization "consciousness" that aligns with organizational growth stages.
The mindsets are critical pointers to the perspectives and decision-making in various growth stages of an organization.

Personal investment de-risking mindset: In the inception stage of an organization, profit and growth are the core focus areas and owners could be seen as driving very high control. This is the personal investment stage; therefore, the mindset is geared towards de-risking the personal investments.

Commercial mindset: Survival stage is dominated by a commercial mindset, where the immediate financial and business considerations influence all aspects of an organization. This is a relationship-driven stage with a significant dependence on individual relationships, and the owner is at the center of these relationships. A midsized automobile manufacturer influenced by investors is facing this challenge in overcoming the stage two mindset. Unwilling to let go of operational control of business, they are looking for a roadmap to do so. However, without a mindset shift, this might not fructify.





Transformational mindset: Success stage of growth is focused on high productivity and efficiency and transformational mindset. Systems and processes in various functions and across functions are required to be a system-driven organization.

If the organization is able to establish systems and processes that allow them to compete with the best, a significant shift takes place. The organization is then able to attract the best, is able to renew itself, and goes into a phase when steady growth is not a challenge anymore. Quality, productivity, efficient processes, etc. start a virtuous cycle of satisfied customers, interested investors and employees keen to work with the organization.

Expansion mindset: Over the last decade or so, familyled businesses in India have seen opportunities expand manifold. The markets have opened up, and aspirations have soared. The mantra for growth has seen family businesses take audacious business calls. While the local markets have opened up, Indian companies have geared up to take on global markets, acquiring companies in developed economies to gain access to those markets. M&M, Apollo Tyres, Wipro, HCL, Avantha Group, etc. have succeeded in expanding through acquisitions. There are examples where sound financial and business synergy logic have led to acquisitions, but there was not enough management bandwidth to ensure integration. Apollo Tyres has shifted its corporate HQ to London and inducted global experts in management to drive this mindset.

Empowering mindset: Mature and successful companies are able to provide empowerment to customers, suppliers and employees. The organization is governed more by principles, strategies, processes and policies. The owner leads the organization through professional capability. Aditya Birla Group, Wipro, etc. could be viewed as having an empowering mindset. Global mindset: Sustainability of the business, society and planet becomes pronounced in this stage of an organization. Toyota, P&G, Walmart, Tata Group, etc. operate at this level.

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