The paper presents a model for 'Collective Leadership' i.e. sharing the highest leadership position in the family business, as a viable succession alternative in family businesses that have multiple competent next generation members. The model evolved from the findings from the case of an Indian diversified group, whose founder was faced with the dilemma of anointing a single successor or paving the road for
a successful collective leadership mechanism. The paper suggests that the process of arriving at a collective leadership structure can be facilitated by four factors. First, a high degree of cohesion among family members reinforced by support mechanisms for joint decision-making. Second, an active founder who promotes collective functioning from early in the business’ history. Third, a capacity to anticipate areas of potential conflict among family members and evolving effective forums to prevent them. Fourth, a collectivist culture instated in the family based on the strong interpersonal bonds among members of the leadership team.