Ivey publishing | March 2017
A year agoearlier,he had appointed his younger brother, Firoz Meeran, as the Managing Director of the company. ECPL, the flagship company of the INR 8.00 billion, family managed Eastern Group headquartered in Kochi, India,which was engaged in manufacturing and marketing of spices, blended spice powders, pickles, breakfast staples and beverages both in both the domestic and international markets. The company,started began as a small shopset up in 1961 by their father M.E. Meeranin 1961. It had grown to record revenues of INR 5.60 billion in 2014. Navas was had been instrumental in the growth and professionalization of the business by bringing in non-family professionals, introducing state-of-the-art systems and processes in manufacturing, and nurturing the values of compassion and loyalty as that his father hadfollowedinstilled across the organization by their father. Firoz had got involved in joined the business in 2008.
Though he was pleased happy with the company's business performance under Firoz's leadership, Navas was uncomfortable with the pace and process execution of major organizational changes brought about that by his brother had instituted in the past over the past one year. He was worried about Firoz’s aggressive approach; the speed of the internal changes made Firoz had made by him to tap the external market opportunities had resulted in 10 -15% attrition at all levels in the organization. Was it right for a traditional familyrun business bred on aculture of compassion and loyalty to make a sudden shift to ametrics-based performance culture? Should the focus not be on nurturing loyalty as an important component of company culture, along with competency and meritocracy,, for the longevity of a family run business? Will Would Firoz’s efforts to transform the company as into a professional organization ultimately sustain the growth of the business? Was there a need to both cultivate both, professionalism as well as and reward loyalty across the ECPL value chain? Can Could a company based out of atier two Tier 2 city like such as Kochi be able to attract high-quality talents easily? These were some of the questions that worried Navas.
The case is structured to achieve the following pedagogical objectives:
a) To understand the challenges of professionalization of a family run business.
b) To discuss the role of organizational values while achieving professionalization.
Kavil Ramachandran is a Professor of Entrepreneurship (Practice) at the Indian School of Business (ISB). A founding faculty member, Professor Ramachandran established the Wadhwani Centre for Entrepreneurship Development at the Indian School of Business in 2001. He later served as the Associate Dean (Academic Programmes), before becoming the Thomas Schmidheiny Chair Professor of Family Business and Wealth Management, and subsequently the Executive Director of the Thomas Schmidheiny Centre for Family Enterprise at ISB until December 2021. He is currently the Senior Advisor, Thomas Schmidheiny Centre for Family Enterprise.
He specialises in family business, entrepreneurship, and strategy, with 36 years of combined academic experience at the Indian Institute of Management, Ahmedabad, and the Indian School of Business. Professor Ramachandran holds a PhD from Cranfield University, UK. His research focuses on family business, entrepreneurship, and strategy. He has authored and edited seven books and published extensively in reputed Indian and international journals.
His consulting experience includes areas such as family business governance, professionalisation, succession planning, strategic planning, identification of new opportunities for growth, corporate entrepreneurship and turnaround strategies in family and non-family business environments. His special expertise lies in managing the challenges at the interface of governance, professionalisation, and strategy, particularly in rapidly growing mid-size, multi-generational family businesses.
He has demonstrated special interest in mentoring young members of business families. He spearheaded the initiative in ISB offering a new MBA-level programme for the next generation of family business leaders (PGP MFAB) ,and was adjudged the “Faculty of the Year” by students in both 2018 2019, 2024. He was also adjudged the “Faculty of the Year” by students of Advanced Management Programme for Infrastructure (AMPI), 2024. In 2022, he was conferred with the Bharat Asmita Acharya Shreshtha Award (Best Indian Teacher in Management) by MIT World Peace University, Pune.
Recognising the contributions to institution building under the leadership of Ram in this area, ISB was rated as one of the best 25 business schools for family business in the world by Family Capital in 2015. He was mentioned as a “Star Professor” in that report. The Thinkers Leadership Magazine listed Ram as one of the top 100 management thinkers in India in 2014 and 2015, the only years it did such a listing. In 2022, Ram was listed amongst the top family business influencers in the world in the academics’ category by Family Capital. The combined effect of the multiple initiatives is the creation of a reassuring positive atmosphere in India towards family businesses in general and their sustainability across generations.
He has authored several case studies, worked with several well-known family business leaders and global experts, and consulted on transformation of family businesses. A frequent speaker at family business forums in India and abroad, he also contributes regularly to popular media. He has conducted numerous training programmes for family businesses on governance, professionalisation, strategic management, and entrepreneurship.
Professor Ramachandran has served on various advisory committees for the Government of India, the World Bank, and the Securities and Exchange Board of India (SEBI). His book, The 10 Commandments for Family Business, has been considered as one of the best books in this area. He has been a pioneer academic entrepreneur, propagating the message of strengthening family business in India and outside.
