Passing the Baton: Role Transition of BK Jhawar

By Kavil Ramachandran, Alexander Mathew
Ivey Publishing | 2011

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www.iveycases.com/ProductView.aspx?id=52346

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Ramachandran, Kavil., Mathew, Alexander. Passing the Baton: Role Transition of BK Jhawar Ivey Publishing www.iveycases.com/ProductView.aspx?id=52346.

Ivey Publishing, 2011

Abstract

Most family businesses do not last for long. Only one third are able to survive the transition from first to second generation. A critical issue in the perpetuation of family businesses is the management of succession. Most successions primarily fail because the first generation founders find it difficult to let go or disengage from the business as they approach the age of retirement. As a result, they fail to prepare the next generation of successors for the leadership role. The founders often fail to plan for succession due to a number of different reasons such as a lack of other interests outside of work, psychological identity with the firm, and fears of aging or death. Due to these reasons, the founder's retirement from the business is frequently portrayed as a negative event. Succession, in turn, is often seen as a phase of crisis and upheaval, which a business must overcome. However, this need not necessarily be the case. Retirement could provide a new, even more exciting, phase of life, while succession could be viewed as a strategic opportunity to revive the business. This case involves an accomplished business leader, B.K. Jhawar (BK), founder of Usha Martin Group (UMG), who successfully managed the twin challenges of retirement and succession. By the time he reached the age of retirement, BK had built up a social venture (KGVK) as his second and endless career option. Before completely disengaging from the business and transitioning to his new role full time, BK prepared the second generation for business leadership and effectively passed on the baton.Learning Objective:This case has three major objectives:To discuss the twin challenges of retirement and succession and how both can be managed effectivelyTo understand the actual process of leadership transition in a successful successionTo discuss the benefits of any philanthropic activity that a family business may undertakeThe case fits into any course on family philanthropy, social entrepreneurship, family business succession and retirement. It can be used both in MBA and executive education programs, particularly in a developing country.

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.

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