By Kavita Nigam
Family businesses form the backbone of global economies, accounting for nearly 79% of enterprises worldwide. They are not just economic entities but custodians of legacies built over generations. However, sustaining these businesses across multiple generations comes with its own set of challenges—navigating succession, maintaining continuity, and ensuring that core values remain intact while adapting to modern business landscapes. In this delicate balancing act, mentorship emerges as a crucial element, facilitating the transfer of knowledge, leadership skills, and strategic thinking from one generation to the next.
A structured mentorship program plays a defining role in succession planning. Studies suggest that family businesses with well-established mentorship frameworks are 30% more likely to experience smooth leadership transitions. Senior leaders bring decades of experience, while the younger generation often introduces fresh perspectives, digital fluency, and innovative problem-solving approaches. When effectively guided, this synergy enhances decision-making, emotional intelligence, and strategic vision—ensuring that successors are equipped to lead in an evolving business environment.
Beyond preparing the next generation for leadership, mentorship preserves the company’s legacy. The values and principles on which a business was built are not always documented but are embedded in everyday operations, relationships, and decision-making. Without deliberate mentorship, these intangible assets risk being diluted over time. A strong mentor-mentee relationship fosters this continuity, helping successors internalize the ethos of the business while finding ways to align it with contemporary challenges.
At the same time, knowledge transfer extends beyond philosophy—it encompasses technical expertise, industry insights, and operational best practices. A well-mentored successor benefits not only from the wisdom of senior leadership but also gains access to invaluable business networks and strategic alliances.
Mentorship also acts as an important guiding force in navigating family dynamics within the workplace. The intersection of personal and professional relationships in family businesses often leads to conflicts, and having a mentor helps young leaders strike a balance between business decisions and familial expectations.
However, for mentorship to be truly effective, it must be structured rather than informal. One of the most common pitfalls in family businesses is the blurring of lines between parenting and mentoring. The transition from a familial role to a leadership role requires clear differentiation to ensure that guidance remains professional and goal-oriented. This is best achieved through structured development programs, which can include rotational assignments across departments, exposure to different business functions, and formal leadership training. Open communication is another cornerstone of effective mentorship. Successors must feel empowered to share ideas, ask questions, and challenge the status quo without any fear of judgment. Equally important is the willingness of the senior leaders to recognize that learning styles and capacities differ across generations.
Despite the significance of mentorship, many family businesses still lack structured leadership training initiatives. In India, 44% of family-run enterprises report an absence of formal mentoring programs. This gap presents an opportunity for businesses to institutionalize mentorship as a long-term investment. Global studies indicate that companies with dedicated mentoring programs witness a 45% higher success rate in leadership transitions. Indian business families, such as those behind Infosys and the TVS Group, have demonstrated how mentorship fosters continuity and growth. A Deloitte study further highlights that 70% of family business successors consider mentorship as a critical factor in their leadership readiness.
Yet, challenges persist. Generational differences can lead to resistance to change, and balancing professional growth with family expectations is never straightforward. In addition, ensuring diversity and inclusion in leadership roles remains an ongoing concern.
Overcoming these challenges requires a cultural shift—one that embraces mentorship not as an obligation but as a strategic priority for business sustainability. Mentoring by the Senior Leadership requires them to understand the psyche of the younger generation, while also restraining themselves from constant references to past laurels. Hence the Mentors need to be open to accepting effective Mentorship guidelines before embarking on taking a Mentee under their wing.
Engaging external mentors, where necessary, can also provide unbiased perspectives and technical expertise that complement internal mentoring efforts.
Looking ahead, mentorship will be instrumental in shaping the future of leadership in family businesses. It is not just about preparing successors to take over but about equipping them to evolve the business while staying rooted in its foundational values. HR and senior leadership must actively foster a mentorship-driven culture that enables businesses to remain competitive across generations. Investing in structured mentoring today ensures that family enterprises continue to thrive, seamlessly bridging the past with the future.
(The above article is written by Kavita Nigam, CHRO, KARAM Safety, views are personal)
Mrs. Kavita Nigam serves as the Chief Human Resource Officer (CHRO) at KARAM Safety of Companies. A qualified medical professional, she holds an MBBS degree from Hardinge Medical College. Growing up in a household led by her father, a railway officer, and her mother, a homemaker, she imbibed strong values of integrity and discipline that now shape her leadership style.
KARAM Safety is a leading global brand in occupational safety, recognized for its extensive portfolio of over 3,500 certified products that meet various national and international standards. Their safety solutions are trusted in more than 100 countries, highlighting their commitment to quality and reliability.
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Last Updated on Friday, March 7, 2025 3:41 pm by Ankur Srivastava
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