This material has been prepared by Comcraft for private information only

1

• This material has been prepared by Comcraft for
  private information only
• and cannot be used, distributed or duplicated
  without written consent from Comcraft

2

• History

• 1900s
• Africa

• Late 1970s
• North America

• 1960s
• Europe

• Early 1970s
• Asia

• Private Confidential
• Not For Distribution

3
(No Transcript)
4
Core Purpose

• How to continuously create wealth while keeping
  the family united
• How to make the wealth productive
• How to utilize the human capital, the capacity of
  the family to make the best impact in society,
  both economically and socially

5
THE STRENGTH OF THE FAMILY CAN BE COMPARED TO THE
GRIP OF THE HAND

• Each finger represents a family member of equal
  importance

Every finger is needed to make a powerful grip
6
How to keep this globally spread family together?

• Core philosophy which means core purpose and
  values along with modern education
• Sense of collectivism
• Sacrificing individual happiness and personal
  interest for the collective good of the family
• Mutual trust and co-operation, collective
  efforts, sense of ownership, personal sacrifice
• To instill the values of family unity and
  togetherness in women and children with modern
  and varying lifestyles, even if they do not live
  together we are one family and you are a part
  and parcel of it

7
What should a good leader do?

• Primary concerns
• Continuous creation of wealth, and protection
  and growth of the created wealth while keeping
  the family together
• Adding value to the society in terms of making
  a positive impact by contributing physically,
  economically and morally towards building a
  better and healthier society
• Make a strong foundation and encourage the
  younger generation to make their own plans,
  keeping the core purpose intact
• Groom them well make them feel responsible
  early enough

8

• Open dialogue through family forums to bring
  about an alignment of individual interests with
  the larger goal and purpose of the family
• Involve them in discussions and give them
  challenges to deal with
• Make them feel responsible for the protection and
  growth of the family wealth
• I and Me vs. We and Us personal ego and
  individual interests to be kept aside
• Create a suitable exit mechanism for those who
  want to break away from the traditionally run
  family business and aspire to carve their own
  niche

9
Family a subsystem of the larger system society

• Make use of the family wealth in the right
  direction so that not only the family, but the
  whole society gains
• Using the family wealth to ensure the welfare of
  the larger society will automatically take care
  of familys welfare
• Adopting ethical practices in business dealings
  that are environmentally, morally and humanly
  good

10
Security An Important Consideration

• Continuous wealth creation a necessity as it is
  the source of income and security to family
• The minute it stops, the family members start
  dispersing to fend for themselves
• The question of security becomes important as
  you grow old and physically weak
• By using the wealth for welfare, you are
  generating goodwill for all which in turn creates
  a security mechanism

11

• Family code of conduct are based on certain
  principles
• Our Familys code of conduct is as follows
• To maintain the joint family system to meet
  changing business conditions
• To maintain a high moral code of conduct
• honesty and values
• To cultivate and strengthen
• the bonds of trust in each other and in the
  family
• To recognize that continuing family security and
  growth flow from hard work initiative and
  frugality

12

• To utilise human and financial resources
  collectively
• To maintain family unity
• To maintain effective guidance of family wealth
• To maintain the pattern of decision-making
• by consensus of opinion
• To respect honour and follow at all times
• decisions arrived at by consensus
• To respect accept honour and follow
• the leadership of the family
• To practise individually and collectively
• the qualities of respect tolerance
• compassion and humility

13

• To maintain respect for seniority and for each
  other
• To give each individual maximum opportunity
  morally educationally and professionally
• to develop both for the family and for
  himself
• To dispense with the traditional practices
• of inheritance and resultant inequalities
• To cultivate practise and strengthen at all times
  for the benefit of everyone the family atmosphere
  of friendship love help understanding
  communication and affection

14

• To endeavour that members may enjoy the greatest
  measure of happiness possible during the whole of
  their lifetime
• To enable senior members to reside or retire in
  their country of choice
• To practise and follow the code truly and visibly
  and to encourage in the younger members on a
  developing basis the same attitudes and
  philosophy

15
How to measure and reward high performance in the
family?

• Five fingers form a fist all five do not have
  the same strength
• Each finger has got aspirations, ideas, thoughts,
  capacity and self-esteem
• First step is to create enough wealth to ensure a
  good standard of living for everyone
• This serves twin purposes grows the family
  wealth as well as meets individual materialistic
  requirements
• Put members of the family in a group keeping in
  mind age profile, capacities and need so they
  build a team

16

• Let not the family, but the society, the clients,
  the customers and the acquaintances to evaluate
  performance and give feedback
• This public evaluation helps in self-realization
  of ones potential and motivates one to work
  harder and to perform better
• Issues of wealth management, professionalization
  and succession will always occupy the leaders
  mind the essential thing is the will to stand
  together as a family through the thick and thin

17

• Our approach and the model is not only novel but
  stunning to most multigenerational families and
  academic practitioners who are studying Family
  Business
• Our concept and architecture are considered
  outstanding
• We know from our experience that its functioning
  is fundamentally dependant on strong values based
  on upbringing, minimizing and managing human
  frailties, a philosophy of giving and not
  focusing mainly on taking and having tolerance
  and compassion

18

• The Five core understanding that we have adopted
  after almost two or three decades of
  deliberations and understanding human nature and
  needs over the entire life cycle of an individual
• This has given us a philosophy which balances
  between the role of the individual, the family,
  the economic or the professional activity and the
  role of social responsibility

19

• The legacy for continuing the Family for
  generations requires conceptual and philosophical
  understanding as to how to maintain unity through
  discipline and commitment and yet recognize that
  on one hand tolerance is necessary but on the
  other hand too much tolerance will risk the base
  on which unity is founded