Women CEO’s in Family Business: Challenges

& Differentiating Styles

A Survey Report

By Dale Carnegie Training® India

Relevance

80% of businesses all over the world are family owned

From traditional small businesses to a third of Fortune 500 companies

65% of top 500 BSE listed companies are family controlled,* about 70% of all BSE listed companies are family controlled

54% market capitalization on BSE (2007-08)

contributed by the above family controlled companies

. . . Relevance

A vital force but . . .

Less than a third survive the transition from the first generation to the second

Of these, about half do not survive the transition to the third generation

Can a greater role for women in family businesses turn the

survival statistics???

Significance

No structured and published research done on

Owner-Promoter Women CEOs till date

This is the first survey, globally, giving an insight

into leadership aspects of women CEOs of family

businesses

Survey Objectives

Demographics

Entry in the family business

Initial challenges in the business

Gender related challenges

Growth corridor

Mentoring and grooming

Leadership styles

Advantages of being a woman leader

Disadvantages of being a woman leader

Critical skills for success as a CEO

Research Span

Number of respondents: 26

Average age: 40 years

Geographic span: Pan India

Status: Board level / CEO position

Personal Demographics

Designation 12% Chairperson level; 84% JMD/ED/VC/Dir /ED /Non-ED /

Whole Time Dir; 4% Other

Age 68% 25-45 years; 28% 46-55 years, 4% 65 years and above

Education 32% G; 52% PG/MBA; 12% Splzn (Ph.D./MBBS), 4% OPM

from USA

Marital status 68% married/with children; 28% single/with children, 4% Other

Prior experience 40% 1 - 3 yrs; 32% 4 - 9 yrs; 28% 10+ yrs

Business Characteristics

Age of Business: 76% companies were more than 20 years old

Industry Verticals: Construction, Consulting, Engineering,

FMCG, Infrastructure, IT, Logistics, Manufacturing.

Business Turnover: 32% < Rs. 100 Cr; 28% Rs. 100-500 Cr;

40% > Rs. 500 Cr

Company Type: 48% public limited; 52% privately held

Reasons for Joining Family Business

48% - Felt it was a better career choice

40% - By chance

36% - Planned succession

28% - Because of business need

Initial Challenges Faced

72% - needed to juggle family and business demands

88% - received support from family for household

responsibilities

28% - had to put extra efforts to prove competence to

family members

8% - entry into the business created conflict among

management/employees

Gender - related Challenges

Agreed

52% disagreed having faced any gender bias at work

28% felt they faced gender bias from external business community

44% felt their performance was assessed more critically by all stakeholders

60% agreed they face more leadership challenges than the male counterparts

28% said they had to put extra effort to prove competence to other family members

36% said that their remuneration was not at par with the male counterparts

24% said that they have been given concessions/flexibility for work hours/travel / leave

20% said that being a woman have been given less critical responsibilities

20% said that their performance evaluation criteria different than other male family

members

Growth Corridor

24% joined at entry level, 20% at middle / supervisory level and 44% senior / managerial level and 12 % at top level

15% took less than 1 year to reach the top, while 39% took 2 to 4 years, 11% took 4 to 7 years and 35% took more than 7 years

52% agreed that their rise to the top was easier than in professionally-managed companies

60% agreed that their hierarchical progress was faster than other colleagues

44% agreed that one needs to have at least 10 years of experience to get accepted as leader

Mentoring / Grooming

68% received specific grooming for their roles

68% had been coached for leadership responsibilities

Methods of Mentoring: 35% - Mentoring by a family member

12% - Early informal induction (16 to 17 years age) like office visits, etc.

23% - On-the-job learning, experiential learning

12% - Observation of other business leaders

12% - One-to-one Mentoring by external consultant/Board members

Decision-making / Authority & Attitude

Only 32% were final decision makers; 68% shared decision making authority

68% had authority at all levels, 24% had only at strategic level, and 8% had only at operational level

76% said they share accountability with other family members

84% said they are they are known to take tough / unpopular decisions

92% agreed that they will do whatever it takes to achieve the end results

Leadership Style

84% felt their strength was in Planning, Organizing and Execution

70% felt they were also strong in providing Strategic Direction for their business

52% agreed that they were cautious and slow in taking business risks

Only 32% felt that they commanded more respect and trust being a woman

100% felt that they are amenable and friendly as a leader

52% felt that they are cautious and slow in taking business risk

Advantages of being a Woman Owner-Promoter CEO

Agreed

Decision making authority 80%

Shared accountability 76%

Greater risk taking capability 68%

Flexibility of time 64%

Faster career progression 52%

Disadvantages of being a Woman Owner-Promoter CEO

Agreed

Tough balancing business and family interests 60%

Restricted personal growth 20%

Lower acceptance of authority by male

family members 24%

Critical Skills for a Successful CEO

Knowledge of external environment, trends, functional knowledge

and competence

Vision, foresight and planning, ability to see a bigger picture

Building strategic direction and clarity of purpose, leadership skills

Ability to articulate, communicate and inspire, people skills

Thinking out of the box, innovative thinking, taking risks

Dedication, Perseverance, Ambition, Drive, Passion, Hard Work

Emotional control, Empathy, cool head

Ability to execute, implement

Risk taking ability

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