India is a growth market for McKinsey Family Business

McKinsey & Company is known for serving the world's most prestigious multinationals. According to its own estimates, 'The Firm' has over the past decade advised an 'overlarge majority' of the Fortune 500 companies. However, the strategy consulting firm not only serves large corporates, but is increasingly building its global footprint by helping family-run businesses and smaller firms. After building strong positions in the US, Latin America and South-East Asia, the firm’s next target is India according to Heinz-Peter Elstrodt, Global Leader of the Family Business Practice advisory office said in Indian media.

McKinsey's Family Business Practice helps family-run businesses with the transformation to professionally run enterprises. Service offerings include strategy, business model design, organization design and target operating model definition.

Mega potential

In Elstrodt's view, India's family-run business market possesses mega potential for the Indian and global economy. "In emerging markets many companies that started out as small family-owned businesses have grown to become a major force in their economies". As the current generation of Indian family-owned businesses starts to expand exponentially and grow into new markets, they will change the competitive landscape just under the corporate playing field. McKinsey’s advisor, together with Chinese and other Asian firms, expect this to happen.

Succession

Mckinsey does see a large challenge through. Compared to Europe, US, South-East Asia and Latin America, Indian family-run businesses are relatively young (first and second-generation vs third and fourth-generation). "Indian companies now have to figure out how they want to govern themselves to make themselves sustainable beyond the founders" says Eltrodt.