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5 - Professional CEOs in Family Businesses - Tarun Khanna on his book – Leadership to Last
Tarun speaks about how Entrepreneurs think about the Principal Agency problem when it comes to recruiting CEOs. Entrepreneurs are often playing the “infinite game” with the enterprise while the leaders they hire are often there for a stint. He speaks about the distinction between how developed markets like the US deal with it versus how Indian companies often deal with it.
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Tarun speaks about the traits that separate the entrepreneurs that Build to Last from the rest. He calls out three elements. 1) Audacity of intent 2) Humility of demeanour 3) Steadfastness of Purpose.
Tarun speaks about what keeps the entrepreneurs going over the long term. He speaks about how family businesses have a fabric and provide a safety net that ensures that businesses endure over the long run.
Tarun speaks about how family businesses think about the next generation coming into the family business. He speaks about how sometimes the next-gen wants to pursue a different path and how they walk the tightrope of ensuring continuity versus tuning into the passions of the next generation.
Tarun speaks about how enduring families think of dealing with the question of the next generation entering the business. He speaks about how the more evolved families give the next generation an opportunity to actualize their potential and go on a process of self-discovery.
Tarun speaks about how Entrepreneurs think about the Principal Agency problem when it comes to recruiting CEOs. Entrepreneurs are often playing the “infinite game” with the enterprise while the leaders they hire are often there for a stint. He speaks about the distinction between how developed markets like the US deal with it versus how Indian companies often deal with it.
Tarun speaks about how Family businesses in emerging economies proactively fill in to take care of elements of Public Good that are not taken care of by the state.
Tarun speaks about how companies that have a self-imposed constraint (focusing on values, lower corruption or something similar) are likely to grow at a slower pace than a company that’s focusing on growth in an unrestrained manner.
Tarun expands on what the term Play to Potential means to him. He speaks about how given the human condition only about 7/8th of our potential is being tapped. He speaks about the significant unlock if this could be enabled