Abstract: This case study explores the challenges of professionalizing a large business conglomerate in East Africa, which, by 2017, had grown to a revenue of $1.5 billion under the stewardship of four Indian entrepreneurs over two decades. As competition intensified with new businesses entering the market, the founders recognized the necessity of integrating professional talent across their operations. In response, a Group Executive Chairman was appointed in 2019, who subsequently hired a Group HR Head. Together, they recruited around 3,000 professionals for the conglomerate’s 40 companies. However, tensions arose as the owners and the long-standing senior managers close to them struggled to adapt to new professional standards, posing significant challenges in institutionalizing professional systems and processes and retaining talent.

Learning Objectives 

• This case study equips participants with a deep understanding of the dynamics and challenges faced when implementing change in traditionally managed, entrepreneurial businesses. It elucidates how, over time, entrepreneurs often intertwine their identities with their businesses and are hesitant to delegate control despite the need to incorporate new knowledge and talent to stay competitive in a globalizing market.
• Participants will recognize and value the critical contributions of the owners and senior managers who have been instrumental in the company's growth. They will understand how to balance respect for these foundational achievements with the integration of fresh, professional insights essential for future success.
• Participants will appreciate the necessity of shifting from traditional entrepreneurial management to structured, professional governance to remain competitive.
• Participants will learn about strategies to be used by professionals to gain influence in family-owned businesses by demonstrating the tangible benefits of their expertise, thus aligning business practices with evolving systems and processes and improving the performance of the business.
• Participants will understand the necessity for professionals to learn and adapt as required to the performance metrics and operational methods valued by business owners and senior managers to ensure smooth integration and foster mutual respect among all stakeholders.
• Participants will appreciate the importance of undertaking high-visibility, high-impact projects that can help professionals quickly establish visibility and credibility and build trust with the owners and senior managers of a family business.
• Participants will learn about the pivotal role of HR in inducting new professionals in the prevailing work culture, and the values of the organization and emphasizing the need for a careful balance between adapting to existing work practices and evolving new work practices.
• Participants will be empowered to discuss strategies for HR leaders to build their credibility with business owners and to advocate for professional work standards and respectful treatment of all staff.
• Participants will be equipped with the skills and perspectives necessary to navigate the intricacies of change management in family-owned businesses, ensuring that they can contribute effectively to the growth of the business and contribute towards evolving a new work culture as a community involving owners, senior managers, and professionals.