Mid-term strategy key for success of a business: Study

While long-term planning is visionary, India's next generation leaders believe it is necessary to put in place a clear mid-term strategy for the success of a business, says a PwC study.

According to the study, the 'missing middle' which is the gap between the current and the long-term plan is an essential aspect of business planning, especially amid technical disruption and the ever-changing business landscape.

"While most family businesses have envisaged a long-term strategy, 67 per cent of the next generation in India feel that it's important to have it clearly documented, perhaps to ensure that the organisation remain focussed and goal oriented," the study said.

As part of the report, PwC polled 137 next generation entrepreneurs globally and 45 in India.

As per the findings, as many as 83 per cent of the next generation leaders think it's important to continuously innovate products and services while 81 per cent feel there has to be a strategy for the digital age.

The report covers several dimensions such as next generation perspective on working in the family business, dealing with business issues, their current and future role in the business, the need for medium term strategy, digitisation, innovation and professional management in existing family businesses.

The PwC India Next Gen Study 2018 further noted that when it comes to transition in a family business, the next generation need an ecosystem which supports mistakes and allows for independent decision making.

"A key component for their success is having a culture which supports their efforts, gives them room to make mistakes and provides for independent decision-making," said Ganesh Raju K Partner and Leader - Entrepreneurial and Private Business, PwC India.