While the SP Jain Institute of Management and Research (SPJIMR) started the two-year FMB niche programme a decade ago, other local biggies of Mumbai like the LN Welingkar Institute of Management Development and Research and the Narsee Monjee Institute of Management Studies (NMIMS) have launched this course in the past couple of years.
How different is a FMB from a standard MBA
According to Dr Rattan Sharma, Director, Centre for Family Managed Business, SPJIMR, “MBAs are trained to get a job whereas in Family Managed Business students are trained to be leaders. We want them to build an institution not just run a business.”
At all the three institutes, the MBA programme and the FMB have similar first year curriculums. The differentiator comes in during the second year.
“Unlike the MBA, we don’t provide marketing, human resources or finance specializations in the FMB programme during the second year. Instead we provide a general viewpoint of all the functional areas to the students,” says Ms Seema Mahajan, Chairperson FMB at NMIMS.
“Welingkar’s programme focuses on developing an in-depth knowledge about the issues and challenges in a family business. In the second year of the course, the focus is on the issues surrounding a family business. The classroom sessions also include business owners sharing their experiences with others and confronting situations commonly faced by all family business owners. We are focusing on transferring the students from being employees to employers,” explains Ms Vruddhi Kale, FMB-coordinator at Welingkar.
How it works
An important aspect of FMB programmes is their chronological outlay. At SPJIMR, each month has a one-week classroom session followed by three-week practical application wherein the students return to their businesses to apply what they have learned. At Welingkar, 10 days of classroom contact are followed by 20-day application project on-location at their family business.
“This method combines the power of the ‘why’ and ‘how’. This makes it possible for business owners to make the time and see the changes alongside,” explains Ms Vanita Patel, FMB Head, Welingkar.
SPJIMR and Welingkar foster a mentor system, in which a family member guides and supervises the student’s growth during the course.
“We select the mentor according to their time commitment towards the student. The mentor assists the student to apply whatever he has learnt during the course,” says Ms Patel.
Eligibility
Apart from the standard criteria associated with academics and past record, FMB programmes require the applicant’s involvement with a family business. Though most of these programmes quote a minimum work-experience of two years with the family business, it is usually relaxed.
“A good academic record definitely adds to a candidate’s chances. We usually don’t pay much emphasis on the turnover or size of the family business,” reveals SPJIMR’s Dr Sharma.
Selection
SPJIMR uses an elaborate system of three entrance tests to assess IQ, analytical reasoning and general skills followed by a personal interview. NMIMS selects using just an interview. Although the Welingkar prospectus states that they use an entrance test followed by a group discussion and interview for admission, the institute’s spokesman says that at present they only select using a personal interview.
Tradition vs Professionalism
According to Ms Patel, the FMB course fosters a shift from traditional business practices synonymous with family managed businesses to a professional manner of functioning among students.
“We provide them professional training, guest lectures and industrial visits. We see to it that they are applying what they are learning. The final assessment of students involves how successful they have been in applying their professional skills,” she explains.
Given that FMB programme students have their family businesses to fall back upon, there is a risk of them turning complacent during the course.
Dr Sharma’s take on this is that complacency depends on an individual’s fire and desire to succeed.