FAMILY BUSINESS CONSULTANT AND TURNAROUND SPECIALIST

Rho Consulting Pvt. Ltd, under the visionary leadership of CA Shaji Varghese, has emerged as a cornerstone for medium-level family-run SME businesses, particularly in South India. It caters mainly to family-run business clientele, addressing the unique challenges and dynamics these enterprises face. For the past 15 years Rho has been providing restructuring, turnaround strategies, internal control systems, professionalization, succession planning and sustainable growth advice for entrepreneurs world over.

Shaji Varghese’s journey began with a vision to provide comprehensive, high-quality professional services to SMEs in need. The Kochi-based firm aims to support clients in a 360-degree capacity, similar to the all-encompassing care provided by a five-star facility. This holistic approach ensures clients receive expert guidance in all areas, from financial management to business strategy. Currently, 100s of Business Enterprises, mainly in the SME sector have availed the services of Rho, which in Greek means progress.

“One of the critical issues in South India, especially Kerala, is the lack of effective succession planning in family businesses. Unlike their counterparts in North India, Malayali entrepreneurs leave family businesses without a structured succession plan. This gap leads to a significant failure rate, with only 15 percent of brands surviving beyond two generations,” said Shaji Varghese, who started his career after qualifying his CA with renowned Chartered Accountant Krishna Iyer (Swamy) in Ernakulam.

Rho Consulting steps in to bridge this gap, helping businesses create robust succession plans. The firm advises forming a family constitution / agreement to manage ownership, business operations, dividends, and wealth, ensuring smooth transitions and sustained success across generations.

Rho Consulting has a remarkable track record of turning around struggling businesses. With a dedicated team of experts, they provide intensive support for reviving businesses on the brink of collapse. Their strategic interventions across finance, accounting, statutory compliance, costing, HR, marketing, and digital operations simultaneously infuse new hope and confidence in all stakeholders, there by revitalizing the entity.

In one notable instance, Shaji Varghese negotiated with a bank to prevent a company with almost 200 staff, from being declared a non-performing asset (NPA). By presenting a solid revival plan and working closely with the company’s employees, management and key partners, he successfully restored the business’s financial health within three months.

Rho Consulting’s expertise isn’t confined to Kerala. The firm targets Malayali entrepreneurs worldwide, with a presence in six countries, including the GCC, Canada, Australia the US, and the UK. This global reach allows them to support family-run businesses across different markets, ensuring they thrive in diverse environments.

Rho Consulting emphasizes the importance of professionalizing family-run businesses. They advocate for innovation, diversification, digitalization and timely succession planning, helping SMEs replicate the success models of larger corporations. Their services include lifecycle management, sustainable growth and succession planning, business process optimization, and strategic mentorship for start-ups.

“My approach is built on trust and fairness. My firm and I work closely with clients, handholding them, fostering a positive work environment and building strong relationships with employees and management. This human-centered approach has made Rho Consulting a trust- ed partner for businesses seeking sustainable growth and stability,” he pointed out.

Rho Consulting has a remarkable track record of turning around struggling businesses. With a dedicated team of experts, they provide intensive support for reviving businesses on the brink of collapse. Their strategic interventions across finance, accounting, statutory compliance, costing, HR, marketing, and digital operations simultaneously infuse new hope and confidence in all stakeholders, there by revitalizing the entity.

In one notable instance, Shaji Varghese negotiated with a bank to prevent a company with almost 200 staff, from being declared a non-performing asset (NPA). By presenting a solid revival plan and working closely with the company’s employees, management and key partners, he successfully restored the business’s financial health within three months. Rho Consulting’s expertise isn’t confined to Kerala. The firm targets Malayali entrepreneurs worldwide, with a presence in six countries, including the GCC, Canada, Australia the US, and the UK. This global reach allows them to support family-run businesses across different markets, ensuring they thrive in diverse environments.

Rho Consulting emphasizes the impor tance of professionalizing family-run businesses. They advocate for innovation, diversification, digitalization and timely succession planning, helping SMEs replicate the success models of larger corporations. Their services include lifecycle management, sustainable growth and succession planning, business process optimization, and strategic mentorship for start-ups.

“My approach is built on trust and fair- ness. My firm and I work closely with clients, handholding them, fostering a positive work environment and building strong relationships with employees and management. This human-centered approach has made Rho Consulting a trust- ed partner for businesses seeking sustainable growth and stability,” he pointed out.

Rho Consulting’s methodology involves a thorough assessment of present systems, processes, and people to accurately chart the current status and identify strengths, weaknesses, opportunities, and threats (SWOT). This comprehensive evaluation in different dimensions provides a clear picture of where the business stands and  what needs to be improved to reach its goals.

The design phase involves making necessary improvements, adjustments, and innovations to ensure the business can reach its objectives successfully, efficiently, and consistently. Rho Consulting’s team works closely with the client’s staff, enabling them to grow, accept changes, and eventually lead. The implementation phase sees Rho Consulting putting the new systems into practice, creating the synergy required for success. This process is based on inclusive growth and empowerment, ensuring that the changes are sustainable and beneficial for all stakeholders.

Constant monitoring post-implementation allows Rho Consulting to strategize in realtime and evolve. This ongoing support ensures that the business remains on track and can adapt to any new challenges or opportunities that arise.

“Family-run businesses come with their own set of unique challenges. The involvement of relatives, in-laws, and other family members can often lead to conflicts and power struggles. Rho Consulting provides valuable ad- vice and support to navigate these dynamics effectively,” Varghese said.

“One common issue in family businesses is the lack of a clear business governance structure. Without a defined vision, mis- sion, and professionalization strategy, businesses can struggle to grow and succeed. Rho Consulting helps businesses develop a solid governance framework, to ensure long-term success,” he added.

Succession planning is another critical area where Rho Consulting excels. Many businesses fail to prepare for the next generation’s involvement, leading to conflicts, communication gaps and disruptions. Shaji Varghese advises creating a succession plan well in advance so that the vision and plans of the founder is not diluted through multiple interventions during different stages. His expertise in mentoring successor and current owner have helped several families to complete this process in a smooth manner. Also planning helps manage different exposures and expectations, preventing clashes and ensuring a smooth transition.

Shaji Varghese also emphasizes the importance of a family constitution or agreement. This document outlines the rules for ownership, running the business, distributing dividends, and managing wealth. It ensures that all family members are on the same page and prevents deviations from the agreed-upon plan.

In addition to consultancy services, Shaji Varghese and his team provide mentorship for startups. They help budding entrepreneurs navigate the challenges of starting and growing a business, offering valuable advice and support. This mentorship is particularly important for first-generation entrepreneurs who may not have the experience or knowledge to succeed on their own. Rho Consulting’s mentorship extends to various aspects of business, including design phase of basic structure of the company, lifecycle management, growth planning, and business process optimization. By sharing their expertise and insights, they help startups build a strong foundation and achieve their goals.

The business environment is constantly evolving, and Rho Consulting helps businesses adapt to these changes. The firm played a crucial role in helping businesses navigate the challenges brought on by the COVID-19 pandemic and the floods in Kerala. By providing timely support and strategic guidance, Rho Consulting ensured that many businesses could recover and emerge stronger.

One of the key factors in Rho Consulting’s success is their ability to identify and address the root causes of business challenges. While external factors like the pandemic, floods, geo-political issues etc. certainly impacted businesses, Rho Consulting often found that the real issues lay in lack of business governance. By addressing these internal problems, they were able to provide effective solutions and address future crises.

In response to our query about his success in managing family and business governance together, Mr. Shaji Varghese highlighted one of his unique selling points: as a Chartered Accountant, he possesses extensive knowledge in accounting, finance, and other commercial aspects of business. His corporate experience has given him a deep understanding of the industry, and his combined practice and industry exposure has made him attuned to even the smallest nuances in any business.

Regarding family businesses, he has conducted an in-depth study of family governance and its intricacies. He has also worked in reputable business groups and held leadership positions in all the family-owned organizations he has been part of. Additionally, he regularly participates in national and international conferences and meetings on family business to stay updated on the subject. Mr. Varghese ex- plained that family and business governance are two sides of the same coin, and his combined knowledge in both areas has helped him deliver fast and effective results for his clients.

Rho Consulting’s success is due to its strong team of professionals. The firm consists of leaders in chartered accountancy, cost accountancy, company secretaryship, human resources, corporate law, creative thought leadership, and brand management. With decades of experience and exposure to national and international businesses, the Rho team has always turned challenges into winnable opportunities. Their collaborative approach and commitment to excellence have made them a trusted partner for businesses seeking sustainable growth and stability.

The team works “through your staff” enabling them to grow, accept changes, and eventually lead. This approach ensures that the client’ staff is empowered and capable of sustaining the improvements and changes implemented by Rho Consulting.

According to the founder, ethics in business and life is a core principle followed by every individual at Rho Consulting.

“This commitment to ethical practices is reflected in every plan, action, and vision crafted by the firm. Shaji Varghese’s leadership and personal integrity have set the standard for the entire team, ensuring that clients receive fair and transparent services,” he said.

Rho Consulting’s dedication to ethics extends to their approach to corporate social responsibility (CSR). The firm believes in developing profitable businesses with a conscience and actively participates in CSR activities, to give back to the society and nature. This focus on ethical practices and social responsibility sets Rho Consulting apart from other consultancy firms.

Looking ahead, Rho Consulting aims to continue providing top-notch consultancy services to family-run SMEs mainly Malayali entrepreneurs across the globe.By maintaining their commitment to ethical practices, professionalization, and holistic support, Rho Consulting is well-positioned for sustained success.

Rho Consulting also plans to further develop their mentorship programs for start-ups, helping more first-generation entrepreneurs achieve their dreams. By sharing their expertise and insights, they aim to build a strong foundation for the next generation of businesses. Through their comprehensive services, strategic interventions, and ethical practices, Rho Consulting continues to pave the way for sustainable growth and success in the business world.

Shaji Varghese is a seasoned chartered accountant with a career spanning three decades in business management. Specializing in business law, taxes, audit, statutory compliance, and internal control, he has a wealth of experience working with public, private, national, and international companies. His success stems from his unique humancentred approach, which focuses on nurturing and developing talent within organizations. He takes a special interest in lifecycle management, growth and succession planning, and business process optimization. His leadership roles in various industry, trade associations and social organizations on a regional and national level, have further enriched his expertise. He is also an avid traveller and badminton player. His passion for consultancy is evident in his dedication to helping businesses thrive.

He is supported by his family, including his wife Soosun (former AGM of BSNL now taken VRS), and their two sons. His elder son Varghese an alumni of NIT Trichy and ISB Hyderabad, while second son Mathew, a Chartered Accountant and alumni of St Xavier’s Calcutta currently work in Bangalore and Chennai respectively. Daughter in law Dr Merrin Meria Varghese is an alumni of JIPMER Pondicherry , AIIMS Jodhpur and now with NIMHANS Bangalore.