Abstract

The case “Is John Riady Set to Head His Family-Run Lippo Group?” discusses the efforts of John Riady (Riady) -- scion of the Riady Family that owned the multinational family conglomerate, Lippo Group (LG) – in bringing about a turnaround at one of the trouble-prone group companies called Lippo Karawaci Tbk (LK). The case starts out with a brief history of the Riady Family of Indonesia that within three generations established one of the country’s largest and most diversified conglomerates with an ever-expanding global footprint. The case gives a glimpse into the early stint of Riady at LG, wherein he demonstrated his competency to take up the leadership position at the company. The various turnaround strategies that Riady adopted at LK are discussed in detail. The case ends with a mention of Riady’s vision and the strategic direction he intended to take for LG. Can Riady effectively lead LG and make it one of the largest business groups in Asia in the future?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Recognize the competencies required of a turnaround leader
• Discuss the various turnaround strategies
• Analyze the reasons for the third-generation curse
• Examine the best practices of generative families
• Assess the need for transformation in family businesses

Keywords

Family Business; Turnaround Leader; Turnaround Recovery Strategies; Succession Planning; Third-Generation Curse; Generative Families; Business Transformation; Leadership; Change Management; Crisis Management; Repositioning Strategies; Family Values; Stewardship; Technological Disruption; Emerging Markets