The Business of Family

The development of family businesses through generations can be a complex and challenging process, but also a rewarding one.

Based on experience, working in family businesses all my life, here are some key considerations for successful multi-generational family business development:

Plan for succession early: Succession planning should begin long before the current owner or CEO intends to retire. It is important to identify potential successors within the family and provide them with the necessary training and experience to prepare them for leadership roles in the business.

For some businesses they might have to look for the successor outside the family, which understandable can be a difficult decision, but there might not be the right person to run the business within the family.

Foster open communication and trust: Maintaining good communication and trust among family members is essential for the long-term success of the business. Some families are large and complex other are smaller less complex in their structure. Regular family meetings and open discussions about business and family matters can help build trust and ensure everyone is on the same page. It can sometimes be difficult to determine where the business stops and where the family start..

Develop a strong governance structure: This is one of the major issues I have seen in many family businesses in the GULF region. Establishing a strong governance structure that outlines decision-making processes and roles and responsibilities for family members and non-family executives can help prevent conflicts and ensure the business operates smoothly. Define where the family are involved and where they let the non-family member executives manage their responsibilities can be challenging in some family businesses.

Embrace change and innovation: Successful family businesses are able to adapt to changing market conditions and embrace new technologies and ideas. Encouraging innovation and taking calculated risks can help the business stay competitive and relevant over the long term.

Maintain a strong company culture: The culture of a family business can be a source of competitive advantage, as it can create a sense of shared values and purpose among employees and stakeholders. It is important to preserve the company culture while also allowing for evolution and growth over time.

One of the things that always have drawn me towards family businesses is how the DNA of the family in incorporated into the business.

I have always told my colleagues that we have to remember, often it is the name of the family on the façade, the van's and the sites, so when we meet stakeholders to the company, we are not only representing the company but effectively the family themselves too. this give us a tremendous responsibility.

By following these key considerations, family businesses can successfully navigate the challenges and opportunities that come with multi-generational ownership and management, and continue to thrive for many years to come.