In the face of this serious crisis, I wanted to turn to the top leaders of long-established and successful family businesses. Their lessons are particularly timely now.
For days now we have been severely hit by the pandemic of the now sadly famous Covid-2019 coronavirus. My solidarity with the victims and the sick as well as my eternal gratitude to the health and social workers, security forces, transporters and employers and workers who still have to work to maintain a minimum standard of living because of their enormous work.
Returning to business inspiration, I would like to highlight two key ideas:
First. In these turbulent times, more than ever, it is advisable to act responsibly, calmly, serenely and with common sense. As is well known in the great family sagas, we must look at things with perspective and think that, sooner or later, after the storm, the calm returns. Making money in the short term for the shareholder is not the point. True family businesses become sustainable because they have a purpose that connects them to society. Today more than ever we are seeing this.
Second. These great leaders teach us that crises are always a time of opportunity. We will have the great opportunity to rethink strategies, processes, risk maps, all those things that day-to-day life makes it difficult for us to deal with. We will have the opportunity to understand that today we need companies with purpose. We will have the opportunity to dedicate more time to training and realise that online education exists and works very well. We will have the opportunity to experience in depth the advantages of teleworking. And we will have the opportunity to spend more time with our family, with our children, and probably to cultivate some hobbies".indoor".
Business families must realise that these rough seas are best navigated through unity and cohesion. The business family is a complex ecosystem where business (reason) and family (emotion) coexist and must be governed with intelligent balance. Corporate governance is therefore highly recommended, but this must also be accompanied by governance of the family to achieve the necessary alignment and pride of belonging through the design of a project and shared values. Special relevance should be given to working on the "why?" that end up shaping the purpose of the business family. With these solid foundations, the necessary passion and enthusiasm is generated to tackle the most difficult challenges. As a third-generation leader of an important Spanish family business said to me, talking about the management of this crisis, "now more than ever we must focus on strengthening the values that have made us endure".
Families must understand that the key to sustained success over time is to wisely combine the experience of the older generations with the innovative potential of the next generations who bring digitalisation and globalisation in their genetic code. This combination is particularly advisable to tackle the complicated weeks ahead.
A clear and hopeful message. From the entrepreneurial leadership that usually permeates the actions of many family businesses, I know that they are acting with an absolutely "Darwinian" spirit in this emergency situation, not only to adapt quickly to the enormous challenges that this unusual situation is causing, but that they will be able to emerge strengthened when the general situation recovers.
I would not like to end without pointing out that these days we have witnessed, and will continue to witness, extraordinary examples of purposeful business leaders in both public and private spheres. It is from such purposeful leadership that difficulties, however daunting they may be, can be overcome.
Prof. Manuel Bermejo, PhD
Chairman of The Family Advisory Board