FAMILY COMPANIES, THE MANAGEMENT OF THE NEW GENERATIONS AND THE SUCCESSION PROCESS

This type of business represents 60% of the total companies. It is one of the items that more business concentrates. However, 85% of them do not survive the third generation. Here are the details of how the new generations of regional firms are dealing with this reality.
And this type of business represents 60% of the total companies in Chile. In other words, today in the country, at least four out of every five companies in the country are family members. In other words, of the existing total, 78% work under this model, have a 60% share of total sales and grant 63% of employment in the country, according to the Family Business Radiography.

However, 85% of them do not survive the third generation. The reason? Among them are the confusion of roles and between property and capacity. Also, the succession is often delayed because the patriarch often has a hard time “letting go” of what he has achieved and this generates administrative conflicts. Another of the “traps” in which family businesses tend to fall has to do with the confusion of the decisions in the corporate governance bodies and those of the management bodies. “One thing is the company and another the family, and they are issues that should not be mixed. It also happens that employers do not follow the rules that they themselves stipulate around their company and, finally, believe they are immune to problems that may arise ”

The good news is that there are clear mechanisms to avoid these disagreements that cause firms to dissolve. A priori, it is necessary to study and train to strengthen the management capacity.

SUCCESSION PLANS: THE FORMULA TO ACHIEVE TRANSFER IN TIME

However, most of these business families are about to move on to the third generation, a moment in which, according to what history and experience have dictated, it would be the turning point for their useful life.

explains that the first challenge of business families is to last over time and that implies many others, such as being up-to-date on their own issues, looking at the local and international market in their areas of action, to be attentive to innovate, adapt and react before changes in the industry, consumer habits and tastes. “But above all the previous ones, you have to look inward and organize yourself for the challenges that are in direct relation with the family members, current and future,” he says.

Another important challenge, the specialist emphasizes, is to grow and transform from a local regional company into a national or even international one. Export is a very important way to travel, since it gives them the vision of the markets that will be their medium and long-term objectives.

The proposed practices to prevent companies from dissolving are to promote the competitiveness of firms, increase the professionalism of their members and improve, above all, the issues of corporate governance and succession protocols, to separate what the company is from what is the family. “This helps improve the management of the company’s assets, generates a harmony with respect to the family-company relationship and as a result, the company can remain in time”

THE KEYS OF THE SUCCESSION, OF THE HAND OF THE NEW GENERATIONS

The fundamental thing, the experts say, is that the new generations are not only professionals when entering a family business. They must also be trained in the experience of working in a common business. Also, specialists say that the introduction of innovation in these companies is essential, and the trend today is precisely that the heirs of the companies do so.

On the other hand, and to achieve these objectives, it is essential to formally define succession plans in which the objectives, mission and vision of the family nucleus are established, in such a way that the members do not present doubts about these issues. “To make a succession plan, we must involve family members who have influence on present and future decisions, with the aim of reaching consensus on these plans. Otherwise they can be a source of controversies and insoluble problems in the future, “said Vial.

60% of companies in Chile are family. Some of the biggest ones are Falabella and Kaufmann.

THE EXPERIENCE OF FAMILY EMPLOYERS IN COQUIMBO

A lot can dictate the theory. However, the most interesting thing is to see how the protagonists of history in our region of Coquimbo are addressing the issue.

Thus, in a company where I do consulting and advice, dedicated to the field of fire safety), they point out that for four years now, and after receiving the Ibero-American Quality Award in Spain, they decided to form a corporate government that would ensure continuity of the companies that hold (which are three) in time. For this purpose they established a family council, whose purpose is to ensure the strictly family, and a board that is responsible for the administration of companies. The latter was made up of three external directors, specializing in finance, people and processes, respectively, and by three family members acting on behalf of the council. In order to ensure the professionalization of the companies, the family decided that the presidency would be in the hands of one of the internal directors, who not only directs the organization but also has the diriment vote. Thus, the council generated a family administration protocol, which establishes the conditions and requirements for the incorporation of the family and the following generations , thinking at all times in the project that companies remain in time, The founding partner of the company, details how the process has developed. “Today I have eight grandchildren, the largest one has just received commercial engineering and is preparing, in accordance with the aforementioned requirements, to integrate later into the company,” she reveals. Currently, her role is to pass on experiences, values and the knowledge to their children and grandchildren, “so that the family project also makes sense for them and that they project and take care of it, in other words I am mentoring them.” “We are working with advisors to leave a protocol that subsists in time. . This is done with clear rules. Some of the conditions are that family members who want to join the company must be professionals, must have experience in other jobs, know what it is to have a boss, meet schedules, meet goals. In short, they are a contribution and have desire to work. The idea is that they are ad hoc professionals to the position that is needed, and do not enter by default “,” The family council generated a family administration protocol, which establishes the conditions and requirements for the incorporation of the family and the following generations ” The entrepreneur reveals that currently the third generation is ready to join the processes. In total there are 11 people between 21 and 32 years old and several have shown interest in joining the company. “The idea is that those who are interested, inherit the business with all the conditions we are designing to do it, and thus keep it firm,” he says. Regarding the stamp that the new generation can print on business, he emphasizes that today The technologies change rapidly and it is likely that their heirs will stamp the technology and innovation on the business. “For this it is also necessary to know the experiences in the world, in foreign universities and in the labor area, to extrapolate good ideas to ours,” he says. “The idea today is that the descendants will earn a job, more beyond wanting to participate in the company by default. That is proven that they can make the hit effectively, “concludes the businessman. For this, many family businesses today require that the relative who wants to enter the business basically have a career, experience in other jobs, and ideally, graduate studies and experiences abroad.

The 10 keys to the succession of family businesses Specialists in family businesses delivered the essential points that, according to them, should be repeated among the succession plans of companies of this type.

  • Training of the next generation, for key positions.
  • Collaboration and shared power of leaders.
  • Participation in decision making.
  • The corporate government. Management of conflicts and emotions.
  • Withdrawal on time from people over a certain age.
  • Integration of people attached to the family to the management team.
  • Rules to be followed by the shareholders that are members of the family.
  • Collaboration agreement.
  • Balance between family values ​​and professional rationality.
FAMILY COMPANIES, THE MANAGEMENT OF THE NEW GENERATIONS AND THE SUCCESSION PROCESS

Uso de cookies

Este sitio web utiliza cookies para que usted tenga la mejor experiencia de usuario. Si continúa navegando está dando su consentimiento para la aceptación de las mencionadas cookies y la aceptación de nuestra política de cookies, pinche el enlace para mayor información.

ACEPTAR
Aviso de cookies