Family Business: Sustaining Success

Author: Maria Villax, Head of Family Strategy & Governance

Last week, Rhea Tabbara – one of Bedrock’s relationship managers – gave me the opportunity to spend some time in Monaco with a group incredibly talented women, involved in the real estate and shipping industries. What set them apart? They all work with their mothers, fathers and siblings. In fact, we even had a couple of mothers in attendance and it was heartwarming to hear them speak about their daughters: how they were thriving in their respective businesses and how special it was to have that double act in the eyes of clients.

It’s no secret that when the children join the business, this signals a long-term commitment to all stakeholders. Employees and clients alike know that the plan is for the business to still be standing in 30 years, which inspires trust and the dedication to build deep relationships.

The business is seen as an extension of the family identity, which is very typical in first and second generation family businesses.

On the other side of that coin is the fact that all guests noted that there was no difference between work and home – the conversations remain the same. The business is seen as an extension of the family identity, which is very typical in first and second generation family businesses.

When the business is at its entrepreneurial stage and it’s all hands on deck! Later, as the business grows and more generations are involved, it starts making sense to add some separation, introduce processes and define the right forums to discuss this and that. Despite the conflation, a spark of instinct was palpable around the table—a subtle intuition that guides mothers in knowing when to impart wisdom to their daughters, and daughters in recognising when to assert themselves, particularly when their perspectives diverge.

The significance of an emotional compass among family members collaborating was widely accepted. Moreover, there was a profound recognition that diverse personalities between parents and their children contribute to added value rather than tension. These distinct personalities enable them to cater to a broader range of clients, empowering children to engage with clients best suited to their strengths. This approach stands in stark contrast to narratives where children are shielded until reaching a certain age—an approach that feels refreshing and forward-thinking.

Another clear insight that shone through related to the shared values around the table: duty, entrepreneurship and independence. These values were reflected in the connectivity and energy that emanated from the room, and in the success that was common to all guests. A group of interesting and interested women, unafraid and unapologetic of being in charge.

It thus came as no surprise that there was a call to action to make these gatherings periodical. The group felt that much was learned from each other and that this was a first step towards building a community of successful women in family businesses.

Here are the main takeaways from the event:

• A working relationship between parents and their children will be peppered with emotion, this is to be embraces but managed by giving the right time and space to those interactions.
• Different traits in personality means value added. There may be clashes but innovation is born out of tension, not comfort.
• Shared values offer a blueprint to behaviours that are aligned. Better be clear about what they are!

For further information about any of the insights shared above or to find out more about Bedrock’s Family Strategy and Governance services or events, please do reach out to Maria at info@bedrockgroup.ch.