Blog

The Results Of Being Too Generous To Family Employees

Overlapping roles in family businesses – like father and CEO – are always tricky to manage. But when dads (or moms) allow the family want rather than the business need to guide compensation levels, they create a non-sustainable process that often hamstrings the next generation’s independence and objectivity.

Successful Family directors: family, management and independent directors, need to be aligned on the role and importance of family directors at the board.

Most family businesses start with an informal board that may be comprised of all family owners and perhaps a few key non-family executives. While this form provides a way to update owners on key matters impacting the company, it is rarely the right group of stakeholders to bring the depth of insight, oversight and objectivity that is most valuable from a more formalized board of directors.

The Value of Diversity in Governing Family Enterprises

This week the Family Business Office looks at a different take on governing the family business. Typically, the low hanging fruit in terms of creating the most harmonious decision-making group is simply to seek out like-minded individuals. And why not?

Creating Harmony at Board Level at the Family Business

Managing a family business is no easy feat. All family members want to be seen as vitally important to the business but how does one maintain the all important ingredient of harmony in order to ensure the plain sailing operation of a family business?

Focus on World Family Business Leaders | Amancio Ortega

This week Family Business Office, for its seventh edition of Focus On ‘World Business Leaders’ brings you Amancio Ortega, founding chairman of the Spanish clothing merchandiser Inditex, mainly responsible for the very popular brand ‘Zara’.

Successful Directors are Planned and Developed

Even families with well-established professional boards that include capable independent directors, good board processes and value-added meetings will run into challenges around the role of the family with the board of directors.

Focus on World Family Business Leaders | William Lauder

In 1946, Estée and Joseph Lauder founded Estée Lauder Cosmetics. By 1960, after years of hard work and ingenuity, the Lauders were on their way — from a mom-and-pop operation to becoming one of the most influential names in the beauty industry.

Focus on World Family Business Leaders | Guido Barilla

This week Family Business Office for its third edition of Focus On World Business Leaders brings you Guido Barilla , chairman of Barilla, and the fourth-generation heir to the pasta fortune that he shares with his three billionaire siblings.

Women In The Driving Seat

In a special report conducted by EY in collaboration with Kennesaw State University titled ‘Women in Leadership – The Family Business Advantage’, light is shed on the importance of women in a leadership role in family businesses. Hereunder a summary of findings from said report which makes for an interesting read.

Post Covid 19 – The Challenge Ahead

The unprecedented, tumultuous events of the past excess of one year have presented family businesses with enormous challenges. Family businesses, by their very nature, are resilient, amid the crisis, have proven their metal.

ONE NATION – ONE FAMILY – Dr Joseph Gerada

The first quarter of 2020 was not an easy one for any of us. The Covid-19 pandemic was unexpected and none of us were prepared for the measures we had to take to safeguard our health and that of our loved ones. As a nation we have however stood up.

2018 In Numbers – Dr. Nadine Lia

Pythagoras said that numbers rule the universe and whilst family businesses will be the first to attest the importance of keeping tabs of numbers and figures we’d like to share with you some of our own numbers accumulate during the last year and hope to be able to provide even stronger numbers next year.

New Year Resolutions For Family Businesses – Dr. Nadine Lia

New Year resolutions are typically associated with personal development and achievement. Albeit we typically and stoically look into losing weight, cutting down on alcohol or cigarettes, increasing our level of fitness or pinning our goals to buckets lists and targets.

Running A Business VS Running A Household – Nadine Lia

As all parents can attest the soft and hard skills of running a business and a household are similar and yet so far apart.  Merging both whereby your children and family members move to take on the additional of being your nearest and dearest to becoming your employees,  eventually your colleagues and in the end, the boss is a transition on many levels for all the family members that requires quite a separation of powers and mentalities.

Preserving Local Family Businesses – Max Ganado

If one looks at the history and economy of Malta, one will find it has been a very family oriented society with family businesses being part of the economy in an important way. Mostly with property but also changing according to the times the way the economy developed.

Starting The Journey To Continuity – Nadine Lia

Regardless of how small or large the size of a family business, succession planning for family enterprises presents a unique set of challenges. Not only can it be a complicated, emotionally-taxing process, but it also carries the potential to detrimentally affect family relationships, which can strain the business itself—often to the breaking point.

Services and Guidance To Seek From Your Advisors – Nadine Lia

If a family business is intent on surviving with growth and stability and intends to pass the business to future generations it requires the ability to develop a defined strategy coupled with the flexibility to deal with emerging issues that will arise in this ever-changing and dynamic environment.

Family Wealth Management – Maria Farrugia

A successful business transfer takes place when “the skills and the desire to be in business” are transferred from one generation to the next (Shrapnel, 2014, p.7).   In light of the increasing number of family members with each new generation, each having different expectations, family wealth can be easily squandered, unless managed properly. This would mean that the hard work of past generations is lost.

Proper Planning Is Key – Annalise Micallef

Transference of interests in family businesses is an inevitable path such businesses must cross. It is a challenging time for such businesses as family relations converge with business interests with the result that family members must strive to keep a balance on both fronts for the continued success of the family relations and business interests.

The Role Of The Trusted Advisor – Anthony Pace

Succession Planning may be one of the most challenging experiences facing any Family Business owner, so it is crucial to get it right. For a Family-owned business, a solid succession plan can drive the growth of the business, manage taxes and set the stage for retirement. Succession Planning is a multidisciplinary process.

How Will This Scheme Be Beneficial For Our Economy – Chris Cardona

Dr Chris Cardona, explains how this scheme will not only benefit local family businesses but also our economy. This act will give guidance to how a family business should regulate itself, benefitting from these new incentives, and restructures itself, in order to prepare for the eventual transfer and succession of the business when the moment comes.

3 Key Questions To Discuss With Your Advisors – Nadine Lia

To travel on a journey with others requires a mutual respect and understanding. A preplanning dialogue seeks to generate a relationship that will be the foundation of positive communication, growth, and agreed upon direction. If there is agreement that the relationship is a good fit, a proposal would be developed outlining the process, timeline, and milestones. There is no one size fits all prescription for families or organizations; what is required is the ability to ask the difficult questions and raise the issues that are sensitive, yet must be discussed.