Succession planning within a family business can be an incredibly challenging process very few are truly prepared to initiate let alone complete.

Leading a family business may be considered to be no mean feat. What qualities make up for the effective Family Business leader?

It is no hidden secret but of course a real shame that not many family businesses think about passing the business down through the generations.

It is a known fact that in a post covid world a number of industries, both locally as well as the global  field, are suffering from skilled labour shortages and therefore are not able to reach their true potential.

In life, you spend more time with your family or working than doing anything else. When you combine these two areas of your life into one and create a family business, the commitment required to managing both is immense.

It seems many business leaders fail to grasp how they can influence people around them. Which is why communication is no longer considered a “soft skill” for business leaders, but a “core skill”.

A baby goes from crawling to walking in a matter of months with almost no coaching. It is  a system of trial and error, tipping and falling, progress and regression, experimentation and self-correction.

Recent research into family businesses has pointed out that there seems to be a constant decline in the enterprising spirit in family businesses, as these pass from one generation to the next.

The focus of decision making in  family businesses is made more in the context of family relationships rather than just the business.

After years of dedication to building a family business and seeing it through countless ups and downs,  an offer to buy the family business may be on the cards.

Creating successful family enterprises is not easy. Sustaining them over the long term is harder still.

As a business owner or leader, it is imperative that one understands the true value of the family business.It is a common occurrence that family businesses with various business interests fail to attach a value to their family business.

One of the most critical juncture and challenge facing any family business is how to treat the next generation.

Family business governance can substantially influence the family businesses’ ability to cope with novelty, uncertainty, and complexity, and thus play a key role in either enabling or impeding innovation processes in family businesses.

Many economic indicators are flashing red. Virtually all economic forecasts predict an economic recession for the EU and US economy next year. It is within this context that many companies are now planning and preparing their annual financial budgets, at a time of high uncertainty.

In a post covid world as well as throughout the pandemic , the move to working from home revealed vulnerability to phishing among family businesses that had not set up proper controls for remote access.

Family offices take many forms. They can be fully staffed, stand-alone operations. They can be entirely virtual, outsourced organizations under the direction of the family. Or they can be something in between. As the saying goes, “If you have seen one family office, you’ve seen one family office.” In other words, a family office is unique to the family it serves.

The Post Covid effects as well as the ongoing Ukranian turmoil seem to linger on. The uncertainties created as a result of the aforementioned and the impact on world economies are still being felt to this day.

It is useful to understand as to why business leaders resist and become lethargic at implementing change although all indicators point at how their business is suffering when not adapting to the ever changing reality they operate in. Why is this?

How important is the human element in a Family Business ? Resources of a human nature are the lifeline of the family business. It is what makes the family business tick. In order to be successful , a family business be it here in Malta as well as the global sphere, the human element needs to be put at the forefront of any serious family business.

The intrinsic nature of the Family Business is never far from the surface. Even when one considers the sale of the Family Business or even the passing thereof , detachment from said family business can never be taken lightly as the emotional roller coast ride is such that one cannot underestimate.

In today’s family business environment, there are more generations working together than ever before. In fact, many workplaces include members of five different generations.

As more and more women make progress in their family businesses by gaining board seats, and increasingly being named successors, it is important to realise in a field that is still male-dominated, women have helped family business leaders to sustain their businesses for future generations.

The ultimate goal of many enterprising family businesses is growing a prospering organization stewarded by a committed group of united family owners.

Around the globe, family businesses are grappling with the effects of inflation, now at its highest level in 40 years and this comes as no surprise due the devastating effects left behind by Covid 19. Over 30% of family business owners feel inflation is their most pressing business problem that they need to navigate.

The recent coronavirus outbreak has challenged many family businesses and resulted in different responses, including organizational transformation and innovation.

Maintaining the Continued Success of the Family Business through proper governance is imperative for the long term.

Succession in a Family Business should never be a birthright. If you fail to plan , you are inevitably planning to fail.

Even the most successful families experience conflict now and again. In family businesses, conflict is unavoidable. Fortunately, research overwhelmingly shows that it is not the presence of conflict that is detrimental to relationships, rather, it is how conflict is managed.

Few things in life are more satisfying than knowing you have helped another person become a better version of themself. It speaks to the importance and richness of both mentoring and being mentored. It’s a teacher-learner relationship, but it is important to note that we must all be learning at all times.

It is a known fact that family businesses , at least most of them, do not plan for succession. It has recently been estimated that as many as 75% of family businesses have not planned in passing on the baton and who the chosen next leader of the family business is.

Alberta Group Founded by George Barbaro Sant in 1988, Alberta started off as a micro enterprise dedicated to the supply of fire extinguishers.

It’s often said that the typical family business goes from rags to riches and back to rags in three generations. Better governance of a family business can help improve business performance and satisfy the expectations of all family members.

MCE Limited was founded in 1976. The original scope of the company was to trade in plastic raw material and participate in government tenders.

<!–more–>MCE Limited was founded in 1976. The original scope of the company was to trade in plastic raw material and participate in government tenders. In 1982 the company moved to new premises in Valletta. The tool trading division was initiated, and this gave the company its future direction in diversification of trade.

Trading in electrical goods commenced in 1984 and in a very short time MCE Ltd established itself as a leading company in this activity. MCE started to stock and distribute electrical installation and lighting materials, including switchgear, cables, control gear and luminaries. The company’s operations continued to grow and by 1990 the company undertook the first stage of the construction of new offices and stores at MCE House at Qormi.

Construction of the new premises was completed by July 1991. Up till 1994 MCE Ltd restricted its activity to trading and minor contracts, mainly in lightning protection systems. From this date MCE started to venture into the contracting sector including large motor controls, lighting of sports arenas and promenades, installing of stand-by generators, central heating systems, and mainly lightning protection of building.

Jointly with international companies, refurbishment of power plant was also executed. During these years MCE was awarded various awards. These include the International Award for Commerce and the Quality in People Award. In 1996 another landmark was reached when after 18 months of hard work, MCE was successfully audited and certified by the British Standard Organization to Quality Assurance BS ISO 9002. Ten years later this was upgraded to BS EN 9001:2000.

Today the company operates its own quality procedures and is no longer externally audited. At this time, the company embarked also on the enhancement of the electrical division, by including water plumbing material. The division was re-named the Electrical and Plumbing Division.

2006 is another landmark year for MCE as the company not only celebrated 30 years but also initiated another new division, Heating and Ventilation. For the third time in its history, the company realized that it had outgrown its storing facilities, and in 2003 initiated the construction of the second phase of MCE House in Qormi. This phase included new parking facilities, additional storage area, larger offices, and facilities for a new shop for the Engineering and Tooling Division.

In 2018 the company had a restructuring of its shareholding where the spouses Ivor and Susanne Puglisevich purchased the stake holding of the other family members to become the sole new stake holders within the Company. New management, ideas, investments, and consolidation of the main company’s activities has had the desired effect to place the company amongst the major league players. Nicola, their daughter soon joined the management team, driving innovation and modernization within the company processes. During the latter months of 2021, the company embarked on another large investment in the refurbishing program of its two retail outlets with a completion date envisaged by mid-2022, by which time the Company would have overhauled its image and outlook

To many, the phrase “family business” denotes a small or midsized company with a local focus and a familiar set of problems, such as squabbles over succession. While plenty of family businesses certainly fit that description, it does not reflect the powerful role that family-controlled enterprises play in the world economy.

The owners of family businesses wield profound decision-making power. There exist sizable family businesses in which not a euro can be spent without their approval. When this power is channeled appropriately, it confers a major competitive advantage.

This week the Family Business Office, for its 34^th edition of Focus On , features the very secretive family business synonymous with the world acclaimed brand C&A considered to be the richest family in the Netherlands , more specifically the Brenninkmeiyer family, now in its sixth generation of ownership.

Family businesses are often lumped together as if they were all the same. But four fundamentally different types of family businesses exist, distinguished by who can be an owner and how owners share control.

This week the Family Business Office, for its 33^rd edition of Focus On , features the family business synonymous with the world acclaimed brand IKEA and we meet the Kamprads , more specifically the eldest second generation heir Peter Kamprad.

“We have always done things this way” are the famous words that set you on the path to self-destruction. Most enterprising families want to hold onto the past and preserve the family values, which constitute a legacy and honour the vision of the wealth creator(s).

This week the Family Business Office, for its 32^nd edition of Focus On , features the current richest woman in the world and third generation heiress of the world renowned family business L’Oreal.

As COVID-19 continues to wreak havoc, employers, schools, communities and family businesses are realizing the need to focus on mental health and support people who need help. The topic of mental health regularly trends on social media. This is very good news, as it helps destigmatize treatment in educational and business settings.

This week the Family Business Office, for its 31^st edition of Focus On , features American billionaire businessman and second generation heir of the American family business Koch industries.

The Covid pandemic has brought about major changes in the global business environment in which family businesses operate. As a result, the changing roles of institutions, the social role of technology, the contribution and changing nature of ownership, and the social role of the family business are likely to alter family businesses culture and identity.

This week the Family Business Office, for its 29^th edition of Focus On goes east yet again bringing you South Korean world giant family business SK Group , headed by Chey Tae Won, second generation heir and chairman.

This week the Family Business Office, for its 30^th edition of Focus On, features German billionaire family businessman and second generation Dieter Schwarz, best known to be owner of the world known brand Lidl.

It is no secret that life expectancy has expanded and the world has become more interconnected, family business leaders face an unprecedented challenge like never before.

The next frontier for family-owned businesses that want to evolve, innovate and lead is taking the bold step into the digital realm. If family businesses can learn how to adopt the digitalisation of their operation than the family business will be well positioned for years to come.

This week the Family Business Office, for its 28^th edition of Focus On goes east bringing you South Korean world giant family business LG Group, headed by Koo Kwang Mo, fourth generation heir and chairman. Curiously, the introduction of Koo Kwang Mo into the family business is the result of unfortunate circumstances.

Family businesses are in theory better equipped to survive than most. They tend to be able to prioritise long-term goals because the owners usually intend to transfer the business to the next generation. This can be a problem if the heir is not as strong as whoever is on the “throne”.

Everybody has heard of the world acclaimed Maersk shipping lines. This week the Family Business Office, for its 27^thedition of ‘Focus On’ brings you Danish giant family business Maersk holding , and its recent appointment of fifth generation heir, Mr Robert Maersk Uggla, chief executive officer at Maersk Moller Holding.

From LEGO to Toyota, family businesses account for as many as two thirds of all companies worldwide. Some date back more than a thousand years, surviving pandemics, financial crisis and waves of industrialization along the way.

This week Family Business Office, for its twenty sixth edition of Focus On brings you French giant family business Auchan holding , until recently headed by Vianney Mulliez.

Perhaps the most quoted statistic in the world of family business is this one: 30% of family businesses make it to the second generation, 10-15% make it to the third and 3-5% make it to the fourth generation.

This week the Family Business Office, for its twenty-fifth edition of ‘Focus On’, introduces second generation heir Lakshmi Mittal. He is the Executive Chairman of ArcelorMittal, the world’s largest steelmaking company, as well as Chairman of stainless-steel manufacturer Aperam.

Surprisingly, some family businesses do not see the value in communicating about their history, their values and their long-term vision as owners of a company. Of course, it is easier not to put the family’s reputation on the line. But that also means missing out on the advantages that come with it.

This week the Family Business Office, for its twenty fourth edition of Focus On World Family Business Leaders looks at Theo Albrecht JNR second generation heir and son of the co-founder of the worldwide chain supermarket giant ALDI. Also in place to this vast chain is third generation heirs from Theo’s late brother Berthold.

It is no hidden secret that promoting family ownership builds trust.

In our everyday work life, we rely heavily on our partners and suppliers. The value of these relationships is irreplaceable as we realise just how many of these firms are family businesses. Family businesses are drawn to family businesses. But it’s much more than that.

This week the Family Business Office, for its twenty third edition of Focus On World Family Business Leaders looks further afield to one of the wealthiest of family business owners in India – renowned tycoon Azim Premji.

In order to evolve and have a successful legacy, Family businesses need to have a healthy succession process. But we must not mistake “healthy” for “painless.” Sometimes family emotions although expected, are most times woefully underestimated. Succession is a mind game with opposing views from one generation to the next.

This week the Family Business Office, for its 22nd edition of Focus On World Family Business Leaders, goes east and introduces third generation family business heir Güler Sabanci.

The impact of the pandemic could have far reaching consequences and not just on family businesses but invariably on businesses of any nature. More so, a family business as this type of business is closely knit by way of close relationships.

This week Family Business Office, for its twentieth edition of Focus On World Family Business Leaders brings youAndre Hoffman, fourth generation heir of the drug company Roche Holding.

In a Post Covid World, family businesses, could be best summed up through the following statement: There are unique challenges with a family business, particularly when it comes to making tough decisions in difficult times.

When the going gets tough and families are feuding, fairness is always an issue—and usually, it’s about more than just money. Managing family-owned enterprises and managing family wealth is no easy feat. Family businesses sometimes struggle to define fairness among family members. Why is it so hard to define fairness?

This week the Family Business Office, for its nineteenth edition of Focus On World Family Business Leaders, brings you Dr Wolfram Freudenberg, fifth generation heir of the very diversified multinational family business of Freudenberg Group.

When two or more next-generation members are working in the family enterprise, it is normal for them to be assigned to different functional areas of the business.

This week Family Business Office, for its eighteenth edition of Focus On World Family Business Leaders , brings you Marie Christine Coquette, fifth generation heir and chairperson of Sonepar and Colam Entreprendre , the worldwide family business leader of electrical equipment.

We often hear comments from the Next Generation family business members of an enterprising family that indicate they do not see opportunities to engage: “no one cares what we think, no one listens to me, they do not think I know enough to contribute.” Leading Generation members of those same family businesses may say: “the Next Gens just aren’t stepping up like we hoped.”

This week Family Business Office, for its seventeenth edition of Focus On World Family Business Leaders , brings you Simone Bagel Trah , third generation and Chairwoman of the family business Henkel Group.

It is a known fact that fewer than 30% of successful family businesses make it to the third generation, and fewer than 15% make it through that generation. Growing complexity can complicate family relationships and become a barrier to the long-term sustainability of the business.

This week Family Business Office, for its fifteenth edition of Focus On World Business Leaders , brings you Andrew C Taylor, Executive Chairman at Enterprise Holdings Inc , a world leader in the car rental industry.

Power and control impact family businesses, just like any other enterprise. What makes the inevitable power and control struggles even more complex in a family business are the family dynamics that play a significant role in decision-making and succession planning.

This week Family Business Office, for its fourteenth edition of Focus On World Business Leaders , brings you Emma Marcegaglia, Chief Executive at World Business Leader in production of steel tubes business and second generation business.

Succession planning processes involve an organisation developing a strategy for onboarding and training staff to ensure that when a person carrying an important role leaves the business, there is a suitable replacement.

This week Family Business Office, for its thirteenth edition of Focus On World Business Leaders brings you Ratan Tata, an Indian industrialist, philanthropist, and a former chairman of third generation Tata Sons.

Family meetings have traditionally been low-tech/high-touch environments where family members would come together in conference rooms or inspiring spaces and where devices were encouraged to be checked at the door. Covid-19 has, at least temporarily, changed all that.

This week Family Business Office for its twelfth edition of Focus On World Business Leaders brings you Nick Hayek, CEO of the world acclaimed Swatch Group, now in its second generation following on from inheriting from his father Nicholas G Hayek.

While taking a leadership position in addressing environmental challenges may be seen by some as a “moral imperative,” the economic opportunity lies in developing products and services that are both environmentally sustainable and profitable.

This week the Family Business Office, for its eleventh edition of Focus On World Business Leaders, brings you Charlene de Carvalho Heineken, executive director and fourth generation heir of the world acclaimed Heineken Brewery.

Whoever sits around the boardroom table of a family business wields tremendous influence on the performance and continuity of that family business.

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.

This week the Family Business Office, for its tenth edition of ‘Focus On World Business Leaders’ brings you Giovanni Ferrero, second generation CEO of the well know brand Ferrero.

This week the Family Business Office, for its eight edition of Focus On World Business Leaders, brings you Rocco Forte, the brains and chairman of the luxury brand hotels Rocco Forte Collection.

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.

This week the Family Business Office, for its fifth edition of Focus On World Business Leaders, brings you Juan Roig , executive chairman, and the second-generation heir, of Spanish supermarkets chain Mercadona.

This week Family Business Office for its sixth edition of Focus On World Business Leaders brings you Vitalie Taittinger, president of the eponymously named champagne house, and fourth generation heir.

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.

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.

It is with great sadness that earlier last week , the death was announced of Founder and Honorary President of the European Family Business Office, Mr Mariano Puig, who passed away aged 93.

On Tuesday 2 February 2021 and for our fourth session of a series of webinars organized by the European Family Business Office, it was Mr Jesus Casado, Secretary General, European Family Business’

On Tuesday 26 January 2021 Dr Rania Labaki took center stage during the third seminar organized by the European Family Business Office as part of the SPRING Erasmus+ Knowledge Alliances project.

Despite the impact left by the pandemic, no business registered with The Family Business Office, has officially declared it had to close down due to the repercussions of COVID-19.

Acknowledging the past and building the future : how shared values can help in succeeding in the post Covid World by Mr Colin Donaldson in collaboration with the European Family Business Office as part of the SPRING Erasmus+ Knowledge Alliances project.

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.