Tag Archives: management

You are not my real brother…you’re just my half-brother!

MANAGING a family business is already a complex affair. “Family” and “business” are intertwined into a mix of so many challenges, from business to family values and generational differences.

In coaching family-owned businesses, I usually pay close attention to the family issues that are often carried over to the business. By default, the founder, the spouse, the next generation successors and grandchildren will continue to be relatives after the transfer of the business. Adding the issue of strong emotional experiences (both positive and negative) and it quickly becomes obvious that in most families the relational dynamics far outweigh the financial or business issues.

Governance and succession in a family business are perhaps the most critical elements among the many unique challenges of family businesses. Many marriages end in hostile separation or divorce, and many adults have children from their first marriage. Many of these parents will remarry, perhaps adding new children to the marriage, creating a blended family. A blended family can include half-siblings, step-siblings and children from the current marriage.

Managing a blended family can be a key moment for the survival of a family business, especially when families procrastinate, are unprepared, lack the strategic perspective or are caught up in emotional issues.

The do nothing or ‘bahala na sila’ attitude

A KPMG study highlights the need for an extra space to be made for complicated family trees, which may involve children from a previous marriage, offspring from an extra-marital affair, adopted children, or some other form of half sibling. Because of the potential for emotional upheaval, some owners avoid the issue entirely, adopting an attitude of “Let them figure it out when I’m gone.” This mindset to me is a dangerous setup and will have dire consequences.

Sibling rivalry is a very real problem even in “regular” families, so it is even harder to imagine the extent of competitiveness and jealousies between adopted, half- and step-siblings.

The children of a family business owner’s ex-wife, for example, may feel left out, but the children of the new wife will now have more “say” in the family business. The permutations of the family setup are numerous, but the insecurities and jealousies triggered as a result of these blended family members can manifest into a full blown conflict if left unresolved.

If the business owners/parents are not clear on explaining things, everyone can feel confused. This can breed jealousy, insecurity, hurt, competition, and significant loyalty conflicts.

Extra-marital children have rights

Legally, extra-marital children do indeed have inheritance and other rights, and any inheritance claims – provided paternity can be proven, for example – will be favorably awarded by the courts.

When incorrectly handled, the dividing of an estate or family assets can get acrimonious under such circumstances – and it could well negatively impact the future success and sustainability of the family business.

To mitigate drama and in-fighting down the line, or when you are no longer around, it’s in the best interests of both the family and the family business to ensure that the family unit is a cohesive and strong one.

To promote harmony between siblings, step-siblings and half-siblings, you can start the process of initiating governance starting in the family and then as they reach employment age transition to the business governance. The following are some tips that you can immediately implement:

  1. When they are still below the age of majority, you must start assessing the children’s preferences and determine their individual strengths, skills and talents.
  2. Initiate and create a forum where a family business adviser will facilitate discussions between siblings and half-siblings about the roles they would like to or expect to play in the business.
  3. Strongly discourage a sense of entitlement – insist that everyone exercise humility and treat each other with respect. This includes respecting the non-family members working in the business.
  4. Start the process of aligning ownership as it gets complicated when your children starts having families of their own and you reach retirement age.
  5. Create a formal sounding board – like a family council – where grievances can be aired and resolved.

Family businesses must explore overseas market

GOING regional is the path small and medium enterprises (SMEs) are encouraged to go for in the Philippines. The opportunities are plenty.

While the large companies in the Philippines are eager, careful and taking every opportunity as it presents itself in the ASEAN Economic Integration on a more in-depth and long-term vision, the emerging enterprises are in the process of learning and finding ways to expand in the more basic levels.

Our SMEs are like toddlers who are starting to walk and explore. They should think strategic so they can make their products relevant. The past year, I have helped a handful of family businesses expand overseas especially in stable economies like Singapore and emerging growth areas like Indonesia and Vietnam.

At present, my coaching work requires me to handhold a number of companies seeking out opportunities in the ASEAN region. Help is available, and more changes are expected in due time to support the needs of these family enterprises.

Can family businesses from the Philippines thrive in the global arena?

As the ASEAN economic integration begins with its daunting challenges and the world economic center of gravity shifts to Asia, how can we in the Philippines take advantage of opportunities and adapt to irreversible changes? I have identified some inspiring stories of family businesses in the country who successfully hurdled the challenges. Let me start with my former boss and mentor of eight years, Dr. Andrew Tan’s listed company, Alliance Global, Inc.

Alliance Global Group, Inc.

One of the most inspiring new “rags-to-riches” billionaires of Southeast Asia is Dr. Andrew Tan of listed firm Alliance Global, Inc., the new $3-billion holding company for his three major businesses – condominium-developer Megaworld, the world’s biggest brandy producer Emperador Distillers, Inc. and 49 percent shareholdings in the nationwide Philippine franchise of McDonald’s fastfood chain.

It is difficult to believe that authentic “rags-to-riches” sagas built on honest hard work still happen in this modern and complex world. The son of poor immigrants from Fujian province, south China and himself born overseas, Andrew grew up in downtown Manila dreaming of someday owning a store or small business like many of his peers’ families (See my past columns of Andrew Tan’s rise to the top).

Emperador: A global brand after acquiring Whyte and Mackay for P31.7 B

One of the amazing accomplishments of this self-made businessman is his unexpected success in making his homegrown Emperador Brandy into the world’s largest-selling brandy in terms of total number of bottles sold. Tan’s firm sold 7.2 million nine-liter cases of brandy last year, and plans to soon expand into Thailand, Vietnam and the vast China market.

Sources said there were originally 16 groups interested in Whyte & Mackay, but these were shortlisted. Tan personally oversaw Emperador’s win in London over Western conglomerates such as the French luxury giant LVMH Moët Hennessy Louis Vuitton, American liquor group Brown-Forman (producers of Jack Daniel’s Tennessee whiskey), Italian beverage group Gruppo Campari and Russian billionaire Roustam Tariko (producer of Russian Standard vodka), after two rounds of bidding.

Despite being ranked as one of the country’s wealthiest billionaires, Tan remains unassuming and self-effacing when asked about his “rags-to-riches” saga. Here are excerpts from the exclusive interview as featured in The Philippine Star, “Bull Market, Bull Sheet”, by Wilson Lee Flores:

What are the benefits of Philippine companies going overseas?

Apart from boosting our long-term economic strength like other Asian economic powers, Philippine companies expanding overseas and going beyond our comfort zones or going to some uncharted territories, will help sharpen our management skills. This is also positive for the country in terms of raising the prestige and international profile of the Philippines as a fast-growing economy with our own foreign investors, too, going abroad. This Emperador investment in Whyte & Mackay has also increased interest in Philippine tourism among the British people, Europeans and other foreigners, who in the past might have had little knowledge about the Philippines.

Why did you audaciously decide to invest in this British distillery?

I believe this Emperador Distillers investment in Whyte & Mackay is good for the Philippines as a whole, not only beneficial to our business. I believe that our Philippine companies can be globally competitive, although not many have invested beyond Asia like going to the US or Europe. The recent notable ones are Manny V. Pangilinan’s PLDT Group investing in the German tech startup firm Rocket Internet in Europe; John Gokongwei Jr.’s Universal Robina has also this year bought New Zealand’s biggest snack producer, Griffin’s Foods. All these are positive developments, a good sign that we in the Philippines can also go global.



I am excited to deliver a very timely real estate talk on Sept. 25, 2015, a Friday, at the AIM Conference Center in Makati. The title of the one-day talk is “Anticipating a Real Estate Bubble? Manage Your Growth During Uncertainties”. To reserve slots, please call the organizer, Octopus Branding, at 0915-9108686.

India’s 117-year-old conglomerate: a model family business

THE Godrej Group is a public company and a conglomerate based in Mumbai, Maharashtra, India. It was founded by two brothers: Ardeshir Godrej and Pirojsha Godrej in 1897. The story behind the success began when Ardeshir came about his creation and selling of locks as a response to the alarming citywide crime rates. He also made vegetable oil-based soaps, which was a hit at that time. Pirojsha helped in developing the business into an enterprise that carried an extensive line of industries.

Today, the Godrej Group spans several industries that include chemical and commodities, agriculture, precision engineering, fast moving consumer goods (FMCG), services and real estate. It markets furniture, security, home appliances, and agricultural care products and its expansion extends to three consumer sectors: personal wash products, haircare and household products in Asia, Latin America and Africa.

The family-run conglomerate handles its operations through two holding companies, namely Godrej Industries Limited, and Godrej & Boyce Mfg. Co. Limited. Other subsidiary and affiliate companies are Godrej Consumer Products Limited (GCPL), Godrej Sara Lee, Godrej Hershey Foods & Beverages Limited, Godrej Infotech Limited, Godrej Properties, Godrej Agrovet, Godrej Hi Care (pest management services), and Godrej Global Solutions (ITES).

The third generation as change agent

The amazing transformation of Godrej Group from manufacturing locks and soaps to different industries during the time of liberalization to the current globalization is the result of the ingenuity and innovativeness of its present chairman, Adi Godrej, who hails from the third generation of the family business (following the second generation, which was led by Pirojsha’s grandsons Naval, Sohrab, and Burjor).

Adi is known as a business icon, an Indian industrialist who embraces change. He initiated appointing non-family members as CEOs because the management of the Godrej Group then was not flexible. He initiated and put in place a system in the management structure to make it flexible. He then moved to modernize the management of the group and incorporated new business processes. The inclusion of technology immensely benefited the family business because of his inclination to it. The Godrej Group reached the completion of its restructuring process in 2000-–10 years in the making. Now it prides itself to have formed a stand-alone company per business handled.

Adi and family are considered one of the richest in India. Their estimated net worth–a whopping $11.6 billion as of 2014! What is great about this family is their wisdom towards money. Having wealth that could afford any person almost whatever material possession they want, the patriarch at the helm of the family business has always taught the value of money to his children. As a result, the abounding wealth is from the combined effort of the family.

Adi leads Godrej Group with his brother Nadir Godrej and cousin Jamshyd Godrej. Nadir is the managing director of Godrej Industries and chairman of Godrej Agrovet. Jamshyd is the managing director and chairman of Godrej & Boyce. The 72-year-old chairman’s three children are also working and continuing the family business. Tanya, who is his eldest daughter, oversees the marketing of the Godrej Industries Limited as the executive director and president. Pirojsha, his son, serves the family business as the chief executive officer of Godrej Properties, which is considered one of the fastest growing property arms and one of the largest in terms of revenue (if not the largest). Nisaba, his second daughter, is the executive director of Godrej Consumer Products and is part of the boards of GCPL, Godrej Agrovet and Teach for India.

As we could imply, nepotism comes to mind when we see the members of the family heading the business. So, how does the group face the issue? There simply is the rule that allows the members of the family to join the group, provided they have professional training. The Godrej Group’s chairman values the importance of training his children.

Godrej Group employs 28,000 people. What does the chairman say about his people? “My grandfather, father and uncle placed a lot of emphasis on building housing and schools for employees, which have paid good dividends. Making sure your employees are properly taken care of is a strong lesson we’ve learnt from previous generations,” Adi says. The conglomerate’s chairman values the welfare of their employees, gives financial reward, and opens a world of opportunities to those who display promising performance.

117 years and going forward

That is really something for family businesses. The group is not shy of any track record, and is looking for further expansion at its fourth generation phase.

So, to those who doubt and believe that family succession is impossible for the long haul, take inspiration from the Godrej family.



I am excited to deliver a very timely real estate talk on Sept. 25, a Friday, at the AIM Conference Center in Makati. The title of the one-day talk is “ Anticipating a Real Estate Bubble? Managing Your Growth During Uncertainties”. To reserve slots, please call the organizer, Octopus Branding, at 0915-9108686.

Crafting solid family agreements: your most important step

IN MY previous columns, I wrote lengthily about the need to pursue governance in the family business. And without any doubt, crafting a family constitution or a charter is one major step to every founder’s dream and aspiration of ensuring that his blood, sweat and tears (legacy) is cemented for generations to come. The objective, therefore, in any governance undertaking is to create harmony, unite family members and prepare very good family and ownership agreements.

Today’s column will focus on family agreements and in what my industry colleagues Lansberg and Gersick refer to as “institutionalizing control.”

Formalize agreements

Formality is very important in family businesses. Assuming that one’s relatives would forever be supportive to the family business and consistently remain productive may not be a good way to set one’s frame of mind.

We should always accept the reality that there are different types of family members working in the family business. Some of them may exhibit exceptionally good performance, are committed and trustworthy. There are some that are plain indifferent, selfish and would always look at his last name and employment as his or her birthright. For some entitlement is all there is to it in a family business.

Behaviors change

According to a Business Week article, family business leaders must always recognize the family members’ individual differences (types of personalities, attitudes, and behaviors), varying opinions, values, demands, expectations, and capabilities and changing or evolving priorities in life.

What you know of your younger or older siblings’ behavior when you were in your teens may no longer be the same in midlife

With all these likely scenarios happening, family business leaders must anticipate and expect the difficulty in meeting the kind of certainty that is needed from its pool of family members to operate a business on a professional level and direct it towards specific objectives.

The core group of any family business would be the members of the family itself who could either be catalysts for positive outcomes or a major source of problems if they do not agree with certain guidelines.

Familiarity and entitlement

The issue with members of the family boils down to familiarity and entitlement and they will naturally have the tendency to be complacent and presumptuous since they are related by blood or marriage with the president or any family business leader with significant influence, they would not be made accountable for under-performance or weakness they might have.

In most cases, “free riders” in the family can also compromise the business. They think that being entitled will allow them the advantage to put little or no effort at all in the development of the business.

Without any performance metric and a semblance of accountability, they continue to draw their salary every payday and benefit from dividend sharing. And to add salt to the wound, they moonlight and put up separate businesses outside of the family business.

Another cause of major conflict is in dealing with different personalities in the family. Some could be very intellectual, capable and productive, but are greedy, overly controlling and manipulative for their own good. Some are usually quiet and have the penchant to question every policy laid out by a family member or sibling disrupting initiatives for growth.

Start by crafting good agreements and policies

There are different kinds of agreements that could be created and followed in the business to keep family relationships in harmony and espouse professionalism in the industry. Based on my experience coaching family businesses in the Asia Pacific region, the most important documents and policy to unite and harmonize family members are the following:

a. Family constitution or charter incorporating governance policies covering employment, compensation policy, a code of conduct, job description of working family members and a statement of vision and values

b. Shareholders’ agreement on the other hand covers agreements on ownership and board level accountabilities

Due to limited space, I will cover these agreements in the succeeding columns.


(I will be in Cebu on June 25 to deliver a talk entitled “Creating Growth Opportunities for Family Owned Enterprises”. Choi City along Banilad will be the venue of this timely franchise and marketing seminar. It will be a one-day event organized by Octopus Strategic Branding. Those interested to attend, please call Mr. Danny Wong at 0917-8900063.)

Why family business owners are reluctant to hire executives

“Prof, my children have been pressuring me to get senior executives but I have time and again refused to heed their advice. You know why I am scared of hiring professionals? Firstly, my children will not have anything to do anymore and they will become lazy. Secondly, senior executives are expensive plus they have no loyalty and they might even steal my money or they might just be spies sent by my competitors!”

Is this an act of definance by the founder/visionary in his mid-sixties? Is it unfounded? I don’t think so.

Is it a confession of the uncertainties when you bring in senior non-family members in the business? Yes and possibly other real fears!

This caselet is related to what I wrote in my previous column (When Generations Collide April 28, 2015). We cannot blame the baby boomer generation, a generation born from 1946 to 64. We must instead learn to respect understand and empathize with them. It will do well for the next generation leaders to reflect on the history of the business and how the founders struggled to keep the business afloat through sheer hard work.

Two years later

That exchange took place more than two years ago, after a colleague endorsed me to coach the family with their governance and succession plan. After several sessions with the family members where we balanced the concerns of the senior generation members and the need of the next generation leaders to pursue changes to keep the business relevant, the patriarch finally relented and heeded my advise to try out one HR senior executive.

Fast forward two years later…the business has senior executives in key departments covering sales, marketing, operations, logistics, accounting and business development with one of his children appointed as COO and with full oversight control over these departments. The patriarch retained senior family members to manage the finance, purchasing and audit departments and his growth has been remarkable, registering double digits.

The first HR executive was unsuccessful and stayed briefly (he was right on the loyalty part) but the succeeding hires proved to be the turning point. He has never been happier with his decision and has expressed his intention to aggressively pursue expansion in other countries.

Business first equals growth

The success, growth and well-being of a family business depend on its ability to attract, motivate, develop and retain outstanding executives who are not kin.

Any business with the intention to continue and grow needs executives with a profile matching the business culture, organization, and strategy (Gallo, 1991; Welch, 2005). This holds especially true for family businesses, since they tend to have a specific and distinct business culture (Denison et al., 2004).

In many cases the managing responsibility is partly or even fully handed over to non-family executives. The process of bringing a non-family executive into a family business requires much forethought and planning. Because of this, family business owners think a lot about how to determine the “fit” of a prospective non-family executive in a values-driven family company.

Executive hiring that went sour

When I was consulting for an Asean-based company a few years ago, I was introduced to the newly hired chief finance officer (CFO) whose previous engagement was as finance director of a multinational corporation (MNC). The CFO had the credentials, having worked with the MNC for more than 12 years. He even confessed that his new engagement will likely be his last, as he was already seven years away from retirement age.

Four months into the job, he shared his dissapointment that the financial statements were deliberately not being shared to him by the patriarch. Only the sales figures were being disclosed. The following month he tendered his resignation. When the patriarch asked me what went wrong, I took that opportunity to gather the family members for a full session articulating the importance of critical areas that must be included when hiring professionals.

According to Becker (2005), professional skills such as practical and leadership experience, industry knowledge, a sure sense of money and risk, entrepreneurial engagement, correctness and transparency are important, but for family enterprises determined to engage and retain professionals, the answer lies in the eight overarching attributes highlighted below:

  1. The hiring process must not only involved the HR department but ideally the family advisor and a select group of senior generation leaders including the patriarch.
  2. Roles and expectations of the candidate and the business owner must be defined and put in writing.
  3. Define the relationship between the senior executive and the working and non-working family members.
  4. The fit between the candidate’s social skills and the family’s cultural and value system.
  5. The candidate’s sensibility to deal with family issues and his understanding and sharing of the family’s interests.

To be continued…

When generations collide: Securing your legacy (part 2)

8. Compliance on business governance.

It is essential that family members define and set boundaries. It must also draw clear management lines as mixing business, family and ownership issues every day can eventually produce a volatile brew. Divide roles and responsibilities to avoid hard feelings or miscommunication. Discretion follows conflict. Put in writing rules for participation in the business, qualifications, duties and accountabilities of the family member.

Mr. John Gokongwei, the founder of the JG Summit Group, created his famous 10 Family Business Commandments purposely meant for the next generation of family business leaders. He emphatically highlighted three of the most important cardinal rules: No In-Laws, No Moonlighting and Being a Gokongwei does not give you any guarantee of employment.

9. Require outside work experience.

Children should get at least three to five years business experience elsewhere first, preferably in a related industry. This will give them valuable perspective on how the business world works outside of a family setting. Here the child appreciates the value of discipline, competition and control.

10. Seek outside advice.

The decision-making process for growing a family business can sometimes be too closed. Fresh ideas and creative thinking can get lost in the tangled web of family relationships. By having a non-family member/outside advisor, objective solutions minus the emotions are effectively laid out. The advisor’s entry can also be a good way to give the business a reality check.

11. Develop a succession plan.

A family business without a formal succession plan are asking for trouble. The plan should spell out the details of how and when the torch will be passed to a younger generation. It needs to be a financially sound plan for the business, as well as a way for retiring family members to enjoy the quality years ahead.

The phrase, “There is only one boss” is so appropriate when a successor is in place. Having a single leader does tend to be less complicated from the point of view of corporate decision-making.

The country’s biggest and most diversified family-owned businesses like Henry Sy’s SM Prime and Andrew Gotianun’s Filinvest Group have already anointed female leaders, Tessie Sy Coson and Josephine Yap, to lead their billion-dollar conglomerates. With their succession plan firmly in place, mandates are established and the next generation leaders selected and identified to continue their stewardship role to the next generational phase.

12. Empower the next generation of family members.

Allowing the next generation of leaders to make contributions and introduce change is a major step in the right direction. Establish guidelines for competency, leadership and accountabilities for the next in line family business leaders.

Applying these 12 initiatives in the course of growing the business plan is like the smooth, graceful exchange of a baton between runners in a relay race. The new runner has maximum energy; the concluding runner is slowing down as he has already spent his energy by running at maximum speed early on. The athletes never come to a stop to exchange the baton; instead, the handoff takes place on the move.

The race becomes a skillful blend of the talents of all team members–an exchange of leadership that is so smooth and powerful that the business never falters, but accelerates, fueled by a new source of energy at each leg of the race.

Grooming the successor can begin at an early age, simply by involving children in the family business and observing which ones have the greatest ability and interest in the company.

Good succession planning does not merely involve designating a family member and training him or her for the takeover. In fact, grooming the successor is the founder’s greatest teaching and development responsibility because it involves a long-term, continuing effort to balance competing interests and pressures that are integral in a family business.

Another key feature of many successful planning processes is the third party advisor or consultant to guide the family through the many intricacies of management succession. He/she would be able to help identify the relevant issues while avoiding interference that emerges from emotional factors.

The independent judgment of the advisor can serve as a means to resolve conflicts and overcome opposition by bridging generational gaps with his experience and expertise.

In my many years of family business consulting, training second and third-generation heirs and doing coaching work in Asia, I have personally met many family business leaders who believe that they are taking considerable risks in transferring a successful business into the next generation. However, once they made a concerted effort to plan for succession, they were able to reduce these daunting odds.

(Prof. Soriano is an Asean Family Business advisor and chair of the Marketing Cluster of the Ateneo Graduate School of Business. He is a National Agora Awardee and book author of Kite Runner, a book on Family Business Governance and Succession.)

Shared values + common vision = family constitution

“The family constitution, a comprehensive articulation of philosophy, principles, and policies for the future that balances and synthesizes the welfare of family, owners, and the business, is among the most important steps a business-owning family can take to secure and strengthen its business and, most preciously, its family.”

– Prof. John Ward

According to Prof. Ward, the two most effective practices implemented to protect and preserve the family business are a.) to create an independent board to strengthen the business and b.) to draft a family agreement to strengthen the family. This column is the last of a three-part series related to the latter.

In some countries, a family constitution is referred to as a family agreement. For some, it is a family creed or a charter. But regardless of the name, there is absolutely no doubt that a family agreement, when done correctly, can be the most important document that will perpetuate the family business for generations to come.

What I meant when I said “when done correctly” refers to the need to customize and tailor-fit rules and protocols based on the uniqueness of each family and business. Just as each family business is unique, so each family constitution will need to reflect the unique characteristics of both the business and the family to which it relates.

A constitution is a living document

A family constitution is a living document. It specifies the relationship between the business and the family. It sets out the roles, compositions and powers of the key governance bodies of the company. These bodies are family members, the shareholders, the management and the board of directors.

The constitution also contains regulatory protocols and formal policies that effectively curtail privileges or entitlements of family members and in laws for the greater good.

In my constitution building sessions with second-generation family businesses in Singapore and Vietnam last month, we touched on several sensitive questions related to governance, ownership, control and succession. Below are some questions that were solicited from the next generation members:

a.) How do the senior generation leaders in the family make decisions?

b.) When will our parents empower us to make decisions? We have been in the business for more than 10 years!

c.) What are the rules for next-generation family members to work in the business?

d.) Can we seek your help in pushing for our vision and values? We really do not know where this company is heading.

e.) Can we review the current compensation policy? The next generation family members have growing needs and we do not know if they are aware.

f.) What if a family member wants to sell his/her shares? We actually have no written agreement. How do we proceed?

g.) Is there a mechanism to gauge the performance of siblings? I sometimes feel it is unfair. I work more than my other siblings and yet we receive the same pay.

h.) Can we regulate the entry of in-laws?

i.) If and when I decide to pursue my MBA, will the family business pay for my tuition? Will it be the entire amount?

j.) Our dad was diagnosed with mild dementia last year and our MD has warned us it will continue to deteriorate. The problem with our father is he keeps on delaying the appointment of his successor. There are four of us. What should we do?

Clearly, these are troubling questions bordering on the uncertainty of their respective family businesses and a family constitution addresses these questions and many more.

It’s the journey that matters

The important thing in formulating a family constitution is the journey and it goes through many phases. A significant number of Constitutions that failed were attributed to several areas:

a.) The initiation, formulation and approval phases were all done in haste

b.) There was no proper orientation or buy in of family members from the different generations

c.) The contents were not real contributions from family members but extracted from a handful of senior generation leaders

d.) The information in the Constitution were open ended and created more questions and confusion than solutions

e.) The formulation process was limited to a few days and upon signing, the family members were left on their own to implement the rules

f.) The contents were limited to the present generation

g.) After the signing, the family members started violating what was agreed upon in the constitution and there was no proper monitoring

To conclude, a well-crafted family constitution that goes beyond two to three generations towards the future can perpetuate a family business for a long time. It is therefore my wish that family business members should start the process now in order to ensure the legacy of the founders and the everlasting prosperity of the family and its businesses.