The past three days I haven’t been able to get much down on the blog but I have a good reason – we’ve been in class. Yes, in fact, traveling to Europe includes two visits to two different universities, 40 some hours of lectures and case-based discussions and presentations. Sure, you get to see the Rhine River while you are studying, and the lilac scent wafts in the air, but it is studying nonetheless. We’ve been at the European Business School (“EBS”) just outside Wiesbaden where we were surrounded by southern facing vineyards and buildings dating back to the 18th century.
We worked on two cases including one on the Wella Family and had to prepare a presentation on the Grohe Family. Grohe is a very successful German based bathroom fixture manufacturer that was forced into a sale by an American Private Equity firm. Once the Americans took control, the company faced several issues related to local labour issues as jobs were transferred to Thailand. What was interesting about this case was that it was quite influential over national German politics and the debate over foreign investment of large, faceless private equity firms ultimately became a campaign issue. But it wasn’t all work, as we managed to squeeze in a tour of the European Business School’s wine cellar in the evening. I have to say the U of A could benefit from some sort of cellar/seller of wine arrangement. (The Assistant Dean, Development should look into this more!)
In attending the lectures, you see how complex and important family businesses are to the overall economy. You can also apply what you learn to your own situation even if you don’t have a family business. Who among us won’t face a potential sibling, cousin rivalry over the family farm, or a house, or the family candlesticks? Multiply that on a scale of millions and the gap between “complex family enterprises” and your potential family issues narrow rapidly because families really do face the same issues. But hammer home the point, Dr. Sabine Klein, Chair for Strategy and Family Business at EBS gave her lecture. And this is when family business really got personal for me.
Sabine generously offered up her own story, both good and bad parts including how her family dynamics worked. Her family business could be considered an iconic German success: the family empire specialized in the production of margarines, oils and fats, and frozen foods throughout Europe. Her grandfather started the business in the early 1900’s and by the time it came for her and her brothers to determine succession, it was the second largest producer of its kind in Europe.
I’ve met lots of CEOs and it is always impressive to them talk about the latest company profits. However, it is an entirely different and intensely vivid experience to hear from a member of the controlling family. Sabine showed us the skeletons in the closet, describing how politics between generations, brothers, mothers and fathers can influence and impact succession of an international firm. As Sabine said, family business is more intense because you can’t quit your family and you can’t divorce your mom or brothers.
The expectations on what happens when a succession issue can be emotionally raw, intensely sensitive and bring back elements of past interactions that at the time were harmless and even loving. Once succession is triggered however the jealousies, the rivalries, and the unique personalities rule much of what happens next. Sabine’s most vivid point for me was that the health and happiness of a family is dependent on every member being happy, and that when one member is hurting all members hurt. The impact of ignoring this can tear families and businesses apart and once successful legacies can evaporate in short order.
I can’t really describe this lecture fairly. I can say I felt very privileged that Sabine was willing to share her tale, and to use it as a backdrop to apply what we’ve been learning over the past few days. I also look forward to hearing her lecture again and she will be at the U of A in the fall so I won’t have to wait too long. In the meantime, I may send my brother and sister an email – just to let them know I was thinking of them. Seems like a good thing to do in the context of the past few days. ~ MH
No comments:
Post a Comment