SO, WHAT IS FAMILY GOVERNANCE? GUILLERMO SALAZAR Guillermo Salazar explores the issue of governance in the context of a family firm where governance of the family would help shape the future for the next generation.
San Jose, Costa Rica. Thirty years ago, a modest grocery business was founded by Amado Perez. Throughout the years, his tireless effort turned a small business into a strong organisation led by Mario and his wife. For the past ten years, their offsprings Tony, Maria and Luis have been running the company, which employs more than two hundred people with twelve stores across the city. It was a natural step for the Perez children to come to work in their father’s store after they graduated. Even now, in their late fifties, they look back at their choice to join the business with no regret. From the beginning, the siblings were united in their agreement that they didn’t want to repeat their parent’s mistakes: a blind devotion to the business and nothing but the business. That’s why the second generation decided not to discuss work at home and let their children enjoy their family by keeping their private lives separate from the business and let them look after their own lives. This arrangement worked well for many years. But a year ago, Tony began to talk seriously to his siblings about the succession of the company after recovering from a heart attack. However, there was an issue that none of them wanted to bring up: not a single one of their children (ages around twenty years old) had ever shown any interest in the family business. In fact, there was little the third generation had done at all in their professional lives. Some were finding it difficult to keep on going with their studies at college or had ever faced real responsibilities. As it turned out, many members of the third generation had been living their lives thinking that their parents’ company would ensure their financial security with no future plans on the horizon. This is a case based on real life situations (names, locations and business sector have been disguised), that tries to illustrate a common situation where the lack of communication between family members often enhances the conflicts they face. Attempts to create moments of coherent conversations about the shared heritage
41 PROFESSIONAL INSIGHT
