CONTINUUM 2014 FAMILY BUSINESS CONFERENCE
Values driving Growth REPORT
GOLD SPONSOR
ORGANISED BY
SUPPORTED BY
ﺷﺮﻛـﺔ اﻟــﻮزان اﻟﺘﻌﻠﻴﻤﻴﺔ AlWazzan Education Co.
IN COLLABORATION WITH
CONTINUUM 2014 FAMILY BUSINESS CONFERENCE Values driving Growth
Dear Friends, It is my pleasure to herewith present to you the Continuum Family Business Conference 2014 Report. Started by the Tharawat Family Business Forum in 2011 with a vision to connect families from across the world, the Continuum Family Business Conference is slowly but surely becoming a well-known, international hub for discussion and dialogue. Staying true to its tradition, Continuum 2014 was again a blend of activities for all generations, including a visit to the Thames Barrier, and a special workshop exploring what it means “to be a nextgen in the 21st century”. Welcome... However, the key question we asked this year was if and how family values impact business growth. We were honored that our valued speakers have chosen Continuum to share their thoughts and insights into their areas of expertise ranging from governance, coaching, to business leadership. For the first time, the 2014 Continuum Business Talks focused on Family Offices: Currently a very much discussed topic the session focused on understanding what functions Family Offices can take over and how families can best use these vehicles to their advantage. As a boutique conference, Continuum’s vision is to facilitate an inter-cultural, inter-generational dialogue between business-owning families and focus on sustainability and innovation. We are grateful for the support of this year’s partners and sponsors, the Obeikan Investment Group, Essa Abdullah Al Ghurair Investment Group, WJ Towell and Wazzan Education Services, as well as Ettinger and the Langham Hotel, who allow us to keep Continuum independent and focused. And of course, we were thankful for our audience’s continuous input and support to make our gathering better and more relevant every year. We will continue to work towards the realization of Continuum’s basic premise: That as a community we can create a real contribution to the strengthening of business families in all regions.
Yours sincerely, Dr. Hischam El Agamy Founder Tharawat Family Business Forum
FAMILY BUSINESS CONFERENCE Values driving Growth
About the Continuum Family Business Conference Organized by the Tharawat Family Business Forum, the Continuum Family Business Conference is an annual conference, bringing together leading business families from all parts of the world. Continuum is a unique opportunity for families to meet, exchange experiences and share visions. Since the first conference in 2011, Continuum’s sole purpose has always been to create an exclusive atmosphere where family businesses can gather to discuss about where family businesses stand in the global arena today, explore opportunities and share innovation. London as one of the global meeting places has been an ideal host for our conference, and so Continuum continues to strive to become a meeting point and fixed date on the agenda of business leaders.
Switzerland Liechtenstein
USA
Finalnd
Panama
Kuwait
Kuwait
Trinidad & Tobago
UK
Lebanon
UAE
France Spain
Pakistan Italy Algeria Egypt KSA
Oman Yemen
India
Continuum 2014 welcomed participants from family businesses from several continents.
2014 Program Highlights Throughout the three days of the conference Continuum attendees enjoyed a variety of activities;
- An exclusive behind the scenes tour to the Thames Barrier. - A futuristic NextGen workshop on how to get the family business ready for the future and what it takes to be a NextGen in the 21st century - Live sessions with family business leaders from several countries on ‘Values driving Growth’ - Interactive panel session on ‘Philanthropy – The way to Sustainability and Professionalization’ - Session on Family Offices with live examples from across the globe IN THEIR SESSIONS, OUR SPEAKERS ADDRESSED THE FOLLOWING TOPICS;
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The future of family business leadership A world competitiveness outlook for 2014 and beyond Leading business in the new economic reality 175 years of family business governance Ignoring the red flags – When family businesses do not sustain Family business in the Caribbean – Dynamics and Impact Caran d’Ache: An authentic Swiss manufacture with real people Creating a vision for your family relationships: How to transform your ghosts into allies. Inside the family office – Foundations and principles The Luck family office – Insights and experiences Entrepreneurial family offices – Tools, people and dangers Philanthropy – The way to sustainability and professionalism
Sharing at Continuum 2014 – Donations As part of its vision, the Continuum conferences strongly focus on having a positive impact, not only through creating a platform but also through donations. This year the speakers were given animal adoptions in their names. The adoptions of endangered species were given through he Snowleopard Foundation and WWF. Any proceeds of the conference were donated to the UNHCR to a program supporting displaced women and children, who have lost their provider. The Continuum team has set the goal to increase the real impact of the conference each year and seek to support worthy and valuable initiatives all over the world.
FAMILY BUSINESS CONFERENCE Values driving Growth
DAY 1
NextGen Session ‘Being a NextGen in the 21st Century’ The young generation session is an integral part of Continuum. Holding a special session for the future members of family businesses, giving them the opportunity to learn from each other and to network is at the very core of Continuum’s mission. The 2014 NextGen Session, was split into two parts: The first part saw a young generation speaker, Mr. Simon Otalora, Senior Partner, Global Catalysts, Panama discuss what the future of leadership looks like in family businesses. Mr. Otalora showed that factors such as population growth, resource constraints, finances and global connectivity will play a big role in shaping the future business environment and it will be crucial for the future leader to be able to read the signs and understand the rapid changes. The second part of the NextGen session was centered on the concept of how family businesses can prepare to face the business environment of the future. In the “Family Business 2020” session, participants had to draw matrices and answer the core questions that were handed out by the Tharawat team. 1. 2. 3. 4.
What mega trends will impact tomorrow’s business environment? What should family businesses do to get ready for the mega trends? How can the next generation help in strengthening the position of family business? What social, environmental, economic factors should families take to in account when taking business decisions?
After heated debates and discussions, each table group presented their answers. The outcomes of the session will be used to develop a special “Family Business 2020” program, which will include multi-location activities and gatherings. For more information, please contact info@tharawat.org
DAY 1
Behind-the-scenes excursion to the Thames Barrier The city of London has always been vulnerable to floods and heavy tide. Operational since 1982,the Thames Barrier is a flood control system located downstream of central London. In an exclusive behind the scenes visit, Continuum attendees explored this impressive structure by understanding its function by the tour guide engineers and having access to the mechanical areas of the barrier both above and below ground level. Quick Facts - The six distinctive silver gates that make up the barrier span a 1700-foot stretch of river and protect against tidal surges and rainwater swells. - The Barrier protects a total of 125 square kilometres of central London. That’s 1.25 million people, historic buildings including the Houses of Parliament, London›s financial center offices, power supplies, tube lines and hospitals. - It is the world’s second largest barrier after the Oosterscheldekering barrier in the Netherlands. - Work on the barrier started in 1974 and took ten years to complete.
FAMILY BUSINESS CONFERENCE Values driving Growth
DAY 2
‘Values driving Growth’ The second day of the conference focused on the rapid changes in the business environment and how families were able to use their core values to drive growth. Opening Address
Opening the conference, Mr. Essa Al Ghurair, Chairman of Al Ghurair Foods, Vice Chairman of Al Ghurair Investments and Chairman of the Tharawat Family Business Forum stated that families all over the world, despite living under very different circumstances, often share similar challenges. Participating in gatherings like Continuum and actively seeking to share insights with peers, however, can help to overcome those challenges and find new and innovative approaches to take home.
Morning session
The following topics were addressed during the morning session: Is Better Good Enough? Competitiveness Outlook for 2014 and Beyond
Prof. Stephane Garelli Professor, IMD Business School Lausanne Founder, IMD World Competitiveness Center Professor, University of Lausanne
Leading Business in the New Reality
Ravi Kant Former Vice Chairman Tata Motors India
The Family Business Governance: Exploring 175 Years of Continuity
Joaquin Uriach President Grupo Uriach Spain
Ignoring the red flags: When family businesses do not sustain
Mai Elkinawy Corporate Affairs Officer Mars Middle East And Family member El Kinawy Factories&Printers, Egypt
Learning Points
Prof. Stephane Garelli, Professor, IMD Business School Lausanne
Professor Garelli gave an in-depth insight into the most recent shifts developments in the world economy. The impact of the second industrial revolution, outsourcing and the role of the banks were explained during this interactive session. - Millions of people in fast-growth economies will be transferring from living on 2 USD a day to 10 USD a day. This is the new middle class that is emerging in China and Africa. - The next battle will be the battle for land and 50% of that battle will be taking place in Africa. - Businesses will have to manage their methods of communication and accept that this is the era of transparency: “Everybody is looking”. - Relying on and developing the young generation is crucial. They are the ones who will have to face the future complexities and take on the role of leadership. Ravi Kant, Former Vice Chairman, Tata Motors
Mr. Ravi Kant is the former Vice Chairman of Tata Motors, who over the span of fourteen years has exponentially grown the company and acquired Daewoo, Range Rover and Jaguar. In his presentation Mr. Kant explained how companies can grow despite the growing uncertainties and worldwide complexities. - In order to obtain growth you need to take risks and create disruptive events. - Businesses should use scenario planning and predictive analytics to be able to assess various scenarios of the future. - “You need to do what you say and say what you do”. Younger consumers are getting more and more critical and the must be satisfied quickly.
Dr. Joaquin Uriach Torello, President, Grupo Uriach
Dr. Joaquin Uriach Torello took the stage to recount his family’s 175 year history and explained the governance development the family has been through in order to sustain and grow. - “Adaptability is crucial”. In a changing environment you have to adapt your family and company continuously if you want to survive. - Each family needs to find its own governance system. - Having strong family governance is essential: It is important to stay calm through the process, accept it as an evolution rather than a revolution, and created an environment of respect, trust, and confidence. - Relying on an external consultant can help, as well as setting up a board, recognising and accepting differences between family members, and removing the feeling of entitlement. Mai El Kinawi, Family member, El Kinawy Factories&Printers
Ms. Mai Elkinawi is a family member of the Elkinawi Factories&Presses in Egypt, one of the oldest printing presses in the country. In an insightful presentation she shared the history of the business, as well as highlighted the red flags that might have been overlooked throughout its history. - Vision is essential – it will influence how the next generations can develop the company. - 3 key red flags that can threaten family business sustainability: loss of vision, strategic and succession planning, keeping up with technology.
FAMILY BUSINESS CONFERENCE Values driving Growth
Afternoon session
The afternoon session of the second day saw three powerful female family business leaders share their insights. Family business in the Caribbean: Dynamics and Impact
Ms. Patricia Ghany CFO ESAU Oilfield Supplies Co. Ltd Trinidad & Tobago
Caran d’Ache: An authentic manufacture with real people
Mrs. Carole Hubscher Chairwoman Caran d’Ache Switzerland
Creating a vision for family relationships: How to transform your ghosts in to allies
Mrs. Cherine Debbas Moukaddem Family Member Debbas Holding Lebanon
Learning Points
Ms. Patricia Ghany, ESAU Oilfield Supplies Co. Ltd, Trinidad & Tobago
Ms. Patricia Ghany shared a fascinating insight into history and structure of the Islands of Trinidad and Tobago. With a highly diverse ethnic population Ms. Ghany highlighted the influences of culture and values on the way family businesses are run and the industries that families from certain backrounds focus on. - The challenges family businesses in the Caribbean face are the same but based on their cultural provenance everyone takes a different approach when going through the difficult economic climate. - Succession planning, education gaps, gender issues, and professional management are all important issues that need to be addressed in the Caribbean today. Mrs. Carole Hubscher, Caran d’Ache, Switzerland
As Chairwoman of the prestigious Caran d’Ache, Mrs. Carole Hubscher shared with the audience the history of her family and company and explained how they managed to sustain a strong leadership position in a competitive industry. - Continuous innovation and a focus on real craftsmanship is a key success factor. - A client-focused vision is essential in today’s fast moving world. - Companies need to be aware of their stakeholders: Providing the option to start young people’s careers rives growth.
Mrs. Cherine Debbas Moukaddem, Debbas Holding, Lebanon
As a family business member and certified coach, Mrs. Cherine Debbas Moukaddem concluded the second day of the conference with an interactive exercise, which led all participants to draw up their family constellations and identify the influences that can hinder or foster decision and collaboration in the family. - How a family interacts together on the personal level is key in achieving business goals. - Formulating a family vision can help to strengthen ties. - In family relationships identifying the “ghosts� that haunt family members can be a good excercise.
FAMILY BUSINESS CONFERENCE Values driving Growth DAY 3
‘Family Offices – Tools for Sustainability’
On the last day of the Continuum Family Business Conference 2014 the focus was laid on a topic that is attracting a lot of attention over recent years: Family Offices. The session was designed to give family members an overview over the various forms of family offices that exist around the world and Panellists and speakers shared their expert opinions and insights to help families decide The concluding panel of the conference was dedicated to an essential topic: the philanthropy and CSR or family businesses. Focusing on how such initiatives can become more professional and sustainable The following sessions were part of the third day of Continuum 2014
Inside the family office Foundations and principles
Mark Evans, Managing Director Coutts Institute UK
The Luck family office: Insights and experiences
Wanda Ortwine Chief Family Officer Luck Companies USA
Entrepreneurial family offices: Tools, people and dangers
Tina Nyfors CEO Locnet Oy Finland
Philanthropy The Way to Sustainability and Professionalisation
Omar Safeyeldin Chairman and CEO EGIC Egypt
Farida El Agamy, General Manager Tharawat Family Business Forum UAE
HSH Prince Michael von und zu Liechtenstein Chairman of Industrieund Finanzkontor Liechtenstein
In their joint session, Mr. Mark Evans and Ms. Farida El Agamy outlined the basic structures of various Family Office set ups and highlighted the factors families should take into account when considering whether to set up a Family Office. - Families should evaluate what services are really needed to avoid adding an unnecessary layer of complexity. - Family Offices should be integrated into the family’s governance structure. - Cost/benefit evaluations should be a deciding factor. - Each Family Office is different and should be fully adapted to the requirements of the family. Mrs. Wanda Ortwine gave the participants an insight into the workings of a highly successful family office, its
operating modus and impact. The Family Office can be helpful in transitioning ownership to the next generation. - Through Values Based Leadership their Family Office develops leadership in each individual of the company. - It allows to have one person working specifically for the family legacy by documenting the past for the future. - A good Family Office can be the bridge between an efficient corrporate governance system and the family. Drawing from her expertise gained in working with three family offices in Europe, Mrs. Tina Nyfors focused on some technical aspects of setting up a family office. - To successfully serve the family, a Family Office needs to be extremely disciplined and transparent. - In Family Offices, hiring the right talent is crucial. Both soft and hard skills need to considered carefully, since they will be handling sensitive information. Closing the Continuum Family Business Conference 2014, Mr. Omar Safeyeldin and HSH Prince Michael von und zu Liechtenstein focused on philanthropy and CSR and how to keep initiatives professional and sustainable. Mr. Safeyeldin first introduced the background history of his family business and explained how he started developing an outstanding CSR model in his business. - Mr. Safeyeldin shared two pieces of wisdom his grandmother shared with him: “Accept, adapt and always keep your smile.” and “Be the safe base for all the people surrounding you”, - Prince Michael emphasised that it is less important on what resources rather to focus on how to efficiently allocate them.
GOLD SPONSOR Obeikan Investment Group Obeikan Investment Group (OIG) was founded in Riyadh, the capital of the Kingdom of Saudi Arabia, more than thirty years ago, and has developed into a major industrial conglomerate specialized in providing technical and practical solutions for the packing and packaging industries. Starting its journey in 1982 with the Obeikan Printing Press, OIG has also grown to become a regional leader in education and curriculum development. As the company proudly looks back on decades of diversification and success, through its network of strategic partnerships with a number of leading international companies in the fields of bottling and packaging, printing and binding, publishing, curriculum development and e-learning, it is ready to take on the future.
CONTINUUM 2014 IS ALSO SUPPORTED BY AL WAZZAN EDUCATIONAL SERVICES
ETTINGER
ﺷﺮﻛـﺔ اﻟــﻮزان اﻟﺘﻌﻠﻴﻤﻴﺔ AlWazzan Education Co.
ESSA ABDULLAH AL GHURAIR INVESTMENT GROUP
WJ TOWELL GROUP OF COMPANIES
THE LANGHAM HOTEL The Langham, London has been delighting guests with enchanting hospitality since opening as Europe’s first ‘Grand Hotel’ in 1865. Following an £80m refurbishment, guests are once more captivated from the moment they step into the dazzling lobby. The Langham has a fine range of rooms and suites, Chuan Spa, a fine dining restaurant, Roux at The Landau, and the Palm Court, home of afternoon tea. Located in the heart of the West End on Regent Street and close to Bond Street, Oxford Street, London’s theatre-land and just 10 minutes from the city, The Langham has one of London’s most enviable addresses. As the location of choice for Continuum 2013, the Langham welcomes the conference in its beautiful conference facilities.
Tharawat magazine Tharawat magazine is an international business publication that is dedicated to the best practice of family-owned businesses and entrepreneurship. It is one out of three publications worldwide in this knowledge niche. Published quarterly, in English and Arabic, Tharawat magazine is dedicated to creating non-syndicated original content focused on family business profiles, interviews, and best-practice articles. With over 10’000 hard copies circulated around the world, the magazine has also recently launched its own Tablet App with interactive features and embedded rich media, creating a compelling digital experience for its readers. www.tharawat-magazine.com
ATTENDEES
Companies Represented by the Attendees •
Essa Abdullah Al Ghurair Investment Group, Dubai, UAE
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Al Gihaz Holding, Riyadh, KSA
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AlNahla Group, Jeddah, KSA
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Abdullatif Bin Nasser Alserkal Est. , Dubai, UAE
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Alwazzan Eduction Services, Kuwait City, Kuwait
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Biostadt India Ltd., Mumbai, India
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Caran D’Ache, Geneva, Switzerland
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Coutts Institute, London, UK
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Crystal Arabia, Jeddah, KSA
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Dawood Hercules Corporation, Karachi, Pakistan
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Debbas Holding, Beirut, Lebanon
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Egyptian German Industrial Company (EGIC), Cairo, Egypt
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Egyptian Group Co. , Cairo, Egypt
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Esau Oilfields Supplies Co. Ltd, San Fernando, Trinidad & Tobago
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Ettinger, London, UK
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Fratelli Pisa Srl. Milano, Italy
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Hayel Saeed Anam Group, Taiz, Yemen
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IMD, Lausanne, Switzerland
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Industrie- und Finanzkontor, Vaduz, Liechtenstein
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Kadi Group Holding , Dammam, KSA
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Locnet Oy, Helsinki, Finland
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Luck Companies, Richmond, USA
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Mars Inc., McLean, USA
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NCA Rouiba, Algiers, Algeria
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Obeikan Investment Group, Riyadh, KSA
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Procomon & Associates S.A, Panama City, Panama
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Saleh Abdulaziz Babaker & Sons Co., Riyadh, KSA
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Suhaimi Designs, Dammam, KSA
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Tata Motors, Bombay, India
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Uriach Group, Barcelona, Spain
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WJ Towell & Co. , Muscat, Oman
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Zamil Group, Al Khobar, KSA
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Zubair Corporation, Muscat, Oman
Contact Us
Tharawat Family Business Forum Office 408, 4th Floor, Loft Office 1, Entrance C P. O. Box 502589 Dubai Media City, Dubai, UAE Phone: +971 (0)4 452 6578 Fax: +971 (0)4 452 4873 Email: info@tharawat.org Websites: www.tharawat.org www.tharawatconferences.org
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