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GOOD GOVERNMENT AND FAMILY BUSINESS

Posted by Joseph Albet | | Be the first to comment this article

Dear employer, you want to write this article in an issue that directly affects me, you know that's not my style of treating subjects as a professional, but what happened this week has me. 'll Explain.

Last Tuesday I had the opportunity to participate as a speaker at a monthly meeting organized CIDEM - Breakfast CIDEM, entrepreneurship and finance - to talk about the "benefits of good governance practices for the family business" . I share a talk with Vincent Bosch, director of the Catalan Association of Family Business , and as we were informed the organizers, the second day of having made ​​the call, the places - 140 - were sold out, and indeed that day, the room where the ceremony took place was full. It really surprised me, neither Vincent nor I are media stars, and therefore the success of health insurance was not due to our ability to call, and then the only logical explanation is that the people who come did so because we treated the subject of interest.

In order to share t'exposo further reflection, I have to tell another situation that occurs during the spring. In February, the CIDEM also presented the book Guide to good governance of the company is not listed and family. In the one-man management board , which I developed for your order. The paper edition of the Guide is free and can download at no charge, online. In two months the paper edition (1000 copies) was exhausted, having to charge it again, and as publishers, demand from the web was the most important publications in relationship to other susceptible also free to download.

The two circumstances that have just explained, and views, are encouraging. We suggest that the government of the family business is a current topic , of interest that generates concern. But who? For individual entrepreneurs? In business families? Investors? To the employer? The consultants? The lawyers? The academics?

The truth is that I think everyone less interested in who should be interested in: the entrepreneur and business families. Dear friend, no better than you to prove me or correct me.

In our country it is the same phenomenon happens in other economies and is well-studied. This phenomenon is reflected in the existence of a high degree of consensus among different stakeholders about the benefits of leading the company through a board with outside directors, but the reality shows little trace of this practice part of employers and business families. And we are clear that without active and effective board of directors there is good governance.

However, this widespread phenomenon is accompanied by another that is, those entrepreneurs and business families who have provided the company with a board of directors with external directors express a high degree of satisfaction with their performance and results it gives them.

How to understand this paradox? First, there is little dissemination of success stories. We agree that the family business is not a model of transparency and, moreover, the boards of companies, all are generally closed and barred bodies. Second, there is fear, fear of the unknown and fear of others, to get someone who is not within the circle closer to home, let us be clear, entrepreneurs and business families in general and in particular the our country, confident, are not. Third, there is ignorance, that is, total ignorance of the subject and perhaps this ignorance is not the fault of the employer or the family company, but those who can inform and advise you do not know what to go to ridiculous or very well-intentioned reasons.

Having regard to the current situation, you may spread the benefits of good governance practices for family businesses as was the entrance of mobile phones. Let me explain: knowledge allowed the integration of technologies to create and deliver a product that society, people did not know they needed. First, they only have a few, those who can afford it, moreover, were also released. After adjusted prices, they continue the innovative and, of course, the snobs. Finally, the company realized the usefulness of the instrument and the extension process was quick.

Ideally also went well, then good governance means good corporate management and good corporate management means being in the country.

Joseph Albet

Economic Focus, 23-04-2005
" FINDING STAFF
THE COMPANY IN THE FAMILY "
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