On May 4, the Chair of Family Business (CEFUV) promoted by the Valencian Association of Entrepreneurs (AVE), the School of Entrepreneurs (EDEM), the Valencian Institute for the Study of Family Business (IVEFA), the Institute of Family Business (IEF) and the University of Valencia (UV), and sponsored by CaixaBank and Broseta, held the fifth session "contributing to the continuity and competitiveness of family businesses" of the course on Employability and Professional Development in Family Businesses.
This fifth session was divided into two parts, the first "Understanding decision-making in the family business: levels and roles in the management and governance of the company and the family owner" given by the general director of the IDEFES Group Tomás Guillén from 10:00 to 11:30h; and the second part "Development of innovation" given by the lecturer of the Faculty of Psychology Pilar González from 12:00 to 13:30h.
Class 04 May 10:00
Tomas Guillén began by explaining the main characteristics of the governing and management bodies of the family business, which was the subject of his session. He emphasised the importance of separating the family business into family, business and ownership as three different concepts. He identified seven different roles within the company itself between people who are owned and not family, people who are family and owned, and so on.
Guillén continued the session by talking about the family assembly and likening it to "the Sunday paella with the family" where family members are informed about the functioning of the company and discuss issues about the company, how it is evolving and expectations, yet no decisions are made.
The next step, explained the professor, from the family assembly is the family council, which is nowadays much more regulated by the company, but no decisions are made or future plans designed to mark the future of the company. Tomás wanted to describe the family council as follows:
"The family council is in charge of regulating the behaviour of the family within the company" - Tomás Guillén.
Continuing with the different bodies of the family business, Tomás discussed the concept of the family office with the students, defining it as an independent operational unit that manages the relationship between the family and the business. In addition to this concept, he also explained the family protocol, teaching the students its characteristics and defining it as a document where the family establishes a series of rules for the family operation of the company, which must be followed by the members. In this case, Tomás wanted to emphasise that "You cannot create a family protocol with a tense atmosphere in the family".
Afterwards, the general director of IFEDES, leaving behind the family theme of the family business, spoke about the basic bodies of property/company governance:
The general meeting of shareholders in which the ownership of the company is exercised and Tomás stressed "Decisions that are good for the company are not always good for the family climate".
The board of directors in which the running of the company is directed, the professor emphasised that voting is done by people, not by shares.
With this last explanation, the speaker ended the session, indicating a series of data on the previous concepts, such as that 11.3% of family businesses have a protocol, and 35% of family businesses have a board of directors.
Class 13 April 12:00
On this occasion, the session was not opened by Pilar González, Professor of Psychology at the University of Valencia, but by the registered students who presented their power point presentations talking about their personal strengths and positive aspects of themselves.
Once these brief presentations were over, Pilar clarified that we must be clear about the personal and professional objectives that we should set ourselves, bearing in mind that these objectives must be specific, achievable and significant. To end the session and also the course, the students carried out a task in which they set a goal of their own and then presented it. On this last task, Pilar González clarified that in order to set an objective, you must indicate a date and more clear specifications about it so that it can be something real and can be carried out.
Thank you very much to all the participants for making this employability course possible, where different topics about family businesses have been discussed with the aim of raising awareness of this type of business among students. See you next year!
