On Wednesday, November 18, 2020 at 9:30 a.m., the Family Business Chair of the University of Valencia (CEFUV), promoted by the Valencian Association of Entrepreneurs (AVE), the School of Entrepreneurs (EDEM), the Valencian Institute for Family Business Study (IVEFA), the Family Business Institute (IEF) and the University of Valencia (UV), and sponsored by BANKIA and BROSETA ABOGADOS, has held a new colloquium under the title "How to avoid late successions in the Family Business? "
After a brief presentation by Alejandro Escribá, professor at the University of Valencia and director of the Family Business Chair (CEFUV), in which he highlighted that the continuity and maintenance of the family project fundamentally depends on the success of the succession processes, A discussion was held with Gracia Burdeos (General Director of SPB) and Pedro López (Executive President of Chocolates Valor), in which two examples of companies that have carried out successful succession processes have been illustrated. The speakers have transmitted to the attendees how the succession plans between generations have been worked on in their respective families through the establishment of family protocols, the creation of emotional ties and the transfer of values.
Chocolates Valor is a Family Business, between the 4th and 5th generation, with a century and a half of history and a Spanish benchmark in the chocolate market, with a special focus on the Pleasure segment. With 360 people, 2 plants, 36 chocolate shops and a presence in 60 countries, Valor maintains the pulse of being a Lovebrand and leading the national market.
SPB is a Family Business with more than 40 years of experience and a team of 600 people They are leaders in the manufacture of home care products, clothing care and personal care and have a Center for Innovation and Technological Development and 4 centers productive. Its turnover in 2019 amounted to 134 million euros. They aspire to be global, innovative, unique and sustainable with talent, simplicity and leadership. They define innovation, productive capacity, extensive knowledge of their categories, focus on sustainability and customer and consumer orientation as some of their hallmarks.
"Succession is a natural process in the life of family businesses, so it is essential that there is a culture aimed at that end"
Gracia Burdeos
Both have stated the importance of a previous preparation of the succession, with the aim that the values, mission and vision of the company are not affected by it. Under the moderation of Alejandro Escribá, Gracia Burdeos has highlighted the legacy of the company's president, Miguel Burdeos, and has explained the case of the SPB company. She stressed that succession is a natural process in the life of family businesses, so it is essential that there is a culture aimed at that end. Her family shares the conviction that future generations have a responsibility to improve companies. Therefore, Gracia has highlighted that among its priorities is the professionalization of the management teams, and the purpose of going from being a family business to a business family, as well as the importance of adapting family protocols with well-established foundations.
Gracia Burdeos has remarked that each company and each family is different, and that there is no single and valid solution for all family businesses. As a recommendation, she highlights that “it should be tried that the people who assume leadership in the companies are trained, have legitimacy both in the family and in the company to occupy that position and, of course, have an emotional bond and share the.
"The outgoing leader lets the incoming do it, although it is necessary that both maintain a common long-term vision"
Pedro López
For his part, Pedro López has emphasized trust, noting that you trust someone when you get that person to feel your trust. In addition, it has also focused on respect, passion for the sector and economic health as keys to the health of the Family Business. The success of the succession process requires that the outgoing leader let the incoming leader do, although it is necessary that both maintain a common long-term vision. In his personal case, Pedro López considers that, from the executive presidency, he contributes to the development of the company, sharing with the new team his experience and passion for the company, as well as his knowledge of the industry and the market.
The colloquium has allowed to create an interesting dialogue between the speakers and those attending the event, which has revealed a need for anticipation regarding the succession process to avoid delays and blockages during it.
"People who exercise leadership in companies must internalize that this process is critical for the long-term continuity of the business and family project, and that they must face it in the same way and with the same importance as other strategic processes"
Alejandro Escribá
In the conclusions of the breakfast, the Director of the Chair, Alejandro Escribá, highlighted that people who exercise leadership in companies must internalize that this process is critical for the long-term continuity of the business and family project, and that they must face it in the same way and with the same importance as other strategic processes. The culmination of a successful managerial and business career also lies in the individual ability to adapt the role that is exercised in the different life and professional stages. Relatively early successions provide the time needed to add value to the new management and facilitate the natural development of the succession process.
In conclusion, Alejandro Escribá has highlighted that family business leaders avoid late successions, show great courage and generosity, have a clear long-term vision of the business project, build the environment so that trust is generated in successors, so that they feel that they are trusted and acquire the legitimacy required to assume leadership, and develop the necessary support structures (whether external support, government bodies or family structures) to facilitate the process.
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