Welcome from Thierry Lombard, FBN International Chairman
Welcome from Eliane Garcia Melgaço, FBN Brazil
Welcome from Eduardo Paes, Mayor of Rio de Janeiro
Welcome from Thierry Lombard, FBN International Chairman
Professor Pankaj Ghemawat, Anselmo Rubiralta Professor of Global Strategy at IESE Business School
Family businesses are no different from other enterprises when it comes to the promises and pitfalls of globalization. Taking advantage of the trend requires family business leaders to be open to internationalization. But it also demands an awareness of the pitfalls of cross-border expansion, whether in relation to entering new markets or redesigning supply chains. Professor Ghemawat has shown that people and companies often aren’t as globally aware as they think. Doing better at globalization requires a deeper appreciation of the distances–cultural, administrative, geographical and economic – between different markets and strategic and organizational changes that explicitly help address them.
The Summit opening plenary panel brings together members of three successful globally active family businesses to talk about the organization of their families and the critical role their families play in ensuring entrepreneurialism in the business, commitment in the family, and a focus on the long term family success. We will also hear about what it is like to be a large enterprising family and the challenges they see in the future.
Germany’s Heraeus group has been family-owned for over 160 years. It has more than 12,000 employees worldwide in business groups active in precious metals, materials and technologies, sensors, biomaterials, medical and pharmaceutical products, quartz glass, and specialty light sources. From the GCC, the Dubai-based Al Ghurair Investment LLC has business roots stretching back over 50 years with a presence in more than 20 countries. Its core focus is on foods, construction, resources and property with additional sector participation in energy, printing, retail and education. The Votorantim Group, founded in 1918, is a 100% family owned Brazilian company with more than 40,000 employees in over 20 countries. Through Votorantim Industrial (VID), it operates in sectors that are capital intensive with a high production scale such as cement, metals, energy, steel, pulp and orange juice. The Group also operates in the financial market through Votorantim Finanças.
Please click on the themes below to view the related workshop
- Family enterprise governance
- Social entrepreneurship
- Family dynamics
- Human capital management in family enterprises
- Family strategic entrepreneurship
Grupo Monteiro Aranha, Brazil
Joaquim Pedro Monteiro de Carvalho Collor de Mello (4th generation)
Antti Ahlström Perilliset, Finland
Thomas Ahlström, Managing Director (5th generation)
Pivotal moments such as succession events, a rapid growth of the business or a big family conflict require enterprising families to assess and often reorganize family governance. As well as organizing the family in relation to the business, it is equally important to include the family’s other assets (e.g. financial, real estate) and activities (e.g. philanthropy) and the organizations involved (family offices and family foundations). What happens next, once the crossroad is passed? Two exceptional enterprising families will share their journey and the decisions they have made to renew their family governance.
Monteiro Aranha’s 100-year history allies the founding family’s values with participation in diverse sectors of the Brazilian economy, in particular the industrial sector, including automotive. The company is now publicly listed, which led family members to reorganize themselves and their relationship to the business. Joaquim de Mello, a Board member, will share the challenges they faced and the solutions they developed.
The Ahlström family business goes back to 1851. From a small timber trader it grew into three operating companies, one of which is listed, with a net worth in excess of 1 billion euros. Thomas has been managing director of the family’s holding company since 2010. He will talk about a crisis that arose during a generational shift in which the previously established governance processes failed, and how the family managed to shift to a new structure that is stable for the business and the family.
With their insights we will learn:
- Who are the relevant stakeholders when an enterprising family approaches a turning point?
- What are potential tensions and how do they emerge?
- What governance structures and mechanisms can be used to align and organize family members?
- How can family members ensure that they remain an asset to the business, their other activities and each other?
Taiko Group, Malaysia
Lee Oi Kum, Director (2nd generation)
Albert Koay, General Manager (non-family)
Social entrepreneurs create new ventures with specific non-business goals in addition to financial objectives. That idea can conflict with the activities of a family business – but also enhance it. Family members or outsiders can lead such efforts, which can be rewarding if integrated well with the family enterprise.
Dr. Lee’s family business, the Taiko group, includes a listed vehicle, KLK Bhd that is primarily a plantation owner producing crude palm oil and downstream oleochemicals in Malaysia and Indonesia. Dr. Lee is the eldest daughter of the founder, Tan Sri Lee Loy Seng, whose spouse and five children control and manage the business. She is providing the funds and support required for social ventures. Albert Koay is responsible for developing and maintaining the data information system and processes across the group activities – field cropping, harvesting, crushing and extraction at the oil mill. This system is crucial to managers for making necessary decisions at every level to increase palm oil yield.
With the support of the family social venture fund, Dr. Lee and Mr. Koay are now providing a training curriculum for university graduates and less educated workers who need basic skills to work on a modern, IT-intensive plantation – a venture with a social goal that also meets business targets. We will address questions including:
• Is there a role for a corporate social entrepreneur in a family business?
• What benefits can the family business derive from identifying and supporting a corporate social entrepreneur?
• Can the giving activities of family foundations and enterprises be rationalized, at least some of the time, in terms of creating sustainable value for the family?
Clemens Family Corporation, USA
Philip A. Clemens, Chairman and CEO (3rd generation)
An enterprising family is more than a family business – it keeps innovation going and enables change and diversification as times and family members change. The Clemens family has been in business for over 100 years. The family has grown to include 636 people, 258 of whom are owners of the enterprise. Today they clearly see themselves as a family enterprise, but before 2000 they always saw themselves as a family business. They redefined and refocused from the Board down, while retaining roots and values.
Philip Clemens has spent his entire working career with the family business. He began in the legacy business, Hatfield Quality Meats, on a part time basis while going to school. He started on the clean-up crew and worked his way up to become the CEO of the company. The Clemens Family Corporation has annual sales of $750 million, employs about 2,200 people, and markets products all over the U.S. Mr. Clemens is active in his community and other organizations. From the Clemens family’s experience we will learn:
- How can a family business redefine itself as an enterprising family?
- What are the challenges when both renewing practices and working to preserve family values and roots?
- How can family members and owners be encouraged to support this decision?
IMC Pan Asia Alliance Group, Singapore
Frederick Chavalit Tsao, Chairman (4th generation)
SRF Limited, India
Arun Bharat Ram, Chairman (4th generation)
The IMC Pan Asia Alliance Group is a privately held enterprise whose roots can be traced to the early 1900s when the founder’s family was engaged in the provision of transportation and banking services. Nowadays the group has investments in areas such as the industrial and financial sectors, lifestyle-oriented real estate, education and social development. Headquartered in Singapore, IMC has more than 9,000 employees worldwide representing some 18 nationalities. In recent years, Frederick Tsao’s family worked hard to avoid leaving the succession from the 3rd to the 4th generation until the last minute. Addressing the handover required managing the family as much as the business. Fred has promoted the drawing-up of a family charter to handle issues including conflict resolution and the role of offspring in the business.
SRF Limited is a multi-business entity engaged in the manufacture of chemical-based industrial intermediates including technical textiles, chemicals, packaging films and engineering plastics. Headquartered in India, the $750 million company also has operations in the UAE, Thailand, and South Africa and has about 5,000 employees worldwide. The company invests heavily in research and development and strives to make meaningful and sustainable contributions to its community. Arun Bharat Ram’s family has implemented important changes such as the introduction of a family constitution and the professionalization of SRF’s board and senior management. At the top management level, the family has promoted a professional culture. The objective is to attract and retain talented managers willing to work with the family and with a new generation that started at the bottom of the organization. Arun is fully committed to passing the family’s values to the next generation and ensuring the family enterprise adapts to change. From the experience of Arun and Fred, we will learn:
- What are the specific challenges in leading an enterprising family
- What is the role of a family leader and what are the main mistakes to avoid
- The importance of values, principles and rules for managing a family’s human capital
- How to blend together family and non-family managers successfully
- What happens when a family business loses an entrepreneurial leader
Angelantoni Industrie and Archimede Solar Energy, Italy
- Gianluigi Angelantoni, CEO, Angelantoni Industrie (2nd generation)
- Federica Angelantoni, CEO, Archimede Solar Energy (3rd generation)
Empresas Artecola, Brazil
- Eduardo Renato Kunst, CEO (3rd generation)
- Simone Kunst (3rd generation)
Many family businesses practice portfolio entrepreneurship in various forms, expanding in new regions or globally, integrating vertically, and/or diversifying within their home markets. Key characteristics of family businesses seem to also provide a competitive advantage in this process that has been sparsely studied.
This session will explore how three highly successful family businesses have practiced portfolio entrepreneurship through generations with the aim of defining what this concept means for family businesses and answering key questions such as:
- What are the key factors and motivations that enable successful portfolio entrepreneurship development?
- How can family dynamics successfully influence portfolio entrepreneurship processes?
- What are the key assets required for such strategies?
- What are the risks and rewards?
- How can the entrepreneurial drive be channeled and its continuity ensured, through effective governance?
- What are the opportunities to transfer strategic resources (reputation, know-how, etc.) between the original family business and new ventures?
- Portfolio entrepreneurship as a tool to promote family members’ participation in the business
Established in 1948, Empresas Artecola is an award winning laminates, adhesives and engineering plastic producer supplying many industries with one of the most internationalized customer bases in Brazil. The Kunst family will share the history of their two control and generational changes, and discuss how they have been adjusting their governance structure to deal with their internationalization process.
The Angelantoni Group, established in 1932, is made up of three sub-holding companies – Angelantoni Test Technologies (ATT), Angelantoni Life Science (ALS), Angelantoni Clean Tech (ACT) and one subsidiary Archimede Solar Energy (ASE) – with eight production facilities in Italy, Germany, France, India, and China. The Angelantoni family will share their unique entrepreneurial journey through three generations, from a small operation in the north of Italy to the opening of one of the world’s first solar power stations, and how this was possible thanks to an effective and rigorous governance and entrepreneurial discipline.
Since 1996 the IMD-Lombard Odier Global Family Business Award has distinguished prestigious family businesses around the world from a variety of sectors on an annual basis.
Awarded by IMD, one of the world’s leading business schools, and Lombard Odier & Cie, one of the largest firms of private bankers in Switzerland and Europe, the award provides a unique opportunity to promote the indispensable role family businesses play in the global economy.
The award, which is regarded by many as the most prestigious distinction for successful family businesses, also serves as a platform for family businesses to exchange best practices and analyze the economic backdrop. For more information visit www.globalfamilybusinessaward.com
The Museum of Modern Art in Rio was created during the ’40s and ’50s when hundreds of artists, businessmen and official institutions donated art works to create a great national collection.
The Host Committee has the great pleasure to welcome all participants at MAM – Rio de Janeiro, one of the most important cultural institutions in Brazil.
Entering the museum, you will be surrounded by modern and contemporary national culture. After this visit, dinner will be served in a wide space surrounded by the beach of Flamengo and with a marvelous garden designed by the famous landscape architect Burle Marx. A delicious Brazilian menu reflecting cuisines of many states will be offered. Not to forget our joyful music, full of rhythm.
And, not leaving our NxG out of program, a DJ will animate the already promising night, from 10:30 pm onwards.
The Museum was founded in 1948 by a group of art enthusiasts lead by Raimundo Castro Maia. Ten years later, in 1958, it was transferred to its current location in the Flamengo Park. The main building of the popular MAM is an example of a modern architecture design, which consists of a horizontal form made of concrete with an open structure that connects the building to the sea, surrounded by beautiful gardens. In 1978 a tragic fire damaged the building and burned most of the museum’s collection. Some of the unrecoverable paintings were by Picasso, Miró, Salvador Dalí, Max Ernst, René Magritte, Ivan Serpa, Manabu Mabe, Joaquín Torres Garcia, among others. It took many years to reconstruct the building and an enormous effort to gather a new collection.
Nowadays MAM has over 11,000 pieces by Brazilian and foreign artists, and is considered one of the country’s most important collections of twentieth century art. This collection shows an impressive process that starts in Cubism and goes through Futurism, Surrealism, Dadaism and other historic vanguard styles. The Museum of Modern Art of Rio is also home to a unique film archive of more than 12,000 films, considered one of the best in Latin America. Some of the films are extremely rare and were never shown in the commercial theater. The museum holds shows and festivals for the general public.