The transition towards professionalisation
Experts in family businesses recommend the outsourcing of executive functions when the company grows, separating the family from the management bodies as it has grown in size. This process often takes time, procedures and persistence, as it is not uncommon for it to go right the first time.
The role of the family council
The presence of a family board is crucial to ensure that the business works, as it provides a good guarantee for the continuity of the company. This body makes it possible to reach consensus and give unity to the group before making decisions with the rest of the governing bodies.
The importance of separating ownership and management
Experts point out that the separation between ownership and management becomes more important as the company grows. This implies that ownership and management are unique when the company has low complexity, but as it grows, separation becomes more important.
Diversification as a strategy
When the family grows and the business develops, diversification becomes advisable to be able to face risks and avoid complex situations such as dismissals of family members if the executive functions are not being executed well.
The incorporation of professionals from outside the family
Family businesses such as Mango, Puig, Uriach, Borges and Ausa have placed profiles who have no family ties to the owners in the most executive tasks, obtaining good results. This shows that the incorporation of foreign professionals can be beneficial for the growth of companies.
The challenge of going public
The IPO of the family business is the ultimate expression of professionalisation, as it demands independent governance structures and transparency. However, the family must carefully consider the percentage of capital they wish to transfer, as exceeding 50% may result in a loss of control.
The Grífols case: an example of transition
The case of the Grífols family, which removed family members from executive positions in the midst of a reputational earthquake, demonstrates the importance of professionalization in family businesses. This transition was a complex process that required time and persistence to achieve a more professional management.
