JEDDAH, 7 March 2005 — Representatives of German and Swiss companies specialized in succession planning had an interaction with more than 25 businessmen involved in family entities at a workshop organized by Family Business Academy (FBA) at Le Jeddah Meridien here on Saturday night.
Sobhi Batterjee, president and chief executive officer of the Jeddah-based Saudi German Hospitals Group, in his introductory remarks said the forum offered an opportunity to learn about a scientific approach to the continuity of family businesses through succession planning from German and Swiss experts.
“The world over, only a third of the family businesses survive to the second generation and a mere 10 percent of them survive to the third generation. We can beat these statistics only by following a scientific approach to succession planning,” said Batterjee who heads the academy, which has been promoted by Bait Al Batterjee Medical Co. as part of its community welfare services. “The mission of the FBA, a not-for-profit organization, is to foster family businesses creating trans-generational wealth and values through educational programs, consultancy, mentoring and networking opportunities,” FBA Director B.P. Murali said.
The workshop discussed the entire gamut of succession planning, from defining succession and planning for it, to why business owners do not think of a succession plan and when they should plan for it. The visiting team also enlightened the participants with how to choose and groom a successor and how to pass on the mantle — the transition process.”
The visiting team said problems involved in succession of family enterprises were the same in many parts of the world. “We see problems here are similar to those prevailing in Germany and most of Europe,” said Dr. Claudius Wamlek who has several years of experience in the industry and banking sectors. “We’ve established an excellent track record of tackling succession and other issues in family businesses,” said Wamlek, senior project manager at Roland Berger Strategy Consultants in Munich. Roland Berger is a reputable consulting company reputable that advises family businesses all over Europe. Dr. Gilbert Wenzel is president of the board of a Venture Capital firm located in Zurich. He has been the director of Mckinsey, an international consultancy company. With 20 years of experience in the industry during which he held responsible positions including member of the executive committee of Novartis, one of the world’s largest pharmaceutical companies. The German team also includes Harm Specht, member of the executive board of PHW-Gruppe, a family business in Europe with interest in pharmaceuticals, animal foods and poultry.
Some local participants gave an overview of the problems faced in family businesses. “The general tendency is not to air the issues in public, but what happens is when the succession issue comes up it goes beyond the confines of the family business,” one of the participants remarked. Succession is not just an event of handing over the reins of the family business to one or more chosen family members.