La República, one of the most important daily financial and economic newspapers in Columbia, published a commentary from Núria Vilanova titled “Communication is key for family businesses”, where the keys for communication in a family business within a corporate environment was reflected.
Columbia is, like Spain, a country full of family businesses. This type of company contributes immensely to the private sector and in the web of global economies in both countries. They are employment generation engines that support a relevant percentage of GDP to these economies. Columbia has more than 500,000 family businesses (70% of the companies in the country) that are located in all sectors. In Spain, they represent 85% of business networks and 75% of private employment. I would like to stress the importance them being key actors whose development, success and survival is fundamental for our economies.
It is also a type of company with specific characteristics with its own advantages and challenges. Relating to the advantages, the hold of inherited values, pillars and origins of these companies by their founding fathers, are for me, engines of growth because I believe that the mere fact of being a family business holds a competitive advantage. I believe that family values hold an aspect of differentiation that positively influences their reputation when facing competition. There are also diverse challenges that these companies have to face: transmission of foundational values, development of family protocol, separation of family decisions from corporate decisions and generational takeovers (a key point being that 70% of these firms fail to successfully achieve this at a world level).
As president of a family business and a professional of communication, I always have the uneasiness of figuring out which medium of communication is relevant for the business strategy of these types of businesses and for their survival. This uneasiness encourages me to create; with help from my company Atrevia, and together with the prestigious business school IESE; a yearly study “values and communication in a family business”, whose first issue has just been released in Spain. It is my intention to present it soon in Columbia and other countries, not only for its implementation in these companies but because the study allows the participation of Spain and Portugal, Columbians like Carvajal and Alqueria and other Latin Americans like Lo Campino, Montecristo, Luksic, Kulijis, Chemo, Grańa and Montero or Kaluz.
The study analyses the importance of values in these organizations and the role of communication as being key in its transmission. The conclusions tell us that family values are a basic foundation for company strategies. 85% of the respondents believe that being a family business strengthens their reputation as a company and family reinforces the image of the company. 95% of respondents are convinced that this type of firm has the strong commitment of its employees. 87% say that the influence of values impacts decisively and positively on the corporate strategy. Almost 70% say that having a family business makes a positive difference against competition.
They also told us that family businesses are finding effective formulas to overcome their challenges with current protocols (71% have one) and governmental organs that link family businesses: advisers (56.3% have them), family office (30%) and assembly (38.8%). In 60% of cases, the family incorporation to businesses has a formalized protocol. The study shows us that communication is therefore a pending subject.
Although, we know that strategically planned communication and links with corporate objectives are fundamental. 76% of companies don’t have a specific protocol to manage them appropriately. This in my opinion are the challenges that a family business faces which adds the necessity for a Strategic Plan of Family Communication that unites three pillars (communication within a family, from the family with the business and between the family and society) which helps a group in its projects, vision and business objectives. In the transmission of values that cements a business, communication is vital.
