DCU National Centre for Family Business joins global family business webinar amid COVID19 crisis to assist family firms
Ireland’s National Centre for Family Business took part in an international webcast on Tuesday 21st April 2020 tackling the topic ‘Global Family Business through Pandemic: from Disaster to Opportunity?’. The webinar was hosted by the STEP Project for Enterprising Families facilitated by STEP Academic Research Director Professor Andrea Calabro. The discussion saw 16 family business experts from across the world join together to examine the importance of the current moment for the future of family businesses worldwide.
Dr Eric Clinton, Director of DCU NCFB and Irish STEP representative, spoke to the adaptiveness of Irish family firms in the wake of the coronavirus lock down. Family businesses that have previously relied predominantly on in-person sales are now moving to online production. Irish breweries and alcohol producers have moved into the manufacturing of hand sanitisers as a local public health initiative, with the value of community driving their business practice during crisis. Panellists discussed the various opportunities and lessons that will arise during the COVID-19 pandemic, which they hope will strengthen family businesses, a remarkably resilient business form.
Family business and corporate governance was a topic that featured throughout the discussion. Times of crises often expose weaknesses in the long-term planning of firms, with many family businesses worldwide now experiencing vulnerability from a lack of governance structures for decision-making during the crisis. However, Professor Carlo Salvato of Bocconi University advises that there are simple and effective ways for family businesses to put crisis governance structures in place. Internally, firms can create a sounding board of experts as a short-term solution in firms without established Advisory Boards. Boards should consist of several experts from across an array of sectors, including a tech expert, that can formulate ideas, locate market opportunities and address the impact of the crisis on business operation. Externally, family businesses across the globe have been protecting the governance of industry value chains by collaborating with other firms to secure essential raw materials.
On a positive note, opportunities for the next generation in family firms have arisen from the global pandemic. Government-sanctioned lockdowns and vulnerability of older family members has meant that younger next generation members have taken on leadership roles, navigating their family business through uncertainty. Dynamic and innovative multi-generational work has become the reality for family businesses during this pandemic and difficult conversations are being had about retirement and succession planning. The importance of long-term orientation and planning in family business has never been clearer. To ensure the sustainability of family business practice, firms must take this time to pause and ensure good governance structures. It is a time for families to build their family business legacy, what they do during this crisis for their employees, local communities and family will be remembered long into the future.
You can contact DCU National Centre for Family Business with your questions, concerns and feedback at familybusiness@dcu.ie. We would be delighted to hear from you and assist you during this time.
Watch the Facebook LIVE recording of the webinar at this link.
Author: Keeva Farrelly, Research Assistant in Family Firms