Innovation, shared values to sustain family businesses: webinar

Innovation, shared values, good governance and transparency and good governance are keys to sustaining family businesses in the long run, said experts recently.

The older generation shows leadership skills setting examples of good governance themselves and translating values to transform organisations, said Mirza Salman Ispahani, chairman of MM Ispahani.

"Be a good example, future leaders will learn your values by watching what you do, not by you telling them what to do," he said.

He was addressing a webinar on "Sustainability Strategy for Family Business" organised by Citibank NA Bangladesh in partnership with the Chittagong Chamber of Commerce and Industry (CCCI).

CCCI President Mahbubul Alam highlighted the importance of ensuring continuity for established family businesses in the national economic context.

"The CCCI being the oldest trade body of Bangladesh feels that it is our responsibility to make our private sector aware on how these family-run businesses of ours can go through a smooth transition and mitigate the risks associated with it," he said.

"Going forward, under our new initiative, Bangladesh Center of Excellence, we wish to facilitate these family owned businesses through providing linkage, knowledge & advisory support," he said.

Munawar Misbah Moin, group director at Rahimafrooz, focused on balancing the role of governance and stewardship for family business owners while ensuring transparency across the board.

"Generation to generation transition needs to ensure shareholding inculcates responsibility over right, balancing the role of governance, stewardship and managing business by the relevant stakeholders for the common good of all," he said.

"Innovation and digitalisation are two of the biggest challenges that family businesses are facing today," said PwC Managing Partner Mamun Rashid.

"Digital transformation or any other change must be built on families' long-term vision and values. Businesses need to apply a holistic approach to navigate the digital transformation journey," he said.

"Over the years many family businesses in Bangladesh have set exemplary success across industries," said Shams Zaman, head of banking at capital markets and advisory at Citibank NA Bangladesh.

"These businesses are making key contributions to the economic growth as well as in the industrial transformation," he said.

Syed Ferhat Anwar, director of the Institute of Business Administration at the University of Dhaka, highlighted the importance of governance, inculcating values in the company culture, transparency, well defined roles & mutual respect between generations as the keys to a successful transition.

"Family business is like a land, larger will give you more opportunity and value, if you go on breaking it, smaller and smaller, the value diminishes," he said.