Senator Abu-Ghazaleh Tackles Family Businesses in Doha

 

Dr. Abu-Ghazaleh: Family businesses play a very significant role in the global economy and the Arab world is known for its dependence on such business model

DOHA------- April 4, 2011------- HE Senator Talal Abu-Ghazaleh, chairman and CEO of Talal Abu-Ghazaleh Organization (TAG-Org), said that family businesses play a very significant role in the global economy, and the Arab world is known for its dependence in particular on the model of the family business.

He added that it would be inaccurate to say that family business is more common in our countries than in the US or Canada, and that about one third of the companies on the Fortune 500 list are family companies and about two thirds of companies listed on the New York Stock Exchange (NYSE) are as well, which are very large with many sensitive related topics involved in them.

Family business was tackled by Senator Abu-Ghazaleh during the opening session of the “Corporate Governance Conference on Family Businesses” held under the patronage of Sheikh Khalifa Bin Jassim Al Thani, chairman of Qatar Chamber of Commerce and Industry and attended by an elite of business leaders, CEOs of companies and economic institutions in Qatar, UAE, Saudi Arabia and Egypt as well as advisors and economic planners.

Senator Abu-Ghazaleh focused on corporate governance criteria in family businesses and the strategies for survival and success of such businesses. In this context, he emphasized that work and family are two completely different entities, however; there is an overlap between them which results in reaping more rewards.

Senator Abu-Ghazaleh addressed the audience saying that “the best way to be fair and responsible towards both your family and work is to maintain the distinction between the two as much as possible. So you need to run your business like it is a business and manage your family affairs like it is a family. Exhibiting interest and appreciation to the feelings and desires of your family members at work can go a long way in minimizing tension that usually destroys family businesses during the transfer process to the new generations.”

He also added that we should not be surprised if we realize that the key to success lies in sound planning for the transfer process, making clear that family dysfunction is a quite common issue and does not mean complete failure in the required performance. Rather, it is merely a matter relating to the failure in conducting a certain role in a sound and healthy manner.

Moreover, he indicated that it is necessary to acknowledge that there are basic needs for your organization in stages of growth that differ from what it required in the initial establishment period. The pattern of investment projects for the organization in the early phases should provide the opportunity for the creation of work that is administered with a high degree of professionalism.

Senator Abu-Ghazaleh tackled the significance to hire independent consultants who can introduce a new vision to the work in family businesses, provided that the consultant has excellent analytical capabilities, comprehensiveness of the approach, quick wittiness as well as the ability to manage knowledge and integrity.

Senator Abu-Ghazaleh called investors, businessmen and owners of family businesses to recall risks, saying that only 10% of family businesses withstand the test of time.