Anuário da Indústria de Implementos Rodoviários 2019

80 F amily businesses are a global phenomenon. In Brazil they were predominant until the 1950s, in every segment of the economy. With the government of Juscelino Kubitschek, Brazil opened up its market and family companies began to compete with global corporations which were professional and had structured processes in relationships with their employees and which achieved better technical quality. The arc of a family business is emblematic. The founder identifies a business opportunity, initiates a venture, and makes countless sacrifices. These are financial problems, time away from their family and so many other dilemmas to be faced on the journey because of their commitment to the business. In recent years Brazilians have been forced to become entrepreneurs to make a living, and most all of these enterprises are family-run. A lot of people have opened their own business and they want to develop them with their DNA. The founder will have to face a lot of difficulties before stability is achieved, regardless of the size of the venture. The biggest challenge, however, is to pass the business on to future generations. The biggest questions are:  How to transfer knowledge about the company’s history?  How to make successors really understand the characteristics of the business?  How can business disputes be kept out of family life? After tough years building a company, a founder faces the dilemma of handing over the reins. Succession must be planned and formalized in advance. Chance cannot be allowed to play a part in passing a business on from one generation to another. Training successors is critical to continuity, and this is a task the founder is responsible for. They know the path taken by the company and they understands their clients and competitors and have instilled the values practiced in the organization. The founder is the mainspring of the business structure he wants to leave for the next generation. They will have to take responsibility for drawing up the rules of succession, and the manner in which successors should be trained. A lack of succession planning means only 30% of family businesses survive the second generation. To change this statistic, founders are looking for alternatives to formalize the succession process, through corporate governance practices.These rules will define the way the company is run and the norms for accountability among the partners. Adopting transparency tools in management and accountability significantly reduces problems arising from the conflicts inherent in family organizations. Often because of close relationships and emotional involvement between relatives, companies use consultancies specializing in Corporate Governance and Family Succession to mediate the process and assist in the structuring of policies and practices that will sustain the company in there future. However, in order for the dream of continuity to become reality, it is important that the founder prepare their successors: pass on values and reinforce the culture of the organization, follow the training process closely and, above all, help out when the successor needs it. Separating family issues from business matters is also an important step.This is a frequent problem that disrupts many family businesses. All of the above points involve the concept of Family Business Professionalization. Professionalization will offer the company greater credibility in the market and, therefore, better corporate results. Family business is definitely big business, but it faces challenges: the drawing up and implementation of rules for succession, updating of the business, creation of leaders and the development of transparency and accountability practices.This is the challenge facing the continuation of a founder’s dream. Succession and governance in family-run organizations By Domingos Ricca, consultant who specializes in family businesses and is a partner at Ricca & Associados ARTIGO | ARTICLE | ARTÍCULO Without succession planning, only 30% of family businesses survive the second generation.