In the passenger’s seat

SMU Vice President (Business Development & External Relations) and Academic Director of the Business Families Institute at SMU, Annie Koh suggested that following the three Es of engagement, explanation and expectation is an alternative strategy to help generations within the business avoid coming to loggerheads. She said that engagement should start early to ensure business and family discussions are aligned. When it comes to explanation, she said that businesses should ensure proper communication of decisions and plans, even to family members who are not working in the company. However, the first two Es will only work well if paired with the third. For a founding generation family business leader who has more than one child, “keeping the cards close to his chest” will only end in disaster as expectations of all the children are heightened when it comes to succession. “You need two hands to clap. Similarly, there may be people who don’t want to be in the family business.” 

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