{ "docId": "019dd923-5de0-76bd-a168-c9910122c860", "docSlug": "e474e15bb2f1c12c", "documentTitle": "PwC Global Family Business Survey 2018 The values effect", "authorId": "PwC", "authorName": "PwC", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "landscape", "aspectRatio": 1.414, "pageNumber": 31, "pageCount": 56, "prevPage": 30, "nextPage": 32, "slideType": "case_study", "function": "illustrate_case", "density": "overcrowded", "nDataPoints": 4, "notes": "The slide is a narrative text-heavy page from a PwC Global Family Business Survey report.", "elementsJson": [ "paragraph" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-5de0-76bd-a168-c9910122c860/31", "deckHref": "/decks/019dd923-5de0-76bd-a168-c9910122c860", "deckJsonHref": "/decks/019dd923-5de0-76bd-a168-c9910122c860.json", "deckAnchorHref": "/decks/019dd923-5de0-76bd-a168-c9910122c860#slide-31", "components": [ { "bbox": null, "kind": "callout", "text": "Together, we built a mission and vision statement for generations three and four, and principles that hold all of our businesses together.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-3beb-760d-a9e7-657015bf257b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.26, "x": 0.067, "y": 0.197 }, "kind": "paragraph", "text": "The labelling is in Chinese and English script with, among other information, a simple “Since 1888”. To the consumer, this portrays a product that has survived the test of time – exemplifying quality and longevity, two of the most outstanding values of a family business anywhere.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0c111b91-1c79-4d01-8afc-aad5ba4f4afb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.26, "x": 0.35, "y": 0.197 }, "kind": "paragraph", "text": "Despite Lee Kum Kee’s success today, not so long ago, family disharmony threatened to bring the business down. To ensure the business survived, the family had to evaluate their values and implement various structures.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0c2e7964-146c-43a2-bb54-6d30e8b4ef57", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.26, "x": 0.067, "y": 0.37 }, "kind": "paragraph", "text": "The efforts to diversify and bring in different streams of revenue is a testament to the Lee family’s entrepreneurship, which Lee says is itself a significant value. “We call it constant entrepreneurship,” he says. “We have to continuously look for change and also be able to take a certain degree of risk.”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "18bbd5f5-2dfc-458b-963f-a87437e20dfb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.26, "x": 0.067, "y": 0.57 }, "kind": "paragraph", "text": "Lee says the family nurtures this constant entrepreneurship through what its members call the ‘6-6-7-7’ concept. “This idea means you don’t have to have a 100% [certainty] of making a success of a new initiative. You need maybe about 66% to 77%. It means to take the risk and go ahead and do it.”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "43bdc4fe-a05d-485a-9a2f-b90199d3371b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.26, "x": 0.63, "y": 0.197 }, "kind": "paragraph", "text": "Lee says the council has been a useful forum for resolving difficult issues and refining the family’s connection with the business. It has brought in rules such as a mandatory retirement age for family members working in the company and allowing more engagement by non-family members on the various boards that run the company and its subsidiaries.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5905a786-580e-4ac5-9c51-0143e3538180", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.26, "x": 0.63, "y": 0.33 }, "kind": "paragraph", "text": "The family also makes it a priority to meet together to resolve any issues that might affect family harmony. And their successful efforts have also brought in the engagement of the next generation into the family business through the use of external advisors.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "80069f34-96fc-4a6f-9328-dbcfbd982db6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.26, "x": 0.63, "y": 0.48 }, "kind": "paragraph", "text": "Lee and his siblings, together with their father and members of the fifth generation, believe they have a framework for taking the business forward for many years into the future. Along with its clear set of values and its legacy, family members now even talk about creating a company that will last many hundreds of years into the future.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "85192026-7715-495e-950b-bb3f3183a3dd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.26, "x": 0.35, "y": 0.6 }, "kind": "paragraph", "text": "They established a family council in 2002 and drafted a family constitution. “Together, we built a mission and vision statement for generations three and four,” Lee says. “And we developed the values and principles that hold all of our businesses together.”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "92d78ad8-aba3-4e5a-bb32-03ba8037a964", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.26, "x": 0.067, "y": 0.8 }, "kind": "paragraph", "text": "But it is perhaps through an initiative of Lee’s brother Sammy in setting up a venture capital company called Happiness Capital, where Lee Kum Kee’s values as a family business are evolving most clearly.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d020eeb6-7e26-4fe7-b5b8-b82b36ae2178", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.26, "x": 0.35, "y": 0.35 }, "kind": "paragraph", "text": "Lee Man Tat, Lee’s father, was taken to court by his brother for control of the business more than 30 years ago. Man Tat resolved the conflict by buying out his brother’s shares of the company. But this conflict between siblings and another one that occurred within the second generation led members of the fourth generation – Lee and his three brothers, David, Sammy and Charlie, and their sister, Elizabeth Mok – to formalise a family governance structure.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fc703d13-021e-456f-b47a-41b82f057339", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "We call it constant entrepreneurship. 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