{ "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": 48, "pageCount": 56, "prevPage": 47, "nextPage": 49, "slideType": "case_study", "function": "illustrate_case", "density": "overcrowded", "nDataPoints": 0, "notes": "The slide is a text-heavy narrative page from a PwC report, featuring a pull-quote about family governance.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-5de0-76bd-a168-c9910122c860/48", "deckHref": "/decks/019dd923-5de0-76bd-a168-c9910122c860", "deckJsonHref": "/decks/019dd923-5de0-76bd-a168-c9910122c860.json", "deckAnchorHref": "/decks/019dd923-5de0-76bd-a168-c9910122c860#slide-48", "components": [ { "bbox": { "h": 0.15, "w": 0.19, "x": 0.31, "y": 0.34 }, "kind": "callout", "text": "Each family keeps each family united. Whenever there is any decision, one member of each family must be part of that decision. We're their regulators, and they are ours.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "03c2b7d0-9d5a-4801-b7b3-aeafecadbd79", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.2, "x": 0.1, "y": 0.39 }, "kind": "paragraph", "text": "The crisis also led to the decision by the founding fathers that has become a guiding principle for the Al Shirawi Group: it won't open any offices abroad unless a family member is committed to going there to sort out any problems. \"Unless we are prepared to roll up our sleeves to fix the problems, then we don't open an office there,\" says Valrani. \"That is a big part of our philosophy as a business today.\"", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0ea65461-546e-4221-b41c-74ebb08f5bb5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.2, "x": 0.1, "y": 0.6 }, "kind": "paragraph", "text": "The second generation of both families - whose senior members are represented by Valrani; his brother Navin; Mohammed Abdulla Al Shirawi; and Hisham Al Shirawi - came together in the early 2000s to formalise a family governance structure. Two members from the second generation of each family met to talk about how they should proceed. The final version of the plan was presented to all members of the second generation.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "49183a79-c52c-4910-85bf-8edeb481c3dc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.19, "x": 0.52, "y": 0.23 }, "kind": "paragraph", "text": "The two founders did not participate in the formation of the protocol, instead choosing to stand back and allow the second generation a free hand to draw it up. Valrani reckons this is another reason the two families work so well together: the ability to cooperate at all levels and to let go. \"The legacy of the first generation is the ability to give up control in their lifetime,\" he says. The 'letting go' by the founder-entrepreneur is often one of the most challenging family governance issues faced by a business transitioning to the second generation.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4bdd2671-3949-4552-a62e-36ae2161f183", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.19, "x": 0.73, "y": 0.23 }, "kind": "paragraph", "text": "Another significant value for the Al Shirawi Group is the separation of the company's wealth and the family's wealth. \"The business is focused on profitability within the rules and regulations of the countries we operate in,\" says Valrani. \"With this being the case, we separate company wealth and family wealth very, very clearly.\"\n\nHe adds: \"The minute we start bringing in the question of a non-measurable, non-commercial purpose, we are very scared that we get into subjective decision making, and that could undermine the business.\"\n\n\"The two families respect each other's families values and cultures,\" says Valrani. \"And for this to work well, philanthropic efforts are always a personal decision and a private one.\"", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4cbe4cc6-7112-4321-b9ce-636eb6e281de", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.19, "x": 0.52, "y": 0.44 }, "kind": "paragraph", "text": "There are seven members of the second generation working in the business now. According to the protocol, each member is allowed to bring one child into the company. Both families believe this rule will help maintain unity as the business eventually transitions to the third generation. Any member of the third generation who isn't entering the business will be fully supported, including with the provision of capital, to assist their entrepreneurial ambitions.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a1d6917d-46f8-42f3-9084-f146d07f467c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.19, "x": 0.31, "y": 0.52 }, "kind": "paragraph", "text": "Those efforts led to the group's so-called 'protocol', the first formal structure addressing how the two families interact with the business. \"The protocol remains in place today pretty much exactly how it was formulated,\" says Valrani. \"Through the protocol, everyone knows where they stand. So far, it has stood the test of time, and that's a testament to the strength of the relationship between the two families.\"", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c0457f71-2701-4e0c-9701-f86c2a553231", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.2, "x": 0.1, "y": 0.23 }, "kind": "paragraph", "text": "But everyone stuck together, went through the painful process of cutting the business back to a much smaller operation and started recovery efforts - and eventual renewal. \"That process would have severely tested any relation between business owners, but, if anything, the bond between Uncle Abdullah and my father strengthened,\" explains Valrani.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ecff2d91-cbfe-4ebf-8348-7a023b851b07", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "The business is focused on profitability within the rules and regulations of the countries we operate in. With this being the case, we separate company wealth and family wealth very, very clearly. — Valrani", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-3beb-760d-a9e8-82eb8682a0d3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.4, "x": 0.1, "y": 0.19 }, "kind": "title", "text": "Building on shared values between families (cont.)", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e7b8b3d7-7d62-4e4b-b896-195967dffe7f", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }