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Pilar Martínez-Cosentino, Executive Vice President of Grupo Cosentino, and Enrique Silla, CEO of Jeanología, attend the session “Transformation and Sustainability” from the series “The Family Business Shares”, organized by Family Business Territorial Associations.

Family businesses asks the Public Administrative Bodies for regulatory frameworks that encourage investments and business activity and do not penalize them.

The Covid-19 pandemic has brought an acceleration of the family business transformation processes towards a more sustainable model and inherent values of this kind of companies, like long-term approach, hard work and commitment to families, employees and their surrounding environment. They have proved to be an important ally moving forward along this path.

This was made evident in the online session called “Transformation and Sustainability” organized by the Family Business Associations linked to the Family Business Institution, among them the Catalonian Family Business Association (ASCEF). The session was attended by Pilar Martínez-Cosentino, Vice President of the Grupo Cosentino and Enrique Silla, CEO of Jeanología, who were moderated by the journalist Juanma Romero.

Pilar Martínez-Cosentino leads a company from Almería that produces and distributes innovative surfaces for design and architecture, with 5000 employees around the world and export sales representing 92% of its total turnover; in her opinion, the concept of sustainability goes beyond taking care of the environment: “At Cosentino, we understand sustainability in a broad sense, as a way of preserving the company for the future making it valuable for the environment, the society and all stakeholders.”

In this same line, Enrique Silla offered his view that sustainability would mean the alignment of three aspects: the planet, people and returns. “Reaching the sustainability goal would only be possible through profitability“, asserted the CEO of Jeanología, a textile company from Valencia present in 22 countries with a 98% of turnover out of exports, which has also managed to lead the textile industry transformation with its ground-breaking technologies capable of increasing productivity and simultaneously reducing water and energy consumption.

In the opinion of both entrepreneurs, sustainability has become a key concept of the vision of competitiveness in the business. “We live in a world where the consumer is not willing to buy a product if, for its manufacture, natural resources are destroyed or if child labor force is used in the process,” stated Enrique Silla, who also said that “If companies are competitive in sustainability and social responsibility, they will gain the customer’s credibility and trust, being able to attract and retain talent.”

Public Administrative Bodies Should Encourage, Not Penalize

Meanwhile, Pilar Martínez-Cosentino, underscored the need for companies to make the trip to sustainability accompanied by the Public Administrative Bodies and by society in general.  “If we want to take a leap forward as a society, and leave no one behind, we need to increase the companies’ competitiveness by adding talent, and for that, we need to promote dual career training programs and university studies that could meet the companies’ needs“. “Either we make a long-term plan for education in Spain or it will be difficult to evolve as a country“, he stated.

From the point of view of these two family entrepreneurs, the Public Administrative Bodies’ role in reaching this goal of increased business competitiveness involves the creation of regulatory frames that encourage investment and activity and do not penalize them. “We need incentives for job creation, R&D+i  and internationalization; we need the Administrative Bodies to help us be more competitive. We, the companies, are part of the solution and as we are more competitive and profitable, we could better contribute to sustainability“, stated Martínez-Cosentino.

Enrique Silla spoke on that same line and asked Public Administrative Bodies for “less interventionism and to let management on the hands of companies“.

Regarding the lessons taken from the pandemic for family enterprises, both entrepreneurs agreed to underscore the resilience ability that has been sowed in entrepreneurs.   “I think that we are now better prepared for an uncertain world; we have gained experience and agility to address new situations that could happen again in the future,” asserted Jeanología’s CEO. Pilar Martínez-Cosentino also made emphasis on a new management style that bets on more horizontal organizations capable of listening to customers: “We have reinvented ourselves and what comes after Covid will not be like anything we had before,” she pointed out.

In her view, the tools with which family companies will continue to lead job and welfare creation in society, will be that bet for sustainability directly connected to these organizations’ idiosyncrasy, which, to a considerable extent, is the result of a set of values deeply rooted in their hearts, like focusing on long-term approaches, family related values, hard work and commitment to employees, providers, customers and society.

However, in Pilar Matínez-Cosentino’s words, “family businesses should continue to struggle to gain size, not fearing inorganic growth through merging operations“, as Enrique Silla mentioned, and doubling down on communication “to show society the value of their main role, which is job and wealth creation.”

Series “The Family Business Shares”

The series “The Family Business Shares” is organized by the network of Family Business Territorial Associations, comprised of more than 1500 family enterprises leaders in their business activities.  The purpose of this series is to share among all the members of the network of associations their experiences with Covid-19, their challenges while minimizing the pandemics’ aftermath, as well as to show the importance of family businesses for job and wealth creation in Spain.

You can access the video of the session through this link in the private area of the website.

At the Catalonian Family Business Association (ASCEF), we deeply mourn the death of Marià Puig, at age 93, an example of family entrepreneur.

She was president and part of the second generation of Puig. A reference within the industry, she was a driving force for the internationalization of this perfume, fashion and cosmetics business group. She was also a member of the Family Business Institute, which she presided over between 1995 and 1997.

Puig Group, currently run by the third generation, is one of ASCEF’s associated businesses.

Our condolences to her family and all the people who are part of this business group.

Sustainable Development Goals (SDGs) are an initiative driven by United Nations to provide continuity to the development agenda, they have been adapted for every country, but also require the involvement of the private sector. Under this proposition, the Catalonian Family Business Association (ASCEF), organized a session conducted by Silvia Urarte, a Full Professor teaching Corporate Social Responsibility at Universitat Oberta de Catalunya.

The lecture, besides analyzing Agenda 2030’s 17 general goals, sought to demonstrate the practical link between these SDGs and businesses’ operations, as well as align their strategic goals with the different SDGs. “SDGs shall be part of the business culture and become a corporate asset of the business“, asserted Silvia Urarte.

“Governments are the main responsible entities for Agenda 2030, but the participation and involvement of the private sector is required to fulfill the different SDGs. It is not a matter of social responsibility, but rather an obligation for sustainability“, explained Urarte.

Among the SDGs stands out “universality” and transversality. “They are global as they are designed for every country and universal as they are designed for every person.” Their transversality is explained by the fact that working on the application of one of them involves the fulfillment of the other. For example, Objective 8 (to promote an inclusive and sustainable economic growth, full and productive employment, and decent employment for everybody) is related to Objective 12 (to ensure sustainable consumption and production practices).

You may review all the information about the lecture through the link provided on the web site’s private section.

The ASCEF Forum, a group made up of about 300 young members directly linked to ASCEF family businesses, is working on the design of its new action plan, which will drive initiatives related to the topics that most interest their associates like training, digitizing, use of AI in family business, social and corporate responsibility and generational renewal among others.

Ricard Oller has recently taken over Albert Campabadal’s position as president of the Forum. Campabadal remains in the board, which is also formed by Miriam Pujol, Olga Carbó, Anna Guixà, Guillermo Vidal, Marc Morillas, Albert Borràs, Juan Enrique Yxart and Carles Alsina. “Albert has left a high bar, and it is building upon his work that we will keep going forward with a board made up of great people and friends“, concedes Oller.

As part of this action plan, they intend, as soon as the pandemic-driven situation allows it, to invigorate the activity schedule and relaunch successful events like the Speed Company Speed Company Networking Event or the Summer Dinner, for which we always count on prominent lecturers from the civil society and the entrepreneurial community. The ASCEF Forum has also planned to set up collaborations with other entities having similar action groups.

The European Union has made a special effort to convey to both citizens and companies that its long-term budget, along with Next Generation EU (European funds for recovery), will be “the largest stimulus package ever funded through the EU budget“. It is a total amount of €1,8 trillion which, according to the political-economic organization, will help restore a post-COVID-19 Europe “which will be greener, more digitized and resilient“.

The economic sphere is experiencing a historic moment since institutions and the civil society in general are laying down the foundations for a mid to long term process of change.

Next Generation EU is an eventual, limited time emergency tool used exclusively for response and recovery measures, which will advance €750,000.00 million, of which over €140.000 will be allocated to Spain: €72,700.00 million as subsidies and 67,300.00 million as loans. An economic injection representing more than 11% of our country’s GDP.

These funds will be mainly poured over two large transformation vectors: green transition, with 37% of the aid, and digital transformation, with 33% of all the resources. Gender equality and social and territorial cohesion are included as transversal axis.

Next Generation EU funds will be materialized through the general government budgets following the approval of a Recovery, Transformation and Resilience Plan (PRTR, acronym in Spanish). The Government’s General Administration will transfer the funds to the autonomous regions and local entities by means of agreements and subsidies which will be linked to public sector policies from one of the priority axes.

Experts say that missions to transform the economy should be implemented. Some examples include generating new industries out of research centers like the design of the European chip, transforming tourism to make it more productive, a more cost-effective health-care system, transforming the automobile industry to produce electric and autonomous vehicles or strengthening the environment for startups in the digital and biotechnology industry.

For more information:

• Comissió Europea
• Deloitte
• La Vanguardia

 

• Entrepreneurs think that a solid government is essential for an agile and efficient management of the Europeans recovery funds.
• Almost 70% of family businesses believe they face a weak growth this year, and 53% do not expect improvements until next year.
• In 2020, 85% of entrepreneurs saw their turnover reduced.

Barcelona, 03/18/2021 – The Catalonian Family Business Association, ASCEF, asks the political parties represented in parliament to work hard towards an agreement to propose a candidate to preside over the Generalitat de Catalunya and not to delay the president’s investiture, because enterprises need a stable and solid government in the face of a situation caused by a year of pandemic. “It is time to pool forces, think about the good of society and enterprise as a whole, work so that the European funds become a real transformation tool“, stated Amadeu Jori, ASCEF President.

For the family business sector, Catalonia is risking its economic future under these circumstances, therefore it is critical to reach a consensus to form a government and that the parties can reach agreements to decide “which projects are to be propelled and how to manage that funding. We have a big challenge ahead of us and the political class should be up to it“.

According to ASCEF, the response of the political class is often confusing and contradicting” and the essential aspects that drive progress and competitiveness are set aside among the different political groups’ priorities.  “The turbulences between Madrid and Barcelona, as well as the tensions among the different Catalonian political parties, cannot rein in the recovery we need.  In a crisis situation, it is necessary to act with utmost responsibility and focus on common priorities“, asserts Jori. For the Catalonian enterprise sector, it is not only necessary to have a facilitating agreement for the arrival of the European funds, but also to focus on tax reform and the increase of aid packages.

In this sense, family business entrepreneurs demand again to be taken into account in order to identify and lower barriers that put companies’ survival at risk. Based on the data available to the Catalonian family business sector, entrepreneurs rate the current recovery scenario at 4 out of 9. For 68% of them, businesses face, in the short term, a feeble growth without job creation, and 53% don’t expect improvements until next year.  During 2020, 85% of entrepreneurs saw their turnover reduced.

The Catalonian Association of Family Business is an entity made up of over 100 companies that represent the Catalonian business fabric and play an outstanding role in the country’s economy thanks to their commitment to wealth creation, employment, sustainability and the region. Family business in Catalonia constitute 88,3% of private enterprises, provide 69% of the Net Value Added (NVA) total and create 76% of the private sector jobs.

• Both organizations agree on asserting that there is no competitiveness without diversity and on the need to generate enabling initiatives.

Barcelona, March 8^th, 2021.- The Catalonian Family Business Association (ASCEF) and the largest European network of business leaders, Netmentora Catalunya, collaborate to propel female entrepreneurship and normalize its involvement in business. For both organizations there is no competitiveness in business without diversity; we should continue to demand that administrations carry out actions that facilitate reconciliation and further an egalitarian education; it is also important to promote female paradigms to overcome restrains and stereotypes enduring in society.

Netmentora Catalunya, a high-impact international business organization that, free of charge, walks entrepreneurs through the process of strengthening their business, has had the initiative of putting together a decalogue to propel and support women entrepreneurs valuing female talent and a different management approach.   This decalogue has been subscribed by ASCEF, which will disseminate the proposal among its associates.

On the other hand, ASCEF, a body consisting of over 100 family businesses representing their own activity lines, has been one of the first business organizations to put into action a work group made up of 30 companies in order to bring about initiatives to help provide exposure for women entrepreneurs, both by sharing personal and business experiences and by favoring their active involvement in the public sector.

According to the head of the ASCEF group “Anem a compartir”, Ana Fisas, “promoting gender equality in entrepreneurship, is not only limited to empowering women by strengthening their capabilities, confidence and leadership, but it also involves generating enabling initiatives and acting proactively towards positive changes for society as a whole.”.

In the opinion of Beatriz de Vicente, Director General of Netmentora Catalunya,“we need more women on the network and more female paradigms within the business world. We want to bring the knowledge and interest of business entrepreneur women, because we think that helping future businesses and making an impact should be based on diversity and equality.”

Based on a variety of studies, the gap between entrepreneur women and men has been narrowing over the last years, although we still fall behind other European nations.

Putting an end to all forms of discrimination is essential for a sustainable development. An adequate management of diversity transforms differences into a source of opportunities in any environment and allows for a responsible management that ensures equality. This is a challenging reality that we should address from an institutional compromise at every process and level.

The Catalonian Association of Family Business (ASCEF), has adhered to the manifesto “It’s enough. Let’s focus on recovery“, along with over 300 entities representing the Catalonian economic, entrepreneurial, social, cultural and sports spheres.

The underwritten manifest demands a Catalonian Government (Govern) that can advocate for productive economy, employment and welfare status, with social cohesion as its main goal. In addition, a Nation Agreement is proposed for the economic and social recovery of Catalonia while urging the Spanish Government to provide direct aids for companies, self-employed workers and the sectors most impacted by the pandemic.

The joint statement was motivated by the acts of vandalism that occurred in Barcelona and other Catalonian cities late past February, and it comes as a clamor for non-violence.

On Thursday, March 4th, a reading of the manifest took place during a joint act at Estació del Nord, in Barcelona, attended by the ASCEF President, Amadeu Jori, on behalf of the Association. Among the Catalonian organizations that subscribed the manifest are Foment del Treball, Pimec (both promoters of this initiative), Barcelona Oberta, the Economic Circle, Femcat and Turisme de Barcelona.

The manifesto is available at the following link in the private space of the ASCEF website.

In the current context, the Chief Financial Officer (CFO) figure is taking on a new role within the family business having a direct impact on decision making about implementing a strategy. This new role was the focus of the session organized by the Catalonian Family Business (ASCEF) in collaboration with KPMG, called “The New Role of the Chief Financial Officer in the Family Business Strategy”.

During the welcoming address, ASCEF‘s President, Amadeu Jori underscored the importance of a customized financial department embodied in the figure of its leader: “The Chief Financial Officer is becoming a standard for the family business; finances are already a backbone for the company’s strategy“.

Throughout the session, Alfonso Junguitu, Eduard Pereira and Fernando Ramos, associates and director respectively from KPMG’s Turnaround, Transformation & Working Capital Department, explained how and why the Chief Financial Officer, beyond their traditional role, is assuming a new role as the CEO’s ally when making decisions on strategy implementation.

Fernando Ramos reminded that the CFO “is a figure that always gains size in time of crisis, since he knows the strategy and knows how to calibrate liquidity“, who, in the current context and circumstances, is someone who “takes into account the lessons learned from the previous crisis, which help today’s companies be more resilient.”

“It is important that the Chief Financial Office gets involved in what it is being done and may be able to take part in decision making about all areas and departments“, explained Alfonso Junguitu, who noted that “the cashier is not something intangible.”

Meanwhile, Eduard Pereira stated during the session that “it is important to be able to be more efficient in management,” for which the CFO figure is essential. “At an operative level, the Chief Financial Officer has an impact on 4 spheres: demand forecast, stock management, production planning and production management,” revealed Pereira, who afterwards proposed different financial solutions for each of the spheres.

However, in most cases the solution involves a transformation plan for which “there is no unique recipe, but that needs to be adapted to each case” while following 5 key points: revisit mid to long term strategies, evaluate talent, completely reassess cost structures, resilience in supply chains and capital structure. Just as Junguitu highlighted, these changes in the company “need to be sped up by the CFO, since he knows the strategy using liquidity and turnover control and preparing for different temporary scenarios.”

Wrapping up were Joan Griñó and Fernando Pérez, Corporación Griñó‘s CEO and Chief Financial Officer respectively, who explained the company’s experience at integrating financial teams in order to reach a strategy.

Succession is a sensitive moment in any organization, since it is intended to ensure the continuity and development of the legacy maintaining a balance among family, ownership and business.  With this proposition, the Catalonian Family Business Association (ASCEF), organized a conference entitled “Family Businesses Before the Succession Challenge”, with the collaboration of the University of Abad Oliva CEU and the participation of TOUS Corporate Vice-president, Rosa Tous.

“Succession is a sensitive moment and needs to be addressed with care and not out out of improvisation or emotional impulses. It should be well prepared, for it is a process, where strategy, organization and governance must converge“, explained Amadeu Jori, ASCEF President. “Their main actors are not only the person leaving the position and the one succeeding him, but also the rest of the members of the stock holding family“, he added.

Dr. Camen Ruiz-Viñal and Dr. Ferando Álvarez-Gómez, director and subdirector respectively of the Department of Family Business and Company Creation of the University of Abad Oliva CEU, presented the report “Spanish Family Businesses Before the Succession Challange”, prepared along with other researchers members of international consortium STEP Project (Successful Transgenerational Entrepreneurship Practices), where it was noted, among other figures, that 70% of the today’s family businesses acknowledge not having a succession plan.

According to this study’s data, most of CEOs are baby boomers, 24% are women and 45% belong to the company’s second generation.  Dr. Álvarez-Gómez underscored that “succession plans prevent situations of conflict in the future“. However, he indicated that there is “a limited proactivity” in most businesses since “the business leader is expected to reach an age close to retirement“.

Meanwhile, Dr. Ruiz-Viñal thought that the COVID-19 pandemic “has entailed an acceleration in family business succession processes“.    She also added that millennials are increasingly being taken into consideration, since the pandemic has also accelerated businesses digitalization“.

TOUS Corporate Vice-president, Rosa Tous, took part in the conference “The Great Challenges of Family Business, moderated by Dr. Juan Corona, Academic Advisor for the Business Family Institute. Tous, who explained that fourth generation family members have started to enter the business, underscored that “in the family business, we want to build to endure“.

Tous indicated that, once the second to third generation succession was planned in 2008, “we set up a family council with the intention of working on behavioral matters involved in being a family business member, knowing that we have three roles: family, stock-holder and business executive“. “It is important to know how to interact within the company, differently as in family reunions, being aware that this involves a learning process“, Rosa Tous added.