Respect, Excellence and Integrity: the three values of family business
At the 21st conference of the Italian Association of Family Businesses (AIDAF), which has just concluded against the beautiful backdrop of elegant Palermo, the mood amongst entrepreneurs was mixed. The international situation cannot fail to affect every citizen, and therefore certainly not those who have the responsibility of owning and running a business.
Furthermore, the current climate is beginning to have a significant impact on how businesses operate: energy and raw material costs have reached a point where they are forcing companies not only to squeeze their margins but also to find ways of passing on these increases to the end consumer through price rises. The older (and wiser) generation, who lived through the inflation of the 1980s, can clearly see the difference: back then, the price of goods rose in line with wage increases; it was a chaotic dynamic, which often led to injustices, but on the whole, prices and purchasing power moved in the same direction. Today, this is not the case: rising costs are hitting demand that is extremely inelastic, with businesses unable to absorb the costs and consumers seeing their living standards eroded. As if that were not enough, from plastics to paper, from furniture to cars, competitors from other continents – well-equipped in terms of technology and management – are entering the market; yet they do not appear to face the same cost pressures and can enter the market at prices 10–20 per cent lower, or even more.
Although moods may fluctuate, the values that underpin the strategies of family businesses remain unchanged. ‘Values’ is an overused term in management communication marketing; to all intents and purposes, it is a buzzword; familyandtrends, having observed the group of entrepreneurs, has attempted to summarise the most widely shared ones; there are three: respect, excellence and integrity. What do these words actually mean?
Respect means showing consideration, ‘looking again’, and it is the foundation of ‘taking care’ – a key trait of a good owner who bears responsibility for what they possess, all the more so if that thing has been given to them. It is, perhaps, easier to show respect for important things – certainly for a company or a tradition – but an organisation’s culture is revealed in the little things. During the reception held at a family-run hotel, the waiters explained the delicacies they were serving and ensured that each of the many guests not only dined but also understood what that food meant in the context of Palermo’s culture. When every member of the organisation does their bit to ensure that the little details contribute to the customer’s experience, it means that those leading that organisation have a genuine respect for others in the way they carry out their work.
Excellence is the determination to do the very best we can in whatever we set our minds to. It is about tirelessly developing and continually refining our skills. People who excel are not those who are naturally gifted, those who have had the chance to get a head start because they are more intelligent, wealthier or more skilled; the people who excel are those who never stop striving to improve themselves and to become, day after day, better than they were the day before. Here too, it is a value on which it is easy to build corporate communication campaigns, but where the true test lies in the small things. As at all conferences, many people take to the stage for presentations, interviews and round-table discussions; these are entrepreneurs and managers who speak every day in a wide variety of settings – within their companies, in public, and so on. And yet, it is fascinating to observe how, before speaking, they prepare meticulously and carefully, and once finished, they ask themselves what went well and, above all (if not exclusively), what could be done better. Excellence, too, is evident in the little things.
