Issue link: https://maltatoday.uberflip.com/i/1491499
3 NEWS 2.2.2023 MATTHEW VELLA MALTA'S "family businesses" which em- ploy over 20 persons and command large revenues and operations, are surprisingly bereft of functioning boards of directors. According to a survey of its members, the Chamber of Commerce found that 17% of family businesses do not have a functioning board of directors, neither do they have a written strategic plan. 50% of family business who declared that they have a functioning board, then said they do not have a written strategic plan or do not need one. 73% of family businesses that declared that they do not have a written strategic plan also have no written succession plan; but 51% of those family businesses that declared that they have a written strategic plan also have a written succession plan. e Chamber Family Business Com- mittee held a business conference enti- tled "Charting the Course for Your Fam- ily Business" and discussed the results from a survey of 100 family businesses. e survey presented findings on such companies' governance as a snapshot of situations where just one director takes decisions on proposals from manage- ment, where corridor meetings dictate day-to-day decisions, or other ad hoc ar- rangements. In fact, the number one priority of these businesses was not ensuring this level of governance at the top, but retaining their present workforce. Of those family businesses who did not have a functioning board of directors, nearly all of them (95%) had no written succession plan. "It is clear that those family businesses having a functioning BoD give great im- portance to timely financial reporting as they would need to report to the board, as opposed to those not having a board. Also, those family businesses having a board give importance to re-think and adapt their business model, while those not having a board do not give great im- portance to this," the Chamber's findings read. Family businesses that have a written strategic plan also give more importance to the training and reskilling of their workforce and the re-thinking of their business model, than those family busi- nesses with no written strategic plan. And family businesses that have a writ- ten succession plan give more impor- tance to the training and re-skilling of their employees and the increased in- volvement of the next generation, than those family businesses who do not have a written succession plan. Chamber president Marisa Xuereb said: "e survey results make for some alarming reading, with many of our fam- ily businesses falling short of implement- ing basic and vital elements of good gov- ernance which are a necessity for their continued success. I hope that one of the outcomes of today's event is that we start the process of rectifying this situation for our collective good." e president's sentiments were echoed by Silvan Mifsud, chair of family business committee, as he presented the survey results and delivered his analysis. "e challenging external environment means that Family Businesses need to shape up to grow and survive. e survey under- taken with over 100 different family busi- nesses outlines the areas which require improvement and adjustment of priori- ties." Enterprise Minister Miriam Dalli, present at the conference said, the gov- ernment understood that continuity of family businesses is essential, requiring owners to make choices and take difficult decisions. "We also understand that the process of succession and continuity of businesses does not happen overnight. It takes time, pain staking efforts and strong relationships which aren't always easy to nurture in view of the internal dy- namics underlying each and every family business. It is for this reason that a long- term strategy is required to understand the needs of family businesses and to identify support is needed the most." Other speakers Speaking on the same panel Kurt Mus- cat, Senior Advisor, EMCS, spoke about the service that EMCS Advisory together with AIS Environment have developed to give business leaders and owners a 360-degree view of their business. is service, based on the experience and knowledge of the EMCS team, en- ables businesses to link the various ele- ments within their organisation, under- stand where they need to improve and ultimately perform better. e survey also shows that family busi- nesses are starting to list green initiatives and digitalisation amongst their priori- ties, points which were highlighted dur- ing the second panel of the event based on these subjects. Yasmin Schembri, Senior Consultant at AIS Environment, spoke about the fact that green business- es are not just good for the environment, but they are also cheaper to operate. During the event she spoke about how switching to energy and resource effi- cient practices is a simple way for busi- nesses to get ahead of their competitors. In this respect she remarked that experts at AIS Environment and EMCS Advisory are skilled at finding the best and sim- plest solutions to help businesses thrive. In addition to above mentioned indi- viduals the event was also addressed by George Debono, CCO at BNF Bank, and Joanna Gatt, Executive Director at Vivi- an Corporation, all three of whom took part in the first panel discussion. e second panel debate was also addressed by Reuben Debono, Director at May- pole Holdings Ltd, Kurt Farrugia, CEO at Malta Enterprise and Hadrian Joseph Sammut, Chief Officer Advisory & Pro- jects at iMovo. Both panel were moderat- ed by Rachel Attard, Head of Media and Communications Strategist at e Malta Chamber. e event was sponsored by EMCS Advisory and AIS Environment and Sup- ported by BNF Bank, the Family Business Office and iMovo. OVER the past two years, BOV has embarked on an extensive renovation programme, which sees it undertaking major structural works in a number of its branches. is renovation pro- gramme boasts modern and minimalist de- signs, with colours inspired by the traditional Maltese Luzzu. e transformation is not only driven by aesthetics but is ultimately custom- er-driven, a concept already unveiled in the branches of Sliema, Siggiewi, Paola and Zur- rieq, where renovation works have been con- cluded. Works are now about to start on the Bank's premises in Naxxar, which caters for the needs of a broad spectrum of personal and business customers, most of whom reside in the area or operate in the vicinity. Geoffrey Ghigo, Head of the Bank's Retail Network explained that "For the safety of both our customers and employees, the premises will be temporarily closed, with the last working day planned for Saturday 4th February 2023. Works are carefully planned out beforehand, and we are aiming to reopen as soon as possi- ble, however it is envisaged that the renovation will last a number of months. In the meantime, we are relocating the ATMs to the other side of the branch at 25, Triq l-Ifran, Naxxar, to incon- venience customers as little as possible." e renovation programme being undertak- en across the Bank's retail network is integral to the Bank's evolving identity and its vision to be the Bank of Choice for customers. Bank of Val- letta takes this opportunity to thank its custom- ers as well as its people for their understanding and support during the renovation process. Re-imagining BOV's Naxxar branch Do you have a functioning board of directors that meets regularly to discuss the present performance and future direction of the family business? Do you have a written succession plan? Does the family business have a written strategic plan which is regularly reviewed? Board governance shunned by 17% of family businesses, Chamber survey finds