HKUST Business School Magazine

Find the shared purposes and embrace “We are bigger than I” For this, Lee emphasizes the commitment of open communication, not just within the family, but also with business managers and internal teams. “In the context of leading and managing a family business, disagreements and varying viewpoints are not uncommon, both within the same generation and across different generations. These situations can lead to challenging conversations. To effectively address these challenges, it is crucial for us to consider the bigger picture, align on shared objectives and core values, and approach these discussions with open-mindedness and mutual respect. Remembering our responsibility as stewards, our aim should be to smoothly transition the business to the next generation. It is essential to learn how to find common ground and reach compromises, even when we may not fully agree with each other.” There isn’t one recipe that will work for every family David Lee Owners Council Chairman, and Director of the Lee Kum Kee Group Listen, understand, and respect diverse perspectives Changes, he notes, will inevitably cause tension. The best approach to deal with such tension is to make sure concerns are aired and diverse perspectives are heard. By addressing family issues promptly, and adapting new technologies or policy shifts, if necessary, at governance or corporate level, enable the family to progress in unity after open and effective discussion guided by professional facilitation. “We call that an ‘extreme balance’,” says Lee, one of the family’s fourth generation who has been involving in all significant strategic reviews of the family business. “It’s unwise to run a business like a family or run a family like a business. Our experience has taught us that both aspects are equally vital. To effectively lead and manage our family business, we have established a comprehensive family governance system and constitution with clear guidelines and principles. We have separated the roles of our Family Council and Owners Council. For family, we place great value on maintaining strong familial bonds and unity. For business, we prioritize setting transparent criteria, values, culture, and personal qualities required when choosing the right talents to the business roles. We aim to prevent an entitlement mentality. As the family business continues to grow, we recognize our responsibilities to all stakeholders involved.” With members of the fifth and even sixth generations now poised to take on greater duties as a family steward, learning and development, along with succession planning, are of utmost importance and demand immediate attention. The effective model is to expect those who pursue a role in the business to get outside experience first, usually for at least three years. Commonly, this has been achieved through internal secondments, which develop requisite competencies and know-how, give broader perspectives, that instill the drive to further enhance Lee Kum Kee’s already-established accomplishments. Beyond that, other resources and opportunities such as innovation trips, annual owners assembly meetings, being an observer in family business board meetings, etc., are offered. “We also engage consultants and professionals to review the selection criteria, formulate competency ratings, and evaluate any development needs,” Lee says. “The external advisers we select are experts in their fields, who are willing to challenge us. They critique our practices and provide new angles, rather than simply endorse what we do. Each of us has ‘hot buttons’ but we are open to fresh perspectives, investigating and adjusting our approach accordingly.” Biz@HKUST 26 Cover