Lagos Business School (LBS) hosted founders, managers and executives of family businesses to a Multigenerational Family Business Programme in commemoration of the 80th birthday of Mr Pascal Dozie, Pro-Chancellor and Chairman, Governing Council, Pan-Atlantic University (PAU).
Held on April 10, 2019, the masterclass was organised for a select group of family business owners spanning two generations to expose them to the dynamics of running family businesses in today’s disruptive environment.
In her welcome remarks, LBS Dean, Prof Enase Okonedo congratulated Mr Dozie for reaching this milestone and thanked him for the key roles he has played in the School and PAU since inception.
“The essence of this programme is clear. It is to ensure family businesses outlive the people who establish them. Typically, such businesses become extinct following the passing of their founders. But here at Lagos Business School, we consider the sustainability and viability of these businesses important hence the decision to host the programme”, Prof Okonedo added.
The masterclass was delivered in four sessions including a case study session led by LBS’ Professor of Strategy, Chris Ogbechie and a three-part study on Corporate Governance for family businesses in Nigeria facilitated by Professor of Corporate Governance, Fabian Ajogwu.
According to Professor Ajogwu, the corporate governance issues that family businesses face include but are not limited to, “loose organisational structures, failure to diversify and expand into new business ventures, lack of credibility, lack of clearly defined modes of succession, and reduced means of obtaining capital”.
Professor Ajogwu also stated that sometimes, the biggest challenge family businesses might have is the inability to distinguish between ownership and management, a factor which makes it extremely difficult to fire a non-performing family member.
Senior Advisor and Partner, Cambridge Family Enterprise Group, Andrew Hier also exposed attendees to a global perspective on family businesses noting that although such businesses represent 30 percent of all companies worldwide with sales of over $1 billion, only 30 percent make it beyond the first and second generations, 15 percent make it to the third generation and 10 percent to the fourth generation.
Attendees later participated in a Question and Answer session with Mr Dozie and were presented with certificates. The masterclass was organised by LBS and Cambridge Family Enterprise Group in collaboration with independent multi-family office, Africa Wealth Partners and Kunoch Holdings.