Family owned businesses are a cornerstone of the UAE’s economy. With 70 percent of the workforce employed within the private sector, family businesses contribute heavily to the local financial growth. But the environment they operate in is changing rapidly. Both external market forces and the internal dynamics of a family business present new challenges. As we emerge into Industry 4.0, there was already a need for companies to digitize and innovate to survive and continue the growth and successes of the founding fathers. And following the impact of Covid-19 pandemic, the speed and necessity of this transformation have been accelerated.
Family businesses operate on strong morals and they have a strong value system within their operations. Business is deeply personal (as you can imagine with family!).
So how can we innovate and transform the family business into global operations, in a constantly maturing market, while still preserving tradition and their core values? Remember, today’s consumer has different buying behaviors - they more connected and more demanding than ever.
The Online Recovery
Part of the DNA of a family-owned business is continuity, and providing a seamless transition from tradition to innovative. This has always been true of any sector, ‘Be the first to do anything,’ but now the rate of change the world is seeing is exponential.
I believe that change begins in the mindset of our leaders. Many leaders think of tech merely as a tool to help employees perform better at their jobs, but it goes far deeper. A recent MIT study found it was companies who made tech part of their culture who outperformed industry peers. Tech and the talent in the organization go hand-in-hand. There is no point having the latest technology if your teams don’t have the skills or motivation to adopt it.
I’m so happy to have worked with such committed and hardworking teams throughout my career, who are fully engaged to integrate corporate structures within a proud and sophisticated family business culture. At Al Masaood, my team is moving fast to digitize our processes, and to create more sustainable and future proof structures. Some of our businesses are in the middle of the digitalization vortex and will be heavily affected and disrupted very soon. This digitization is our first step and will enable us to establish the platforms, to move towards digital transformations. Our target is not to get disrupted but to disrupt.
We shouldn’t just strive to be more efficient with technology, we should strive to do business in new and more creative ways.
But Don’t Change the Story
How do you retain a participative culture that is key to multigenerational success? By leaving inspirational and emotional stories for the next generation.
Our legacy at Al Masaood, one of the great trading families in the capital, has been around for over five decades (in fact, we were the first Abu Dhabi company to register - trade license number one!). Our vision began with wanting to contribute to the commercial development of Abu Dhabi under the leadership of the late Ahmed Al Masaood, the first President of the Abu Dhabi Chamber of Commerce in 1970. Since then, we have preserved our history and legacy. From launching the first gas turbine in the Middle East and constructing the first desalination plant in the country, our pioneering initiatives were driven by the need to be future-oriented thinkers.
So, once in a while, stop, reflect and align with the legacy. It can be easy to get caught up in today’s fast-paced world of technology and competitiveness and to lose touch of the bigger picture. But by building a creative culture that is integrated with emerging tech, and staying true to your founding vision, your family business will become better, stronger and faster. Just as we have at Al Masaood over the last 50 years.