
Management
People Management
Governance
December 12, 2024
Governance helps family business overcome obstacles
“It is not a break, it is a process of continuity; it involves a partnership between generations,” says the advisor
A large part of the Brazilian economy is based on family-profile companies. According to IBGE, they represent 90% of corporations and employ 75% of the country’s workforce. However, only a small portion of these companies reach the 3rd generation without closing their doors or changing hands.
The reasons are even predictable: conflicts within the family, nepotism, and resistance to change, mainly. The good news is that there are professionals who can help solve a good part of these problems, guiding companies regarding good governance practices. “Implementing governance does not mean removing the family, it means [establishing] a clear definition of roles,” states Thiago Salgado, an independent advisor and expert mentor in family businesses. “A company that has governance is valued in the market in a superior way,” he says.
In this interview with Revista Estratégias e Soluções (E&S), from Editora Pecege, Salgado reveals to presenter Soraia Fessel some important secrets for the family organization to achieve a balance between tradition and innovation, which can increase resilience and the chances of the company overcoming the taboo of the 3rd generation.
“Succession is continuity,” states Thiago Salgado, who is also a professor in the USP/Esalq MBAs. He should know what he’s talking about, as he has already gone through the professionalization process of his own family’s business.
According to him, there is no ready-made recipe, but rather good practices. “Governance is a journey, it is not an event, it is something that you start and never finish. Because the company changes, the family changes, the market changes; so, governance has to keep adapting,” he explained.
For him, resistance to change can be broken when managers understand that professionalizing a company simply means putting the right people in the right places. “It is governance, it is not a break, it is a process of continuity; it involves a partnership between generations,” he summarizes.
According to Salgado, smart families plan, they don’t wait for a problem to happen. Currently, the figure of family succession consultants already exists, but there are still few. To work in this area, the professional needs to understand governance, family business, and people, in addition to being a business specialist.
Although it is a path that requires persistence, the end is worth it. Among the results that can be obtained, Salgado cites that companies that implement governance have more credit in the market and attract more talent.
About the interviewee
Agronomic Engineer from USP/Esalq, Thiago Salgado has extensive experience in management, strategy, and leadership and is a specialist in family businesses. He acts as a counselor and consultant in various companies. He is a member of the Family Business Committee of IBGC and director of the Piracicaba Commercial and Industrial Association – ACIPI. He is a facilitator and speaker in in company people development programs such as Syngenta (Leadership Academy) and Cebrace (Next Generation Program).
Who published this videocast
Renata de Gaspari Valdejão Almeida







