TODAY

Throughout the world, there is the ongoing existence of family-owned companies which have endured and flourished for years and years. Also in those well-known companies which have gone public, family members still hold the reins or the same families influence the decision-making of the companies to a certain limit. In the world famous Ford automobile company, William Clay Ford, the grandson of company founder Henry Ford, assumed the duties of CEO and Chairperson and is currently acting as Executive Chairman. In Asia, among the most successful second generation entrepreneurs who inherited their fathers’ businesses is Lee Kun-hee, Chairman of Samsung Group. According to Businessweek magazine, the income generated by Samsung Group amounts to 17% of South Korea’s GDP.

In Myanmar, the majority of businesses are family-owned. The second generation individuals of some of these family-owned businesses who have taken charge of their respective companies have been approached and inter-viewed by us and their views on how to maintain and develop their business, how they retain the good legacy handed down by the founder, and how they handle the changes and challenges, are featured in this story.

Daw Khine Zar Thant
Markeing Director, Zar & Zar Co. Ltd.

Previously the business was small and there were not many employees so decision-making was centralized. Now the business is growing and there are more employees so it is time for decision-making to be decentralized. And hierarchal supervision is carried out in every department. Only then all work can be imple-mented in good time. For the employees to have comfort and happiness in the workplace, we have created a friendly environment. What is different from the previous years is, we now hold a meeting every trimester where all staff must attend and give their feedbacks. If any proposal is plausible and reasonable, we adopt it and make relevant changes. We organize dinners for them to amuse themselves. As for knowledge-building, previously we used to arrange annual trips for fun only but now we earmark a Training Day and on this day Team Building/ Knowledge Building are conducted.

Since we were young, Father used to take us with him to Meetings and Factory Visits. Whether we wanted to or not, we had to listen to the talks. So gradually we learned how to discuss with the Supplier, how to make Negotiations, etc. And Father gave us books to read on how to endeavour to become millionaires or billio-naires. So I got to love reading as a hobby. And also, for us to be business-minded, Father made us play the Computer Game called Capi-talism. This game teaches us how to set up a business, how to buy and sell stock and shares, etc. (When I teach, I pass this game on to the students). The game made me interested in business.

Regarding new plans, we have plans for Network Expansion and Product Expansion. As New Motivations, we practise the 360 Degree Performance Appraisal annually. This Appraisal has each employee appraised by his/her superior, subordinates and colleagues. Based on this employee’s Performance, evalua-tion is made and points are given. The one who has top points is honoured with the Best Employee Award. This is one kind of Motivation and it has been carried out for four years now. Another kind of Motivation is encouraging the employees to contribute to social services not in cash but in kind and participation. For example, our company organizes free medical clinic once a year in Gyobingauk; we also contribute where contributions are needed; we offer juice and drinks to devotees at the pagoda on Sabbath days; in all this, we make the employees parti-cipate in the form of communal undertaking so that they may feel like they belong to this com-pany. They will think of themselves as family members of the company and not as outsiders.

The important thing is to maintain and improve relationships with the individuals in Father’s network. To strengthen the trust gained by Father, I presume we must be honest and hardworking. Another thing is, if we perpetuate the Business Ethics practised since Father’s times, we believe we can uphold this existing network.
The reason our company can still survive today is firstly because of Father’s good leader-ship, secondly because of mutual trust between the customers and the company; for example, no matter how other companies hike up their prices, we stabilize our prices and therefore we gain the customers’ trust. Therefore when we ask them to deposit part of their payment in advance, they do it with trust. Because of this mutual trust, our company is in good standing today. Thirdly, it is the endeavour of our employees. We therefore keep them happy in the workplace. Only if they are happy, their productivity will increase and good service can be rendered to the customers. Like it is said , ‘Keep your people (staffs) happy and they will keep the customers happy’. The outcome is the employees making their all-out efforts and it is one of the driving forces of the company.

In the international market, there are many successful family-run businesses which should be respected and emulated. For example, well-known brands such as Ford Motors, Mars( M&M Chocolate), Walmart, Dell, etc. So I will continue to work as owner/manager and try my best for the success and perpetuation of the company.