"There is no single formula for measuring the added value that boards of directors generate."

Interviewed by InfoNegocios España, Raul Serebrenik FECIG - an expert in family business dynasties - discussed methodologies, operations, and the model for business longevity that he has been applying: "in several thousand companies that have managed to endure for over 200 years in about 60 different countries." One of the keys is the use of effective digital tools - such as Boardology - "with clear and measurable indicators."

Serebrenik, a scholar of the longest-lasting family businesses, is clear that the "spiritual capital, values, and beliefs of a family permeate all aspects of their family and professional life." In this context, and linked to new technologies, digital tools, and business opportunities, he points out: "Some people cry, and others sell handkerchiefs. 'Black Friday' should be seen as an opportunity; profitability may decrease, but you increase cash flow, achieve higher inventory turnover, ease operational systems, etc."

Under this prism, the expert consultant for family businesses emphasizes how "digital technology touches almost every facet of our lives, not only for the company but also for the family. I recommend the use of tools - like Boardology - that contribute a lot to success and efficiency," and concludes: "Remember that what you are not doing, the competition will do for you."

What are the main functions of a family business consultant?

Initially, identifying the strategic and particular challenges that a family business must face in this and the following stages of its life cycle and designing a work plan to help prepare the family to face these challenges in the most suitable way possible. That is, helping to establish a conceptual framework for a continuity strategy, defining agreements and rules, but also a navigation map or continuity strategy for several generations.

What do you think of the business saying that goes: 'The father creates it, the son maintains it, the grandson closes it'?

Initially, that rule applies to many family businesses in different countries and geographies around the world. However, today, we can say that the problem, as popularly believed, does not arise in the third generation, but we have noticed that many of the problems arise from the first and second, and the third generation suffers from these situations as the result of the disappearance of the companies.

What three common traits do family businesses that have survived 100 years share?

Firstly, they develop frameworks of behavior, with clear rules and agreements, but mainly with continuity strategies where they enhance each of the main capitals of the continuity model. Secondly, they create and establish governance structures for both family, business, and heritage with professional management. And finally, they establish value generation dynamics in each dimension of the continuity and longevity model of family business dynasties.

What role do values and family culture play in the management of a family business?

Within our model, it plays a central role. In a way, we baptized it as spiritual capital; the values and beliefs of a family permeate all aspects of their family and professional life, helping to focus decision-making processes, especially in times of high uncertainty.

What common challenges do family businesses face?

There are several generic ones, such as maintaining the company or business current and profitable, succession processes for key positions in the organization, and the incorporation of the next generations into family, business, and heritage structures. Then there are the challenges that each family is experiencing, depending on its level of complexity and changes in the environment or the strategic challenges that may arise depending on the particular moment they are going through.

Have you had experience with any tools or platforms that facilitate the evaluation or improvement of the board?

Yes, of course. There are very interesting platforms where families share information, assign tasks, improve their processes, and also evaluate and monitor different indicators.

What are the main differences you noticed in the use of Boardology compared to other similar tools?

It is one of the most advanced tools in the market, as it compares against an enormous database of high-value board meetings, where a greater impact and commitment of each board member are sought to generate a greater contribution from the board team. I love that tool!

What features are essential in these tools to ensure their effectiveness and relevance in the digital realm?

Collecting pure data and metrics is very important... Having clear and measurable indicators. One of the big mysteries in the particular issue of boards of directors is that there is no single formula for measuring the added value that a good board of directors generates; Boardology is moving in that pure direction.

What influence can new technologies (such as VR or AI) have on the longevity of family businesses?

All are tools that become part of business models. Families that manage to adapt and incorporate them have an advantage over those that do not. In fact, according to a study by MIT, boards of directors that are more digitally savvy generate higher productivity in their organizations.