Family Business Conference 2023 Highlights

The Baltic Family Firm Institute's premier family business conference 2023 took place on June 30 and July 1 in Tartu, Estonia. Over the course of two dynamic days, attendees engaged in a wealth of enriching presentations, interactive workshops, and valuable networking opportunities. This significant event brought together a diverse group of 70 participants from 12 countries including Estonia (18), Latvia (19), Lithuania (15), Belgium (1), Denmark (1), Germany (2), Italy (2), Netherlands (1), Norway (3), Singapore (1), USA (5), and the UK (2).

The conference effectively united a remarkable mix of family businesses, academics, and advisors, with family business representatives comprising the largest group (26), followed by academics (22), advisors (12), family office representatives (5), and other participants from organizations and government sectors (5).

The BFFI - ECGI Conference centered on the theme "Resilience of Family Businesses During Turbulent Times," covering a wide range of topics that emphasized the importance of value creation, professional governance, and strategic planning for transitions. Throughout the conference, several experts provided insights into the various aspects of effective family business management.

***** Keynote Speeches *****

In his keynote speech, Morten Bennedsen underscored the importance of leveraging family assets in business strategies, enhancing governance systems, and preparing for transitions. He also highlighted the need for innovation, adaptation, and digitalization to drive value in family businesses.

Kimberly Eddleston elaborated on the art of pivoting and revitalizing family firms, stressing the competitive advantages these businesses have in fostering growth and embracing change. She discussed the importance of assessing readiness to pivot and preparing for future trends, as well as effective strategies for minimizing the negative impacts of underperforming family members, known as the 'Fredo Effect'.

Alfredo De Massis examined the unique challenges family businesses face during times of 'polycrisis', advocating for a broader perspective. His discussion included key areas such as patrimony management, generational transitions, socioemotional wealth and goals, and maintaining a long-term focus.

***** NextGen Panel Discussion *****

The panel discussion captured the voices of the next generation representatives - Mantas Makulavicius, Simone Møkster, Martin Schily, Mihkel Tammo, Maija Treija-Kovaca, and Paulius Vaicekauskas - who participated in a thought-provoking dialogue about the challenges and opportunities they encounter in their roles. The discussion illuminated the unique dynamics that arise when transitioning from one generation to the next, addressing challenges like balancing tradition with innovation, navigating family dynamics, and establishing credibility in business.

***** Practitioner Sessions *****

Kimberly Eddleston and Alfredo De Massis explored innovation within family firms, focusing on the delicate balance between tradition and modernity. They emphasized the distinctive nature of innovation in family businesses and the importance of exploration, exploitation, and ambidexterity. The session also addressed various creativity styles that foster innovation.

Christos Christou highlighted the critical role of corporate governance in ensuring business longevity, discussing the benefits of strong governance, the risks of neglecting it, and how family governance promotes unity and sustainable development. He and Rūta Gadeliauskaitė, LL.M., discussed the process of designing effective corporate and family governance, along with the contributions of trusted advisors.

Anete Marhele presented on personnel strategies as a valuable means for attracting and retaining specialists, emphasizing the alignment of specialists' interests with long-term business goals for mutual benefit.

Wendy Ulaszek, Ph.D., underscored the importance of understanding and managing family dynamics in a business context for achieving success. She cautioned that neglecting family aspects could lead to conflict and value destruction, discussing ambidextrous leaders who sustain family unity while navigating complex issues within governance forums.

Santa Rubīna addressed the legal challenges family businesses encounter, including structures, tax planning, succession planning, and issues related to divorce, creditors, death, and illness, emphasizing the necessity of preparing for future transitions to safeguard family members' well-being.

***** Academic Sessions *****

The academic track of the conference brought together scholars and researchers from around the globe to highlight the unique characteristics and behaviors of family firms during challenging periods.

Yupana Wiwattanakantang presented her research on the role of professional managers in family firms during CEO transitions, allowing founding families to retain control even when suitable family heirs are unavailable.

In a presentation titled "Family Firms in the Covid Crisis," Bogdan Stacescu explored the pandemic's economic impact on family businesses in Norway, revealing that family firms maintained better employment outcomes compared to their non-family counterparts. While they may not have outperformed financially, their commitment to sustaining employment and providing stability for workers stood out as a significant strength.

Ruth Rooz (Stern) examined eponymous firms in her presentation "I Am the Firm! Eponymous Firms And Rose-Coloured Forecasts," uncovering a tendency for such firms to disclose overly optimistic cash flow forecasts, which points to a self-serving bias, highlighting the need for scrutiny of these motives.

Andrew Ellul’s research on "Entrepreneurs’ Diversification and Labor Income Risk" illustrated the critical role of portfolio diversification among firm owners in balancing employment needs during economic upheaval.

In his study, Mario Daniele Amore discussed "CEO Succession," revealing that appointing a family CEO can elevate innovation within the firm, a factor that persists long after the transition, contrasting with the belief that new CEOs solely protect trade secrets.

Felix Meschke explored the role of sophisticated traders in family firms, revealing contrasting information levels regarding Trader responsiveness to family firm trading.

Ivan Miroshnychenko’s investigation into "The Covid-19 pandemic and family business performance" highlighted family firms’ superior financial performance during the crisis, which varied by firm and sector.

Halit Gonenc examined carbon emissions and financial performance in family firms, demonstrating that investments in sustainability yield positive market responses.

***** Insights and Reflections from Conference Participants *****

"It was an extremely well invested two days into our growth as a family business." -- Natalija Kurganovė ♡, Biržų duona (Lithuania)

"The Baltic Family Firm Institute conference was exceptionally well-organized, featuring a thoughtfully designed agenda, influential speakers, and networking opportunities with high-profile professionals." – Maija Treija-Kovaca, GEMOSS (Latvia)

"The event in Tartu was diverse, professionally organized and illuminated the deeper meanings of being a family entrepreneur," Mihkel Tammo, TIFC Family Office (Estonia)

"It was the best family business conference I have ever attended." -- Karolis Montvila, UAB Domeina (Lithuania)

"The conference surprised me - there were truly high-level presentations and excellent speakers. It was engaging and I learned many new concepts that prompted me to reconsider the future of company management." -- Vytautas Jokuzis, PhD, ELINTA (Lithuania)