Emotional Leadership in a Long-lived Family Firm

Borja’s keynote was one providing important concepts of emotional leadership, while telling stories about his long - lived family’s experience to expound the what and why of emotional leadership.

Long-lived family firms are those that have been actively existing since the foundation until the present, for at least for a century, despite the changes of their line of business and the location of the business (Goto, 2006). They are also defined as generative families who have sustained the family firm across several generations and have successfully transitioned significant businesses and wealth through at least three generations, or over roughly 100 years Jaffe (2013). Cordoniu Raventos aptly fits the description of what it takes to be a long-lived family firm with its existing 17 generations committed to co-ownership and stewardship of the family and business legacy.

Emotional leadership in the family is defined as the ability of the family members to effectively deal with heightened emotional situations in the family or business setting. Anyone who belongs to a family business or works with a family business understands the typical family and business conflicting interests, and some prolonged family conflicts that can spill over to the business level.

Borja pointed out a study by William and Pressier (2003) which shows that the majority of those family businesses that fail to generate are unable to manage emotional conflict. Specifically, sixty percent (60%) attributed this inability as cause for failure. Only thirty percent (30%) failed due to lack of succession preparation and ten percent (10% ) due to poor business strategies.

The Raventos family branch of Borja experienced a similar heightened emotional conflict situation. This happened when the family tradition of appointing the oldest male sibling as the owner or manager of the business was stopped. This tradition was changed when the family elected younger male siblings, including Borja. The family started using as part of the criteria competence and professional qualification for election to family business leadership positions. This major change drew criticisms from the elder siblings and ensued a conflict among the siblings.

Borja shared that what helped him and the family manage the situation was their ability to be self -aware and have an understanding of family patterns. In Borja’s words,

I was able to understand why that is. And because of that I was able to have my balance between my emotions and rationality.

The awareness and understanding of family patterns helps promote emotional leadership. It significantly contributes to the resolution of high emotion conflict situations. One way to achieve this understanding is to look into the family tree and discover family patterns such as attitudes, traits, relationships and values. This allowed the Raventos family to understand their elders, thereby lessening emotionality and giving way to understanding family member’s context.

The ability, which has been passed down from generation to generation, gave the family the power to choose different family patterns they want to pass onto the next generation. This conscious effort on what to pass on and what not to pass on to the next in line is a vital force that strengthens families in business into longevity. This is a case of the Raventos family. Such force can be sourced from a vantage point of emotional leadership.

The good news is, emotional leadership - the ability to be self-aware and self - regulate emotions and balance with rationality-- is buildable among family members. As such, there is much value for families in business to invest in developing emotional intelligence among the family members. He outlined keys to promoting emotional leadership:

1. Work on developing self awareness. This is important to developing emotional leadership where a person has the ability to tune in and be honest with one's thoughts and feelings and recognition of one’s strengths and challenges. With self - awareness you can choose and take charge of your response.


2. Active listening. A vital skill for families is the capacity to listen effectively.


3. Empathy. A willingness to recognize the feelings and needs of others and the capacity to show them an adequate response.


4. Self - Regulation. A capacity to control emotional reactions.


5. Assertive communication. An ability to talk about difficult issues calmly with an intention for promoting understanding.


6. Create trust and transparency between family members. Transparency cultivates trust and accountability. Trust promotes transparency.


7. Humility. An age-old value that recognizes the importance of collaborating and adding value to others.


8. Recognition. Acknowledging and celebrating family member efforts and strengths is a deep need for family members.


9. Generosity. This is thinking of the common good for the family rather than serving one’s interest.

Borja advocates that emotional leadership is an important personal leadership skill that family business members need in order to navigate towards lasting family unity and business sustainability.Emotional leadership is a buildable skill that empower families in business who work with the ones they love as exemplified in Raventos Codorniu, a long-lived family firm.