Name of the provider / Family business
Evolution of a Family Business: A Strategic Transition towards Professional Management
Borges
Professional sector and company size
Food industry (olive oil), 1100 employees.
Need/problems/challenge addressed
Lack of skills
Country
Spain
Source
Link to more information
Founded in 1896, Borges has been successful for more than a century and represents a heritage of resilience and adaptability. With 14 children in the third generation, the Pont family intended to seamlessly pass their business on to the next generation. However, they encountered a major obstacle when they realised that not all of their children had the necessary skills or interest in running the business. Realising the importance of competent leadership for sustainable growth, the family was faced with an important decision.
Although eight children were ready to continue the family business, the lack of a clear leader among them posed a challenge. The Pont family was aware that running a business required specific expertise, experience and strategic vision. Recognising the limitations within their own ranks, they made the bold decision to dismiss the eight successors and seek a more effective approach.
To ensure the long-term success of the company, the Pont family decided to separate ownership and management responsibilities. They recognised the need to bring in professional expertise to run the company effectively. So they appointed David Prats as CEO and Chairman, who could leverage his proven track record and extensive experience in the industry. The appointment of David Prats was a defining moment in the history of the Borges family business, as he committed to professionalising and modernising the business.
The Pont family was keen to professionalise management, but also recognised the importance of maintaining family involvement in decision-making. In a balanced approach, representatives from each of the four branches of the fourth generation were appointed to the Board of Directors. This decision allowed the family to maintain a sense of continuity and connection to their heritage while benefiting from the fresh perspectives and ideas of the younger generation.
The transition to professional management under the leadership of David Prats has brought numerous benefits to the Borges family business. The company now benefits from a clear strategic direction, improved decision-making processes and increased adaptability to changing market dynamics. By including representatives of the fourth generation on the board of directors, the Pont family ensures that the family’s core values and long-term vision remain an integral part of the company’s development.
Borge’s story is an inspiring example of how family businesses can meet the challenges of succession and embrace change to ensure a bright future.
