RECAP: FOX 30th Anniversary Forum

Generation 2-3 Leadership Transition: From Preparation to Empowerment with the Gallardo Family

Presenters:
Ana Gallardo, Co-Chair, Strategy Committee, Gallardo Family Group, Spain
Carlos Gallardo, Co-Chair, Strategy Committee, Gallardo Family Group, Spain

Moderator:
Sara Hamilton, Founder and Chief Executive Officer, Family Office Exchange

Session Description: 

Two leaders in a Gen 3 cousin’s group from Barcelona shared their transition story to becoming an Enterprise Family – or as they put it, changing from “many years in training to finally moving to the playing field.” They outlined the triggering events for their transition, the process they went through to define their collective Gen 3 future vision, and how they used strategy committee roles to establish credibility with Gen 2. They also described their current leadership structure and how they are preparing the Gen 4 for ownership and future leadership.

“In 2013, I had the opportunity to start up my own venture. I have never regretted that decision. This was the trigger for the succession plan.”
– Carlos Gallardo
“You have to get a clear message from the group if you want to communicate to the previous generation. Don’t hesitate to push if you want something.”
– Carlos Gallardo
Key Takeaways: 
  • The family’s pharmaceutical enterprise began in the 1940’s with a Gen 1 patriarch who did not share information with his sons – they had almost no information and very little latitude in making decisions. The Gen 3s were educated and trained – with many working in the business – but family meetings were essentially structured to be rubber-stamp sessions for decisions made without their input.
  • The turning point was when Carlos, a Gen 3 cousin, decided to leave the family business to start his own entrepreneurial venture. This served as a wake-up call for the Gen 2s, who then shifted their focus to educating the next generation. The family engaged in a visioning process and developed their family principles: togetherness, next generation roles, philanthropy, and a dividend policy.
  • The transition process and a 30-year plan were decided by the entire family (and advisors) with total transparency. All contributed to defining job positions (who brings what to the table), as well as the nomination and wealth review processes.
  • As part of their exploration, the family identified a desire to focus on Gen 4 engagement. Gen 3 cousin Ana Gallardo developed a learning plan and created an Entrepreneur Club for the Gen 4s, supporting entrepreneurial ideas with seed funds and annual awards.
  • External advisors played a critical role in helping the Gen 2s support succession and transition, and make plans for engaging the next generations.
  • Through this process, the family realized setting the transition’s pace to the most change-averse member was key. Everyone in the family must feel comfortable and that no one feels left behind.

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(FOX Members only)