In the age of the New Economy, family businesses are facing great challenges at the interface of tradition and innovation. Family firms find it urgent to find strategies to allow them to adapt to the changing times ahead. On the 2nd of June 2017, the Legacy Academy held the “Legacy Conference 2017” under the theme of “Embrace the Future” at Deloitte Hong Kong and explored alternative ways of family succession with almost 200 entrepreneurs and professionals.

Dr. Michael Y. K. Chan, the Honorary Chairman of Legacy Academy, noted in his welcoming speech that succession can be either a family firm’s most difficult crossroad or it could provide a fantastic opportunity for dynamic business reform. “After all, succession has always been the ultimate challenge of any entrepreneur. A true entrepreneur is somebody who succeeds at succession.”

Family business succession is important when culture and values cannot be neglected. One of the keynote speakers, Mr. Frederick Chavalit Tsao, the Chairman of IMC Group, stressed the significance of culture in family business succession. As the technology advances, development evolves from a linear process to a diffuse network at a tremendous pace, bringing up anxiety about artificial intelligence. Nonetheless, he suggested not to be overly concerned about it.  Desire is the source of economic activities. When there is desire, there will be new activities. Moreover, A.I. development direction is led by humans all along.

Innovation is vital to meet the demands of the future. Striking a balance between tradition and innovation is the key for family business succession. At the panel discussion on the topic“Legacy x Innovation”, four professionals, three family business successors and an educator, shared their insightful perspective and valuable experience.

Mr. William Sham, the founder of Memorigin, started his Hong Kong-based Tourbillon-watch brand after he realized that his father’s factory had the unique technical capability in manufacturing this kind of watch which only a few dozen factories in the entire world can make. Integrating innovative concepts with traditional techniques in his business, he has upheld the Chinese traditional values of Five Constant Virtues his father passed down to him.

Mr. Kevin Orr, the Managing Director of Winner Medical (Hong Kong), expressed the importance adopting the most effective approach to family succession. The most successful model is built on mutual respect for each other and cross-generational support for the enterprise. In the face of this new digital era of innovation, instead of a single business model, enterprises need to employ a multi-pronged approach in business by developing e-commerce and online platforms.

Mr. Zack Law, the third-generation leader of his family business Wing Fook Funeral Home, holds responsibility in high regard as his prior generation. He understood skills could be trained but professionalism was determined by one’s attitude. Even in a very traditional firm, he believed innovation was essential, and catching up with assimilating the wisdom of the parents’ generation is the foundation for further expansion and success of the business. the prior generation was the foundation of surpassing them. To achieve real innovation, he advocates spending more time acquiring knowledge of the industry than others.

As a pioneering educator, Dr. Jeffrey Hui, the chairman of the Hong Kong Institute of Marketing, advocated that brand-driven and company-driven strategies have expired. In the future, only those companies which employ automation and in-depth communication with costumers can survive. Innovation is a must.“My pseudonym name is derived from my father’s. This is an example of confluence of tradition and innovation,”he said cheerfully.

**Translation of  http://www.familysuccession.org/news_show-274.html

傳承論壇2017精彩回顧 （1）