Connect with us

Business

What Australian family businesses can learn from their global peers

Avatar photo

Published

on

What Australian family businesses can learn from their global peers

Despite two years of challenges and uncertainty, it seems family businesses remain in a strong and vibrant position as they navigate generational transition and digital transformation.

Unlike other organisations, the important dynamic of connecting the family with the business, and ensuring its success and legacy, lies at the heart of family businesses. This brings with it both opportunities and unique challenges. 

A survey of over 2,400 family businesses across 70 countries has looked into the factors that drive their performance and continuity across generations.

Data obtained from KPMG’s Family Business Survey 2022 reveals that transgenerational entrepreneurial spirit, a holistic approach to strategy and performance, and an emotional attachment to the business, are complementary success factors that enable these businesses to stay competitive and maintain multi-generational success.

However, it also found key areas that could derail future growth if not carefully considered.

In Australia, 51 per cent of family businesses are still managed by first generation owners, compared to the global average of 40 per cent. Over half of these businesses identify as having a high level of entrepreneurial orientation, or the level of willingness to innovate and embrace risk-taking (54 per cent).

When it comes to leadership styles, Australian businesses identified transformational leader as the prevalent leadership style (50 per cent), followed by authoritarian. Charismatic leader was ranked relatively low although globally, charismatic was the second preference.

At a global level, the overall preference of CEOs across regions was a transformational leadership style. This was tied to good financial results, environmental and social progress, and building loyalty and identification within the family business.

Advertisement
Submit your 2022 Austin Neighborhood Feedback

“It is great to observe that family business CEOs in Australia see themselves as ‘transformational leaders’,” said Susanne Bransgrove, Managing Director, Women in Family Business, KPMG.

“Importantly though, being a transformational leader means embracing diversity and intentionally finding a way for broader family participation, therefore ensuring that their deeds match their words.”

Interestingly, the majority of family businesses did not have family boards. Only eight per cent reported a separate ‘family council’ for business governance.

When it came to external social performance, Australian family businesses reported some of the lowest levels of performance. Internal social performance, like diverse hiring practices, were also ranked poorly compared to global peers.

In contrast, they ranked among the highest in social emotional wealth or the emotional value of managing and owning the family business (57 per cent).

Overall, the global survey indicated that the family businesses that remain most competitive cultivate a high level of ‘socioemotional’ wealth in the business outside of financial success; recognition of non-financial measures like diversity and inclusion; and a consciously sustained entrepreneurial flair.

What key actions should Australian family businesses focus on?

To stay ahead of the curve, there were a few recommended actions that Australian family businesses can take on to ensure success and continuity.

  • Placing equal focus on family as well as business to sustain socioemotional wealth
  • Set up gender balanced governance (like a family board) to embrace diversity of thought
  • Adapt a transformational leadership style rather than an autocratic leadership style
  • Embrace non-financial measures like environmental, social and governance (ESG) commitments
  • Cultivate measured risk-taking as an important step towards innovation

Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.

READ MORE: Sources of conflict every family business needs to understand: 2021 Family Business Survey

Read More

Advertisement
Submit your 2022 Austin Neighborhood Feedback

Continue Reading
Advertisement
Click to comment

Business

At collapsed Baltimore bridge, focus shifts to the weighty job of removing the massive structure

Avatar photo

Published

on

At collapsed Baltimore bridge, focus shifts to the weighty job of removing the massive structure

BALTIMORE (AP) — Teams of engineers worked Saturday on the intricate process of cutting and lifting the first section of twisted steel from the collapsed Francis Scott Key Bridge, which crumpled into the Patapsco River this week after a massive cargo ship crashed into one of its supports.

Sparks could be seen flying from a section of bent and crumpled steel in the afternoon, and video released by officials in the evening showed demolition crews using a cutting torch to slice through the thick beams. The joint incident command said in a statement that the work was being done on the top of the north side of the collapsed structure.

Crews were carefully measuring and cutting the steel from the broken bridge before attaching straps so it can be lifted onto a barge and floated away, Coast Guard Rear Adm. Shannon Gilreath said.

Seven floating cranes — including a massive one capable of lifting 1,000 tons — 10 tugboats, nine barges, eight salvage vessels and five Coast Guard boats were on site in the water southeast of Baltimore.

Each movement affects what happens next and ultimately how long it will take to remove all the debris and reopen the ship channel and the blocked Port of Baltimore, Maryland Gov. Wes Moore said.

“I cannot stress enough how important today and the first movement of this bridge and of the wreckage is. This is going to be a remarkably complicated process,” Moore said.

Undeterred by the chilly morning weather, longtime Baltimore resident Randy Lichtenberg and others took cellphone photos or just quietly looked at the broken pieces of the bridge, which including its steel trusses weigh as much as 4,000 tons.

“I wouldn’t want to be in that water. It’s got to be cold. It’s a tough job,” Lichtenberg said from a spot on the river called Sparrows Point.

Advertisement
Submit your 2022 Austin Neighborhood Feedback

The shock of waking up Tuesday morning to video of what he called an iconic part of the Baltimore skyline falling into the water has given way to sadness.

“It never hits you that quickly. It’s just unbelievable,” Lichtenberg said.

WHAT HAPPENS NEXT

One of the first goals for crews on the water is to get a smaller auxiliary ship channel open so tugboats and other small barges can move freely. Crews also want to stabilize the site so divers can resume searching for four missing workers who are presumed dead.

Two other workers were rescued from the water in the hours following the bridge collapse, and the bodies of two more were recovered from a pickup truck that fell and was submerged in the river. They had been filling potholes on the bridge and while police were able to stop vehicle traffic after the ship called in a mayday, they could not get to the construction workers, who were from Mexico, Guatemala, Honduras and El Salvador.

The crew of the cargo ship Dali, which is managed by Synergy Marine Group, remained on board with the debris from the bridge around it, and were safe and were being interviewed. They are keeping the ship running as they will be needed to get it out of the channel once more debris has been removed.

The vessel is owned by Grace Ocean Private Ltd. and was chartered by Danish shipping giant Maersk.

The collision and collapse appeared to be an accident that came after the ship lost power. Federal and state investigators are still trying to determine why.

Assuaging concern about possible pollution from the crash, Adam Ortiz, the Environmental Protection Agency’s mid-Atlantic Regional Administrator, said there was no indication in the water of active releases from the ship or materials hazardous to human health.

REBUILDING

Officials are also trying to figure out how to handle the economic impact of a closed port and the severing of a major highway link. The bridge was completed in 1977 and carried Interstate 695 around southeast Baltimore.

Advertisement
Submit your 2022 Austin Neighborhood Feedback

Maryland transportation officials are planning to rebuild the bridge, promising to consider innovative designs or building materials to hopefully shorten a project that could take years.

President Joe Biden’s administration has approved $60 million in immediate aid and promised the federal government will pay the full cost to rebuild.

Ship traffic at the Port of Baltimore remains suspended, but the Maryland Port Administration said trucks were still being processed at marine terminals.

The loss of a road that carried 30,000 vehicles a day and the port disruption will affect not only thousands of dockworkers and commuters, but also U.S. consumers, who are likely to feel the impact of shipping delays. The port handles more cars and more farm equipment than any other U.S. facility.

___

Collins reported from Columbia, South Carolina. Associated Press writers Sarah Brumfield in Washington, D.C.; Kristin M. Hall in Nashville, Tennessee; Adrian Sainz in Memphis, Tennessee; and Lisa Baumann in Bellingham, Washington, contributed.

Read More

Continue Reading

Austin Local News

The Texas attorney general is investigating a key Boeing supplier and asking about diversity

Avatar photo

Published

on

The Texas attorney general is investigating a key Boeing supplier and asking about diversity

DALLAS (AP) — The Texas attorney general has opened an investigation into a key Boeing supplier that is already facing scrutiny from federal regulators over quality of parts that it provides to the aircraft maker.

The office of Texas Attorney General Ken Paxton said it began looking into Spirit AeroSystems because of “apparent manufacturing defects” in parts that “have led to numerous concerning or dangerous incidents.”

In a statement Friday, a Spirit spokesman said, “While we do not comment on investigations, Spirit is wholly focused on providing the highest quality products to all our customers, to include the Boeing Company.”

Paxton asked the Wichita, Kansas-based supplier to turn over documents produced since the start of 2022 about communication with investors and Boeing about flaws in parts and corrective steps the company took.

The request goes into detail in seeking internal discussions around Spirit’s efforts to create a diverse workforce “and whether those commitments are unlawful or are compromising the company’s manufacturing processes.” Paxton asked for a breakdown of Spirit’s workforce by race, sexual orientation and other factors, and whether the makeup has changed over time.

Since a Spirit-made door-plug panel blew off an Alaska Airlines Boeing 737 Max in January, some conservatives have tried to link aviation safety to diversity at manufacturers.

Paxton is a conservative Republican who this week agreed to pay $271,000 in restitution to victims and take 15 hours of training in legal ethics to settle felony charges of securities fraud. Paxton did not admit wrongdoing in the 9-year-old case.

The Federal Aviation Administration launched an investigation into Boeing Spirit after the Alaska Airlines incident. An FAA audit of manufacturing procedures in Spirit’s factory gave the company failing grades in seven of 13 areas.

Advertisement
Submit your 2022 Austin Neighborhood Feedback

Boeing is in talks to buy back Spirit, which it spun off nearly 20 years ago, as part of a plan to tighten oversight of manufacturing in its supply chain.

Read More

Continue Reading

Business

Boeing plane found to have missing panel after flight from California to southern Oregon

Avatar photo

Published

on

Boeing plane found to have missing panel after flight from California to southern Oregon

By CLAIRE RUSH and LISA BAUMANN

 

PORTLAND, Ore. (AP) — A post-flight inspection revealed a missing panel on an older Boeing 737-800 that had just arrived at its destination in southern Oregon on Friday after flying from San Francisco, officials said, the latest in a series of recent incidents involving aircraft manufactured by the company.

United Flight 433 left San Francisco at 10:20 a.m. and landed at Rogue Valley International-Medford Airport in Medford shortly before noon, according to FlightAware. The airport’s director, Amber Judd, said the plane landed safely without incident and the external panel was discovered missing during a post-flight inspection. No injuries were reported.

The airport paused operations to check the runway and airfield for debris, Judd said, and none was found.

Judd said she believed the United ground crew or pilots doing a routine inspection before the next flight were the ones who noticed the missing panel.

A United Airlines spokesperson said via email that the flight was carrying 139 passengers and six crew members, and no emergency was declared because there was no indication of the damage during the flight.

 

Advertisement
Submit your 2022 Austin Neighborhood Feedback

The Asante Rogue Regional Medical Center is pictured in Medford, Ore., on Jan. 4, 2024. The first lawsuit filed Monday, Feb. 26, 2024, brought amid reports that a nurse at the southern Oregon hospital replaced intravenous fentanyl drips with tap water seeks up to $11.5 million on behalf of the estate of a 65-year-old man who died. (Janet Eastman/The Oregonian/The Oregonian via AP)

 

“After the aircraft was parked at the gate, it was discovered to be missing an external panel,” the United spokesperson said. “We’ll conduct a thorough examination of the plane and perform all the needed repairs before it returns to service. We’ll also conduct an investigation to better understand how this damage occurred.”

The Federal Aviation Administration also said it would investigate.

The missing panel was on the underside of the aircraft where the wing meets the body and just next to the landing gear, United said.

The plane made its first flight in April 1998 and was delivered to Continental Airlines in December of that year, according to the FAA. United Airlines has operated it since Nov. 30, 2011. It is a 737-824, part of the 737-800 series that was a precursor to the Max.

Boeing said, also via email, that it would defer comment to United about the carrier’s fleet and operations.

In January a panel that plugged a space left for an extra emergency door blew off a Boeing Max 9 jet in midair just minutes after an Alaska Airlines flight took off from Portland, leaving a gaping hole and forcing pilots to make an emergency landing. There were no serious injuries.

The door plug was eventually found in the backyard of a high school physics teacher in southwest Portland, along with other debris from the flight scattered nearby. The Department of Justice has launched a criminal investigation.

On March 6, fumes detected in the cabin of a Boeing 737-800 Alaska Airlines flight destined for Phoenix caused pilots to head back to the Portland airport.

Advertisement
Submit your 2022 Austin Neighborhood Feedback

The Port of Portland said passengers and crew noticed the fumes and the flight landed safely. Seven people including passengers and crew requested medical evaluations, but no one was hospitalized, officials said.

___

Baumann reported from Bellingham, Washington.

Read More

Continue Reading