In 2010, SEDCO, a wealth management company headquartered in Jeddah, Saudi Arabia, embarked on an ambitious program of transforming what had been a traditional family owned business into a world-class, institutionalized holding entity. Corporate structure and governance had underpinned its rise to one of the country’s leading conglomerates. Yet the current transformation required that SEDCO articulate a fresh set of values and governance principles, some reflecting a clear departure from the region’s established ways of running a family business. SEDCO’s family and corporate values had always included its commitment to conducting business in accordance with Islamic guidelines known as Shariah. In its quest to establish itself as a global player in private wealth management, SEDCO sought to combine these tenets with international standards in areas such as social responsibility, environmental protection, and business ethics. As a result, a central place in the company’s activities had to be accorded to the process by which business was conducted. With its fourth non-family member at the helm as Group CEO, by 2014 SEDCO had come a long way in promoting its philosophy of ethical investment, and had emerged as a global force in Shariah-compliant wealth management. The main questions on the management’s minds now were: Would the transformed company be able to uphold and sustain its business as well as family-rooted values? Was it in a position to engender a culture that would support these values? And could it cement its role as an inspiration to other family-owned businesses in Saudi Arabia and across the region?
Axel P. Lehmann, former Chairman of Credit Suisse, on why boards should prioritize building a speak-up culture.
Leaders of family firms are struggling with multiple role identities, and poor board management is putting the future of family enterprises at risk.
Tolaram's Mohan Vaswani and Sajen Aswani discuss the company's values-based system of meritocracy, the family's move to institutionalize the business, and their culture of giving.
Tradition is defined as the transmission of customs or beliefs from generation to generation. Innovation is the process of changing something established by introducing new methods
Fourth-generation family member Bruce Grossman tells IMD’s Peter Vogel about his successes and failures in establishing structures to unify the family enterprise and the lessons he hopes the next generations will take from the experience.
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Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications