What is MI?
MI today is a very different enterprise than it was just a few years ago. Our business model has been quietly but substantially reshaped to capitalize on the most promising growth and profit opportunities in the market. Even more important for the long term, our operations and culture are being transformed as well. We are now focused with an intensity and unity. As a result, we are poised to take MI to the next level, and to redraw and extend the boundaries of all industries we are involved in.
In Montasser Investments, the strategy has always been to look at the broad picture. To help MI invest in the right direction, we have developed a sister company, Montasser Management Group (MMG). This company, in turn, acts as an outsourced total management service in what we call a Business Transforming Outsourcing (BTO). True to its core values, Montasser Management Group implements the same values its sister companies. MMG is a revolutionary tool for all affiliated companies, working independently, as an outsourced management service. MMG is dedicated to looking over every single aspect; operations, financials, human resources, information technology, legal, marketing, management and quality details affiliated with MI.
Letter from Montasser Management Group
A Family Affair
Now we are corporate, ownership is separating from management, ownership is transferable, management is monitored on a quarterly basis and 50% of CEO’s are not Montassers. One day and this day will come we will be publicly traded.
A family business is a company owned, controlled, and operated by members of one or several families. Many companies that are now publicly held were founded as family businesses. Many family businesses have non-family members as employees, but, particularly in smaller companies, the top positions are often allocated to family members. Family participation in a business can strengthen the business because family members are very loyal and dedicated to the family enterprise. However managing a family business, and particularly succession planning, can present some unique problems. Often family interests conflict with business interests, for example hiring a family member who is less competent than a non-family member or keeping an underperforming family member in a position when their performance is hurting the company. Psychologists are often consulted to help families successfully manage issues that affect both the family and the business.
Ownership and Management Succession
Succession is the largest threat to all family business. But so often the letting go together with the process of preparing the successor proves too difficult for a family business. Succession is a process, not an event and as such the ownership group should ensure that there is a succession plan developed, that the process is initiated. Early process is initiated early and most importantly, fully implemented. Lack of planning often results in family disputes and unexpected tax liabilities. Succession plans in a family business should address both levels of succession – in management and in ownership.
Succession in Management
Management succession plans must, to be effective, commence some years before the handover. Mentoring and developing the next generation is a critical dimension to the succession plans such that, in due course, not only the competencies of the future management are soundly in place, but also their desire to assume the role of successor. Emphasis on the right management ability to meet the challenges of change facing the business not family “birthright” of succession is an essential ingredient. For instance, have family members been selected on a proper basis and on a level playing field against outsiders? If family members are short of experience or expertise can this be rectified within the succession plan time frame by applying succession outside the family business, or by study, or a combination of both?
Succession in Ownership
There are important issues in terms of succession in ownership other than the obvious financial and taxation implications. For example, so often it has been seen that family shareholdings have been passed on to the generation usually in equal shares without consideration as to the implication of this. Succession plans need to address the effects on the dynamics of the family and the ownership group after the desired devolution of the shareholdings. Succession plans need to include how best to address continuity in ownership issues.
How MMG helps
Introducing family governance procedures – establishing the “rules of the fame” involves tremendous family subjectivity and emotion. This makes it very difficult for any family to build these processes and structures objectively and effectively. MMG offers the independent voice. Through a consultative process that gives every family member a chance to have a say MMG will work with other families to devise and introduce appropriate governance procedures. Through MMG’s independence and objectivity, MMG will present the best alternatives for the business, family and owners not for any one specific individual. Using MMG’s knowledge of the range of issues that family governance procedures should cover, MMG will help you to develop the right structure for the family’s business.
VMVST at Montasser
At Montasser, we’ve got our priorities in check. A Vision for our future, a Mission that defines what we are doing, Values that shape our actions, Strategies that zero in on our key success approaches, and Tactics, goals, and action plan to guide our daily, weekly, and monthly actions.
► A Vision for our future
Our vision is to retain our status as the most respected name in the Middle East construction industries, retain our trusted name with the public sector and private clients, domestically and globally.
Vision without action is a daydream, Action without vision is a nightmare