The Business of Family - Richard Eu - Family Politics, Consolidating Power, Going Public & Taking Private [The Business of Family]

Richard Eu - Family Politics, Consolidating Power, Going Public & Taking Private [The Business of Family]

11/09/20 • 55 min

Richard Eu is a fourth-generation Eu. His grandfather was tycoon and philanthropist Eu Tong Sen who remains a legend in Singapore for the vast commercial empire he built across Southeast Asia in the early 1900’s. Tong Seng had 11 wives with whom he had 24 children, setting the stage for a complex and conflicted period of succession following his death in 1941.

One of the family's last remaining businesses, Eu Yan Sang, a network of Traditional Chinese Medicine dispensaries, was founded by Richard Eu's great-grandfather Eu Kong and the family's fifth generation are still in the business today. This is a gripping story of family politics, loss of control, re-consolidation, an IPO, and ultimately privatisation of the family firm once again.

Standout Quotes:

“My father told me when I was still studying that I would not expect to be able to work in any of the family businesses after graduation because of the family politics” – Richard Eu
“If you want to institutionalize the business, it cannot be in family hands forever” – Richard Eu
“When an institution buys into a business like ours, to a large extent they also buy into the culture that's been set up there by the family and they should be crazy just to lose it” – Richard Eu

Key Takeaways:

If you want to institutionalize the business, it cannot be in family hands forever
One of the problems that we had from the 3rd generation was that nobody called the shots, yet because they were individuals they didn't think like as institutions, they just thought about their situations
When an institution buys into a business, what they should do is preserve the culture and manage it in a modern and efficient way without trying to kill the original culture
It's not just about financial ratios or balance sheet, you have to bring in the heart
Good communication helps build trust in the family business
From Richard to his kids: when I’m dead and gone, they should look at themselves and see if they are on the path that we set off to follow as a family

Episode Timeline:

[00:48] A brief introduction to Richard Eu, who shares a detailed history of the multi-generational family business
[08:15] Richard joined the business at 42, although his father did not expect he would be able to work with any of the businesses because of the family politics involving his uncles
[16:56] About the TCM family business "Eu Yan Sang", with more emphasis on the challenges posed by politics affecting the family business.
[34:20] Despite all the challenges, the family business experienced consistent growth almost every year.
[38:20] Richard describes one of the problems that began from the 3rd generation
[42:01] How two members of the 5th generation joined the family business
[47:00] Do you have any favorite failure that set you up for success in the family business?
[50:42] A major learning point for Richard; Communication
[52:26] From Richard to his kids

*For more episodes go to *
BusinessOfFamily.net

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Richard Eu.

Sponsored By:

The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. <div> <input type="submit" value="Subscribe" name="member[subscribe]" id="member_submit"> </div>

Links:

Richard Eu Profile | Endeavor Malaysia Mentors — Richard Eu was appointed to the board as Chairman of the EYSI board on 1st of October 2017.
Eu Yan Sang International - Official Online Store — A network of Traditional Chinese Medicine dispensaries, was founded by Richard Eu's great-grandfather Eu Kong

Standout Quotes:

“My father told me when I was still studying that I would not expect to be able to work in any of the family businesses after graduation because of the family politics” – Richard Eu
“If you want to institutionalize the business, it cannot be in family hands forever” – Richard Eu
“When an institution buys into a business like ours, to a large extent they also buy into the culture that's been set up there by the family and they should be crazy just to lose it” – Richard Eu

Key Takeaways:

If you want to institutionalize the business, it cannot be in family hands forever
One of the problems that we had from the 3rd generation was that nobody called the shots, yet because they were individuals they didn't think like as institutions, they just thought about their situations
When an institution buys into a business, what they should do is preserve the culture and manage it in a modern and efficient way without trying to kill the original culture
It's not just about financial ratios or balance sheet, you have to bring in the heart
Good communication helps build trust in the family business
From Richard to his kids: when I’m dead and gone, they should look at themselves and see if they are on the path that we set off to follow as a family

Episode Timeline:

[00:48] A brief introduction to Richard Eu, who shares a detailed history of the multi-generational family business
[08:15] Richard joined the business at 42, although his father did not expect he would be able to work with any of the businesses because of the family politics involving his uncles
[16:56] About the TCM family business "Eu Yan Sang", with more emphasis on the challenges posed by politics affecting the family business.
[34:20] Despite all the challenges, the family business experienced consistent growth almost every year.
[38:20] Richard describes one of the problems that began from the 3rd generation
[42:01] How two members of the 5th generation joined the family business
[47:00] Do you have any favorite failure that set you up for success in the family business?
[50:42] A major learning point for Richard; Communication
[52:26] From Richard to his kids

*For more episodes go to *
BusinessOfFamily.net

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Richard Eu.

Sponsored By:

The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. <div> <input type="submit" value="Subscribe" name="member[subscribe]" id="member_submit"> </div>

Links:

Richard Eu Profile | Endeavor Malaysia Mentors — Richard Eu was appointed to the board as Chairman of the EYSI board on 1st of October 2017.
Eu Yan Sang International - Official Online Store — A network of Traditional Chinese Medicine dispensaries, was founded by Richard Eu's great-grandfather Eu Kong

Previous Episode

Crystal Lam - Second Generation Vietnamese-American Business Woman [The Business of Family]

Crystal Lam is the Managing Director and second generation to manage Vinawood Ltd., Vietnam’s largest wood component manufacturer specializing in customized window covering, millwork and architectural mouldings. With 10 years of operations experience in Vietnam, Crystal has lead the firm’s expansion into new markets, product categories and strategic ventures.

Standout Quotes:

“My father raised me with the same belief systems; to be traditional in values but modern in action" - Crystal Lam
“It's not just experience or skill, it's really just the heart” - Crystal Lam
"I've always found it to be important to be happy with who you see in the mirror when you wake up every day" - Crystal Lam
"Know what you stand for" - Crystal Lam

Key Takeaways:

A crisis or challenge can create the opportunity to show your heart and grit in your family business.
It's not just experience or skill, it's the heart, so wherever your heart is, you will be great and you want to find people whose hearts beat the way your heart beats.
You will make decisions your entire life but the way you come to these decisions is rooted in your belief system and your value system.
If you don't know what you stand for, you will continuously feel conflict which holds you back from being the best version of yourself.

Episode Timeline:

[01:37] Crystal's journey in the family business started at a young age
[03:03] Balancing growing up in America (an individualist society) with the expectation of family in Asia (an honor or face-based society)
[04:57] Crystal describes 3 major obstacles she had to face, working in the family business, and how she overcame them.
[07:50] The impact of the pandemic on the family business in 2020.
[13:14] Addressing the challenge of forgetting more sensitive family topics while focusing on the business.
[19:00] Crystal describes the admirable qualities of her grandmother, narrating a key event that occurred while she was a journalist.
[21:11] A key failure experienced by Crystal that shaped her journey
[23:19] The future for Vinawood
[27:29] Implementing their Father-Daughter forum
[33:01] A letter from Crystal to her kids: "Know what you stand for"

*For more episodes go to *
BusinessOfFamily.net

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Crystal Lam.

Sponsored By:

The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations. <div> <input type="submit" value="Subscribe" name="member[subscribe]" id="member_submit"> </div>

Links:

VINAWOOD LTD. — VINAWOOD are dedicated to accentuating the splendor of nature’s finest element: Wood

Next Episode

Caroline Link - 4th Generation Heir to B.Grimm, one of Thailand’s Oldest Business Institutions [The Business of Family]

Caroline Link, a 4th generation family member who is being groomed to run B.Grimm, one of Thailand’s oldest family-owned industrial conglomerates. Caroline grew up in a family where the common driving value and belief was to conduct business with compassion and in harmony with nature.

Through multiple generations of management, and multiple business areas and geographies, B.Grimm (which was founded in Bangkok in 1878), has managed to cultivate a spirit of innovation and empowerment among its staff.

Standout Quotes:

“All the family members that are not in the business are just as important because they also form who you are, form your opinions, and influence you in some way” – [Caroline Link]
“I think the most important thing that we invest in, is our reputation and that is really the most important thing that we have” – [Caroline Link]
“Being a family business; that really helped in a way because these strong values, they weren’t only passed on when you became a leader within the company, but they were lived in the household” – [Caroline Link]
“Keep working on yourself, and if you want things to change you have to initiate it and change yourself” – [Caroline Link]

Key Takeaways:

Caroline explains that the resilience of the family business over time was born from the entrepreneurial spirit in the leaders, as well as a strong culture that is value and purpose-driven
A family business is different from normal business; families come from a place of love, harmony, and support, and it’s important to look at this dynamic
Caroline describes that the most important thing the business invests in is “Reputation”, and a lot of the reputation is based on the company's purpose and culture.
Following an exercise aimed at creating an in-depth definition of the company as a whole, it was realized that the key to the success of the company, even from the founders, was an inherent drive towards helping society and creating value.
Caroline also shares that a workshop on family values revealed the two main values in her family to be ”Contribution” and “Sense of Freedom”
It is important to develop a strong sense of self-awareness; keep working on yourself, and if you want things to change you have to initiate it and change yourself
Find what makes you happy professionally and gives you meaning, and make a contribution

Episode Timeline:

[00:48] Meeting the guest; Caroline Link, and the B.Grimm company
[01:33] A brief history on the founding of the B.Grimm Company up to the 3rd generation
[06:48] Caroline shares that she was lucky her interests were aligned with many fields that the family business was already involved in.
[08:40] How has the family business remained resilient for such a long time?
[09:53] How the family has governed itself successfully
[15:52] Diversifying the family wealth outside of the business
[16:54] Caroline describes that the family strives to build an archive of the business history even though so much of it has been lost to wars and a fire accident.
[20:23] What is the most worthwhile investment you have ever made?
[22:01] Who is B.Grimm?
[23:20] The two main family values shared by Caroline’s family
[25:17] The scale of the B.Grimm enterprise
[28:06] Caroline’s thoughts on the children being a part of the family business
[31:58] A letter from Caroline to her Kids

For more episodes go to
BusinessOfFamily.net

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Caroline Link.

Sponsored By: