Do’s and Don’t’s of Running a Family Business
Above, Gavin Faull. Right, Faull and his three sons, from left Matthew, Oliver and Edward
By Raini Hamdi, 30 September 2023
More owners in Asia are passing the baton to the next generation. Success is no guarantee. Hotels-Asia talks to New Zealander Gavin Faull, founder of Hong Kong-based Swiss-Belhotel International, on how he got all his three sons up-and-running at the chain
The Family Business Association of New Zealand has just presented Swiss-Belhotel International the Legacy Family Business Award. What does the award mean to you personally?
All awards are for the people who support you and in this case it is my family. So this is the real meaning to me. It reflects the many, many years of family support I enjoyed as I worked to build my company. Personally I feel honored and humbled.
How did you manage to get all your three sons into the business? Was that the plan all along?
My three sons joined me at varying times after their own international careers. Matthew had a successful career in IT and e-commerce in Japan, Russia and the Philippines. Oliver is a chartered accountant, and worked internationally in New York and London. Edward is a civil engineer and has worked internationally in Papua New Guinea and Hong Kong.
They all attended Auckland University in New Zealand and chose their degrees based on their interests, with no particular view to joining Swiss-Belhotel International. None of them showed any interest to attend my international hotel schools in Australia or New Zealand.
They all came to me after 10 years in other companies and countries and we discussed the opportunity to join Swiss-Belhotel International. It is not easy to work for one’s father and also to assimilate into the company management structure which can create issues with other senior executives and staff.
They have all been incredible executives and a huge support to me with their skills and unwavering loyalty. I am exceptionally proud.
It is not easy to work for one’s father and also to assimilate into the company management structure which can create issues with other senior executives and staff.
They say each child is different. How do you fit them and guide them into their roles based on their strengths/weaknesses?
Yes we are all different. What they have is a strong bond with each other and their support for each other helps them to overcome any perceived weakness into strengths. My wife Carol is perhaps the key to guiding them as an executive team and keeping up their passion and professionalism.
They must have learnt a lot from dad, but if you could name one lesson you’ve learnt from each of them about next-gen thinking, what would that be?
Learning from me is not easy as they are all fiercely independent. They’ve learnt about hard work and loyalty, which forms our group culture of passion and professionalism.
But new-generation thinking is a challenge for me more than them [learning from the old school). After Covid-19 associates of all companies have become ‘me centric’ rather than ‘us centric.’ This is very hard for me to handle, as I always assume that a company and its objectives of serving guests and owners come first, but this is not so automatic in today’s environment.
So what are my lessons?
Matthew taught me and continues to teach me the huge power of the Internet – hard for a brain that started off with telex machines.
Oliver taught me and continues to teach me the power of business and careful review, which is so important as I tend to rush with my entrepreneurial spirit. Jumping on a plane from New Zealand to Hong Kong in 1973 was a leap into the unknown.
Edward has taught me the issues of property planning and development, and the huge responsibility we have to the environment which, as a dairy farmer, I already have an empathy with.
We all teach each other how to negotiate, which is the hardest skill of business, and not often mastered. Everyone thinks they are great negotiators but few are, and few create a business which is built on negotiation. We would all love to have the negotiation power of Elon Musk.
What are the do’s and don’ts of running a family business that you hold dear to your heart?
Simple – always clear up issues and disagreements instantly. Have an open mind and open communication. Have respect for their families and appreciate that they also have personal obligations.
Try to be fair and ensure they are remunerated and respected like other senior executives. This can be hard as when there are financial and business challenges, family so often comes last. I have not had a regular salary for 20 years and I still travel economy class. I have to learn that I cannot always put the same pressures on my family.
Up next surely is succession planning? Any thoughts on avoiding torrid sagas like the hit TV series Succession?
We are fans of the TV program Succession. I watched the whole series during Covid with my wife and my youngest son. The program created much discussion, some of the comments of which I cannot repeat.
Succession is a difficult subject and not one we discuss in detail. I have personal legal and corporate advisors who all understand my sons and talk with them. My succession plan is to create a successful company with my sons leading the company with modern management, with respect and cooperation, and open communication.
We have family holidays and hideaways in places such as our dairy farm in Taranaki, New Zealand, which is an inter-generational operation. They understand the huge power of history and family, and that is the main succession binding element that I can create.
What is the biggest opportunity for Swiss-Belhotel now?
Our biggest opportunity sealing is global alliances and links with other like-minded companies. We are working on a number of opportunities in this regard.