Henokien companies are those which have continuously operated and been family-owned for 200 years or more and in which the descendants of the founder still operate at management level. Their name comes from the biblical patriarch Enoch (Hénoch in French), who lived for 365 years before he was taken by God instead of dying.
They are represented by the Henokien organisation which was established in 1981 by the then-chairman of Marie Brizard. The association started with four French member companies but now has 47 members. Its oldest member is the Japanese Hōshi ryokan (founded in 717), and the most recent the Austrian jewellery firm A. E. Köchert (founded in 1814).
In many countries, there is a strong tradition of family businesses that have passed from one generation to the next, and then to the next, and so on. The memory and vision of the original founder of the business, who created the initial wealth, lives on, usually at the very least in the name of the business. Future generations are entrusted with the management of the business and in many cases successfully build on and expand that original base, sometimes creating enormous, multinational businesses.
One example of many is Maison Louis Latour, a French winemaker from Burgundy in France. The business was founded by Louis Latour in 1797 and is currently managed by the seventh Louis Latour, Louis-Fabrice Latour. The company has been family-owned and family-run since it was founded and has built a reputation for tradition and innovation.
In contrast, the regime changes experienced by the Czech Republic over the past 150 years have played havoc with Czech family businesses. As a result, we now have very few local examples of such multi-generational businesses. One exception is renowned piano maker Petrof, spol. which was nationalised in 1948 but has been back in the hands of the original family since 2001. Other exceptions include the Joch family’s UNESCO World Heritage recognised modrotisk printing business in Strážnice, which was reclaimed by the family in 1994.
Sadly however, most Czech family businesses now have much shorter histories, usually spanning just one generation, but increasingly now, sometimes two.
Family dynasties like the Latour’s and the Petrof’s don’t happen by chance. They need a plan and a structure – most often (but not always) involving a trust. Without a plan the opposite happens: We know from international data that 70% of family businesses which do not have a structured succession plan fail to survive the transition to the next generation. Most of those businesses are sold, broken up or destroyed. Jobs are lost, factories close, and the wealth that has been created by the founder is destroyed. We also know from international data that 85% of those families experience ‘serious family conflict’
Perhaps things will begin to change now in Czech? However, so far it looks like a slow process. The tools you need to build a robust structure for a multi-generational business are new, and as of now, 74% of Czech Family business still do not have a succession plan.
We hope that Czech family businesses will start to take succession planning more seriously, and that in time there will be Czech Henokiens.
If your company would like one day to become a Henokien, here are two tips:
- Have a look at the Henokiens website. They have a list of 51 questions you should be thinking about. Unfortunately, it is available only in English and French (not in Czech) but can be found here. It is a very long list and not every item is relevant to every business, but it is a good place to start
- Get some professional advice. Creating a multi-generational succession plan is usually a complicated process and requires the input of a team of advisers; lawyers, tax advisers, trust specialists
- such as our company, and others.
If you’d like to get started, we can help you. Contact us for more information.
