Coulisses de CEO #5 | Jean Thomas Schmitt

Summary

In this insightful conversation, a young CEO of a family-owned business shares their journey, discussing the challenges and rewards of leading a company in today’s fast-paced, unpredictable world. Emphasizing the importance of blending experience with fresh perspectives, the speaker talks about the impact of global crises, such as the Ukraine war and climate change, on business strategy. They discuss family business succession, fiscal policy, and the need for long-term thinking, while balancing professional demands with personal life. The value of networking and learning from other leaders in the industry is also highlighted as key to their success.

Takeaways

• 😀 CEOs under 40 are often seen as young in France, but they make impactful decisions that shape the future of the company, unlike older CEOs nearing retirement who may have a more short-term perspective.
• 😀 The importance of family-owned businesses in France is emphasized, as 70% of medium-sized companies are family-run, and they play a key role in the industrial competitiveness of the nation.
• 😀 A mix of experienced leaders and younger, dynamic operational staff is crucial for business success, combining the wisdom of experience with the adaptability and innovation of youth.
• 😀 The rapid pace of change in the modern world demands CEOs to be adaptable and capable of reacting quickly to crises, such as geopolitical tensions and environmental challenges, rather than relying on long-term plans.
• 😀 Leadership is not just about taking decisions but about taking responsibility for the outcomes of those decisions, particularly in long-term business transformations.
• 😀 Young CEOs in family businesses need to balance long-term vision with managing day-to-day challenges, while being mindful of the legacy they inherit and pass on.
• 😀 Maintaining work-life balance as a CEO is challenging, but important. CEOs must consciously make time for personal life and family, even as work demands grow.
• 😀 The French tax system, especially regarding capital gains and inheritance, has historically hindered the growth and succession of medium-sized enterprises, contributing to France's industrial decline.
• 😀 In addition to focusing on growth, business leaders must prioritize the integration of acquired companies and the transition to sustainable and environmentally-friendly operations.
• 😀 Networking with peers in similar leadership positions helps young CEOs gain invaluable insights, share best practices, and solve common challenges, particularly in areas like employee and customer experience.

Q & A

What challenges does the CEO face as a leader in a family-run business?

The CEO, at a young age, faced the challenge of leading older, more experienced team members. However, the focus was on long-term goals, maintaining company culture, and balancing the experience of senior staff with the energy and adaptability of younger leadership.

How does the CEO perceive the role of youth in leadership?

The CEO acknowledges that being young, especially at 38-39 years old, is still seen as youthful in the corporate world. However, they believe that leadership needs a blend of youth and experience to adapt quickly to external challenges like geopolitical crises or climate change.

What is the CEO’s view on the importance of family businesses in the French economy?

The CEO values family businesses for their long-term vision and patient capital. They believe that family-run businesses are key to France’s industrialization, as they focus on sustainable growth and are not driven by the need for short-term profits, unlike many publicly traded companies.

What does the CEO think about work-life balance and its impact on personal life?

The CEO recognizes the importance of maintaining work-life balance. They mention that in the early stages of their career, they lost touch with some friends due to over-focus on work. Now, they prioritize spending more time with family, and adjust their schedule to work from home a few days a week.

What are the CEO's plans for the company's future?

The CEO’s future plans include continuing external growth through acquisitions, focusing on sustainability by transitioning both the company fleet and the fleet of contractors, improving customer experience, and exploring the creation of a B2C business unit and a real estate management division.

How does the CEO view the fiscal challenges faced by family businesses?

The CEO points to the significant fiscal challenges faced by family businesses in France, particularly in relation to inheritance taxes and transmission laws. They argue that these issues have led to the decline of many mid-sized family-run companies, and emphasize the need for tax reforms to support long-term growth and competitiveness.

What impact does the CEO believe the generational transition in family businesses will have on the future?

The CEO believes that over the next decade, many mid-sized businesses in France will undergo a generational transition, which will be crucial for preserving jobs, industries, and economic resilience. They argue that this transition should be supported with favorable fiscal conditions to ensure the success of these companies.

What does the CEO see as the key to success for mid-sized companies (ETIs) in France?

The CEO sees the key to success for ETIs in France as enhancing their global competitiveness, particularly by investing in strategic industries such as pharmaceuticals and microelectronics. Additionally, they advocate for improving fiscal conditions and addressing challenges such as talent retention and attracting investment.

What is the CEO’s stance on leadership longevity and decision-making in a business?

The CEO believes that younger leaders, like themselves, are tasked with making long-term, impactful decisions. Unlike older CEOs who may be at the end of their careers, younger leaders must remain accountable for the results of their decisions as they will be directly involved in the company for years to come.

How does the CEO balance the pressure of leadership with their personal life?

The CEO discusses managing a demanding career by adjusting their schedule to allow for family time and self-care. They emphasize the importance of maintaining personal connections, and the ability to set boundaries and priorities to prevent burnout, all while managing the company’s growth and responsibilities.