1

The Development of Greek Shipping Families:

Succession across Generations

Panikkos Poutziouris Ph.D.
Professor in Entrepreneurship & Family Business
Aims
To define the developmental axis of
the family in business
To expound how owner-managed
family business dynamics shape
strategic developments in Greek
Shipping Firms
To offer 10 commandments for
trans-generational family business
continuity planning
3
Source: Leach and Bogod, 1999
Definition: What is a family firm ?






5
Type of family in business-group
OPERATING MANAGING INVESTING HOLDING
Business Model evolves with scale/scope, family ownership/funding structure


DNA of Greek Shipping
Family values, ties
Patriarchal culture
Matriarchal support
Paternalism
Entrepreneurialism:
low cost , efficiency ,
unorthodox opportunism
buy cheap , 2
nd
hand in the downturn
Financial prudence


DNA of Greek Shipping
Thriving through successive crises
Networks of families - diaspora
Family relationships , social capital
Outward looking business strategies
Group Diversification alliances
Astute specialization low running costs !
Tapping into capital mobility
Risk management innovations
Superiority grows via ananeosis
Succession trends !
traditional values + innovations =entrepreneurial horizon
New generations, new talent
Financial know
asset based finance-leasing; syndicated loans;
bonds; securitization and risk management; PE ,
IPOs; preferences equity,
New fleets
New business models (alliance investing)
New Integrated Services (shipping, insurance,
banking), 3
rd
party ship management;
New business structures and partnerships
The Emerging New Greek
Shipping : Cultural configuration
Foundation:
Patriarchal
Family System
Inter-Intra
Generational
Matriarchal
Triangulation
Integrated Holding:
Family Unit per
Business Unit
(Partnerships)
Social
Democratism
(Loyals)
Traditionally
Royalism
Son A
Bros A
Introvert,
Rubber stamp
(Old Genea)
to Advisory team
to Strategic BoD
Governance
Paternalistic (Older Generation)
to Professional-Meritocratic
Business System
Stavros
George
Livanos
b:1891; d:1963
Arietta
Zafirakis
Founding
Generation
Eugenia
Athina-
Mary
Stavros
Niarchos
Onassis;
Spencer-
Churchill;
Niarchos
George S.
Livanos
)
nine grandchildren


three great-grandchildren.
Geno
II
Geno
III
Geno
IV
Lida
Voivoda
The Dean
I have no money I have ships
Founding
Generation
Geno
II
Geno
III
Geno
IV
Ypatia
Nikolaos F. PITTAS
& Brothers
Nikolaos F. PITTAS
& Sons in 1900
George N. PITTAS
& Brothers in 1913
Nikolaos F. PITTAS
1837-1913
Joanna
Chios Navigation Co
in London, 1960s
Romania office
before WWII
Aristides
J Pittas
Nicos
J Pittas
Oceanbulk Maritime
Piraeus, 1991-94
(with Petros Pappas)
Aristides
J Pittas
Nicos
J Pittas
Manolis
J Pittas
Eurobulk Ltd
Piraeus, 1994
Euroseas Plc
Nasdaq, 2007
CEO/Chair
Aristides J Pittas
45% Family
Associates
Aristides
P Pittas
Source: Euroseas Ltd , March 2014
George
Peter
Livanos
1926 1997
Fotini
Carras
Founding
Generation
Peter
George
Livanos
Geno
II
Geno
III
Marina
The Innovator
Flying Dolphins
Smaller Vessels
HELMEPA - Marine Environment Protection
Alliances-Investing for growth
16
Business
Axis
Organizational Behaviour, Steven L. McShane, Canadian
3
rd
ed. 1998, McGraw-Hill Ryerson Ltd.
Family
Axis
Ownership
Axis
Maturity
New Phases ?
Expansion/
Consolidation
Survival
Start-Up
Young
Family
Firm
Entering
the
Business
Working
Together
Passing
the Baton
Controlling
Owner
Sibling
Partnership
Cousin
Consortium
Permutations of
Trust, Bond, Unity,
Goal Alignment
The 3 axis
Developmental
Model
Fast-growth ?
1:10
Kyriakos
Mouskas
b:1917; d:2001
Venizela
Loukaides
Founding
Generation
Helen
Pitttas
b:1943
Gloria
Mouskas
Mikelides
b:1943
Zenon
Mouskas
b:1941
Yiangos
Mikelides
b:1938;d:2005
George
Mouskas
b:1953
)
Geno
II
Mary
Vavlitis
b:1956
The Mouskas
Zela
b:1969
Kyriakos
b:1971
Yiannis
b:1997
Zenon
b:200
Zenon
b:1998
Irene
b:2004
Kyriakos
b:1982
Elli
b:1979
Zela
b:1969
Costas
b:2005
Mary
b:2009
Antonis
Mikelides
b:1978
Yiangos
b:2005
George
b:2008
Nicolas
b:2010
Kyriacos
b:2012
George
b:2007
18

Family
Ownership
Business
Management
1
7
2
3
6 5
4
Support
Harmony
Opportunities
Dividends
Governance
Connection
Co value
Returns
Governance
Exit

Reward,
Promotion
Power
Succession


Based on Tagiuri et al
Family Owner-Managed
Business Dynamics
FOMD
The family business legacy
Pros

strong ties, trust & pride
long-term thinking: "our future"
flexibility
familial human capital
"excellence- culture
focused global niches
quality and customer service
loyalty
ethos & personal commitment
........
Cons

rigidity, trivialisation
pseudo-communication
Ltd professionalism ; HRM
nepotism
conflict and family feuds
emotional > business
introvert
ltd human and $ capital
succession crisis
Leadership
Onwership

Entrepreneurial
Growth Challenges
Money, markets, management, business
model-operations; my-ego-politics
More growth capital (debt-equity)
Risk diversification (wealth-asset portfolio)
Liquidity for passive shareholders
Family in business harmony; Units for exiteers?
Succession , continuity planning
Leadership / Managerial teams
Ownership regimes
Funding ; Tax planning

Sustainable Success - Mastering Cs
Commander: Capetan , leadership in the
seas; matriarchal leadership at home
Community: loyals , sailors., senior
management ; familial M&A ; social capital
Congruence of goals : zeal for success
[Re-]Connected thinking communication
Culture: competitive entrepreneurialism
Control : financial prudence ; governance
Continuity across generations
Creative destruction of titans , new innovative
firms emerging; Winning transformation of
family businesses into business families



FOMD
PLANS
FAMILY
PLAN
BUSINESS
PLAN

GROUP
DISCUSSION
TECHNOCRATIC
ADVICE

STRATEGIC SUCCESSION GROWTH PLANNING
DIAGNOSIS
Evaluation?
Succession
Growth Plan
HARD
ISSUES

SOFT
ISSUES



REVIEW
Personalities
Familia(s)
Wealth
Estate
Business
Management
Governance
Strategy
Financing

Generational Succession
tend to be stormy affairs !!
10 Commandments
1. Define values shaping vision, goals
2. Craft an open strategic business plan
3. Develop evolving structures
4. Build communication-reconnected thinking
5. Establish governance for FB, BF matters
6. Define succession planning process
7. Balance 3Cs:capital growth, control, cash for harmony
8. Evaluate tax implications
9. Establish neo-entrepreneurial platforms (VC)
10.Develop road map for O-M-F-B continuity ;
family protocol, family constitution



Governance for the
Enterprising Family
Private
Co
PLC [Un]- quoted
PLC
Family
Office
Family
Foundation
VC
The Family Constitution
1. Synthesis of Family - Shareholders Council
2. Values & Vision of Founder(s) FOMD Goals
3. LR business plan: familial legacy, exit, PLC ?
4. Governance structures, BoD ; NEDs
5. Family Plan for Family Involvement (4R, code)
6. Ownership: Shareholders Agreements (Ords A,B)
7. Financial policy (capital, dividend policy)
8. Management-Leadership Succession
9. HRM Practices , non-family management
10. Philanthropy - Communication, Harmony
Words of optimism
We have 5,000 years of history . Weve
been through world wars, civil wars,
occupations. And for wrong or for right,
were still here. We survived. Why should
we abandon the ship now?
George Tsavliris, Ship-owner
in FT , 21 August 2010
Who is Who
ppoutziouris@uclan.ac.uk


Professor Panikkos Poutziouris is Head of the
Business School and Professor of
Entrepreneurship and Family Business at UCLan
Cyprus, the enterprising British University on the
island. He he has been associated with
Manchester Business School for over two
decades, as Senior Lecturer in Entrepreneurship
and as visiting Associate Professor in Family
Business .
Panikkos lectures, researches, publishes and
consults internationally on entrepreneurial
management and strategic financial developments
for families in business.
Dr Poutziouris has been the country expert on
family business entrepreneurship working with
OECD and European Commission; is Past
President of IFERA - International Family
Enterprise Research Academy, and served as a
member of the advisory board of IFB (UK). In 2011,
he has been honored with the FFI International
Award for exhibiting leadership in promoting
globally the family business entrepreneurship
across commercial, academic and social frontiers .