About the Winner - The Merck Group

Merck is a global pharmaceutical and chemical company with approximately 33,000 employees in 60 countries and total revenues of € 7.6 billion (2008). The Pharmaceuticals business sector comprises innovative prescription drugs as well as over-the-counter products. The Chemicals business sector offers specialty products for the electronics, printing, coatings, cosmetics, pharmaceutical and biotech industries.

The operational business is managed under the umbrella of Merck KGaA headquartered in Darmstadt (Germany). Around 30% of the company’s total capital is publicly traded, while the Merck family owns an interest of about 70% via the general partner E. Merck KG.

Merck is the world’s oldest pharmaceutical and chemical company; its roots date back to 1668. In 1917 the U.S. subsidiary Merck & Co. was expropriated and has been an independent company ever since.

About the IMD – Lombard Odier Global Family Business Award

The IMD - Lombard Odier Global Family Business Award was created in 1996. The aim of the Award, which provides a unique platform for sharing best practices and analyzing the economic backdrop, is to promote family businesses by turning the spotlight on the exceptionally high standards they are capable of and the many forms they may take.
Former winners
1996 - The Lego Group, Denmark
1997 - Hermès SA, France
1998 - Corporación Puig, Spain
1999 - The Henkel Group, Germany
2000 - The Zegna Group, Italy
2001 - The Murugappa Group, India
2002 - The Samuel C. Johnson Family Enterprises, USA
2003 - The Bonnier Group, Sweden
2004 - The Barilla Group, Italy
2005 - The Votorantim Group, Brazil SA
2006 - The Ivey Foundation, Canada; The Lopez Group Foundation, the Philippine Islands; and The Fundacio Lluis Carulla, Spain
2007 - Yazaki Corporation, Japan
2008 - Roca Corporación Empresarial, Spain

About the Award Jury

Voting members:
Thomas G. Bata, Bata Brands, Luxembourg
Hans-Jacob Bonnier, Bonnier Group, Sweden
Andrew D. Keyt, Loyola University Family Business Center, USA
Subbiah Murugappa, Murugappa Group, India
Mariano Puig, Corporación Puig, Spain
Alexander Scott, Sand Aire Ltd, United Kingdom

Non-voting members:
Prof. John Wells, IMD President
Prof. Benoît Leleux, IMD
Thierry Lombard, Managing Partner, Lombard Odier Darier Hentsch & Cie
Sylvain Massot, Head of Equity Research, Lombard Odier Darier Hentsch & Cie

Award Criteria of Excellence
1. Family values
- Adherence to mission across generations
- Active collaboration across generations
- True to background/values/heritage
- Faithful/reinforcing of core family values/business values strengthening the soul of the company
- Loyalty to employees, to shareholders, to clients, suppliers and the community
- Must have reached at least third generation of family ownership and management
2. Business values
- Excellence in performance standards
- Family values driven
- Growing and profitable company
- Global in business scope
- Clarity of the communication strategy => corporate sponsorship (marketing), corporate reputation (identity/branding)
- Personal, hands-on, engagement of much of the family
- Minimum annual revenues of 500 billion dollars.
3. Transmission
- Excellence in governance – selection, development, independence, unifying the family
- Sharing learning within the family
- Strategically adaptive over time and generations
- Preparation, engagement, education of next generation => succession

About the Award Partners

Lombard Odier

Lombard Odier Darier Hentsch & Cie has been a family business of private bankers since 1796. As such, its values of responsibility, continuity, loyalty, and independence underpin the quality of the services it provides to its private and institutional clients. With CHF 134 billion of assets under management and around 2,000 employees, the Group is active in the world’s principal financial centers and has a network of 23 offices in 17 countries.

The Group is reputed for its vast experience in international asset management and has become a major player in the alternative investment field. It offers its private and institutional clients a wide range of advisory services in the areas of wealth management, financial products, and specialized services.

Lombard Odier Darier Hentsch & Cie is headed by eight Managing Partners, who now represent up to the seventh generation of bankers running the Firm. As they are both owners and managers, they are equally involved in the Group’s strategic management and its client services. The Firm’s identity is determined by values stemming from the concept of the family, and as a key ally of family businesses worldwide, it has long supported research in the field of family enterprise.

IMD

For over 60 years IMD has worked with leading global companies to develop and retain management talent. IMD is the “global meeting place”, the most international of business schools worldwide. IMD offers learning based on innovative and highly relevant research. Learning that can be applied to business challenges – immediately. This is IMD’s “Real World. Real Learning” approach.

IMD Rankings: IMD is ranked first in executive education outside the United States and second worldwide (Financial Times, 2009). IMD’s MBA is ranked number one worldwide (The Economist, 2008).

IMD has exceptional international experience in the field of management education for family businesses. The IMD Family Business Center’s flagship program “Leading the Family Business” (LFB) has featured on the list of open programs since 1988. LFB is the longest running family business program in the world. Members of business-owning families, their spouses and the next generation from more than 750 family businesses throughout the world have taken part in LFB. Lausanne is considered the world capital of management education for family businesses and is also home to the head office of the Family Business Network (FBN).

Chopard

Known in the luxury goods industry for its watch and jewelry collections as well as its Haute Joaillerie and Haute Horlogerie creations, Chopard & Cie is a family business in the true sense of the term. Mr. Karl Scheufele is the Chairman of the group while his children Karl-Friedrich Scheufele and Caroline Gruosi-Scheufele serve as CEO’s and Co-Presidents.

One of the only family companies operating in its industry, Chopard currently employs a total of 1,750 people worldwide spread across five production sites, along with 12 distribution subsidiaries and 120 boutiques worldwide, from New York to Hong Kong. In Chopard’s vertically integrated manufacture, all production phases take place in-house, in order to maintain total quality control over the entire process and to ensure independence, in the true respect of its values of tradition, innovation and creativity. As a result, its workforce includes 45 professions, all playing their important role at a specific stage of production. Given the wealth of know-how within Chopard, the company is naturally concerned with and involved in the survival of these artistic professions. Chopard therefore runs its own training center to ensure that today’s apprentices will become the artisans who will perpetuate the traditions of tomorrow. 

About Family Businesses 

Family businesses are the oldest and most common type of business worldwide. Creating a major share of turnover, employment and tax payments they form the backbone of our economic system.

With their long-term perspective and stakeholder orientation, family-owned businesses represent capitalism with a human face – combining social responsibility with a determination for economic success. Particularly in hard times they play off their competitive advantages. Recent studies show that excellent family-owned companies around the globe outperform public companies in terms of long-term growth, profitability and stability.