Preserving Legacy: The Story of Ghassan Nuqul and the Nuqul Group
At Harvard Business School, there is an ingrained tradition where graduates are prompted to reflect on a profound question from Mary Oliver’s poem “The Summer Day.” The essence of this inquiry—“What is it you plan to do with your one wild and precious life?”—invites consideration of one’s legacy. It raises an important question about how one wishes to be remembered, highlighting the significance of our contributions and relationships.
The Case Study: Ghassan Nuqul and the Nuqul Group
In a recent episode of the HBR Podcast’s “Cold Call,” host Brian Kenny conversed with Christina Wing and Ghassan Nuqul regarding the case study titled “Ghassan Nuqul and The Nuqul Group: Preserving a Father’s Legacy.” Christina Wing’s research specializes in the interplay of family dynamics and business, with a particular focus on legacy management and operational challenges within family-owned enterprises.
A Family Business with Roots
Ghassan Nuqul, the chairman of Fine Hygienic Holding, described how the Nuqul Group originated in Jordan in 1952, founded by his father, a Palestinian refugee. Initially starting in the fast-moving consumer goods sector, the company transitioned to manufacturing hygienic paper products, establishing itself as the largest tissue producer in the Middle East. Today, the group operates across various industries including banking, insurance, and real estate.
The Heart of Legacy and Leadership
For Ghassan, the drive to preserve his father’s legacy deeply influences his leadership approach. Reflecting on the challenges faced during the company’s expansion from four entities to 26 in just over a decade, Ghassan underscored the importance of operational resilience and ethical practices in carrying forward his father’s vision.
“I said the least I could do is to evolve, to grow, to expand, to institutionalize, and to continue growing with this company,” said Ghassan Nuqul.
The Balancing Act of Modernization and Tradition
One of the central discussions in the case focuses on balancing the need for modernization against the backdrop of the founding family’s core values. Christina Wing pointed out that legacy doesn’t equate to stagnation; it can evolve while preserving integral principles and ethics. Effective transitions often involve compromise, especially when familial leadership styles clash.
Institutionalizing the Business
Recognizing the necessity for institutionalization, Ghassan took proactive measures to separate management from ownership to ensure stability and growth. This transition involved a critical reevaluation of the company’s governance structure and operational practices to accommodate its significant growth.
“The only solution, the only way forward, is to institutionalize the business,” Ghassan articulated.
Engaging the Next Generation
As the Nuqul Group approaches its third generation of leadership, efforts to engage younger family members have become paramount. Ghassan involves his sons in key discussions and decisions, preparing them for their future roles and the associated challenges of managing a family business.
Building a Family Constitution
One innovative step taken by Ghassan was the establishment of a family constitution, elaborated upon in collaboration with a consultancy. This document serves as a guiding framework for current and future generations, addressing potential conflicts and establishing shared values and responsibilities.
Corporate Social Responsibility as a Legacy
The Nuqul Foundation is a testament to the family’s commitment to social impact, focusing on education and employability in Jordan. Ghassan emphasized the purpose of the foundation is to make a tangible difference in the community, continuing his father’s philanthropic legacy but in a more structured manner.
“This is the impact…making a difference in the lives of younger deserving Jordanians,” Ghassan expressed.
Looking Ahead: The Vision for the Nuqul Group
As Ghassan plans for the future, he expresses a desire to mitigate the challenges he faced in the early years of growing the business. His vision is to ensure that the Nuqul Group remains a leading example of effective family business practices while continuing to evolve to meet modern demands.
“I want Nuqul Group to continue to be the beacon for family businesses in the region,” said Ghassan.
In closing, Christina Wing highlights the overarching theme of resilience demonstrated by the Nuqul family throughout their collective journey. The evolving legacy of the Nuqul Group serves as an insightful case for other family-owned businesses navigating the complexities of maintaining tradition while fostering innovation.
For additional insights, consider exploring similar topics within the Harvard Business School’s rich selection of podcasts and resources that delve into family business dynamics, corporate governance, and legacy management.