Family remains a touchstone
Cynthia Abou Khater is a shareholder and the Strategy Manager of Technica International, a family-owned business that provides automation and robotic solutions out of three locations in Lebanon, Poland and Canada. The chief executive-in-waiting of the company founded by her father in 1982, she talks to CampdenFB about how she managed the transition from first to second generation and why a framework for governance is so important for business.
Can you talk me through the background of the company?
Cynthia Abou Khater: My father was a maintenance engineer working for a large family business in the 1980s. He would repair the machines in their factory, and as he worked, he realised, “These machines aren’t that complicated. We can build them here in Lebanon”. That’s when his dream was born: to design and produce automation machines for factories right here in Lebanon, and eventually sell them to the world. If you want to build a business in Lebanon, there’s never a right time – there’s always something happening. We’re conditioned to view every challenge as an opportunity, and that mindset is exactly how the business began.
How have you managed the company’s expansion?
Cynthia Abou Khater: Our expansion was done on two levels. First, from a market perspective via our global customers network and second from operational perspective with the factory in Poland and office in Canada. As the market continues to grow, we’re optimistic about expanding our manufacturing presence there as well.
How have you managed a smooth transition from first to second-generation leadership?
Cynthia Abou Khater: It hasn’t been easy. My journey into understanding family business governance and transition began around 2010 when I attended one of Campden’s conferences. That was my first introduction to the concepts of governance, family business transitions, and succession. I wanted to understand what made businesses thrive over time. The more curious I became, the more I immersed myself in the subject. I attended more conferences, participated in panels, read books and articles – anything I could find about family business governance.
What really captivated me was the realisation that there is no single formula for success. Every family operates differently, and what works for one might not work for another. I was determined to figure out what would work best for our family.
I initiated conversations with my family around 2013. It’s been a long road, especially since our family is relatively small. There’s my father, myself, and my sibling – it’s not at the level of involving cousins or the broader family like you might see in later generations.
How do you cope with difficult conversations? You seem to have started very early.
Cynthia Abou Khater: There came a point where I realised, no matter what I did or how I said it, it just wasn’t getting through to my family. I’ve always been the kind of person who communicates a lot, but my brothers are not. I used to share articles with them, invite them to conferences, and pass on everything I learned, but I reached a stage where it didn’t matter what I did. I was always the older sister.
I changed my approach. I brought in experts. I hired a coach who specialised in family business issues to moderate our discussions. She’d even stop me sometimes when I got carried away. Since she was neutral, with no emotional attachment to the family, it really helped.
I also brought in a governance expert. Even though I get invited to speak on panels about governance and lead sessions on the topic, my family would never see me as an expert. To them, I would always be the daughter or the sister. When the governance expert came in and did a session with my family, it clicked because someone else was saying it.
But it worked, and that’s what mattered. Whatever helped move the process along was worth it. It became clear that when an objective, non-family member – someone without emotional ties – said the same things I was saying, my family was more receptive. It helped us all speak the same language, use the same terms, and come to a shared understanding. Eventually, with the expert’s guidance, we were able to set our family constitution, define where we wanted to go as a family, and have open conversations about our emotions, all in a moderated, constructive space.
As you have become a global organisation, does that make the conversations harder?
Cynthia Abou Khater: Everything related to the business, particularly its expansion, is something we, as family members involved in the business, regularly discuss and align on. We have this concept of “above the line” and “below the line” decisions. If you imagine a boat, the waterline is the dividing point. Decisions above the waterline – if we make a mistake in them – aren’t catastrophic. It’s like poking a hole in the boat above the waterline: it won’t sink. But decisions below the waterline are crucial. For those, all three family members in the business need to be aligned.
The decision to expand wasn’t just about being close to our customers; it was also out of necessity. For instance, the expansion in Poland was driven by the need to have a presence outside the Middle East and to be closer to our European clients. The Canadian branch, on the other hand, was purely about market expansion. Since the American continent is a huge market for automation, it made sense to have a presence there.
When it comes to business decisions, the three of us sit down, discuss, and, most importantly, communicate. Communication is key for us, even if sometimes it’s not always the healthiest kind. Like any family, we argue, shout, scream, and fight, but at the end of the day, we talk. And that’s what matters. We eventually reach a consensus. But when we don’t align, and there’s a decision that needs to be made, we defer to my father, who is still the chief executive of the company.
As part of our succession planning, we’ve agreed that I will be the next CEO of the group. So, as we transition, we’re also working on delegating authority and making roles and responsibilities clear. I’ve told my father and my brothers that once we agree on my role and responsibilities if we hit a roadblock, I will make the decision as CEO, and they can hold me accountable for it.
This clarity around accountability and communication will make decision-making easier and prevent gridlock. Especially in our region, where we need to be agile and able to make fast decisions to navigate crises, being able to move forward quickly is crucial.
How are you handling the generation after you?
Cynthia Abou Khater: While my children aren’t formally involved in the business yet, they do spend time at the company, much like other employees’ children. Sometimes, when there’s no school or nursery is closed, I’d bring them with me to work. This happens to other employees as well – if they need to bring their children, they are welcome. And, of course, the fact that I, as a woman, hold a decision-making position, helps to foster an inclusive environment for other women at the company.
The work environment is very child-friendly, and my kids are always welcome. They come in and sit in my father’s office, and he proudly takes them around the meetings, letting them observe and listen. But there’s no pressure on them to join the family business. When my son, who’s now in university, asks me what he should do, I tell him: “You don’t have to work at Technica. If you feel like joining the family business, you’re welcome to. But if it’s not what you want to do, that’s perfectly fine.” For me, the key is not that they work in the family business, but that they’re proud of it. I want them to feel connected, to understand its history, and to be engaged with it, even if they choose a different career path.
My sister, for example, is not directly involved in the business, but I keep her informed. She’s very passionate about sustainability, so I make sure to share with her the company’s sustainability reports and our initiatives related to carbon emissions and environmental responsibility. It’s important to me that she, as a shareholder, is engaged and aware of what we’re doing, even though her day-to-day life is quite separate from the company.
As for the next generation, while I want them to feel engaged with the business, it doesn’t mean they need to work within it. We’ve made it clear in our family constitution that employment in the family business is based on meritocracy. We’re in the process of formalising this, ensuring that the family business is not a fallback option for someone who isn’t competent or cannot find a job elsewhere. This approach helps ensure that the business remains strong and is run by those who are truly capable.
It remains shocking the number of families that won’t even engage with family governance. You seem to have gone the other way. How did you do so?
Cynthia Abou Khater: As I mentioned, we began working with a coach, to help us navigate the complexities of family business discussions. This journey started about seven years ago, not with the intention of drafting a formal document, but simply as a way to start conversations. Our family is very close – we meet every Sunday for lunch, celebrate Christmas together, and return to our parents’ home no matter where we are in the world. We’ve always talked about everything, except for the more sensitive topics that often arise in family businesses. These include discussions about exit strategies, the employment of family members, and other delicate matters.
The coach helped us address these topics, one of the most sensitive being whether or not to allow in-laws into the business. At the time, my husband was involved in the company, which made this conversation even more delicate. With the coach’s guidance, we tackled key issues related to family business and succession. It took several sessions – maybe four or five – before we were able to talk openly and reach decisions, which we then put down in writing. This process began around 2018, and since then, we review and update this document every year, adapting our approach as needed.
What I particularly appreciated about the coach was that she gave us a framework for discussing these sensitive topics. Over time, our family matured, both as individuals and as business partners, and this helped us engage in open, transparent conversations. The document we created started as a simple one-pager, but it has grown steadily over time, evolving with us as a family. To me, the value lies not so much in the document itself but in the process of creating it. The discussions we’ve had, the open communication, and the way it has strengthened our relationships are far more important than the document. My family, too, has come to see the real value in the process rather than just the written agreement.”
What does legacy mean for you?
Cynthia Abou Khater: For me, personally, legacy is about preserving and sustaining what my father built, despite all the harsh conditions and challenges he faced. I am incredibly proud – proud of my father, of who he is, and of what he has created. I am proud that we, as a family, have built a company that continues to provide value to the world despite everything. This sense of pride also serves as a bond that holds us together as a family.
Today, we are very connected – our family is close – but I believe this legacy can continue for generations to come. It will serve as a foundation for everyone, even those who don’t work directly in the family business. My children, my brother’s children, and their descendants will likely spread across the globe, pursuing their own paths. We don’t know where they’ll go or what they’ll do, but there will always be this anchor, this touchstone – the family business – that will connect them back to their roots. It’s something that keeps us grounded, a place we can always return to, no matter where life takes us.
