“The family has to play an active role”

The coronavirus pandemic is not yet over, and already the war in Ukraine is generating the next crisis. Has this overshadowed your start as a member of the Supervisory Board, Ms Genge?

Genge: Personally speaking, both events are giving me major pause for thought. They show us just how fragile our world is. Which is something we, the post-war generations, are unaccustomed to: we enjoyed a very sheltered upbringing. However, the coronavirus pandemic and the war in Ukraine are not overshadowing my start. On the contrary: the Supervisory Board has debated difficult and important questions. We are demonstrating what we, as a family business, are capable of doing differently compared
to other companies.

Namely?

Genge: As a family business, our focus is not on short-term economic success. We value sustainable, long-term success that serves all stakeholders – including our employees, customers and business partners. We face up to our responsibilities, even through difficult times.

Altendorf: Because we maintain solid finances in good times as well, Endress+Hauser has a sound foundation. Our business is widely diversified among regions and industries; we are not dependent on any one market.
We pursue long-term goals and share strong values. We have customers who rely on our support and employees who are dedicated to our common
goals. And we have shareholders who trust in us to achieve the best results for Endress+Hauser even in difficult situations.

What is necessary for the continued existence of the family business?

Genge: From the family’s point of view, it is important that members continue playing an active role in the company. By that I mean more than just involvement in the traditional sense, or operative responsibility. We have various committees, institutions and other opportunities for family members to contribute. Such involvement reinforces the family’s identification and connection with the company. Moreover, we as a family have to demonstrate good community spirit, and we need consensus to keep discord and disputes out of the company.

Altendorf: The family contributes values, warmth, knowledge and experience – as well as capital. That is why financial success is the fundamental prerequisite for continued existence of the company. The shareholder family also provides stability. Security, reliability and solidarity are invaluable, especially in a highly creative and innovative environment. These have been important elements of our success over the past 70 years and will remain so going forward. There is more to Endress+Hauser than just assets, buildings and machinery. A company is always a social system.

The family charter states that the shareholder family intends to “continue to shape the company”. How is this done?

Genge: By having family members work for the company, for example.
We formulated that as one of the goals in our family charter. For a number of years now, family members have been able to work at every level within Endress+Hauser, according to their suitability and skills. We have precisely defined how family members must be qualified in order to hold senior positions. Not least to protect the company itself, we want to select only the most suitable people.

Altendorf: Our founder shaped the company through his personality and leadership style – and through his choice of people. The second generation did the same. Today, the family’s involvement is more strongly institutionalized. However, the family and the company are in constant communication, and family members regularly confer among themselves. Besides the Supervisory Board, where Klaus Endress and Sandra Genge represent the family, there is also a Family Council, the General Meeting of the shareholders and the Family General Meeting. The family exercises its influence through the strategic decisions it makes and through selecting the people who manage the company. The family also has a presence at many occasions and celebrations. Thus it demonstrates cohesion, connection with the company and pride in what the company and the family have jointly achieved.

As CEO, how important is the shareholder family to you – and how important is the fact that Endress+Hauser is a family business?

Altendorf: For me personally, it is exceptionally important to work for a company whose values I share. As CEO, I live on the trust that the family grants me. The family entrusts me and the company’s management with all of its employees and assets. We strive to guide this company wisely and continue its successful development. It is important that we also establish a trustful relationship with the younger generation. To this end we must work with each other, learn from each other and listen to each other.

How do you experience shareholder and family influence over the company?

Altendorf: Thanks to the family’s trust, I have an insight into all of its institutions and committees. That benefits both sides. We collaborate to develop a consensual direction for the company’s long-term development. This give-and-take is a challenge for every family business. At publicly traded companies, the roles are clearly assigned. A family business requires greater tact and mutual understanding. However, this interplay also makes us more successful than other companies, since constant dialog leads to better, sustainable decisions.

Genge: It is important that we, as the shareholders, allow the management entrepreneurial freedom. Only in this way can Endress+Hauser stay successful.