Tokić: Bringing in a professional management team was our best decision

What happens when a family business steps out of local boundaries and enters the international market? First and foremost: separate the family from management. The founder, co-owner, and chairman of the Supervisory Board of Tokić Group Ilija Tokić stated at the panel during the ‘Future of Family Businesses’ conference that separating the management function from ownership was the best decision they made.

– A professional management team runs the company. They are the ones who have established corporate governance and business processes, and they have also brought technological advancement. Our company was built by our employees as we have over 20 directors, all of whom started from the warehouse, and we are building the future on them – explained Tokić.

Tokić, whose company has been listed on the stock exchange since last year, emphasized that Tokić Group is now a serious corporation that has perfected its processes, which means easier future steps regarding business expansion and acquisitions.

– The company was created to last, to be successful, and we have demonstrated that over 35 years. We could have done without an IPO, but we needed funds to reach our goals faster, and those goals are building a center and acquisitions outside Croatia – said Ilija Tokić.

The Croatian market is, he adds, small, and they recognized that they cannot grow organically but must pursue acquisitions.

– We have gone through experiences of foreign acquisitions with the Slovenian company Bartog, which has grown from 56 to 100 million euros in the last five years – Tokić stated, adding that the greatest values of internationalization are culture, value growth, and business synergy.

Alongside Tokić on the panel was Ivan Radić, the CEO of Hedera and co-founder of Apipet. Radić is a member of the second generation of the family business and emphasized that ‘being daddy’s son’ in this segment is not an insult.

– There are many conversations that have never been spoken, and that is why processes in companies are never established – Radić explained, adding that he is the one who opened foreign markets for Hedera.

However, Hedera had to halt its internationalization due to a lack of liquidity, but it views it as a natural continuation of business.

Partner at the law firm Wahl & partneri, Neven Marić, emphasized that professionalization is necessary because, as much as owners keep some things under control, those who come from outside see problems that owners do not want to acknowledge.

– One must not only look at the cost side because a professional costs. It is an investment, especially for someone at the international level. Professionalization is necessary because it brings objectivity – Marić explained.

However, Marić added that it is not necessarily bad to have family members within the company and that the second generation should be given a chance.

– The early thirties are the years when you must introduce children to the business. In their twenties, they can search for themselves, but in their thirties, they must know what they want and take responsibility. However, the hardest part is relinquishing responsibility – Marić stated.

The introduction to the panel on internationalization was given by Maja Has, a researcher at CEPOR and an associate professor at Algebra Bernays University and VERN University. Has analyzed the internationalization of family businesses through two phases: a survey among 168 companies and in-depth interviews with ten manufacturing companies. Most of the surveyed companies are small and medium-sized, with an average age of 29 years, where majority ownership is still in the hands of the first generation, while the second generation is increasingly involved in management and exports. The focus of the research was on exports, i.e., the international activities of companies.

The results show that Croatian family businesses export to 105 countries, most often to the EU, and more than half of them started export activities within the first five years. Entrepreneurs emphasize that internationalization contributes to profitability, the development of expertise, and reputation, while key advantages include flexibility, control of the production process, product quality and price, and long-term trust with clients. As concluded, digitalization and participation in trade fairs further enhance their success in foreign markets.

The conference ‘Future of Family Businesses’ was concluded by Hrvoje Bogdan, the director of organizational development and support at Adizes SEE Croatia, with a lecture titled ‘When Business and Family Collide: How to Conduct Difficult Conversations in a Family Business.’

Bogdan set a clear goal for generational transition: the company must continue to function successfully, and the family must still be able to have a normal Sunday lunch. All options leading to that outcome are legitimate.

He emphasized that a family business is simultaneously a business and an emotional system. In business, structure and results matter; in family, belonging and the history of relationships matter. The problem arises when these two worlds mix without clear rules.

– Topics such as the founder’s withdrawal and when they will actually retire, as well as topics like inheritance, delineation of powers, or inefficiencies of family members are often avoided, but their suppression creates the greatest long-term risk – Bogdan stated, who then spoke about ‘triggers’ from both sides. He added that successors are affected by comparisons, belittlement, and the feeling that their contributions are not recognized, while parents are affected by questioning their authority, demands for larger budgets, and attempts at organizational changes. Different visions for the company’s development further deepen the divide.

The key question is not whether the conversation will be uncomfortable, but whether the alternative is better. The status quo, he stated, is almost always the worst solution.

– The worst-case scenario can be a quarrel or a breakup, but that can sometimes be healthier than a long-term freezing of problems. The best-case scenario brings relief, mutual respect, and a clear action plan – Bogdan believes.

He particularly emphasized the importance of preparation. The topic must be clearly defined, as well as the framework for the conversation. It is necessary to distinguish what is a business issue and what is a family issue, choose the right moment, and avoid discussions in the heat of the moment. In communication, it is essential to listen to the other side, adjust the tone, and avoid aggressive or passive behavior patterns.

As a sustainable model, he highlighted assertiveness: firm but not hostile communication in which goals are clearly stated, and the interlocutor feels respected. The conclusion was simple. Clear, open, and continuous communication has no alternative if we want both a successful company and a healthy family.