From a street stall to a global multinational, Lee Kum Kee broke the curse of 'wealth never lasting three generations' and successfully passed down to the fourth generation, spanning 127 years. One day in 1888, Lee Kum Sheung, who ran a small tea house in Nanshui Town, Zhuhai, accidentally boiled a pot of oysters dry, leaving only a layer of dark brown broth at the bottom, but it was fragrant! Thus, the oyster sauce beloved today was born. Lee Kum Sheung began to specialize in brewing oyster sauce as a condiment and hung up the sign 'Lee Kum Kee'. And so Lee Kum Kee was born. In 1946, the company moved to Hong Kong. The Unavoidable 'Internal Turmoil' Around 1971, the Lee family experienced its first internal strife. When Lee Kum Sheung passed away, he divided his shares among his three sons: the eldest, Lee Shiu Wing; the second, Lee Shiu Tang; and the third, Lee Shiu Nam. Later, Lee Shiu Nam's son, Lee Man Tat, suggested changing the company strategy to produce low-priced products to expand sales in Hong Kong and other mid-to-low-end markets. However, this strategy was opposed by his uncles and cousins. The two sides disagreed, and the conflict intensified. In 1971, the eldest and second uncles conspired to jointly acquire Lee Shiu Nam's shares. A fierce family war broke out. When the two sides were at a standoff, the eldest and second uncles decided to give up and emigrate from Hong Kong. In 1972, Lee Man Tat assisted his father in acquiring the other shares for HK$4.6 million and took over as the third-generation leader of the company. This fratricidal struggle caused Lee Man Tat great pain. After that, oyster sauce, which was previously only affordable to the wealthy, quickly entered thousands of households and ordinary restaurants in the United States, Europe, Southeast Asia, and other places, becoming a necessity for the masses. Lee Kum Kee gradually became a globally renowned Chinese brand. However, just ten years later, the company faced another upheaval. After 1980, Lee Man Tat's younger brother was unable to participate in company management due to illness for a long time. The younger brother's family worried that Lee Man Tat would encroach on their shares, so they demanded that Lee Man Tat establish a limited company and liquidate the equity. They also proposed selling their shares to Lee Man Tat and withdrawing from Lee Kum Kee. But the younger brother's asking price was too high, leading to disputes and eventually a court battle. In 1986, Lee Man Tat bought all of his younger brother's shares for HK$80 million. At that time, the company had no funds for its tens of millions of factory buildings, and now with the additional burden of HK$80 million, the company immediately became insolvent. Lee Man Tat was beset with internal and external troubles, grieving over family ties and worrying about the company, feeling anxious and depressed every day. Fortunately, Lee Man Tat's children returned from studying abroad and joined the company, quickly helping it overcome the crisis. After experiencing two family upheavals, Lee Man Tat was almost exhausted. He was very wary of his five children discussing plans to leave the company and start their own businesses, and the children carefully avoided the topic. Each of them worked diligently at Lee Kum Kee, as was their duty. It wasn't until 2000 that the youngest, Lee Wai Sum, confronted his father again: he wanted to leave Lee Kum Kee and start his own business! Lee Man Tat's head spun when he heard this. How to Sustain the Family Business? The youngest son, Lee Wai Sum, was the most entrepreneurial among the five children. At a young age, with his father's support, he successfully opened the fast-food chain 'Jian Yi Xiao Chu' and became the chairman and president of the subsidiary Southern Lee Kum Kee, playing a pivotal role in the entire group. When Lee Man Tat heard that his most capable son wanted to start his own business, he firmly opposed it. His greatest fear was that the children would go their separate ways, leading to rifts over personal interests. In the past, two generations of the family had turned against each other over personal interests and never reconciled. Lee Man Tat remembered this vividly. He did not want the tragedy to repeat among his children! That would be terrible. Was the fate of family businesses destined to repeat? He wanted to break this destiny, unite his children, prioritize family interests, and never separate. To achieve this, he was willing to put corporate interests second. In the end, Lee Wai Sum accepted his father's emphasis on family and abandoned the idea of leaving. Since the family decided to stay together, they should seriously study 'how to sustain the family business'. How to Avoid 'Internal Turmoil' and Build a Perpetual Family Foundation? In 2002, the brothers traveled to Europe, Japan, and other places to study how family businesses sustain themselves, and finally explored a new 'family model'. They believed that 'the company is only a part of the family; without the harmonious and sustainable development of the family, the long-term development of the family business is impossible.' Around 2003, Lee Kum Kee established an internal family communication platform: the 'Family Learning and Development Committee' (referred to as the Family Committee), which is the highest authority of the entire family. Under the committee are the family office, family investment company, family foundation, and family training center. Currently, the core members of the committee are seven: Lee Kum Kee Group Chairman Lee Man Tat and his wife, and their five children: eldest son Lee Wai Man, second son Lee Wai Hung, third son Lee Wai Chung, fourth son Lee Wai Sum, and daughter Molly Lee. At the same time, they formulated the 'Lee Kum Kee Family Constitution' and regularly hold 'family meetings' to promote long-term harmony and development of the family. The Lee Kum Kee Family Constitution In particular, the internal provisions of the 'Lee Kum Kee Family Constitution' provide a 'law' for family development. The specific content of this mysterious family constitution is unknown to outsiders, but from interviews, reporters can roughly summarize the following: 1. Corporate Governance: Lee Kum Kee Group insists on family control; only family members with blood ties can hold company shares; the next generation, regardless of gender, has inheritance rights to shares as long as they have blood ties; the board of directors must have non-family members as independent directors; the chairmen of the two core businesses, sauces and health products, must be family members, and the chairman is elected every two years; the group chairman must be a family member, but the CEO can be hired externally; 2. Successor Training: The next generation has the autonomy to choose whether to take over the family business. To enter the family business, descendants must meet three conditions: First, at least graduate from university, and then work in an external company for 3 to 5 years; Second, the application process and post-employment assessment must be the same as for non-family members, and they must start from the grassroots; Third, if they are incompetent, they get one chance, and if there is no improvement, they are fired; if the next generation achieves success outside, Lee Kum Kee can 'poach' them back when needed; 3. Family Meetings: A family meeting is held every three months, each lasting four days. The first three days are attended by core members of the Family Committee, and the last day is attended by all family members; a moderator is appointed, rotating among core committee members; 4. Family Internal Norms: Do not marry late, no divorce, no extramarital affairs; if someone divorces or has an extramarital affair, they automatically withdraw from the board; if someone withdraws from the board or company for personal reasons, their shares can be sold to the company, but they remain in the family and are still members of the Family Committee, attending meetings; 5. Family Member Retirement: Family members retire at age 65; 6. Amendment and Implementation of the Family Constitution: The formulation and amendment of the constitution must be approved by more than 75% of the Family Committee; general family matters are passed if more than 51% agree. The above provisions fully safeguard the purity and interests of the family, minimizing the possibility of future internal strife and preventing problems before they occur. After the establishment of the Family Committee, Lee Kum Kee adopted a collective leadership model, no longer designating a successor for the family business, and all major matters are decided collectively by the Family Committee. Members of the Lee Kum Kee Family Committee Family Gatherings: Revealing the Truth of a Century-Old Family Business Inheritance The Family Committee meets every three months, each meeting lasting four days. At each meeting, they do not discuss business operations but mainly study the family constitution, family values, and training content for the third, fourth, and fifth generations. For example, a record of a family gathering: September 17, 2007. Hong Kong Private Yacht Club Pier. At 3:00 PM, the famous condiment manufacturer Lee Kum Kee Group would hold its quarterly family meeting on its own yacht. The meeting lasted four days, and attendees included Lee Kum Kee Board Chairman Lee Man Tat and his wife, their five children and spouses, and the next generation, i.e., all family members. At 2:43, daughter Molly Lee appeared at the pier and boarded the yacht; At 2:50, eldest son Lee Wai Man boarded; At 2:50, father Lee Man Tat and mother arrived, and it began to drizzle; At 3:00, the third son Lee Wai Hung and the fifth son Lee Wai Sum arrived one after another, and the rain intensified; At 3:02, the fourth son Lee Wai Chung hurriedly arrived in the heavy rain, holding his briefcase over his head. As soon as he entered the meeting room, everyone smiled and applauded him. Lee Wai Chung stepped forward, raising both hands to high-five each person in turn, including his parents. Even with such harmony, the fine of HK$2,000 was required to be paid on the spot. The fourth son paid without hesitation and put the money into a box. Then everyone applauded again in a neat and rhythmic manner, and after the mood was lifted, the meeting began. Regarding meetings, the family constitution also stipulates that family members must return in time for meetings no matter where they are in the world and must not be late. This time, the moderator was the fifth son, Lee Wai Sum. He wrote 'Happiness Index' on a large prompt board, along with 'Stress Index' and 'Health Index'. Lee Wai Sum would ask his father loudly, 'Big Mr. Lee, are you happy today?' The father would answer loudly, 'Happy' or 'A bit happy' or 'Not happy', and then rate himself on a scale of 1 to 10. Everyone did the same. After scoring, they would candidly analyze the reasons for being 'happy' or 'not happy'. Amid laughter, the meeting proceeded. Generally, on the first day, each person introduced themselves, their children, and their family situation over the past three months; on the second and third days, they discussed various family building topics; on the fourth day, they reported the content of the first three days and other matters to the attending spouses and children, so that they could be 'one in heart and action'. During the four-day meeting, work was never discussed. Relatives gathered only to talk about family philosophy, family development, personal life and learning experiences, and the education and training of the 14 fifth-generation heirs and even the sixth generation... Each family member opened their minds and exchanged ideas, which is also the application of 'Consider Others' Interests' among family members. At the same time, such family meetings are often held in the form of family trips. Therefore, this is not only a good opportunity for family members to understand each other's thoughts and methods, but also allows the fifth generation to understand the family mission and become familiar with the family business. The cohesion generated imperceptibly also has a subtle influence on the fifth generation. Typically, domestic family businesses pursue 'corporate perpetuity', but Lee Kum Kee pursues 'family perpetuity'. They believe that pursuing corporate perpetuity often places personal and corporate interests above family interests, leading to family fragmentation, and the business cannot be sustained; while pursuing family perpetuity, 'we > me', family members are united and harmonious, and the business will inevitably develop sustainably. Source: 'New Third Board Food Research' -END- Content Selection Reply with the following keywords to categorize and read related articles: Sales Supervisor, Second-Tier Management, Regional Manager, Distributor Management, New Channels, City Manager, Competition, 2015, Manufacturer-Dealer Game, Product Stagnation, Terminal Visit Management, Route Management, Deep Distribution, Internal Management, Sales Skills, Profit Improvement, Recruitment, Distribution, Daily Management, Team Incentives, Trade Promotion, Sales Misconceptions, New Product Launch, Township Market, New Product Pricing, Sales Target Achievement, Closing, Market Visit and Inspection, Baijiu, Beer, Sales Increase, Agency Products, Cross-Region Sales, KA, Terminal Merchandising, New Market, Market Operation, Learning, Book Recommendations, Inventory Management, New Salespeople, Consumer Promotion, Execution, Old Products, Expired Product Handling, Model Market, Investment Attraction, New Media, Distributor Development, Performance Appraisal, Assessment, Annual Planning, Shopping Guide, Morning Meeting, Display, Transformation, Inventory Pressure, Holidays, Distributor Cost Control, Channel Operation, Marketing Theory and Laws, Brand Truth, Order Meeting, Team Management, Training, Debriefing, Debriefing Report.