Why ‘dynasty building’ can backfire: 3rd gen leader Carlo Fidani
‘It places too much pressure – usually unwanted – on the next generation and more often than not sets them up for failure,’ says Fidani, chairman of Orlando Corp.
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Carlo Fidani is the chairman of Orlando Corp., a Mississauga-based real estate company that encompasses construction and development, managing about 44 million square feet of commercial, industrial and office space. Orlando Corp. was founded as Fidani and Sons in 1948 by Fidani’s grandfather. Fidani took over Orlando Corp. following his father’s death in 2000.
In 2018, Fidani was made a Member of the Order of Canada. As a philanthropist, he has made significant donations to health services throughout the GTA, having established the Carlo Fidani Peel Regional Cancer Centre in Mississauga in 2005.
In September, Orlando Corporation donated a historic $75-million to the Scarborough Health Network (SHN), with $50 million going to Scarborough Health Network’s Birchmount Hospital, for mental health needs and other urgent priorities, and $25 million designated to the University of Toronto’s Scarborough Academy of Medicine and Integrated Health (SAMIH). The donation marks the largest gift in the history of Scarborough Health Network.
Fidani, however is not one to put his name to donations and is very private. This can often be the case with philanthropists, according to philanthropy expert Sharilyn Hale.
“Some philanthropists are private by nature, or concerned about personal security or protecting other family members,” says Hale, president of Watermark Philanthropic Counsel. “For personal reasons, some may wish to keep certain charitable commitments private, or may not want other charities to know the amount of their gifts to other charities.
Fidani also co-owns the Canadian Tire Motorsport Park, a multi-track motorsport venue in Ontario that he purchased with Canadian racer Ron Fellows.
Here, Fidani shares some of his advice for families in succession planning and why giving to health care is important to him.
You are an avid supporter of health care and have been generous in your donations. Why is that philanthropic spirit important to you and your company?
“Philanthropy has been a part of our family as long as I can remember, from stories told to me about my grandfather to watching my father throughout his life. We are very fortunate to live in a country of opportunity, [and] philanthropy is a way to show our gratitude and give back to the community. But it’s also fun and rewarding, which is something often overlooked by folks. It adds to life’s experience by allowing us to meet many incredible people doing really good stuff who we would otherwise never know. Lastly, and every bit as important, it’s a way of acknowledging our Orlando [Corporation] family, because without them, none of this would be possible.”
How did the succession experience transpire between your grandfather, your father, and then you?
“I didn’t know my grandfathers – they were gone before I was born. I was interested in the family business as a young boy and my father acknowledged it with patience. I would say it was a very natural transition over 25 years we worked together. We were different people and took different approaches, but we never varied on our vision of developing the business through integrity and hard work. I’d like to think we continue with these values today.”
What are your views on next-gens being part of succession planning, and do you think it’s always a good idea to keep the business in the family?
“This a hard question because of its complexity. First, I would say succession needs to be defined – I’m certain it’s different for every family. I’m not one for dynasty building; it places too much pressure – usually unwanted – on the next generation and more often than not sets them up for failure.
I believe having the children involved early in succession planning is better, even if they’re a bit young, because they’ll have more opportunity to develop a greater sensibility for the circumstances.
Financial autonomy for me is an important issue when planning so each child will have independence from each one another. [This] reduces the possibility of future disagreements. In the end, it’s more important that my children enjoy their lives as they choose, not as I see it for them.”
What supports and training other than your formal education did you find valuable in leading you to your business milestones?
“I was not formally educated, largely because I was more interested in getting on with it. My mentors were too numerous to mention – they ranged from carpenters and labourers to engineers and lawyers, and, of course, my father. It continues today. Everyone has something to teach you if you’re willing to learn.”
Can you offer advice to younger members of Canadian business families on how they can nurture their ambitions and hone their own strengths into a successful future?
“Also difficult. Success for me comes from the gratification of what you do, not from what others want for you. Should you be fortunate to be part of a successful family, the sooner you overcome your fear of not measuring up, the better.
There are plenty of examples of children of privilege going off to become incredibly successful [outside of] the family business. There are also many examples of children becoming even more successful within the family business.
Intimidation is self-made. Don’t let it stand in the way. Communicating within the family will help everyone understand how the other is feeling.”
Responses have been lightly edited for clarity and length.
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