Interview of Mr Antonio MONZINO

Mr Monzino, you are one of the Italian members of the "Henokiens" Association. Can you introduce yourself to our readers ?

> Antonio MONZINO : I was born in Milan, on November 16, 1938. I am married and I have two sons: Stefano and Francesco and I am President of Monzino S.p.a., the Holding that controls the companies of the group and carries the name of my family.

Tell us something about the group and its activity
> AM. : My family’s activity started in 1750 with our handcrafted production and trade of musical instruments and accessories, as well as publishing. Six generations have succeded each other, from father to just one son and just one family branch, thanks to the father's careful evaluation of the entrepreneurial skills of the successor. But the seventh generation was marked by the succession of five family branches.
It all started with the opening of a small shop in Milan, in Contrada delle Dogana not far from the Duomo, offering services to those who enjoyed playing music, either as amateurs or as professionals, selling top quality instruments and providing assistance for repairs, string production for string instruments as well as horsehair for straw hats.

One of my ancestors was also a composer and this is why he also started the music publishing business.
At present, the Group includes a company specialized in importing and distributing musical instruments, another in publishing with subsidiaries in Italy, France and Spain, a JV for distribution in Italy, a real estate company and a Foundation.
Our original vocation consisted in providing services to the world of music. It has remained with us throughout our history. and allowed us to bring our brand to both domestic and international markets. Today, alongside the distribution of prestigious brand names, we intend to develop our presence internationally with proprietary brand products in new sectors such as professional audio.

Which are the most important facts of the past few years ?
> AM. : After interrupting collaboration with some of the leading companies of the sector such as Yamaha, Roland and Gibson, the Group strategy adopted was to go international and return to the music publishing sector. This was accomplished via the acquisition of the firm Carisch, where we concentrated the industrial branch, by starting the production of brand name musical instruments, and in professional audio.

How can you explain the longevity of your company ?
> AM. : It is believed that the first tool created on earth by the hands of man was a musical instrument … Music has thus accompanied man from his origin and this means the field our family has been working in for over two centuries is inexhaustible. Furthermore, the knowledge and practice of music and the contribution they have made to the education and cultural preparation of each individual have played an important role in the continuity of music, not to mention the values that have been passed down from father to son such as ethics, transparency, commitment and sobriety.
Another important element, I think, was the management of the generational change, by choosing the successor who would be most able to assure this continuity, leaving a heritage of knowledge and passion, which are, of course, the other essential ingredients.
With the development of new technologies, modernization and the globalization of markets (even if glancing quickly at our archives, we learn that the first emigrants to the new world brought with them a Monzino mandolin or that, in the list of our awards, there are medals won in Quito, Ecuador in 1909 and at the universal exhibit in Brussels in 1910, all bearing witness to how certain choices were part of the DNA of our tradition), the decision to bring in managers not belonging to the family has, to my mind, allowed us to mature and to look at the future with optimism.

Can we say this longevity is an advantage for your customers and commercial partners ?
> AM. : The world of business, business anchored in mutually beneficial and long-lasting cooperation, is still fortunately based on personal relations. Knowing you can count on partners whose behavior is rooted in a history consisting not only of economic success, is certainly an added value and it should bring us a competitive advantage that we need to enhance.
This is valid, I believe, both in the relations with the external world but also inside the companies of the Group where this distinctive mark is recognized.

Are the traditional values that guide your company an advantage as concerns research and innovation ?
> AM. : I think so, because longevity is also a result of the ability to have a feeling for and to interpret in time what's coming and to be able to innovate so as to offer the market increasingly attractive products, services, policies and image.

Which are the traps that your company must avoid to keep its independence ?
> AM. : Avoid having partners and managers that do not understand the culture of Family Business and are not able to interpret the values expressed in history.

Has the desire of the family to remain independent led to difficult choices and was it at the origin of difficult times ?
> AM. : My father, upon returning from the Army during the last war, had to send away the cousins who had entered the company while the management was in the hands of Carlo Garlandini, my aunt’s husband. The process took place with the separation of certain business and financial sectors. Also in more recent years a branch of the business separated choosing to continue in a JV with a partner.
During these changes, the difficulties have been overcome with the cooperation of external technical consultants and with the balance found within the family which came back together in the Foundation created in 1999, and with which we all identified via the name of the father: Antonio Carlo Monzino.

Can you tell us something about the projects of your company in the short and long term ?
> AM. : At present, the Group defined a strategic plan to invest in the production of brand name musical instruments and in publishing, under the name of Carisch, operating in Italy, France and Spain with our own structures and in other international markets with local distributors. The objective is to assure continuity and growth enhancing our know-how of the sector and the image that results from the years of history. This should be possible through the development of an industrial activity, in parallel with our consolidated presence in the area of the distribution of musical instruments of prestigious brands, which gave us territories such as France and Spain or even Italy where we operate through our subsidiary, Mogar Music.
Besides this, which is the core business of the Group, we would also like to develop the real estate business, considered as diversification which includes members of the eighth generation in management positions.

Can you illustrate your most important projects for the short and long term ?
> AM. : The dynamics of a modern company always foresee new projects for the business areas we operate in. The most important ones in which we are investing our energies and resources include the professional audio sector with the brands D@G, XXL, My Audio, M1750 which cover the entire range from entry level to high end and the development of the publishing sector with products for a larger public through an alternative distribution channel. The territorial expansion to cover the largest number of countries in both Europe and outside Europe is the other project we are focusing on.
On a long term basis, we are considering the possibility of creating new, multi-function structures in the sector of the active use and production of music, in direct relation with the final consumer.

Does the management of your company pass from one member of your family to the other according to written rules ?
> AM. : In 2005, after some years of management with independent experts, all the family members of both generations currently involved in the business, signed a family agreement which laid down the main rules, some of which were also acknowledged in the statues both of the Holding and of the subsidiaries, concerning the relation between the partners and the subsidiaries as regards governance, the appointment of family members, evaluations, hiring of family members, leaving and re-entering the company and professional ethics.

Are several generations of your family already working in the company ?
> AM. : In my generation, Alberto, my brother, and Carla, my sister, cooperated in the activity getting profitable results, together with my brothers-in-law, Bruno Barbini and Carlo Bonomi. At present, the new generation is already working in the company: Andrea and Nicola, Alberto’s sons, Marcello, my sister Vittoria’s son, my son, Francesco, and Marco Guazzoni, the husband of Vittoria’s daughter, Antonella. They are acquiring experience in different functions which will allow them to develop the skills needed to lead the company towards new goals in the future. Of course, this will happen only after they have proven their merit and capacities which will be evaluated by an external committee of independent experts.

What is your message for those who want to start a family business ?
> AM. : This challenge can be rewarding for those who have the capacity of making their dreams come true. It’s not an easy path and it's full of complexities, but it can allow you to go far indeed.

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