It’s never easy to run a family business for more than a century and through five generations, never mind to expand its reach to more than 80 countries worldwide.
From modest beginnings at a mill in Kilkenny, Connolly’s Red Mills is now one of the largest exporters out of the southeast, offering animal feeds, supplements and care solutions to markets all over the world and employing about 400 people.
After training to become a priest and a brief stint as a journalist Michael Connolly is now global strategy and business development director with the family business, leading European, Middle Eastern and APAC (Asia-Pacific) operations from his base in Dubai.
He says his theological education and characteristically Irish approach to business has helped to build strong relationships in the Middle East, and one that can be replicated by other Irish companies looking to break into new markets.
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Connolly recalls being involved in the family business from a young age, growing up as one of nine children on the family farm in Kilkenny. However, when it came to college time, he spent five years at St Patrick’s Pontifical University in Maynooth training to be a priest, before switching the direction of his early career to journalism with a job at the Kilkenny People.
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But by his mid-20s, he “fell into the family business, which was never the plan”, as his father offered him the opportunity to spearhead the exploration of export markets.
“Before long I found myself living in Germany and learning German. It was very much ‘you have an education, go over there, learn German and see how you get on’. it was the deep end of the swimming pool but wonderful experience,” he said.
Through decades of trail and error, Connolly has helped to expand the family business across Europe and beyond to Asia and the Middle East, with exports of the company’s equine products such as horse feed now accounting for about 70 per cent of the entire business.
“Really, it was pioneering work, and it was a tremendous privilege. I was lucky that I had the opportunity provided by my father and my brothers and the rest of the management team to be able to drive on and lose money until we could make money in markets as far away as Japan,” he said.
Understanding and acknowledging cultural differences has been key to success in the Middle East in particular, he says, and being an ex-clerical student with knowledge of philosophy and anthropology was “very helpful”.
“You would sit in people’s houses, lounge, eat with your hands and sit on the ground for long periods, and discuss everything. All other things being equal, the establishment of relationships with the right people and knowing how to find out how to access the right people was absolutely essential. I don’t think anybody can really succeed in the Middle East without establishing those strong relationships,” he said.
Being Irish was also an advantage in forging international business relationships, he adds.
“Irish people and Irish businesses have an uncanny ability to be able to work across cultures, and be able to make friends wherever they go,” he said.
Connolly acknowledges that there has been a lot in the media regarding Irish companies that engage with the Middle East, given concerns about human rights issues, but says that they are “there to do business, not to judge any culture”.
“We don’t have to collude with people or agree with people, we’re just there to do business. And Ireland benefits from those exports hugely,” he said, noting that there are huge differences in historical philosophical cultures between the West and the Middle East.
“If you understand that, perhaps you might be less judgmental as to how they see the world view. While we can make sure we have ethical standards ourselves, I think we have to spin the positive on it because it’s not really our place; we’re guests in the UAE,” he said.
Connolly stresses that expansion of the family business over decades is not just down to him, but a network of Connolly family members and generations of loyal staff. From his parents, Liam and Ann, to his brothers, Joe, Bill and John, and now the fifth generation of Connollys who have taken up the reins – Gareth, John, Paul and William.
The key to success in their family business, he says, has been transparency and fairness, and playing to people’s strengths.
“I think it starts with managing the expectations of siblings, which my dad did very well. Everybody knew their place in the family and knew long before he ever passed on about shareholdings and so on. There is tremendous fairness in the family, where everybody is looked after, but we always prioritise the business as the golden goose,” he said.
“And allowing people to work to their talents,” he added, mentioning the next generation of Connollys who have taken over leadership of the company.
“It’s wonderful to see how they are approaching problems and challenges like digitalisation which is fantastic. They have a vision [and are] seeing what way the country goes, but the old uncle will still turn around and say don’t forget the customer and don’t forget human beings. We need those in the relationship too. It’s about balancing that,” he said.
Connolly also credited the great support of bodies like Enterprise Ireland and the Arab Irish Chamber of Commerce. He is due to speak about his experiences and insights on doing business in Arab states at the upcoming Arab-Irish Business Forum in Dublin’s Mansion House on Wednesday, September 13th.
