Activists

Yesterday’s FT report on the dialogue between PepsiCo and Elliott reminded the world that activism, when practised with discipline and respect, can restore clarity to institutions that have drifted from their purpose. Faced with mounting complexity and eroding margins, PepsiCo agreed to simplify its architecture, rethink its product universe, and refresh its board. None of this was an act of surrender. It was a recognition that an external voice had seen what internal governance had tolerated for too long. Elliott acted not as an adversary, but as a catalyst for renewal.

Families in business often live the same story, but behind closed doors. Shareholders have a voice. Minority as much as majority. And when this voice is dismissed, the family drifts into a form of quiet disorder. In this more intimate arena, the activist is not an outsider. It is the daughter who questions the lack of direction, the cousin who sees early fractures in governance, or the sibling who refuses to accept silence as a substitute for harmony. These figures do not seek disruption. They seek coherence. They ask the family to face the questions it postponed, just as Elliott required PepsiCo to face its own.

The FT example reveals a deeper truth. Institutions rarely collapse because of a single mistake. They weaken through accumulated avoidance. Complexity grows unchecked. Decisions lose their discipline. Confidence replaces inquiry. In such moments, an activist functions as a mirror. It reflects the gap between purpose and behaviour, between aspiration and reality. For PepsiCo, that mirror came from outside. In family enterprises, the mirror often sits at the table, unheard until the cost of silence becomes greater than the discomfort of truth.

A mature family understands that respectful activism is not a threat but an instrument of resilience. It injects urgency without aggression. It protects the enterprise by insisting that vision remains sharp, strategy remains coherent and leadership remains accountable. It transforms dissent into a civilised form of loyalty. It preserves the principle that every shareholder, regardless of stake, contributes to the legitimacy of the collective.

The deeper insight is this. An activist, whether internal or external, is simply the mirror the system refused to face. The healthiest families do not wait for that mirror to arrive from outside. They cultivate a culture where questions are welcomed, where concerns are voiced before they accumulate, and where challenge is treated as a sign of commitment. Renewal is strongest when it begins inside the house. The family that listens, genuinely and without fear, is the family that lasts.

W.