Welcome to our quarterly update sharing our latest insights, ideas and events tailored for owners of family businesses.
In such challenging times, with supply chains in flux and the cost-of-living crisis driving consumer spending down, family businesses have a unique set of strengths to help them not only weather the storm but to outpace it. From the ability to stay ahead of competitors to the regenerative power of multi-generational leadership models, family businesses have the tools to succeed even in the most challenging of economic circumstances.
Our latest 2022 Global Family Business Report lifts the lid on those strengths and shares the secrets behind how successful family businesses behind stay ahead of competitors, create staying power and become regenerative powerhouses. The report also explores performance profiles and how they impact business, social and family performance and how this influences which leadership style is needed in a post-COVID-19 world.
A comprehensive ESG strategy that the whole business is behind is one such core strength. Family businesses know doing good for business and good for the world are not mutually exclusive. Operating in a socially responsible way generates value for the environment, creates jobs, contributes to community prosperity and delivers long-term value to the family as well as the business.
Another strength also lies within the challenge itself – how to transition leadership from generation to generation. How to equip the next generation for work has always been a difficult balance for family businesses but, when done right, offers a support framework and experienced leader like no other business could produce. There are new ways to support this transition – ‘pre-tirement’ could just be the strategy both NextGen and Now Gen need.
We are also proud to present the new Family Business Leadership Academy with its flagship programme designed in partnership with the University of Leeds to help NextGen family business leaders get the tools to succeed.
If you have any questions or comments regarding any of the topics in this newsletter, or other matters you would like to discuss, please get in touch at KPMG Family Business.
In this edition:
- 2022 Global Family Business Report
- What is your family business performance profile?
- Leadership as a performance factor
- Good for business, good for the world
- Better together: profitability and responsibility
- Could ‘pre-retirement help family businesses with the talent crisis?
- The next generation of work
Global Family Business Report reveals the secret power of family businesses
How do family businesses keep their founders’ entrepreneurial spirit alive from generation to generation?
The 2022 Global Family Business Report, created in partnership with STEP Project Global Consortium, reveals the answers through responses from over 2,400 people across 70 countries. The report shares their secrets on staying ahead of competitors, creating staying power and how to become regenerative powerhouses that not only flourish in good times but also manage to respond positively to change during times of disruption.
Introducing the Family Business Leadership Academy
What makes a family business successful today? Managing issues like sustainability, ESG, diversity & inclusion all while balancing family governance and succession planning challenges can be a lot for leadership to navigate.
The Family Business Leadership Academy, designed in partnership with University of Leeds Nexus Business School, is a 30-week programme that will empower the next generation of leaders to lead their family business into the future. Check out the brochure here.
What is your family business performance profile?
Thanks to the experiences and insights contributed by family business leaders, academics and professional advisers, we have developed four family business performance profiles: “Entrepreneurial families”, “Business-first families”, “Family-first businesses” and “Underperforming businesses”.
Each profile illustrates the impact that different levels of entrepreneurialism and socioemotional wealth have on firms’ business, social and family performance
Leadership as a performance factor
Leadership style is a factor that often impacts performance. No leader has only one style, and it often changes (as it should) with the economic and social circumstances of the time. It not only needs to be “fit for purpose”, but also fit for the time and circumstances.
In a post-COVID-19 world, it’s becoming clear that in order to fuel the regenerative power of family businesses, charismatic and transformational styles of leadership are needed alongside a diverse and inclusive C-Suite.
Good for business, good for the world
Social responsibility is not new to family businesses. However, issues related to sustainability, climate risk, poverty and uncertainty in many parts of the world are rising in importance. Leaders are turning their attention to ‘people, planet and profit’ goals to generate value for the environment, create jobs, contribute to community prosperity and deliver long-term value to the family as well as the business.
Many family business leaders are looking for new ways to progress their social and environmental agendas – we interviewed three, very different, champions of social responsibility who shared their perspectives.
Better together: profitability and responsibility
The increased global attention on ESG and recent geopolitical activity is accelerating the need for governments, companies and people alike to step up and tackle major world issues that are fundamental to social sustainability, organizational success and prosperity.
The impact of the pandemic highlighted something that family businesses have known for decades: that operating in a socially responsible way does, in fact, generate value for the environment, create jobs, contribute to community prosperity and deliver long-term value to the family as well as the business.
Could ‘pre-tirement’ help family businesses with the talent crisis?
There is one common challenge almost all family businesses are wrestling with at the moment: the talent crisis. Covid accelerated and magnified problems with skills shortages, technologically-driven change, flexible working and new employee experience expectations
This talent drain can pose acute challenges. But perhaps we should turn this challenge into an opportunity – and think about new models and approaches instead?
The next generation of work
Family businesses are role models for the future of work as they are often the preferred choice for many high-performing employees on the job hunt. The strength of the families’ values, social purpose, persistent entrepreneurial drive and environmental stewardship are characteristics that have long proven to be competitive differentiators. And empowering next-generation family members and employees to help shape the future adds even more strength to that advantage.
The success of every family business is founded on its own unique characteristics, but there are many lessons and practices for every business to take away in building the workplace of the future.