In this episode of The Family Business Voice, Tom McGinness and Andrea Calabró discuss the findings from KPMG Private Enterprise and the STEP Project Global Consortium’s Annual Report, which surveyed 2,439 CEOs and other leaders from top family businesses across 70 countries and territories. Using this extensive data set, the report outlines three success factors that underpin multigenerational family success around the world.
Tom McGinness is the Global Leader of Family Business for KPMG Private Enterprise and an Experienced Senior Partner at KPMG.
Andrea Calabró is the Global Academic Director, STEP Project Global Consortium.
– The entrepreneurial orientation of upcoming leaders — a quality that allows them to take calculated risks that benefit the growth and innovation of the business — is a learned behaviour that can be developed by letting next-gens use small amounts of family capital to explore their entrepreneurial instincts from a young age.
– Unlike their non-family peers, family enterprises also measure their success through their socio-emotional wealth. This factor, which speaks to the intangible assets, including relationships, that an organisation holds, enables better decision-making and holistic, long-term strategising.
– With such strong ties to the organisation, family business members tend to exhibit motivational and transformational styles of leadership, which, coupled with their entrepreneurial orientation and emphasis on socio-emotional wealth, can contribute to better performance.
Read KPMG Private Enterprise and STEP Project Global Consortium’s Annual Report “The Regenerative Power of Family Businesses” here.