03 Nov 2015
Most Asian family businesses see talent recruitment and development as the main challenge to securing long-term success, according to a new survey out yesterday. It found that such companies are hiring professional managers from outside the family to secure skills in financial management, regional expansion and human resources.
"These professionals hold the specialist skills that business families require for a more resilient and sustainable business in these uncertain times," said Mr Eric Tham, head of commercial banking at United Overseas Bank (UOB), which conducted the survey with Singapore Management University's Business Families Institute (BFI@SMU). He added that the professional managers also help to nurture and prepare the next generation of family members to take over the business through "knowledge transfer, coaching and mentoring".
The survey found that 38 per cent of the respondents said there is a need to establish professional recruitment and management systems within the business. In particular, the report noted that business families in China are most focused on setting up "modern management systems", which include developing effective succession plans, investing in technology and staff training.The survey, conducted between last November and July this year, polled 192 business families in China, Indonesia, Malaysia, Myanmar, the Philippines, Singapore and Thailand.
It also found that Asian business families have conservative risk appetites even though their "ambitions are big" , favouring stable returns over riskier growth options Singaporean business families