Professor Annie Koh shared some of BFI@SMU's findings in the area of leadership succession planning.
Firstly, she notes that countries in Asia are at different stages of growth when it comes to business families. For such firms in the more mature markets of Japan, India and the Philippines, there is a clear desire for the family to be responsible owners and stewards. Therefore, the larger family enterprises and conglomerates in these markets are increasingly appointing non-family professionals to lead the business.
Whereas in many of Asean's fast-growing and emerging markets, as well as China, family enterprises are usually in their first and second generations. These firms are leveraging technology to grow rapidly, and have tasked their next generation leaders to start new ventures to enhance their traditional businesses.
According to Prof Koh, some 85 per cent of Singapore family firms surveyed in a BFI study conducted three years ago, said they are expecting to undertake succession planning in the next five years or sooner. Families, Prof Koh commented, are growing their talent pipeline and developing the entrepreneurial capabilities of their next generation of leaders to successfully transfer the business.
The full article appended.