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Fresh Perspectives

The survey did reveal different perspectives on the issue of control. Current business leaders (23 percent) were less inclined to think that the patriarch or matriarch are the ultimate decision-makers, compared to 42 percent of the next generation in line for ownership of the business. The difference in perception could be due to the level of involvement in the family business.

«Given that many of the young people are digital natives, perhaps it is time for the older generation to review their decision-making and governance frameworks and start involving younger family members who may bring fresh perspectives. This is also an opportunity for the older generation to coach and train – an important step to better prepare them for a smooth succession,» said Tan during the briefing.

Technology-led Changes Had Positive Impact

In general, family businesses felt that technology-led changes have been positive. Two-thirds believed that advances have altered business operations and communications over the last decade. Disruption experienced in the last decade and expected ahead vary across sectors: financial services, industrial, and primary industries (mining, agriculture) were seen to be most disrupted whilst real estate and construction were seen to be least disrupted.

According to the survey results, three out of four next-generation leaders believe technology will support their family’s wealth succession. Their top priorities are investing in new technologies (53 percent) and professionalizing management (41 percent), believing technology will simplify processes by streamlining documentation, monitoring assets and optimizing decision-making through AI. 

Key highlights from the survey include: 

  • 9 in 10 of next-in-line business owners intend to retain ownership, but a majority want to restructure or make slight changes.
  • Given external technological shifts, decisions concerning the main family business continued to be made within the family -- by the patriarch or matriarch (36%), followed by the company board, or a selected few (34%). Interestingly, businesses with $1bn+ revenue were disinclined to entrust non-family executives with decision-making powers.
  • Over half (55%) of the next generation is ready for technological disruption in the family business, but a similar percentage also feel they lack experience.
  • A clear majority (75%) agreed that their business will be significantly transformed by technology, and an even larger majority (85%), who say the family business has already experienced changes, say the change is positive.
  • The impact of technological disruption varied across sectors, affecting financial services (92%) the most, and real estate and construction (43%) the least. One-fourth in real estate and construction say they have not experienced a significant change to how they functioned in the last 10 years.