Family Business Successors Typically Change Strategy and Governance

Next generation leaders of family business are increasingly bringing change to their organisation, in many cases departing from former strategies, governance structures and leadership styles. The new leaders are likely to take more risks, seek to expand into new markets and ramp up innovation to bolster their offerings. Future leaders of family businesses state that they will bring in a new style of leadership than that of their predecessors. 52% probably will have a different leadership style than their predecessors, while 38% of them will probably run the business differently. Only 9% say that they will probably or definitely not change their leadership style. Since many of the previous generation will continue to have a hand in the business – in their own style – this may well create some tension. The respondents are also likely to change the company strategy when they take its reigns. 25% say it is very likely that, once they have all the facts, they will bring in new strategies, while around 30% say they are likely to do so. Reasons for a change in governance, according to the report, include bringing in outside skills.

filed under: Uncategorised

0 thoughts on “Family Business Successors Typically Change Strategy and Governance”

Comments are closed.