Future-Centric legacies drive success for global family businesses: KPMG report

TDT | Manama     

The Daily Tribune – www.newsofbahrain.com

The Global Family Business report by KPMG Private Enterprise and the STEP Project Global Consortium reveals that successful business families often adopt a future-focused view of legacy, binding generations together by balancing tradition with innovation.

Launched at the Global Family Business Summit, “The pathway to good: Sustaining family business legacy for wellbeing”, the report highlights how many families overcome the ‘legacy paradox’—where legacy can either inspire or impede innovation.

The report combines personal insights from top family business leaders with data from 2,683 family businesses across 80 countries, showing that 45% of businesses with strong legacies also report strong performance.

Furthermore, 53% of these businesses achieve high sustainability scores, indicating that a dynamic legacy incorporating both tradition and innovation contributes significantly to long-term success.

The report brings together personal insights from the experiences of top family business leaders combined with data on the impact of family legacies on their business performance gathered from 2,683 family businesses across 80 countries, territories, and regions.

The survey data, which uses both qualitative and quantitative research, revealed that of the 45 percent that reported strong legacies, the same cohort also reported strong business performance, and an even higher 53 percent reported high sustainability scores — a powerful combination for the success of the business and the family today and for generations to come, and a reminder that legacy alone may be insufficient.

Andrea Calabrò, Academic Director of the STEP Project Global Consortium, emphasizes that legacy not only connects generations but also shapes the long-term vision and strategic choices of family businesses.

Robyn Langsford, Global Leader at KPMG Private Enterprise Family Business, notes that generational differences can enrich a family’s legacy by incorporating diverse perspectives.

Harish Gopinath, Head of KPMG Enterprises for the MESAC region, adds that engaging with future generations is crucial for family businesses to navigate emerging risks and digital transformation effectively.