Navigating Future Family Businesses
Insights from CITI Private Bank and the Cambridge Institute for Family Enterprise
In an era defined by digital transformation, globalization, and a growing emphasis on sustainability, family businesses find themselves at a critical juncture. Premier Family Business Consulting is excited to share key insights from the recently published white paper, "The Future of Family Enterprise," a collaborative effort between CITI Private Bank and the Cambridge Institute for Family Enterprise.
Reorient and Retool Your Owners
Ensuring owners are well-equipped for today's fast-changing, hyperconnected world is paramount for family enterprise success. The paper recommends:
1
Take Ownership Seriously
Families must responsibly prepare owner talent across generations through dedicated talent development programs.
2
Build a Team of Active Owners
Cultivate a team of Active Owners with an Owner Mindset, focusing on value creation and multigenerational success.
3
Collaborate More, Control Less
Flexibility in ownership control and structure, coupled with strategic partnerships, allows families to access knowledge, capital, and new opportunities.
Get Ready to Pivot
The ability to pivot in response to threats and opportunities is crucial for success. The paper advises:
1
Gain Altitude
Formalize processes to monitor signals of change and construct a future-oriented view, minimizing risks and maximizing opportunities.
2
Experiment
Embrace experimentation with new ideas, business models, and value-creation methods to learn from intelligent failures.
3
Build Agility
Foster organizational agility to adapt to changing landscapes, possibly transitioning from autocratic to transformational leadership.
Accelerate Your Digital Transformation
To thrive in the digital age, family enterprises must:
1
Elevate Digitalization
Owners play a pivotal role in championing digital transformation, removing roadblocks, and overcoming resistance within the family and employees.
2
Develop a Digital-Transformation Roadmap
High-level ownership and strategic assessments guide both incremental and radical innovations.
3
Manage Cybersecurity Risks
Address the increasing cyber risks by implementing comprehensive plans and policies across the family enterprise.
Make Social Impact a Priority
The paper emphasizes the importance of holistic social impact strategies, suggesting:
1
Strategic Approach
Take a holistic approach to social impact across the family enterprise, aligning with a shared sense of mission and values.
2
ESG in Operating Companies
Embed sustainable practices in operating companies, engaging with initiatives like the Family Business for Sustainable Development.
3
Join Impact Investing
Contribute to sustainable investing to address societal problems important to the family and engage multiple generations.
Engage and Revitalize Your Family
1
Embrace Family Diversity
Leverage the diversity within families, embracing different talents, perspectives, and experiences.
2
Engage Rising Generations
Develop young family members early, ensuring a continuous talent pipeline for the enterprise.
3
Strengthen Family Governance
Establish strong family governance through constitutions, strategic plans, and family councils to support overall success.
