Family business management in Southeast Asia

Family business in Southeast Asia

Many successful businesses were developed by a single family. Yet managing and transmitting a family business can sometimes lead to tensions and put the company at risk. This survey presents the specificity and challenges of the management and transmission of family businesses in Southeast Asia.

For a more comfortable reading, it is quite suggested to open the report in full screen!

Family businesses in Southeast Asia – summary

1. Introduction – page 2

2. Highlights – page 3

  • About this report – page 4
  • About the survay respondents – page 5

3. Report – page 5

  • Most business families in South-east Asia have already made preparations for leadership succession – page 5
  • Business families and investors place high value on succession strategies – page 6
  • Interview with Richard Eu, group chief executive, Eu Yan Sang: “Communication is the best medicine”  – page 7
  • Family councils are the most popular form of governance body – page 8
  • A legally binding contract is the favored way to address succession – page 8
  • Most business families convene at least once a year – page 9
  • One in five firms has yet to seek external advice on family governance – page 10
  • Ousting family members and disagreements on strategy are sources of stress – page 11
  • Interview with Jacob Cabochan, operations manager, Pandayan Bookstore: “Enshrining a constitution”  – page 12
  • Most businesses do not have procedures in place to allow for the exclusion of family members from exclusion of family members from management – page 13
  • Family members prefer to occupy the C-suite – page 13
  • Interview with Ho Ren Hua, assistant vice president and China country head, Banyan Tree Holdings: “Evolution, not substitution”  – page 15
  • Being the most capable business leader does not necessarily mean being a son or even a family member – page 16
  • Ownership structures in 5 & 10 years – page 17

4. Conclusion – page 18

Appendix: Survey results – page 19

Presentation published by the Economist Intelligence Unit in November 2014 on Slideshare.

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