Family Business Conference 2025
- Alan Barr and Creagh Sudding
- 2 days ago
- 4 min read
Navigating Change: Insights from the KPMG Family Business Conference
The 11th KPMG South Africa Family Business Conference recently held in Pretoria brought together family business and family office leaders and experts to explore the theme of "Managing Change and Transition". Through engaging panel discussions, attendees gained valuable insights into the complexities of multi-generational success, entrepreneurial leadership, the evolving role of family offices, and the value of independent governance. Here are the key takeaways from the conference:
Passing the Torch – A Roadmap for Responsible Ownership
The first panel featured insights from second, fourth, and fifth-generation family business leaders, each bringing a unique perspective on succession challenges and opportunities. The panellists emphasized the importance of -
• Keeping the family business relevant by seeking new opportunities while staying true to core values.
• Effective communication and alignment of values between the family and the business as crucial for maintaining family harmony.
• As the family business(es) evolve, the transition from control to stewardship becomes essential, with later generations embracing humility and understanding the legacy they inherit.
• Balancing reinvestment and dividends, with some families employing business assemblies and investment panels to guide these decisions.
Personal anecdotes were also shared about the challenges of maintaining family unity while pursuing business growth. The importance of regular family meetings and retreats was discussed as a means to foster communication and ensure that all family members are aligned with the business's strategic direction. The role of external advisors in facilitating these discussions was also highlighted, providing an objective perspective that can help mediate conflicts and guide decision-making.
From Heir to Leader – Igniting the Entrepreneurial Flame
In the second session, insights were shared by two family CEOs and a non-family CEO, offering diverse views on nurturing an entrepreneurial spirit across generations. The panellists discussed –
• Maintaining a culture of innovation while respecting the heritage and legacy of the
family business.
• Storytelling was emphasized as a powerful tool for driving growth and enhancing the
quality of life for employees and the community.
• The role of meritocracy in leadership transitions, ensuring that roles are earned rather
than inherited.
• Learning on the job and being part of decision-making processes from an early age
were identified as effective ways to prepare the next generation for leadership.
• The challenges of replicating the founder's passion while allowing new generations the
freedom to express their ideas and innovations.
The panellists also explored the importance of mentorship and education in cultivating entrepreneurial leaders. They shared examples of successful mentorship programs and educational initiatives that have helped bridge the gap between generations, ensuring that the next generation is equipped with the skills and knowledge needed to lead the business into the future. The role of external networks and partnerships in fostering innovation was also discussed, highlighting how collaboration with other businesses and organizations can bring fresh perspectives and drive growth.
Wealth, Wisdom, and Wellbeing – The Evolving Role of the Family Office
This discussion featured experienced family office executives and KPMG’s Global Head of Family Office, offering a comprehensive view of the dynamic landscape of family offices. The panellists discussed –
• The importance of flexible governance and a risk-based focus for the family office in
supporting the family.
• Effective communication and early involvement of the next generation were identified as
key factors in mitigating surprises and ensuring smooth transitions.
• The role of family office executives as conductors of important relationships and
networks was also highlighted, ensuring that the family office remains a supportive
ecosystem tailored to the family's unique needs.
• As family offices evolve, the need for separate governance structures becomes
apparent, especially as families grow into larger consortia.
• The family office serves as both an educational space for wealth management and a
safe place for family members to learn and even fail, provided appropriate education is
provided.
The discussion also delved into the role of technology in enhancing the operations of family offices. Insights were shared regarding how digital tools and platforms can streamline processes, improve communication, and provide real-time insights into financial performance. The importance of cybersecurity was emphasized, with the panellists discussing strategies for protecting sensitive family information.
A Balanced Perspective – The Value of Independent Governance Expertise
The final panel explored the crucial role of independent governance in family enterprises. Independent directors, trustees, and investment advisors bring a wealth of experience, objectivity, and specialized knowledge, offering balanced perspectives that are essential for sound decision-making. The panellists discussed –
• How independent role-players ensure alignment between family interests and business
objectives, fostering transparency, accountability, and long-term sustainability.
• The challenges of balancing family interests with fiduciary responsibilities, enhancing
governance structures, and facilitating smooth leadership transitions.
• The importance of adapting to changing dynamics and preparing for future governance
trends, emphasizing the skills and qualities necessary for success in this evolving
landscape.
The panellists shared examples of how independent governance has led to improved decision-making and strategic outcomes, reinforcing the value of bringing external perspectives into family enterprises. They also addressed the role of independent governance in managing family dynamics and mitigating conflicts. Strategies were shared for building trust and credibility with family members, ensuring that independent advisors are seen as valuable partners in the family and the business's success.
Concluding thoughts
The KPMG Family Business Conference provided a platform for family business leaders to share experiences and strategies for navigating change and transition. By fostering open dialogue and collaboration, the conference reinforced the importance of aligning family values with business goals to ensure long-term success and sustainability. The diverse generational perspectives and expert insights offered by the panellists enriched the discussions, highlighting the evolving challenges and opportunities faced by family businesses today.
As we reflect on the insights and strategies shared during the conference, we encourage family business and family office members to consider how these key takeaways can be applied to their own unique contexts.
Should you wish to discuss any of these topics further, please feel free to reach out to the KPMG Private Enterprise team.
For more information :
Creagh Sudding
Alan Barr
