The question seems simple: How Can Family Firms Ensure Long-Term Value Creation?
But as a new report – based on interviews 123 Asia-based family firms and 14 private equity professionals – shows, the answer may be more complicated.
The report is titled “The Institutionalization of Family Firms,” and it covers a significant driver of the global economy. As the study notes: “As family firms account for 70% of GDP in the global economy and 60% of global employment, the importance of long-term value creation extends beyond individual families – it is among the main drivers of economic growth and business innovation, as well as livelihoods.”
To understand the study – and the lessons it reveals – I spoke with the lead author, Claudia Zeisberger. Zeisberger is the Senior Affiliate Professor of Decision Sciences and Entrepreneurship & Family Enterprise at INSEAD, as well as Founder and Academic Director of the school’s private equity center. She is also co-author of the two recently published books: Mastering Private Equity & the accompanying case studies Private Equity in Action.
Among the topics we discussed: the so-called “Proficiency Gap” around Corporate Governance & Leadership; Access to Capital; Organizational Design; and Growth Capabilities. We also discussed the role private equity can play in helping institutionalize a family firm and unlock value.