J.P. Morgan Private Bank conducted the Asia Family Enterprise Study in 2014 that looked at how Asian family enterprises evolve across generations. The study provides insights for more systematic succession solutions as well as to offer guidance for selecting a family business successor and what leadership values make a strong fit.
Ivey Professor Gerard Seijts, Executive Director of Ivey’s Ian O. Ihnatowycz Institute for Leadership, wrote a section for J.P. Morgan’s study, sharing his insights on the importance of character in family enterprise leadership succession.
“The key to any succession-planning process, of course, is understanding that selecting someone to take over the helm of any organization isn’t just about knowledge, talent and experience,” said Seijts.
Seijts evaluates leadership effectiveness based on competencies, commitment and character.
He states that, “When any [of these traits] are deficient, the shortfall will undo the strengths of the other pillars and ultimately lead to problems for leaders, organizations and related stakeholders.”
The Asia Family Enterprise Study analyzes the overall struggle family-run businesses face in finding a balance between innovation and maintaining family values and traditions among generations. For Seijts, a strong sense of character among leaders and their successors is invaluable in finding and maintaining that balance.
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