How family-run global market leaders manage their companies

Many of the world's leading companies come from the German SME sector and have been in family hands for generations. Their corporate governance differs significantly from that of non-family-run listed stock corporations: decision-making processes are more long-term oriented and owner families are often directly involved in strategic management. But how do these companies organize their governance structures? What mechanisms have proven successful and how do they respond to issues such as digitalization, sustainability and succession planning?

In the second edition of the study “Learning from the best: Corporate governance of family-run global market leaders”, KPMG and Esslingen University of Applied Sciences have examined the corporate governance of family-run global market leaders. Based on qualitative interviews with 29 supervisory board chairmen, main shareholders, CEOs and CFOs, it offers insights into proven structures, decision-making processes and strategic decisions. Key questions on corporate governance are answered:

• Which supervisory structures have proven their worth?
  Family businesses are increasingly relying on professional governance mechanisms. Many combine family influence with external expertise in order to reconcile stability and innovation.
  
  
• How are the decision-making processes organized?
  The majority of companies use voluntary supervisory bodies, even if they are not required by law. These bodies are increasingly taking on strategic tasks and ensuring that important decisions are made on a sound basis.
  
  
• What role do ESG and digital transformation play?
  Sustainability and digitalization are becoming increasingly important. AI, cyber security and ESG strategies are being specifically integrated into corporate management to ensure long-term competitiveness.
  
  
• How do companies deal with succession planning?
  Handing over corporate responsibility to the next generation remains a key issue. Successful global market leaders rely on strategically well thought-out solutions to ensure continuity and stability.

The high level of participation in the survey makes it clear that corporate governance plays a central role for family-run global market leaders. The study shows that many companies critically reflect on their own structures and actively seek opportunities for further development. It is clear that they are living up to their own claim of setting a good example in many areas. The conscious examination of governance issues underlines their ambition to combine long-term stability with entrepreneurial agility and to put future-oriented decisions on a solid footing.

The results of the survey clearly show that governance structures at family-run global market leaders are becoming increasingly professionalized. The combination of entrepreneurial tradition with external know-how, strategic foresight and targeted investments in digitalization and ESG strengthens their resilience and competitiveness. Download the full study and get detailed insights.