September 12 was a double celebration for SMU’s Business Families Institute (BFI@SMU) – not only was the Institute, led by its Academic Director, Associate Professor Annie Koh, celebrating two years of establishment, it also received a new research grant from Deloitte Southeast Asia (Deloitte), which will enable a Business Family Research Programme over three years beginning Academic Year 2014.

This was the second grant from Deloitte to BFI; the first had made possible the launch of an inaugural research survey report on “Asian Business Families Succession – Going the Distance with the Next Generation” last November.  With the new funding, the BFI team is set to kick-start its new research with a study among business families in Asia on the best practices in Business Family Governance.  The study will cover family governance strategies, platforms and structures.

[Photo: The first grant from Deloitte facilitated BFI@SMU’s survey on “Asian Business Families Succession – Going the Distance with the Next Generation” in November 2013.]

Indeed, with some 70 per cent of the businesses in this region being family-owned, the study of family businesses in Asia has been attracting growing interest from academia, professional services firms and the wealth management industry.

Commenting on BFI’s achievements since its launch two years ago, SMU President, Professor De Meyer said that he was very pleased that the Institute has stayed focused on its mission and philosophy of working with business families, for business families.  “It has, in a relatively short span of two years, developed a high quality network of supporters among business families in the region through their outreach, education programmes and research projects,” said Professor De Meyer.

[Photo: SMU President at the 2^nd anniversary of BFI@SMU]

In expressing her gratitude to BFI’s supporters, Associate Professor Annie Koh, who is also SMU’s Vice President, Business Development and External Relations, said, “BFI is very grateful to our Founding and Alliance Families, who have, from the beginning, believed in the immense value that such an Institute can bring to business families in the region and beyond.  They have been generous in sharing their stories and knowledge with us so that more business families can benefit.”

Privileged that BFI has found like-minded Knowledge and Research Partners such as Deloitte, she added, “This second research grant is certainly testimony of the confidence that Deloitte places in our Institute.”

Said Mr Tam Chee Chong, Deloitte Southeast Asia’s Regional Managing Partner of Financial Advisory Services, “Business families has been a core practice area for Deloitte and make up the majority of our clients… we believe that right values and strong governance together with effective succession planning will enable business families to preserve their wealth so that a legacy that is lasting, impactful and inspirational can be passed on to future generations.  Our partnership with BFI is one small step towards this objective.”

[Photo: Mr Tan Chee Chong from Deloitte speaking at BFI’s 2^nd anniversary event.]

BFI was set up in September 2012 to be an educational, engagement and research platform to bring together business families in Asia.  In the last two years, it has organised numerous workshops, masterclasses and Knowledge Series seminars for its members, covering a diverse range of topics including leadership, succession, trans-generational enterprising families, family governance, current investment trends, philanthropy etc.

The Institute also brought its member families on a Learning Journey to Myanmar in June last year to meet family businesses there.  These Learning Journey trips enable families to expand their network, exchange their experiences and ideas, and learn from each other.  The families are bound for Japan this November.  Going forward, BFI@SMU also intends to place greater emphasis on the next generation, who are the future stewards of Asian family businesses.

At the event, Associate Professor Koh moderated two discussion panels comprising current generation and next generation family business members.  The audience was treated to insightful stories and candid comments of how they were introduced into their respective family businesses, how they learnt the ropes, and their aspirations going forward.

[Photo: Associate Professor Koh moderating the discussion panels with current generation (right) and next generation (left) family business members.]

On ensuring the sustainability of family businesses, second-generation leader Ho Ren Hua, who is the eldest son of Banyan Tree Holdings' Executive Chairman and SMU Chairman Ho Kwon Ping, said “It’s about finding the heart and soul of the business… Functions can be outsourced, be it finance, marketing, strategy etc.  If you can grasp the heart and soul of the business, and figure out what you think will keep the business alive over the next 10 or 20 years, if that resonates with you, it should give you the passion.”

You can read more about the panel discussions here.