Deloitte Private has officially published the results from a survey of family enterprise leaders, a survey where it was revealed that increasing the use of AI (42%) and technology investments (37%) are among the biggest strategic priorities over the next year.
Going by the available details, as for operational priorities, they largely include increasing profitability through cost improvement (49%), increasing productivity (48%), and mitigating risk (48%).
More on the given exercise would reveal how, named as Private Company Outlook: Family Enterprise, this particular survey took into account the opinion of more than 100 family enterprise leaders, studying their priorities around board governance, succession planning, and tech adoption over the next 12 months.
Talk about the published results on a slightly deeper level, we begin from how an increasing number of boards were found to target AI and tech expertise. In fact, two-thirds (66%) of them are either already have or are in the process of appointing board members with technology and emerging technology expertise.
On the flipside, respondents also took this opportunity to share main barriers to bringing these board members with tech experience. The stated barriers were difficulty finding suitable candidates (46%) and the limited understanding of emerging technologies among current board members (42%).
Almost like an extension of it, the surveyed organizations also revealed significant challenges when it came to preparing the next generation for leadership. This happens to be the case because of the fact that, even though, 49% of leaders report feeling well or very well prepared for leadership succession, a significant number face continue to face roadblocks.
Some of the reasons provided by the latter contingent included a lack of next generation interest (37%), unclear selection criteria (31%), and leadership skill gaps (31%).
As for top methods used to position next generation leaders for success, the most evident ones were deemed to be formal education (52%), on-the-job training (48%), and mentorship (45%).
Hold on, we still have a couple of bits left to unpack, considering we haven’t yet touched upon how smaller family businesses are planning more M&A moves. The stated conclusion was reached upon after over half of all respondents said their organization plans on using M&A strategies to strengthen supply chains (51%) and expand market share (48%).
Beyond that, an estimated 60% were found to be considering public markets as a funding route.
The survey in question also found that family enterprises with annual revenues from $100 million-$500 million were more likely to use M&A to strengthen their supply chain (57%), as compared to those with $500 million or above in revenue (43%).
Rounding up highlights would be a contingent of those organizations seeking structure in the face of burgeoning governance. You see, a majority of family enterprises have already formalized their governance through structures like family councils (73%) and governance frameworks (83%), reinforcing commitment to aligning business and family interests.
Among other things, it ought to be acknowledged that the surveyed respondents included C-level, president, board member, and partner/owner roles at family-owned companies in the US with annual revenues of $100 million to $1 billion+.
“Family enterprises are navigating a pivotal moment – balancing the need to prepare the next generation of leaders with the imperative to invest in transformative technologies to keep their organizations competitive now and in the future,” said Laura Pearson, US Family Enterprise Leader at Deloitte Private. “We’re seeing families move beyond informal decision-making to adopt clear governance frameworks that align family values with business goals, make bold investments in technology, and seek board directors with AI fluency and sector-specific expertise. These efforts can enhance generational insights and help ensure the business is equipped for innovation and long-term growth.”
