A company’s governance and structure determine how it organises its human capital to deliver value. The common view is that flatter organisations that distribute decision-making to lower levels have an advantage in global markets. Yet, global best practices must often consider indigenous factors that affect the effectiveness of governance and structure.
- Large and diversified family-dominated corporations are commonplace in major emerging markets, such as South Korean chaebol and infrastructure conglomerates found in Indonesia and the Philippines.
- Although one quarter of the companies surveyed in PwC's Family Business Survey will change hands within the next five years, half of these are expected to remain in family hands, but almost half of them have no succession plan.
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![Highlight: The lack of internal bureaucracy and smaller strategy teams allows [CEOs in family owned businesses] . . . to be both fast and flexible in leading their organisations.](/en_GX/gx/emerging-markets-strategies/assets/govt_structure_quote.gif) |