Insights series

Investing for generations: Patient capital, agile governance, and a broader mission

This article distils insights from a conversation with Dr. Ghassan Al Sulaiman, a third‑generation family business leader and the founder of his own diversified group in Saudi Arabia. Conducted as we prepared this year’s PwC’s 12th Global Family Business Survey, the discussion explores the themes at the heart of the data: putting long‑term capital to work, building agility through governance, harnessing the family office, preparing the next generation, and activating a broader mission that strengthens reputation and trust. Against a backdrop in which only one in four family businesses achieved double‑digit growth over the past year, the perspective is both pragmatic and forward‑looking. Resilience is necessary—but on its own, it’s not sufficient.

Why patient capital wins now

Family businesses are defined by a longer investment horizon. In the data, 85% fund innovation by reinvesting profits, and three‑quarters lean toward a long‑term or balanced view when weighing near‑term results against future goals. Dr. Al Sulaiman’s experience underscores how that orientation becomes an advantage when opportunities require time, conviction, and tolerance for delayed returns.

He compares boardroom decisions in a publicly listed company—where a promising opportunity was declined because the payback was too distant—with his family enterprise, which later pursued a similar investment precisely because it required patience. The same logic guided a bold move into Saudi Arabia’s modernising convenience store sector. The thesis was clear: it would take time, capability build‑up, and capital discipline. “Although our analysis did show that it was going to be a long‑term return on that investment, we were much more comfortable in proceeding,” he says. It is a textbook example of how family capital can back sectoral shifts that listed peers often cannot due to focus on quarterly performance.

The survey’s “long bets, early wins” pattern aligns with this approach. Public family firms report stronger near‑term revenue and profitability gains from emerging areas, such as GenAI and climate initiatives, precisely because patient capital allows them to invest ahead of the curve. The broader lesson is to systematically build a portfolio of long‑horizon bets—anchored in core strengths and adjacencies—while accepting near‑term variability to unlock durable growth.

Agility is a design choice

A persistent myth is that family businesses are slow to adapt. The survey suggests otherwise: almost half describe themselves as agile or very agile, and those that do are more likely to post stronger performance, operate with centralised decision‑making, and prioritise long‑term goals while actively innovating. Dr Al Sulaiman’s view is nuanced: agility “depends on the governance structure.”

He speaks from two vantage points. In the legacy business founded by his grandfather, the governance is not as robust as it could be. Therefore, decision‑making is harder, and the organisation often doesn’t move at speed required. In the company he founded, the opposite holds: “We are extremely agile and we can reach decisions very, very quickly.” Governance is the differentiator. A majority independent board and active board committees enable rapid yet rigorous choices.

When COVID‑19 hit, the organisation “immediately convened the board,” intensified meeting cadence, and adjusted plans fast. The same tempo carried into M&A, where strategic opportunities were assessed quickly and tracked through milestones by board committees until a positive or negative conclusion. The takeaway: agility is not improvisation. It is enabled by design—clear authority, prepared boards, and processes that support fast, high‑quality decisions.

Evolving governance for speed and continuity

The governance journey in Dr Al Sulaiman’s company, in our experience, maps closely to best practice. For the first 15 years, he made the key decisions as founder while being supported by family shareholders. Then, the business deliberately institutionalised governance.

• Phase 1: A family board—composed entirely of shareholders—created a forum for debate.
• Phase 2: Over time, the board was reconstituted with a majority of independent directors, bringing in global expertise and subject‑matter depth. “We can get expertise from all over the world,” he notes. Family members are now a minority on the board.

That shift changed outcomes and mindsets. Some decisions passed that he did not support at the time; with hindsight, some proved right, some less so. But the process was respected. “If you do not respect the governance that you put in place, you’re undermining the potential of continuity in the family business.”

A family constitution reinforces this intent. It sets board‑composition guardrails—a slight majority of independents (for example, four out of seven or five out of nine)—with the flexibility to adapt by super‑majority if circumstances change. In the data, only 30% of family businesses have a constitution and only 9% have diverse boards. The signal is clear: codified governance and independent oversight are not formalities; they are performance enablers.

Using the family office as a growth lab—and a stabiliser

Many families establish investment offices to manage financial assets. Dr. Al Sulaiman’s evolved into a family office with a broader mandate: manage financial investments and certain strategic, direct investments beyond the core focus of the operating group. The benefits are practical.

• Separation and focus: The operating company concentrates on agreed core sectors. The family office handles non‑core financial assets and selected strategic investments that sit adjacent to, but outside, the core.
• Experimentation with guardrails: Family members who are entrepreneurial can pursue ventures independently. The family office will co‑invest—but only as a later investor, after the market has validated the proposal. This avoids “first‑money bias” and sharpens discipline.
• Strategic option value: In some cases, an external venture that a family member backed becomes compelling enough for the operating group to acquire, effectively turning the family office into a VC‑style feeder for new growth platforms.

This structure introduces its own challenges. The family office has “two investment clients”—the business (collective) and individual shareholders—each with different timelines, risk appetites, and liquidity needs. There is also pressure to expand into non‑financial services for the family, which requires phasing and boundaries to avoid overreach. Still, when designed thoughtfully, the family office can extend the group’s strategic reach without burdening the core business. This approach echoes the document’s view that family offices can enable exploration of adjacent markets and emerging technologies.

Preparing the next generation: choice, capability, and cohesion

Continuity depends on people, not just structures. Dr. Al Sulaiman’s approach to next‑gen engagement blends high expectations with broad support.

• Outside experience first: “Nobody from the family can join the organisation unless they have at least three years' work experience somewhere else”—a threshold later raised to five years. This reduces bias, builds credibility, and widens perspectives. His youngest son, for example, will join after six years externally, via a structured path.
• Support individual passions: Not every shareholder wants to work in the family business. The family supports those who wish to pursue other careers—including entrepreneurship—via co‑investment (again, as a follower, not a lead investor). This strengthens cohesion among shareholders by respecting personal interests while maintaining financial discipline.
• Develop talent deliberately: The family is thinking ahead about how to grow the shareholder base and invest in development, so there is a genuine pool of capable family candidates for governance roles.

The survey shows that later‑generation firms prioritise leadership development and digital transformation to sustain growth. Dr. Al Sulaiman’s model adds an important human layer: align opportunities with individual ambition, and insist on capability and experience as the entry ticket to management and governance. Agility then becomes sustainable across generations.

Reputation and a broader mission

In our family business survey, we defined reputation, as both a shield and a lever for growth. Companies that rated it as “very important” were more likely to grow, and they also tend to operate with clearer purpose and stronger governance. Dr. Al Sulaiman frames reputation through a multi‑stakeholder lens.

“We adhere strongly to the concept that we have many stakeholders,” he says. “Our role is not only to maximise value for the shareholders, but we have to also create value for our other stakeholders.” Employees, suppliers, and communities are core to this view. The group believes in impact investment, CSR, and having a nonprofit arm that positively impacts the community. This conviction is rooted in the family’s name, its community ties, and its long‑term presence as owners. In his words, this is where family firms often excel compared to non‑family businesses

Dr Al Sulaiman’s playbook

Patient capital sits at the centre. He distinguishes the constraints of listed-company decision making from the freedom a family enterprise has to back long-horizon bets.

Agility is designed, not improvised. In the company he founded, a majority‑independent board and active committees enable speed with discipline. Respecting the process is also non‑negotiable, even when decisions go against his initial view.

A family constitution codifies continuity. It sets a slight majority for independent directors with flexibility to adapt by super‑majority as the family evolves—keeping oversight strong while ensuring family representation.

The family office extends the strategy. Originally focused on financial assets, it now manages selected strategic investments beyond the core. Separation preserves focus.

Next‑gen preparation is intentional. Outside work experience—raised from three to five years—is required before joining, building credibility and perspective.

Reputation is anchored in a broader mission. He emphasises creating value for multiple stakeholders—employees, suppliers, and communities.

In practice, the playbook is simple: invest for generations, govern for speed and continuity, explore through the family office without distracting the core, develop successors through experience and choice, and measure success beyond financial returns.

Conclusion

In an environment where growth has become harder, the highest‑performing family businesses are converting their structural advantages into momentum: patient capital deployed with discipline, agility enabled by governance, and reputation built through a mission that reaches beyond shareholders. Dr. Ghassan Al Sulaiman’s experience brings these themes to life. His playbook is clear—and, crucially, actionable.

Agility, long-term focus and local roots: Sir Michael Bibby’s take on what sets family businesses apart

In a year when PwC’s 12th Global Family Business Survey is seeing mixed signals on growth, Sir Michael Bibby offers a clear-eyed view of why some family firms continue to outperform—and what it takes to keep doing so across generations. As non-executive chair of the sixth-generation Bibby Line Group, he has lived the benefits and the tensions of family ownership, from rapid, values-led decision-making to the hard work of governance, risk culture and reinvention.

What drives outperformance in family businesses

For Bibby, the core ingredients of success are straightforward—but sometimes hard to sustain - agility, professional management, long-term thinking, and a reputation that attracts talent and customers.

• Agility and delegation: “It’s agility and being able to get good people and delegating real authority to them.” Founder-led firms often excel at this, he says, but agility becomes harder as businesses pass to the second and third generation and take on more corporate structures.
• Professionalism and long-termism: “The best businesses are extremely professional in what they do. They adopt best corporate management… and they combine that with long-term thinking and personal family branding and reputation.” In his view, family ownership doesn’t automatically confer agility beyond the early generations; instead, the winning combination is disciplined, professional decision-making anchored in long-term patient capital and reputation.

A sixth-generation lens: risk, alignment and culture

Bibby Line Group has its own generational story. “It goes bust roughly every 50–60 years, or nearly bust,” he says. A near-collapse in the 1980s prompted consolidation by his father; Sir Michael considers himself effectively second generation in the current iteration and is now non-executive chair with no family members in the management team.

That structure presents two practical challenges:

• Aligning owners and executives: With no family in the management team, “how do you keep the shareholder and the executives aligned to reward, backers and everything else?”
• Preserving a risk-taking mentality: “If it’s your own money, you can sort of gamble it… When you’re a manager, it’s not in your interest to take high risks often, especially if you haven’t got a high reward mechanism.” Many family firms lack robust share incentives or exit routes, so creating a culture where executives feel safe to take calculated risks becomes a priority.

His answer centers on governance and trust. Clear family objectives, a strong family constitution and family council are key and also represent a “safety blanket” for executives when things don’t go to plan.

Codifying purpose and values

Bibby Line Group has long published seven shareholder objectives in its accounts covering financial return, risk and values. Governance is evolving as the shareholder base widens, moving from a “brothers-and-sisters-around-the-kitchen-table” model to formal family councils and constitutions.

Values are refreshed every five years in a bottom-up process, now with next-generation shareholders closely involved. The goal isn’t to change the values but to clarify what they mean to today’s employees and future owners. “Do the right thing is an easy phrase,” Sir Michael notes, “but it means different things to my generation and my children’s generation.”

Purpose at scale: the capital conundrum

The survey is finding that purpose correlates with growth. Bibby agrees on the power of purpose—but flags the difficulty of scaling it. To roll out successful propositions, family firms often need more debt and equity and may have to give up some control. “If you bring in outside equity and debt, you tend to dilute the purpose because you’ve diluted the ownership… and you become much more financial.”

That tension is real in Bibby Line Group’s flagship innovation: an all-electric service vessel for deep-water wind farms—“a world first for a vessel of this size to be all battery driven.” The ship will operate for up to 28 days with around 90 people on board, recharging from the turbines it services. Getting there took R&D grants across several funding rounds and deep, long-term relationships with government and trade bodies.

Why could a family firm move first? “The decision-making chain is shorter and the ability to take on risk is much greater… We can take decisions with a lot less fear.” Viewing asset value over 10–20 years rather than quarterly earnings helps. But scaling this breakthrough will require external capital. Structuring becomes critical to maintain control and protect purpose while accessing the equity and debt needed to grow.

Reinvention is non-negotiable

Family firms must reinvent—or risk disappearing. Bibby’s shipping business has transitioned from sail to steam to oil and now to electric propulsion. Market shifts have forced resets: troop transport by air in the 1960s erased a core trade, demanding a pivot. Today the Group plans to add new arms, backing small founder-led businesses with national roll-out potential—bringing process and professionalism while preserving entrepreneurial spark and values.

Next-gen engagement: responsibility before roles

Bringing younger family members into the business is a balancing act. “Most parents don’t want to force their kids to work in the family business… which may not be right for the kids and maybe not be right for the business.” The Group has run an education programme from age 12 for the next generation—15 family members, now mostly in their twenties—so they understand the business and become good owners even if they don’t become managers.

The approach is now becoming more hands-on: matching career ambitions with roles, using external talent development support, and appointing next-gen family members as early-stage non-executive directors on subsidiary boards for experience and contribution. The aim is to bind people in without pressure, and to nurture entrepreneurial talent alongside the many accountants in the cohort.

The overlooked advantage: roots and community

Sir Michael Bibby believes that the significance of "place" is often overlooked when discussing family businesses. Outside of major cities, many family-owned companies still have their headquarters rooted in local communities, where they make a substantial impact. This local presence builds strong brand loyalty—people are more likely to support businesses they recognise as part of their community. As global events drive more regionalisation and supply chain changes, having a strategy focused on serving and representing the local community could become even more valuable. Family businesses are typically already involved in local economic leadership and civic activities, which further strengthens their ties to the community.

Taken together, his perspective reinforces the survey’s emerging story: while growth may be uneven, family businesses that blend professional management with long-term orientation, codified values with a culture of risk-taking, and innovation with local roots are well placed to outperform. The hard part isn’t knowing the levers—it’s pulling them consistently across generations.

Silence is not a strategy: How family businesses earn trust today

This article distils insights from an interview with Richard Edelman, a third‑generation family business leader who runs one of the world’s largest communications firms. Conducted whilst we prepared PwC’s 12th Global Family Business Survey, the conversation focuses on reputation and trust—two themes that emerged as pivotal in this year’s report. Edelman offers a candid view of how today’s media dynamics, social expectations, and stakeholder pressures are reshaping the trust landscape, and what family business owners can do to turn reputation into a growth lever rather than just a shield.

The ‘trust advantage’ is under pressure

The Edelman Trust Barometer, an annual global survey that measures the general public's trust levels in four key societal institutions: business, government, media, and non-governmental organisations (NGOs), reveals that business is the most trusted institution globally, ahead of government. Historically, family businesses – when looking at the family business cut of this report - enjoyed a superior trust dividend over all other businesses. Richard Edelman argues this advantage has narrowed substantially. A central reason is silence: many family firms still rely on a conservative “say less” posture. In a world where “any employee with a cell phone is a media company,” silence creates a vacuum—and vacuums get filled by others.

He points to how different stakeholder groups perceive institutions. The most economically challenged audiences tend to be more distrustful and more likely to blame business for issues they feel directly, such as inflation or job disruption. In this context, family firms that keep a low profile can unintentionally appear distant or opaque. The message: don’t assume trust is inherited; earn it, and earn it actively.

Reputation as shield—and as growth engine

In the data from the survey, firms that rate reputation as “very important” are more likely to report growth, though they skew towards steady, single‑digit performance—consistent with disciplined risk management. Reputation‑minded firms also exhibit clearer purpose, stronger values communication, and more formal governance—capabilities linked to long‑term performance.

Edelman’s counsel is practical: treat reputation as an operating asset, not a branding exercise. That means aligning behaviour and communication—how you source, how you make, how you treat people—with what you say. It also means equipping employees with the company’s story and values so they can be credible communicators. Employees remain among the most trusted messengers; if they don’t know what’s happening, they can’t carry the story forward.

He emphasises a simple starting point for communications: focus on what’s close and real. Talk about product quality and local sourcing. Show how the business supports communities through investment, training, and partnership. Many family businesses are deeply charitable and community‑engaged; make those commitments visible without grandstanding.

The risks to reputation are equally concrete in the data from the survey. Leaders cite negative media coverage, employee activism, misalignment on social issues, perceptions of greenwashing, and ethical concerns in supply chains as top threats. Addressing these risks requires both proactive action (clear policies, transparent reporting, consistent behaviour) and proactive communication (explain why you operate as you do, and do it early—before narratives harden).

From multinational to multi‑local

Trust is increasingly “hyper‑local”—built through relationships, information sources, and lived experiences close to home. Edelman advises a strategic pivot from multinational to multi‑local. In practice, that looks like:

• Emphasising local inputs and suppliers where possible, and explaining why that matters to quality, resilience, and communities.
• Building brands that resonate in local markets, not just translated versions of a global narrative.
• Investing in country‑specific innovation and elevating local talent, so the business reflects and serves the places it operates.
• Working with trusted local institutions—schools, universities, trade bodies, civic organisations—on issues that matter to stakeholders.
• Adapting communications for speed and relevance at the local level

Multi‑local strategies help family businesses demonstrate local commitment while maintaining global standards.

Letting go—with guardrails

For many family firms, control is a source of strength—and a potential brake on responsiveness. Edelman underscores a central trade‑off: governance must balance message control with the leeway teams need to act fast and communicate effectively. The answer is not laissez‑faire; it’s clear protocols, shared language, and defined authority that allow local teams to move quickly without drifting off‑brand.

He recommends embedding communications playbooks and approval frameworks that set direction without stifling initiative. This includes agreed positions on material issues, escalation paths for sensitive topics, and training for leaders and frontline managers. It’s a way to “let go a little” while still protecting the core.

Next‑gen voices and employee storytellers

Generational alignment is a recurring theme in the survey, and it is central to reputation in a fragmented media environment. Edelman is accelerating the inclusion of next‑gen voices in governance and leadership because the media context they inhabit is different—and they live it. He has all their three next‑gen members on the board and involves them in senior hiring, ensuring their perspectives shape the company’s future narrative.

This mirrors a broader opportunity for family businesses: integrate younger family members and rising leaders into communications and brand stewardship. They bring fluency in fast‑moving platforms, awareness of cultural nuances, and credibility with younger stakeholders. Pair that with employee engagement—equipping teams with the company’s purpose and values—and you have a distributed network of trusted messengers.

Purpose, behaviour, and the “say–do” gap

The report shows that clear, codified purpose correlates with stronger innovation, long‑term focus, and governance. Reputation strengthens when purpose moves from words to behaviours—when the way a company designs products, treats people, and invests in communities is visibly connected to its mission. Silence or generic messaging widens the “say–do” gap.

Edelman’s advice is to communicate purpose publicly and practically: explain how purpose shows up in product quality, safety, sustainability, and local impact. Avoid abstract statements; stakeholders respond to specifics. This is especially important as trust between family and non‑family businesses converges. With expectations rising, clarity and action are the quickest path to take back the advantage.

A practical playbook for family business leaders

Based on the report’s findings and Edelman’s guidance, here is a reputation and trust playbook you can operationalise:

• Make reputation an operating priority
  o Define the role of reputation in growth and risk management at board level.
  o Align purpose, values, and behaviours; close the “say–do” gap with tangible actions.
• Move from multinational to multi‑local
  o Emphasise local sourcing and quality; tell that story clearly.
  o Invest in local talent and country‑specific innovation.
  o Partner with trusted local institutions on issues that matter.
• Equip employees as credible communicators
  o Share the company’s story, purpose, and values widely inside the organisation.
  o Provide guidance and training on social media and stakeholder engagement.
  o Encourage authentic, responsible advocacy from the frontline.
• Bring next‑gen voices into governance and brand stewardship
  o Include younger family members in boards and senior hiring.
  o Use their insights to keep messaging relevant across platforms and demographics.
• Build communications guardrails—and let teams run
  o Establish protocols for sensitive topics, escalation, and approvals.
  o Clarify authority so local teams can act fast without diluting the brand.
• Anticipate and address the top risks             
  o Prepare for negative media coverage, employee activism, and social issues with clear policies and transparent communication.
  o Strengthen supply chain ethics and sustainability practices to avoid reputational exposure.
• Codify purpose and values publicly
  o Document purpose and values; connect them to customer experience and employee value proposition.
  o Report progress, not perfection; stakeholders reward honest trajectories.
• Invest in capability for the long term
  o Accept near‑term costs to build digital and communications capacity (including AI) that improve resilience and relevance.
  o Measure outcomes in trust, engagement, and talent attraction—not just clicks.

The bottom line

The trust environment has changed. What used to be an inherited advantage for family businesses is now a competitive battleground. In this context, reputation becomes a lever for growth when it is treated as a living system: anchored in purpose, activated by employees and next‑gen voices, expressed locally, and guided by disciplined governance. Family businesses don’t need to shout. But they do need to speak—with clarity, humility, and consistent action—so stakeholders can see, feel, and trust what makes them different.