Succession is about building capable stewards, not simply choosing heirs: UOB expert
Choosing the right successor, balancing legacy with innovation, strengthening family governance and preparing businesses for long-term growth are among the key priorities for family enterprises navigating generational transition, according to Angela Koh, Head of Wealth Planning and Family Office Advisory Services at UOB Private Bank.
At the ASEANext Forum 2026, Koh emphasized that succession in family businesses should focus on identifying capable stewards rather than simply choosing heirs. She advised families not to assume that the eldest child will automatically become the next leader. Instead, they should look for individuals who possess the ability to grow into effective leaders, the values to become responsible owners, and the commitment to serve as custodians of the family's wealth.
Leadership requires qualities beyond technical expertise, including sound judgment, emotional maturity, and resilience. Koh also highlighted the distinction between leadership and ownership, suggesting that some families deliberately separate these roles to create checks and balances. Beyond leadership and ownership, families must instill stewardship, teaching the next generation that they are guardians of the family's financial and social capital, responsible for preserving and growing it for future generations.
Koh further explained that every family member has distinct strengths and talents, and the objective should not be a "winner-takes-all" process. Instead, each individual should have a meaningful role to play, whether that involves leading the core business, venturing into new entrepreneurial pursuits, or contributing through philanthropy or other family initiatives.
For entrepreneurial family members, she recommended establishing a "sandbox" where new ideas can be tested without risking the core business's financial stability. When considering future generations, families need to ensure that all members feel valued and involved to prevent conflicts from arising as the number of participants grows.
Younger generations often bring different ambitions and ideas, making it crucial for families to balance preserving their legacy with allowing successors the freedom to innovate. Koh advocated for clear governance structures, including independent directors or advisers to provide objective perspectives and prevent differing views from reaching a deadlock.
She also stressed the importance of having a clear process for evaluating new ideas, ensuring that even unsuccessful ventures are seen as shared learning experiences rather than sources of blame. Koh also suggested establishing two separate governance bodies: a family council focused on family matters and the company's board responsible for business decisions.
This separation allows family businesses to operate effectively while preserving family relationships.
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