Introduction

Welcome to Let’s Talk Family Enterprise, a podcast that explores the ideas, concepts, and models that best serve Family Enterprise Advisors in supporting their clients.

All views, information, and opinions expressed during this podcast are solely those of the individuals involved and do not necessarily represent those of Family Enterprise Canada.

Description

Host Steve Legler speaks with Daniel Trimarchi from KPMG about the STEP Project Global Consortium and their recent report, The Regenerative Power of Family Businesses, which highlights the staying power of family enterprises and reveals the factors behind their lasting competitive advantage.

Guest bio

Daniel Trimarchi is the Director, Family Business Advisory Services as well as the Director of KPMG Enterprise Global Centre of Excellence for Family in Canada. He specialises in family governance and succession planning with business families of various sizes and complexities. Daniel has over 10 years of experience working in Canada, the UK, and Australia, providing consulting services, business strategy, and compliance services to the family business and family office market.

You can find out more about Daniel on the KPMG website.

Key Takeaways

[:26] Steve Legler is your host for this episode and welcomes Daniel Trimarchi and asks him to talk a little bit about the STEP project background before diving into the results of its most recent study.

[5:15] Daniel shares a little bit about the true breadth of this multi-country, multi-university study.

[7:01] The results were handled by KPMG so as to incorporate perspectives from the enterprising families, a secondary stage that lent depth to the results that followed.

[10:06] Daniel talks about how the team derived a formula for performance output with entrepreneurship as its first factor.

[13:49] The second part of the formula speaks to the importance of family control and influence; Daniel talks about the recently popularized concept of socio-emotional wealth.

[15:13] Daniel breaks down the performance types and the broad set of components they can fit into. He also explains how each factor would impact each type of performance in a 2x2 matrix.

[21:13] How does this all impact FEAs and advisors and how can they use the results of this study practically? Daniel talks about how the report has been used already as well as his own experience.

[25:57] The report included a Canada-specific analysis; Daniel shares a little bit on the specifics of this.

[28:04] Daniel shares his book recommendations as well as his one piece of advice from an advisor to other advisors.

[31:30] Steve thanks Daniel for coming on the show to share his expertise with the audience.

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Mentioned in this episode

The Let’s Talk Family Enterprise podcast is brought to you by Family Enterprise Canada.

STEP Project Global Consortium

STEP report: The Regenerative Power of Family Businesses: Transgenerational Entrepreneurship

Daniel’s reading recommendations:

Interdependent Wealth: How Family Systems Theory Illuminates Successful Intergenerational Wealth Transitions, by Steve Legler

Perpetuating the Family Business: 50 Lessons Learned From Long Lasting, Successful Families in Business, by John Ward

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“Distancing EA from rationality is foolish” by Jan_Kulveit