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EFFECTIVE DIGITAL TRANSFORMATION:

A RECIPE FOR SUCCESS IN FAMILY BUSINESSES

n today’s rapidly changing technology can make the biggest to embrace change through reviewing the strategy and technological shift but a mindset
world, digital transformation impact and to develop a roadmap innovative technologies. adjusting as needed is essential. change that empowers family
Iis no longer an option for for implementation. Another key implementation This process will help to stay on businesses and family offices to
business families – it’s a necessity. risk is the need for data. Without track and to achieve the desired thrive in the ever-changing digital
By embracing technology and For business families, it is data any digital transformation outcomes, with the long-term view landscape and pass on a thriving
integrating it into all aspects of imperative to perform the needs initiative is likely to fail. One needs most business families have. legacy to future generations.
their operations, business families analysis for both the operating to identify the key data points that The value of attending the
can improve efficiency, enhance family business(es) and the family will help to track progress and Governance Underpins KPMG Family Business
their competitive edge, and ensure office, where there is a formal make informed decisions. Successful Transformation Conference in person cannot be
their long-term sustainability. operating structure in place. Good governance is essential for underplayed as attendees were
However, any transformation, People and Technology are Finance Needs to be Part of the any business, but it is especially able to hear firsthand the stories
relevant for family businesses
never mind digital transformation, Interdependent Decision-Making Process and insights from the leaders of
can be a complex and daunting Digital transformation is not just Digital transformation can that are implementing their prominent family businesses,
process. about technology; it’s also about be expensive, so involving the transformation strategy, enabled engage on pertinent questions,
by technology. Strong governance
To help family businesses people. One needs to have the right finance team in the planning processes, for the business, network with likeminded
individuals from across the
and decision-making process is
navigate the transformation people in place to implement and important. They can help to assess the family, and the owners, country and even secure business
journey successfully, two manage the digital transformation the costs and benefits of different should help to ensure that the deals. This series of articles has
prominent family business leaders initiatives. transformation decisions are made been prepared to capture some
shared their journeys as part of Employees need to be trained technologies and to make sure that in a transparent and accountable of the key takeaways from each
the business is getting the most
a panel discussion at the recent on how to use the new value for money. manner. session at the conference.
KPMG Private Enterprise South technologies that are being The transformation journey
Africa family business conference, implemented. This training will This involvement is where the should allow for the interests of all We are Here to Help
in partnership with KZN Top help to ensure that the technology expectations of the family working stakeholders (including the family In addition to providing you with
Business and Cox Yeats Attorneys. is effectively implemented, and outside the business need to and owners) to be understood and the platform to learn and engage
The panel discussion included the business is getting the most be considered. The additional protected, while ensuring the long- with other family businesses at
reinvestment into the family
the views of the chief executive out of the investment. business should be appropriately term sustainability of the operating the annual conference, KPMG
officer (CEO) of a successful For a multi-generational business communicated, specifically business(es). This transformation Private Enterprise family business
technology-enabled family family, the skills required to the impact on the dividends process includes the upcoming advisers understand that family
business, alongside the views understand the transformative to be distributed to the family generation and reiterates the dynamics can make it difficult to
of the CEO of an agriculture power of technology provides an shareholders. importance of the succession come to an agreement on the best
focused family business which opportunity for the strengths of plan, to allow the business(es) to strategy for growth.
has embraced technology to the upcoming generation to be Manage Technology Risk continue to grow and thrive for There is not a one-size-fits-all
enable its transformation, and its developed and embraced. generations to come. answer, our advisers can help you
There are a number of
growth, globally. risks associated with digital Concluding Remarks explore all of your options and find
We share below some of the key Embrace and Integrate transformation, such as data For the family behind, and the approach that is right for your
takeaways from the insightful Technology and Identify the Key breaches and cyberattacks. It those that work with/for, a family business and the family. 
panel discussion, including Data Points is important to have a disaster business, we all know that each
the Q&A discussion with the As has been proven, mitigation/recovery plan in place, family business is unique due Alan Barr - Head of Private Enterprise:
conference delegates (which unfortunately to the demise which includes a risk register, to to the family dynamics. The alan.barr@kpmg.co.za
included other prominent South of many businesses, digital manage these risks. For a business insightful panel discussion Creagh Sudding - Lead: Business
Families: creagh.sudding@kpmg.co.za
African family businesses). transformation is not just a family these risks run across the and robust discussion with the
‘plug-and-play’ solution. It’s about family and the business, and the delegates in the room confirmed W: https://kpmg.com/za
Start with a Business integrating those technologies into risk register should factor in all key
Transformation Needs Analysis all aspects of the business, starting stakeholders working with both that should these principles be
followed family businesses can
Before embarking on any digital with the operations and decision- the family and the business. embrace technology to enhance
transformation initiative, it is making processes and including Continuous Review of the the transformation of the business
essential to conduct a thorough key stakeholder relationships. Transformation Strategy for long-term sustainability.
business transformation needs This integration is enabled where
analysis. This will help to there is a culture and environment Digital transformation is an Embracing digital
identify the specific areas where where employees feel empowered ongoing process, so continuously transformation is not just a

SIMPLIFYING TRUST CLOSURES:

A GAME-CHANGER FOR TRUSTEES

s the Financial Action the traditionally complex process to the personalised and secure no simpler or faster way to close
Task Force (FATF) of closing a trust. Designed to be LEMS portal, the team takes the chapter. With LEMS, you
Atightens its regulatory user-friendly and efficient, LEMS over, meticulously reviewing can release yourself from the
grip in 2025 and beyond, transforms the initial onboarding submissions for completeness and looming penalties and obligations
trustees face increasing scrutiny from what could take weeks into accuracy. of managing a trust and move
over the management of their a few simple steps. By answering forward confidently, knowing
trusts. Dormant or inactive just 16 questions on our electronic What sets LEMS apart is its ability compliance risks are a thing of the
trusts are no exception – trustees form, trustees can begin the closure to handle the most cumbersome past.
are liable for compliance lapses, process, receiving instant clarity aspects of trust deregistration.
regardless of the trust’s activity. on their trust’s status and the way From navigating long queues to Take the stress out of trust
forward. The system generates a managing government department closures – choose LEMS. 
The good news? Legal Entity comprehensive, pre-populated feedback, LEMS ensures the
Management Systems (LEMS) is starter pack of documents tailored process is seamless. Cover letters For more information contact:
here to simplify and streamline to their specific needs. are professionally crafted to meet Alan Hockey: +27 (0)71 673 9937 or
trust closures, offering trustees the exacting standards of these Brian Payne: +27 (0)83 309 1982
a stress-free way to stay ahead But LEMS doesn’t stop there. departments, complete with W: www.lemsystems.co.za
of looming enforcement and A dedicated team member an indexed pack of supporting
massive penalties. follows up with a personal call documents prepared in advance.
to guide trustees through the
LEMS is an innovative, high- next steps. Once documents are For trustees burdened by
tech solution that revolutionises signed, collected, and uploaded dormant or obsolete trusts, there’s

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