Similar to other organizations, Family Offices have challenges that need to be addressed and some of them can be quite significant.
Here are a few critical issues:
When the owners are not aligned regarding their interests and goals this can cause a significant amount of infighting. When this occurs, the trust may be lost between the parties and the entire family can be torn apart. To avoid this issue, we recommend establishing formal structures such as family councils or boards which can provide an organized way to discuss and resolve conflict.
In order to ensure that family has effective succession planning in place, it is essential that each family define their vision and their overall goals at least every three years. With changes in leadership, technology, values, interests, goals, family members, etc. in order for the family to remain viable to meet the needs of the family members, they must establish a comprehensive strategic plan.
Succession planning, whereby one leader is replaced by another leader, is another critical issue that needs to be addressed. This requires a collaborative effort, whereby the next generation members can help shape their vision and establish control going forward. This may take several years, however with proper planning it can save a lot of problems down the road.
For assistance with Family Office Challenges, contact: Michael Rosenblatt, President of FON Search and The Quest Organization at 212-971-0033 or via email at firstname.lastname@example.org