KEY ISSUES TO CONSIDER WHEN HIRING A FAMILY OFFICE CEO
The CEO of a Family Office is responsible for all of the Family Office operations and services. There is a unique set of qualifications that are required for a CEO to be successful at a Family Office. While all Family Offices are different, there are some key attributes that are common for all of them.
1-Strong relationship with the Principals
The successful individual understands that they report to the Principal and they need to have the ability to modify their strategy to align with the Principals, even if they don’t agree with them.
2-High level of trust and integrity
In order for the CEO to be successful in their role, they need to be respectful and build a high level of trust with the Principals and other family members.
3-Be a true leader and visionary
Have the ability to educate and counsel the Principal and family members yet function as the executor of their plans. This is one area that requires a challenging set of attributes.
4-Staying up to date on business issues and family business issues
As an example, most CEO’s may not be that knowledgeable about cybersecurity, tax issues and other government legislation that may affect them. It is their responsibility to stay updated by attending seminars, reading business journals and speaking with other Family Office CEO’s and other third party experts such as CPAs, Attorneys and Investment Managers.
5-Identifying the key metrics of the Family Office
Success at a Family Office is not necessarily measured like other typical businesses, where revenue and profitability are the key measures of their success. In a Family Office, the success may be measured by developing better philanthropic polices (impact investing), developing effective succession plans for the family, investment returns, or other considerations.
Family Offices are quite different than the typical business environment. Many individuals feel that they can assimilate easily into a Family Office from a hedge fund, or other business and unfortunately, in many cases they cannot. It is essential that the individual has the appropriate interpersonal skills and a true understanding of the expectations for them in that role.
7- Right skill set
The successful CEO will have a significant amount of expertise in the areas that matter most to the specific family. In addition, they must have a proven track record, preferably with another Family Office, a stable job history and strong leadership and team building skills.
For additional information on how to hire an effective CEO or other “C” level executive at your family office, feel free to contact: Michael Rosenblatt, President of The Quest Organization and of FON Search at 212-971-0033 or Michael@questorg.com