Family Office Navigator

Consolidated reporting and centralized risk management The family wants to improve oversight and risk management by creating a dedicated, centralized capability for all its affairs and activities. Support family and ownership governance The family seeks support to better govern the family enterprise. First-rate family-, ownership- and investment governance are key to achieving long-term objectives because they provide direction and oversight and they promote strategic decision-making.

Protect family privacy, anonymity and confidentiality The family wants to bring some or all of its affairs into a secure space that safeguards the family and reduces interference from the outside.

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Create a hub for the family

The family wants to build a central point of focus that fosters unity and cohesion across its various branches, including elements such as family bonding and talent development.

Separate family matters from business matters Often, in the early stages of the life of an entrepreneur, the private matters of the family are taken care of by the company (e.g., legal, tax, investments are managed by company executives). Over time, families want to (or have to) create a formal separation between their private matters and the business.

Status The family wants to set up a family office as a symbol of status and success, or for other reasons that do not have a specific or fundamental basis in supporting the family enterprise ecosystem.

As you explore the options and questions that arise from these triggering events or transitional moments, many questions may be crossing your mind. How do you know whether a family office is right for your family and future generations? How do you design a family office to ensure the health of your family’s ecosystem? Is your individual and collective wealth being managed in the best way possible? Will your family office help you achieve your goals? Is your family office working as efficiently and effectively as it could? Do you have the right outside advisors to complement and partner with your family and with non-family leadership? Do you have the talent needed to professionally plan and execute your investment strategy in house? Is your family skilled at overseeing a family office organization? Do you even need a family office in the first place?

We will return to these questions in the “Purpose” chapter later in the book.