For many families, they haven’t discussed, formally or even informally, what family legacy they want to leave behind, nor have family values been established.
Working with many families and family businesses, we have seen the development of a family office without these discussions. It can perhaps appear less of a priority than areas like structures and tax processes. However, legacy goals and family values guide families and their businesses and, where formalised and communicated, decision-making processes can be streamlined and simplified.
There is a typical route family businesses take: starting from humble beginnings, an idea becomes a small business, the business grows and all profits are poured into the business and, over time, a very successful family business has been created. Regularly, the first diversified investment is property or business premises and there has been no real long-term planning for the family and future decisions. They made on a reactive basis and not driven by what the family legacy is.
What are the benefits of family legacy values?
- They provide clear direction.
- Gives your family an identity and family members a sense of belonging.
- Opens communication between family members.
- First step in setting up your family governance structure.
- Invaluable when you need to make a quick decision, avoids an emotional reaction.
- Set boundaries for the family.
How do you decide on family values?
There are a number of ways you can understand the values your family wants to live by, and then reflect that in your family office. The most effective family values are the ones that aren’t just a word or two, they include what the word means to your family.
For instance, a family business we work with has ‘community’ as their family value. When Sydney went into its initial lockdown, the business immediately set up a pop up store to deliver essentials to the local community and keep locals in jobs. The family value meant something to the family, so they knew the next steps they needed to take to make it a practical reality. Family Office and investing for the future requires the same approach.
Another example of a family office value that has meaning to a family is: each person matters. This family stated what this value means to them and that is all generations and all family members matter and are taken into consideration, and have a voice, when decisions are made.
Values that are a given
Be careful with values such as ‘honesty’, ‘integrity’ and ‘trustworthy’. They are a given in that this is how you expect all family members to behave. They can be used as family values but ensure you add what they mean to your family and the role they will create in creating your family legacy.
Working with clients
The Grant Thornton Family Office teams works with families to unlock and establish family legacies and family values and ensure they live within the family and business. All of our discussions are guided by your family values, what is important to you and the values you want your family members to cherish and live by.
Get in touch to have an initial meeting with our team to discuss what the future looks like for your family, as well as the plan to get there.
