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The role can be varied and may reflect this appointee’s skillsets, but typically this position will manage the day-to-day operations of the Family Office, be a single point of contact for other family members and lead on and communicate future plans and decisions.
But like any new role, job description, or even when developing a new structure, it is good to take a long-term view of the Family Office’s future goals and expectations, while also considering what you need now.
Here are our five tips to any family member wishing to join the Family Office – and for the family wishing to appoint an official role:
While appointing a family member to run a Family Office works for many, it is recommended to still have an independent, facilitated introductory session with the whole family. This helps to ensure you all agree with the long-term vision, family values and overall purpose.
This will also provide a clear vision of what you are aiming for with this new official role, and also helps this person build a framework to communicate with the family in relation to how the Family Office is performing in line with this vision.
A clear understanding of the corporate structure – especially in Family Offices – can be difficult given the complexities at play. Therefore, it is important to have a clear understanding of what assets are held by each entity and to take this into account as you build your structure. This is where a meeting with family’s accountant is crucial, so all the information can be transparently worked through and the best structure developed.
It is also important to understand who the stakeholders are – and this doesn’t just include family members. You need to consider advisors, tenants, suppliers and so on.
Often prior to a Family Office being formed, the family already has close relationships and mutual respect with suppliers you engage with, and will continue to, as part of the family business. Therefore, it is important for your Family Office appointee to also understand these relationships and continue to interact with them in line with the family values.
Family Offices must continually evolve – it should never be a set and forget scenario. You need to appreciate you and your family members will always be a student.
Therefore, like any professional development required in a paid role, you should also invest in the skills of your Family Office appointee. This can be everything from learning about investments and structures, to identifying staffing needs and resources.
While your Family Office may be new and unique, the concept of Family Office isn’t. Therefore, you should always look to learn from other Family Offices here and abroad. For instance, some Family Offices have been around for many generations in Europe and in the United States. Listening and learning from other families puts you in the best position to overcome any curve balls that come your way.
Before you appoint a family member to a role in your Family Office, we recommend you start with a job description.
Family Offices evolve and the official appointee can be called upon to do really anything. The advantage of a job description ensures expectations for this role are understood by all, and they can be met as a minimum before being requested to do additional tasks.
We also recommend the family puts consideration into the remuneration of this role and it is agreed upon upfront. If it is a new role, there will be an additional cost to the family, however, there may be expenses the family is currently incurring that can be absorbed into this person’s role.
For example, if this person will take over the property management, you can save the family paying commission to an agent. This should then be taken into consideration when calculating remuneration.
When it comes to family, it always comes back to communication, communication, communication. And this must be two-way. You must ensure this new person provides regular reporting and the reporting is in line with your family’s purpose – but also the family communicates with this person too.
We work with Family Offices of all shapes and sizes, and at all stages: from development and maintenance, to hands-on and advisory. If you would like to discuss your Family Office or plans for developing one, please get in touch.
