Many family offices were established decades ago. Leaders of many offices are nearing retirement age. Recently an office, established in the early 90s with a non-family leader, engaged LGA to help them deal with executive transition. This office was set up by the wealth creator and operates as a Controlling Owner family office. The patriarch in his 80s had transferred ownership to the siblings in the next generation.
A next generation family leader contacted LGA to assist them in solving the office leadership retirement issue and help design version 2.0 of their family office. LGA started work by conducting a series of interviews and reviewing key documents to get a clear understanding of the current situation. The interviews included all the G1 and G2 members, all personnel in the family office and key advisors to the family. Based on the interviews, it became clear that in addition to addressing the office executive leadership transition, this family needed to transition governance from G1 to G2 with flexibility to allow G3 involvement in the future.
Our work for this family followed two paths: One focused on the operational issues for running the office, and the second on modifying the governance structure to successfully transition from a Controlling Owner office to a Sibling Partnership office. Governance changes also included engagement with G3 family members who are all young adults. LGA identified key characteristics for the new office leader. We also clarified roles family members held in the office. The current non-family leader’s role will be split into two roles. A candidate was identified to fill one of the roles. A search was conducted for the other role. The governance structure was revised.
Communication was also identified as a critical driver of success. LGA encouraged the patriarch and matriarch to share their visions and intentions for the purpose of this wealth directly with G3. Family meetings began to start the process of educating G3 about the family wealth and expectations that come with it. This multi- year process has helped to bring clarity and stability to the whole system, and laid the foundations for continued success into the next generation.
