The role of family offices has evolved from being an investment platform to guiding the next generation(s) back into the family business. A next-generation development program will help the next generation become good owners and future leaders.
According to HBR, these programs focus on five key objectives:
- business ownership skills and competencies;
- family business principles and
- practical knowledge of the family business’ assets,
- understanding the family history and values; and
- developing personal leadership competencies.
Boston Private’s 2018 report “The Why of Wealth” surveyed respondents with new investable assets of $1-20M, and found that “individuals pursue financial wealth to achieve emotional well being”, rather than for the pursuit of material goods.
Across generations, there was slight variations in attitudes. Older generations prioritise peace of mind, Baby Boomers place more importance on financial capital, and Millennials see wealth as a “gateway to happiness”.
The most interesting difference in attitudes was between genders – 28% of males valued power and influence compared to 20% of females. Men valued forms of external/reputational wealth, while women found more significance in inner emotional wealth. (This is reminiscent of a great Al Pacino scene in Scarface, immortalised in ICE T’s rap classic Money, Power, Women).
Consider This: Does your family have open discussions about what wealth means to them? Or is this a big secret that is a taboo discussion? Only by being able to discuss it and understand both our own attitudes and those of other family members can we hope to translate it into something meaningful and relevant to the entire family.
Actionable Generational Wealth Succession
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