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Principia Familia I'm thrilled to have joined the

Principia Familia

I'm thrilled to have joined the experts panel at &Simple, who are focussed on helping FOs and their service providers professionalise and be future-ready through insights, services and data.

In my first insight published on their platform, I articulate three principles of good family governance:

1. The stewardship (rather than ownership) mindset: family wealth does not belong to any individual, rather to the family - both present and future. The people who happen to be responsible for it at any time act as stewards, taking their turn to look after it for the benefit of the whole family.

2. Because they have this steward role, open communication and transparency is essential. Lack of communication leads to negative assumptions and an erosion of trust. Being open and accountable to family members builds trust and fosters a sense of accountability to the entire family.

3. More broadly, this is about the responsible use of power. Families have an inherent power dynamic based on generations and control. Those in power have a responsibility to use that power carefully and judicially.

Consider This: What are the attitudes of the incumbent generations to the family wealth? What are the differences in those attitudes between generations (particularly 1st and 2nd)? How openly does your family communicate about matters relating to the family wealth?

Actionable Generational Wealth Succession:
For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives by signing into our newsletter https://DavidWerdiger.com. We will send you the archive links from there.

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement #nextgensuccession #intergenerationalwealth #governance #leadershipdevelopment�#entrepreneurship

Family Governance; Owner or Management When famil

Family Governance; Owner or Management

When family wealth is controlled or owned by a single person (usually the wealth creator), things are simple. But at some point, the wealth will likely pass to more than one person - the wealth creator's children. In respect of the family wealth, the members of the family are bound together through three circles of involvement: family, business and ownership. That adds a huge degree of complexity, as no decision gets made in isolation.

Strong governance establishes a process for decision-making and conformity within the family. Clearly defined policies and processes for governance, in line with a formal family vision and mission statement, can reduce the potential for conflict.

Family governance can also focus on strengthening the non-financial capital within the family - working on these can ensure it's not "all about the money" (because usually it isn't anyway).

For some families, there may be an advantages to separate ownership and management. This can ensure the sustainability of the family business and wealth through its management by professionals with the diverse skills needed. The family members govern (set policy, monitor), and others manage.

There is an emotional side to effective family governance which is often overlooked by the first generation. In order to be effective, family governance needs to take into account all interested family members in the planning process and to be consistent with the existing family culture which is likely to have evolved over multiple generations.

Actionable Generational Wealth Succession:
For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives by signing into our newsletter https://DavidWerdiger.com.

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement #nextgensuccession #intergenerationalwealth #governance #leadershipdevelopment�#entrepreneurship

Ancestry CEO Deb Liu Says Women Need to Reframe Th

Ancestry CEO Deb Liu Says Women Need to Reframe Their Relationship to Power

While overt discrimination against women may have receded in recent years, Deb Liu, CEO of Ancestry, says covert discrimination, including unconscious bias, can be just as pernicious, keeping women from reaching the peaks of success. She pushes for women to find themselves not just mentors offering advice, but a sponsor who will put their own career on the line to advance that of someone they believe in. And she admonishes them to not see power as a “dirty word.” She’s the author of Take Back Your Power: 10 New Rules for Women at Work.

Full article: https://hbr.org/2022/11/ancestry-ceo-deb-liu-says-women-need-to-reframe-their-relationship-to-power

Actionable Generational Wealth Succession:
For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives by signing into our newsletter https://DavidWerdiger.com. We will send you the archive links from there.

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement #nextgensuccession #intergenerationalwealth #governance #leadershipdevelopment�#entrepreneurship

Q&A. How much to help? Q. How much extra financia

Q&A. How much to help?

Q. How much extra financial support should we give our children?

A. This is one of the great balancing acts parents need to perform. Too much and kids might end up spoiled or entitled. Too little and the wealth is not there for them when they actually need it (and if it's not, then what's the point of it?)

We all have a particular psychology of money, and these attitudes are formed in our early years and deeply ingrained, sometimes on a subconscious level. Children who see parents always fighting about money might end up feeling money is a source of conflict, and find themselves unable to hold on to it. Some wealth creators feel their children should struggle financially like they did because it made them tough and resilient. I've used the word "feel" deliberately as these views are more based on emotion than logic.

Warren Buffet famously said "enough that they can do anything, but not so much that they can do nothing". Given this discussion is about additional support (rather than wealth transition), the bigger risk is around "doing nothing".

My view is that children in wealthy families ought to learn an important life skill: making financial trade-offs. While at some point in the future, they may not have to, it's a good thing to know as it's healthier to treat money as a finite resource.

A financial trade-off means sacrificing some of X to get more of Y. That could mean a better vacation at the expense of a nicer car, or a restaurant dinner at the expense of an outing. Note that you may want policies to ensure your children do not make certain financial trade offs, such as for medical expenses.

It's also important not to set policies in stone, and continue to monitor (while respecting our children's autonomy) and adjust as needed.

Actionable Generational Wealth Succession:
For more on family and business conflict resolution, access my Familosophy newsletter archives by signing into our newsletter https://DavidWerdiger.com.

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement #nextgensuccession #intergenerationalwealth #governance #leadershipdevelopment�#entrepreneurship

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Home
Transition Book
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Blog
- Events
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Meet David
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Author, Entrepreneur & Speaker

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