Henry spent nearly two decades building a successful family office. He had extraordinary success during that time and increased the family office assets by $25 million, but he knew that it was time to start thinking about shifting gears into retirement.
He began thinking about who would take his place. His son had potential but hadn’t developed enough experience yet. His daughter had not expressed interest in taking the reins, and the rest of the family who worked with him were not qualified.
Succession Planning
Succession planning can be difficult – especially if there isn’t a clear successor. Leaders can be difficult to replace and the idea of handing over a thriving business to someone new can feel overwhelming and risky. Family office dynamics can also be difficult to manage when it comes to developing a succession plan.
Family members may feel that the organization is obligated to go to them, or there may be complex internal components of the business that require someone specifically groomed for the role.
So, how can family offices avoid the stress of creating a succession plan and pave the way for a smooth transition from one leader to another? Here are some steps to consider.
Step #1: Meet with the team to ensure the company’s strategy is aligned.
While you are thinking of the future of your business, it’s a good time to evaluate what your family office strategy and purpose is. Define your objectives and notate what qualities are needed in the next leader.
What worked well for the last leader may not work for the next – and to grow, the new leader will need to be not just a forward-thinker, but one that adapts to changes in the business landscape. Develop a strategy together and define what type of leader and skillset is needed to take the family office to the next level.
Step #2: Communicate.
Communication is the key to any successful business, family office, or personal relationship. Therefore, keep communication transparent and open as you look at future succession plans. Ask the family office team for input and feedback. Include them in the process and try to unearth insights that can be helpful for the long-term. Ask them what they are looking for in the future and take that to heart.
Transparency is very important, so the rest of the team doesn’t feel shocked at the transition. And when you take the time to consult them, it gives them a voice and the opportunity for greater support once the transition does take place.
Step #3: Allow time.
Creating a succession plan takes time; it can’t be done overnight. Take time to work through all the details. Once those are firm, you can think about the interview and hiring process. Don’t rush this part, either. Quickly naming someone and then exiting could cause stress to the rest of the team and could risk the company’s future.
Instead, once the candidate has been named, take time for the current leadership to onboard that person. Identify how they will train, support, and ultimately hand over the business. Family offices work with highly personal and confidential matters, and that means there should be extra time for the rest of the family team to get comfortable with the new leadership and plan well for the other leader to depart.
Leadership transitions can be difficult in all types of businesses. They can bring about big change in a short period of time. These types of transitions also require creative thinking, adaptability, and plenty of planning. By taking time to think through all the details, you can set the family office up for another generation of prosperity.
We’re Ready to Help
Thinking about growing your family office team? Perhaps you’ve created a succession plan and you’re thinking about bringing in a new Head of Office from the outside.
You can rely on our nearly three decades in the staffing industry, where we have placed many highly trained and specialized individuals in family offices around the country.
Our team at Household Staffing recognizes that each family office is different, and we work closely with you to develop a comprehensive job listing that includes all roles and responsibilities for your hire. This listing is published on our extensive network of candidate recruitment job boards, ensuring your job attracts the most experienced professionals in your area.
Upon application, we personally review each candidate before we introduce them to you and confirm that their capabilities meet or exceed your conditions and requirements. Our detailed and personalized process helps us to get to know the culture and needs of your family office, ensuring we have a good understanding of who will fit best.
Contact us today to get started on the hiring and interview process. We look forward to working with you!
