Read about family governance

“Shirtsleeves to shirtsleeves in three generations” - so goes Andrew Carnegie’s famous prediction for family fortunes. Fortunately, more and more wealthy families are now focusing on involving the next generation early on to provide them with a clear understanding of where the wealth came from and who worked hard to build it.

The development of the next generation is a key focus area within family governance, family offices, banks, and among advisers. However, interest in the development of the current/experienced/older generation often ends once succession has taken place—or when the final full stop is written into the will.

“Instead of ‘going public’, you could say we’re ‘going purpose’,” said Patagonia founder and billionaire Yvon Chouinard when he announced that 98% of the company’s shares had been transferred to the Holdfast Collective, to be used in the fight against the climate crisis.

Globally, there have never been more billionaires than there are today – and this is reflected in the growing number of family offices. This article explores different models and structural approaches to setting up a family office.

The 'Greatest Wealth Transfer in History' is in full swing globally, leaving Baby Boomers and Generation X facing perhaps the greatest communication challenge of their lives.

Ambassadorship in family ownership is a shared understanding of what concrete expectations we have of one another as owners - not just toward the next generation, but also toward older generations, partners, and teenagers in the family.

In Part 1 of this article series, we described how an ownership strategy supports effective ownership, and which topics should be included in a well-crafted ownership strategy. However, while the strategy document itself is important, much of the real value lies in the process that leads to it. A well-run process sparks new conversations within the family or between the owners and the family office. It also brings insights into the expectations, concerns and thoughts of the people involved in the ownership circle – creating a deeper mutual understanding between those involved. When expectations and concerns are brought to the surface in a safe, calm, and – if needed – facilitated setting, they can be addressed constructively.

For the past 15+ years working with ownership strategy, we’ve heard many variations of these statements from families, founders, and family offices. There are undoubtedly numerous benefits for both the ownership group and the individuals involved when time is invested in developing an ownership strategy. The more mature, diversified, and complex the ownership structure is, or is set to become, the greater the need for a shared strategic foundation and clear agreements.

Community, clear direction, pride in a higher common purpose, and the necessity of important conversations about life and death in the service of a greater cause: There are many similarities between the work of an officer and family ownership.

Selling your life’s work can be one of the biggest roller coaster rides in life. On the one hand, you have secured the family’s long-term wealth and at the same time ensured that the company stands strong in a changing world. On the other hand, you may experience a loss of both control and meaningfulness in your working life. Now, you are entering a completely new chapter and a new life as the owner of wealth. We take a closer look at that in this article.