Family Office support is becoming a service of increasing value, especially for families with multi-generational wealth. The goals, relationships, supporting advisors and many other details require a managed approach and full team effort. That is where the term “orchestration” comes into play.
Orchestration, when not being used in a strictly music sense, means arrangement or control. In order for real, successful orchestration to happen with multi-generational wealth, there are some key elements required, beginning with the establishment of a plan with clear goals.
For wealthy families, in order for there to be progress and harmony, planning is required. What is it that the family wants to accomplish with their wealth? How should it be invested? How should it be used? Who should participate in making decisions related to the wealth, its use and distribution?
Taking time to think and plan so that decisions are made with the right input, thought and information is the right place to start. Writing down the goals and related information is both helpful and necessary so that everyone (more on who “everyone” is later) is working from a consistent point of reference.
As with any successful entity, leadership is needed. Traditionally, it would be the head of the family who would serve in the role of “CEO” for the “organization”. He or she has the opportunity to include others in the process of reaching decisions, but someone has to have the authority to make choices and decisions – which are best done in the context of a plan, as noted above, rather than on impulse.
Families are often complex, given the related personalities, talents, relationships and needs. In order to operate best, those kinds of sensitivities and complexities need to be taken into consideration from the beginning and plans created with them in mind. Treating everything or everyone the same simply does not work. Some people are more mature and better decision-makers than others, so that needs to be reflected in access to wealth and related decisions.
One of the most significant parts of a successful family office experience is creating the team of advisors beyond the family itself. Using experts like attorneys, accountants, insurance advisors, bankers and others is important. Choosing those advisors carefully is the right way to start. Arranging and equipping them with a clear understanding of the plan is necessary. And, making sure they know their role – and how to work with the others on the team to maximize the accomplishment of the goals – is also critical.
Remember, the individual performance of an advisor is good. But, just like in any team sport, a well-coordinated team will outperform an individual star almost every time. Working together for clear, common goals makes the difference.
And, it is important to remember that life happens. Things change. Circumstances change. Reviewing the plans and performance annually with the advisory team so that adjustments and improvements can be made together will serve everyone’s best interest in the long run.
Orchestrating the plans, goals, leadership, insights, team members and changes takes effort and expertise. Price CPAs has the right professionals to provide successful family office services – and is experienced in working with other team members on behalf of families.
If you are at a point where it might make sense to create, review or adjust your family plan, call Price CPAs and let us connect you with one of our trained, experienced professionals so their expertise can be of help to you and your family.