The role of leadership and building resilience in strengthening family offices for the future

The family office landscape is in a state of transition, with new challenges and opportunities emerging.

During this period of generational transition, new research suggests that prioritising leadership and development strategy, is essential to building resilience family offices for the future. Family offices that prioritise leadership development and strategy implementation are better equipped to navigate complex market conditions and position themselves for long-term success. In this article, we will explore why strong leadership is essential for family office resilience during transition, and how family offices can develop their leadership capabilities to thrive in the years ahead.

According to a new BCG study, it is no longer enough for business to simply aim for short-term profits. Instead, forward-thinking organisations must strive for long-term resilience and sustainable growth. BCG’s recent survey of 725 C-suite members found that only 6% of companies are currently built for the future, indicating that the vast majority of businesses are not yet equipped to succeed in the years ahead.

Relevance to family offices:

Over the past year there has been a surge in family office commitments to social and environmental responsibility. One of the key challenges facing family offices is the need to balance continuity and change. While it is important to preserve the values and traditions that have made the family office successful, it is also important to adapt to changing market conditions and new investment opportunities. Effective leadership can help family offices strike this balance by promoting innovation and creativity while maintaining a clear sense of purpose and direction.

Effective leadership is especially relevant for those families who are in undergoing a generational transition of power. In order to build resilience and long-term performance, family offices must focus on developing leaders who can navigate these challenges and opportunities. BCG’s research suggests that resilience businesses require leadership that is focused on purpose and sustainability, and that communicates a clear vision and purpose.

Leadership plays a key role in driving collaboration and engagement within the family office. By fostering a culture of open communication, transparency, and inclusivity, leaders can ensure that all stakeholders are aligned around a common vision and committed to achieving the family office’s goals. Therefore, requiring a commitment to leadership development and a willingness to invest in the skills and capabilities of the next generation of leaders.

How can how family offices can develop their leadership capabilities to thrive in the years ahead?

To develop their leadership capabilities and thrive in the years ahead family offices start to implement the following:

  • Start by defining their purpose and values and ensuring that these are integrated into all aspects of their operations.
  • Prioritise building a diverse and inclusive team that brings a range of skills and perspectives to the table.
  • Develop a culture of innovation and a willingness to embrace change is critical, which will enable quicker adaption within the rapidly evolving business landscape.
  • One way to do so, is to invest in leadership development programs to enhance skills and build competencies necessary for success.
  • Finally, family offices must prioritize communication and transparency, ensuring that all stakeholders are aligned around the organization’s vision and goals. By developing these leadership capabilities, family offices can position themselves for long-term success and resilience.

In summary, effective leadership is crucial for family offices to navigate the challenges and opportunities of generational transition and to position themselves for long-term success. By prioritising leadership development and strategy implementation, family offices can build resilience, drive collaboration and engagement, and balance continuity with change. By embracing a culture of innovation, investing in leadership development programs, and promoting communication and transparency, family offices can thrive in the years ahead and ensure the continuity of their values and traditions while adapting to changing market conditions and investment opportunities.

About the author:

Georgina Murrin is a ESG Analyst in Itriom’s London Office.

About Itriom

Itriom is the global impact platform helping leading families shape a better world.  Itriom’s platform enables families to refresh and redesign their values, aligns them with the right UN Sustainable Development Goals, combining them in an agreed purpose and a Family Impact Charter.  Itriom’s platform supports the development of impact initiatives and whilst providing discrete and secure spaces for peer-to-peer messaging and collaboration. Itriom’s core practices in Leadership, Geostrategy, and Sustainability benefit clients by developing strategies to engage and support the Next Generation in building a lasting legacy of which families can be proud. 

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Alizah Beg

ESG Consultant

Alizah is an ESG Consultant and researcher. She supports Itriom developing sustainability related products and services, helping our clients identify potential opportunities for creating positive environmental, social and sustainable impact.

Georgina Murrin

ESG Analyst

Georgie is an ESG Analyst and researcher. She researches trends, develops insights and reports, and writes insight articles on sustainability and ESG related topics to ensure Itriom’s clients are up to date on the latest policy, progress and initiatives to inform the platform and help our clients maximise their positive impact.

Tim Boughton

Senior Partner
Practice Leader – Leadership & Resilience

Renowned family office thought leader, Tim works with UHNW families to ensure they are fully equipped to deliver their legacies inter-generationally and effectively.

Dr. Herb Castillo

Associate Partner
Practice Leader – Sustainability

Dr. Herb creates methodologies and frameworks for managing, measuring and assessing sustainability performance. His work identifies where maximum impact can be made.

Simon Hulland-Lucas

Senior Partner
Practice Leader – Geostrategy

Simon harnesses research, liaison and networks globally to identify opportunities for Itriom, building the knowledge needed to deliver intergeneration legacies for UHNW families.

Matthew Millard-Beer

Managing Partner
Practice Leader – Strategy

Matthew is Founder & CEO of Itriom, providing solutions and a global platform for Ultra High Net Worth Principals and their families to engage in unifying purpose, enduring legacy, and sustainable impact.