In an article for The International Family Offices Journal, David writes on finding balance in wealthy
families. David observes that when one’s time does not need to be spent in the active pursuit of income,
the choice of how to spend that time becomes even more important. He discusses the spectrum of for
profit/non-profit work and how individuals find the right mix to suit them and their families.

The post Journal Article: Time-Purpose Map appeared first on David Werdiger.

source https://davidwerdiger.com/2023/06/journal-article-time-purpose-map/

(spoiler alert) Plenty has been written about the popular TV series Succession and the lessons that can be learned for real-life family business succession; my goal is to convey something others have overlooked.

With a sale of the operating business on the cards, in theory the Roy kids could have each walked away with a large pot of cash, and opened up a family office and created whatever life they wanted. But this was not explored at all in the series. Rather, they were jockeying to either keep control of the business or become the CEO once it was sold. Why?

What they really wanted wasn’t money, or even the choices that money brings. They wanted the love of their father (which they never received) and in its absence, to be acknowledged as the torch bearer of his legacy by their siblings and others. Their attachment to the business was socioemotional wealth – the non-financial aspects of the business needs such as identity, influence, and perpetuating the family dynasty.

Jay Hughes put it well: “Founders create wealth, but heirs create legacies”.

Consider This: What is the emotional attachment of family members to the family’s operating assets? How does this attachment vary between generations (e.g. founders vs G3)? What legacy do the rising generation in your family aspire to leave?

Further reading: https://news.northeastern.edu/2023/05/18/succession-hbo-family-business/, https://www.cnbc.com/2023/05/14/hbo-succession-is-it-possible-to-have-empathy-for-billionaires.html, https://www.fastcompany.com/90560967/dear-founder-dont-be-a-logan-roy-plan-your-succession, https://www.inc.com/jason-aten/the-succession-season-2-finale-was-brutal-here-are-3-real-life-lessons-about-business-from-show.html

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

The post ‘Succession’: Love & Legacy appeared first on David Werdiger.

source https://davidwerdiger.com/2023/06/succession-love-legacy/

David will be one of the facilitators at the UHNW Institute Masterclass on Power Dynamics.

Using examples from the popular TV show, Succession, we’ll explore the often-invisible influences that shape how people interact, communicate and participate with one another.

This masterclass will help advisors:

• Understand how power works within family members and across teams of people
• Learn about the types of power and the difference between influence and power
• Develop influencer skills to help families find balance and avoid the pitfalls of power dynamics
• Improve your ability to identify and facilitate when things go off the rails
• Learn how to exercise your power as an expert advisor ethically and responsibly

The post Speaking on Power Dynamics appeared first on David Werdiger.

source https://davidwerdiger.com/2023/06/speaking-on-power-dynamics/

I’ve written several times about the challenges of advisor succession, and now want to look at this from a family risk perspective. If your advisor is suddenly unable to work, is it the advisory firm’s problem, or yours?

While the personal connection between a family of significant wealth and its advisors is important, succession arrangements on the advisor side can have a huge impact on the family. From a risk perspective, it’s important to avoid any “single points of failure”. Each advisor needs a back-up in case of emergency. This applies to wealth managers, lawyers, accountants and other family advisors.

A recent survey in Canada showed that 69% of advisors are nearing retirement or have started creating a succession plan, but only 11% said they have a formal succession plan. Advisors seem to be ageing, and this is also a concern for families who need advisors to be able to connect with rising generation family members.

Consider This: Have you included advisors as part of your family’s risk register? Does each of your advisors have a back up? Do you consider succession as a factor in your choice of advisors?

Original articles: https://www.wealthprofessional.ca/investments/wealth-technology/why-advisor-succession-isnt-just-an-exit-event/363194, https://www.investmentexecutive.com/newspaper_/building-your-business-retirement/the-advisors-retirement-making-a-smooth-transition/, https://www.wealthprofessional.ca/news/industry-news/nearly-nine-tenths-of-advisors-have-no-formal-succession-plan/356350, https://www.theglobeandmail.com/investing/globe-advisor/advisor-news/article-succession-planning-still-a-big-issue-in-financial-advice-industry/

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

The post Advisor succession: family perspective appeared first on David Werdiger.

source https://davidwerdiger.com/2023/06/advisor-succession-2/

Change is in the winds. Women control more than 60% of personal wealth in the USA. While older generations hold a patriarchal view of wealth, only a third of their children held such views. Women family leaders, regardless of age, are challenging traditional gender roles. 

The ecosystem is adapting to these changes, recognising that within the family office, there was a need to approach women differently than men. We are seeing initiatives to help women find their voices and become more active participants in their family’s wealth.

Women want to work with advisors who will empower them to make their own decisions, and the more valued advisors were the ones who proactively worked in terms of shared understanding and decision-making for both spouses.

The advantages of having women involved in decision making are well established – a diversity of opinions and perspectives leads to better decision making. In particular, when it comes to family wealth, women often focus on the big picture and the whole family’s end goal instead of just the numbers.

Consider This: Are the women in your family involved in family wealth decision making? Do your advisors actively seek to include them? Are there cultural barriers to involving women?

Further reading: https://www.fa-mag.com/news/what-does-a-family-office-mean-for-ultra-wealthy-women–pitcairn-s-amy-hart-clyne-on-her-work-with-female-family-leaders-65535.html, https://www.thinkadvisor.com/2021/12/15/why-women-must-be-part-of-planning-meetings/, https://www.femina.in/life/careers-and-money/gender-diversity-in-estate-planning-212626.html, https://www.forbes.com/sites/forbesbooksauthors/2021/08/30/the-power-of-diverse-perspectives-why-we-need-more-women-in-finance/?sh=23293f1e6945, https://www.monaco-tribune.com/en/2020/12/what-role-do-women-play-in-high-net-worth-families-and-how-is-it-changing/

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

The post The New Matriarchs appeared first on David Werdiger.

source https://davidwerdiger.com/2023/06/new-matriarchs-2/

For years, we’ve been writing and talking about this trillion dollar wealth transition that is “going to happen in the next ten years”, ostensibly as baby boomers retire. But has it happened? The fact that we’re still talking about it as “happening” says plenty.

We need to ask: why were the predictions of so many people incorrect? and more importantly, what (if anything) should we be doing differently about it?

I’ve written previously about the “two speed” state of wealth – splitting by value rather than by number. Broad aggregate statistics do not tell the whole story. There are millions of relatively ‘small’ wealth transitions, and a much smaller number of very large wealth transitions. Within each ‘wealth band’, they work very differently.

My view is that one of the biggest impacts is increasing life expectancies. People (particularly those in business) don’t retire at 65; they can often continue to be productive for another 10-20 years or more. By that time, there may be two (or more) generations who are active in the family enterprise.

This can leave the rising generation as ‘waiters’ for a lot longer than they used to be. Does anyone want to be handed control of the family enterprise or inherit significant wealth in their 60s? Think of Prince Charles – born and raised to be king, and now 73 and still waiting for his turn. (Orig printing 2022)

With longer life expectancies, it’s time for a rethink on what intergenerational wealth transition actually means and how it should work. More on this theme to come in future newsletters.

Consider This: How old is the ‘rising generation’ in your family? Is your own family’s wealth transition plan on track as envisaged ten years ago?

Original articles: https://www.marketcurrentswealthmanagement.com/succession-planning-the-impact-of-skipping-a-generation/, https://www.washingtonpost.com/opinions/we-need-a-major-redesign-of-life/2019/11/29/a63daab2-1086-11ea-9cd7-a1becbc82f5e_story.html, https://www.denverpost.com/2018/07/15/improving-investor-behavior-longevity-and-the-fear-of-running-out-of-money/, https://www.heraldpalladium.com/features/generational-interdependency-has-grown-as-we-continue-to-live-longer/article_6b65e6e9-f9c2-5505-a9ac-c9f549092c9d.html

[Reprinted with Permission]

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

The post Wealth Transition appeared first on David Werdiger.

source https://davidwerdiger.com/2023/06/wealth-transition-2/

One of the great challenges of family wealth is raising children. And one of the best articles I’ve read on the topic (and I read a lot of articles) is the first link below, and I urge anyone for whom this is an issue to read it in full.

It’s very important to be aware of the unintended consequences of our beliefs about wealth and the messaging we convey to our children about them. How we treat our children can often become a self-fulfilling prophecy.

For example, if we are fixated on controlling the family wealth for fear that our children may lose it, this conveys the message that we do not trust our children, and that can lead to them not putting sufficient trust in themselves to become good custodians of the family wealth. If we fear that wealth is toxic and can spoil our children and therefore we seek to hide it from them and not talk about it, that can lead them to pick up on the negative feelings and carry shame about being wealthy.

For most every vicious cycle, there is a corresponding virtuous cycle. If instead, we trust and empower our children, that in turn can lead to positive attitudes around the family wealth, which in turn can help them develop into effective custodians and contributors to society.

Consider This: What messages are you sending to your children about family wealth? What messages are you getting from your parents about family wealth? Have you ever sat down and shared this (now might be a good time)?

Further reading: https://www.forbes.com/sites/dennisjaffe/2021/11/03/a-guide-for-passing-down-your-wealth-harmful-and-helpful-assumptions/, http://www.campdenfb.com/article/did-great-great-great-grandpa-have-ipad-how-teach-your-children-wealth-responsibility, https://www.kiplinger.com/article/retirement/T065-C032-S014-raising-wealthy-kids-to-be-socially-responsible.html, https://qz.com/293849/how-baby-boomers-ruined-parenting-forever/

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 
#successionplanning #workfromhome #governance #leadershipdevelopment

The post Kids & Unintended Consequences appeared first on David Werdiger.

source https://davidwerdiger.com/2023/06/kids-unintended-consequences/

When there is more than enough wealth for the family itself, families often turn to philanthropy as a way of “giving back” to society.

Like anything, philanthropy can be done well, and not so well, and for the right reasons as well as the wrong reasons. These factors are not necessarily connected – someone may support a charitable project purely to feed their ego, yet it may achieve substantial social good. Certainly, doing things for the right reasons, and in the right way maximises the chance of getting good outcomes.

It’s important for families to ask “why?” as much as possible to understand their underlying motivations. Knowing “why” can also drive what the family seeks to achieve. In other terms, knowing your values helps articulate meaningful goals.

There are several family benefits to embarking on philanthropic activities. It’s well known that it’s a great way to engage the rising generation, and to build bridges between the generations. 

Another, lesser known benefit is that it can help equalise the hierarchy within a family. When it comes to business or investment, some family members may have seniority, aptitude and experience which makes their voices louder. But philanthropy can help raise the voices of all family members and allow all of them to contribute together in a meaningful way.

Consider This: Does your family understand why does philanthropy? Are all family members given the opportunity to learn about the space and participate? Who ‘leads’ philanthropy within your family?

Original articles: https://www.wealthmanagement.com/philanthropy/three-tips-set-table-family-philanthropy, https://www.fpmagazine.com.au/philanthropy-its-a-family-affair-379158/, https://www.millionacres.com/real-estate-investing/articles/what-is-a-family-office-and-who-might-need-one/ https://www.wealthmanagement.com/philanthropy/three-tips-set-table-family-philanthropy

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

The post The Family Equaliser appeared first on David Werdiger.

source https://davidwerdiger.com/2023/06/family-equaliser/

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?

Further reading: https://andsimple.co/insights/principles-of-good-family-governance/, https://gulfbusiness.com/why-good-governance-makes-sense-for-family-businesses/, https://www.campdenfb.com/article/differentiators-help-family-businesses-thrive, https://mibiz.com/sections/economic-development/roundtable-communication-transparency-among-keys-to-managing-successful-family-businesses, https://qz.com/work/1711650/what-succession-gets-right-about-power-and-family/

[reprinted with permission]

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

The post Principia Familia appeared first on David Werdiger.

source https://davidwerdiger.com/2023/06/principia-familia-3/

How we deal with conflict in family business is totally different to a regular workplace. Why? In family business, we wear multiple hats: family member, co-worker, owner, and those roles can lead to conflicts of interests. The work hierarchy is overlaid by the family hierarchy, and that can lead to … conflicts of interests. And unlike a regular workplace, it’s not quite so easy to just quit for another job. By their nature, families and their businesses are deeply interdependent systems.

Understanding these key differences helps us work out how better to manage those conflicts.

A lot of conflict mitigation revolves around the principle of establishing boundaries. That helps provide clarity over the various roles we play, so that we have spaces where we are co-workers, and other spaces where we are relatives. Of course, we can’t instantly switch from one identity to the other. However, having codes of conduct, sacred spaces, formal meetings, and independent advisors make it less difficult.

The hardest part is learning how to debate tough issues, and criticise. This requires well-considered communication so that the message gets across in as positive a way as possible, with minimum spill-over to other aspects of the relationship.

Consider This: What tools or policies does your family use to reduce conflict in the family business? Is there a strong awareness of them? How often do you break your own rules or codes of conduct?

Original articles: https://www.forbes.com/sites/forbesbusinesscouncil/2021/09/21/keep-it-in-the-family-6-cs-of-managing-family-business-conflicts/, https://www.ibtimes.com/how-run-family-business-without-straining-relationships-3276000, https://www.forbes.com/sites/dennisjaffe/2021/07/29/how-to-prevent-family-dynamics-from-undermining-your-family-business-a-code-of-conduct/, https://www.entrepreneur.com/article/370008, https://www.franchising.com/articles/the_petty_crap_of_a_family_business.html

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

The post Conflict in Family Business appeared first on David Werdiger.

source https://davidwerdiger.com/2023/06/conflict-family-business/