Recognizing the power of behavioral best practices is key step for single-family office executives to raise their level of performance. Becoming adept at them is the second.
“Behavioral best practices encompass the mind-set and the actions, which result in single-family offices operating at extremely high performance levels,” said Angelo Robles, founder and CEO of the Family Office Association and author of "Effective Family Office." “The bottom line is grander outcomes for the ultra-wealthy and usually for the senior executives producing these powerful results.”
Based on the multiple studies of the most successful single-family offices, the following are five instrumental behavioral best practices:
Results-driven strategies: In high-functioning single-family offices, it is all about results. There are clear goals and objectives. This regularly takes the form of setting quite high expectations and ensuring accountability. Although it is possible and many times appropriate to change desired results, doing so is done proactively and deliberately.
Thoughtful decision-making: In many respects a single-family office is like a formidable family business. On the one hand, well–reasoned business decisions lead to progress, and on the other hand, the conundrums caused by emotional ties can be detrimental. In high-functioning single-family offices, the ultra-wealthy families and senior management are proficient at decision-making that takes into account diverse priorities.
Strategic outsourcing: At the core of high-functioning single-family offices are ultra-wealthy families and senior management who know there are very few things they do well and what role skill and expertise play in being successful. Thus, they stick to deliverables where they are exceptional and skillfully manage external experts.
Purposeful connecting: Senior executives and even more so the ultra-wealthy have extensive and very useful personal and professional networks. To generate the greatest value from these extensive and powerful networks requires thinking about them as a means to an end—finding the person, the information or the tools to get them one step closer to the results they desire. High-functioning single-family offices are replete with expert networkers.
Maximizing relationships: Being able to forcefully capitalize on the wealth, stature and connections of the ultra-wealthy, likewise with the relationships of the senior executives, is a characteristic of high-functioning single-family offices. Negotiating prowess is essential.
These behavioral best practices are by no means the only ones that separate the best performing single-family offices from their peers. However, they are exceedingly potent and in many ways foundational. Behavioral best practices are characteristic of individuals who create their own fortunes, especially those who create Croesus level personal wealth.
Russ Alan Prince, president of R.A. Prince & Associates, is a consultant to family offices, the ultra-wealthy and select professionals.
