The identification of family values and vision is a fundamental step in the process of establishing a family office. Understanding what the family believes in, what drives them, and where they see themselves in the future plays a vital role in shaping the decisions and operations of the family office.

This isn’t just a philosophical exercise; it’s a practical guide that informs every aspect of family office function from investment strategies to governance structures.

The process begins with a deep and honest conversation among the family members. It requires transparency and willingness to engage in dialogue about both individual and collective values.

Since family values can differ greatly, even within the family unit, it’s vital to clarify these values and align them with the family’s broader vision.

One approach is to start with individual interviews or surveys, probing each family member to articulate their personal values, aspirations, and expectations. The responses may reveal common themes or areas of divergence.

Next, a facilitator or family office executive can lead group discussions, aiming to find consensus or at least understanding of the different perspectives. This may involve mediation and negotiation, particularly if there are conflicting values among the family members.

During this phase, it’s essential to identify both the tangible and intangible values. Tangible values may include concrete goals like wealth preservation, philanthropy, or business continuity. Intangible values might encompass more nebulous concepts like trust, loyalty, or a commitment to social responsibility.

The vision is where these values translate into a tangible roadmap for the future. The family’s vision is a statement or a collection of statements that encapsulate the long-term objectives and provide direction. This vision must be clear, achievable, and inspiring. It’s a beacon that guides the family’s decisions and actions, providing cohesion and purpose. It’s not enough to have abstract ideas; the

family’s vision must translate into concrete strategies and operational plans within the family office. A well-defined vision also aids in conflict resolution. When disputes arise, referring back to the established values and vision can help navigate disagreements and ensure that decisions align with the family’s core principles.

Once identified, these values and vision must be documented formally. This formalization is not a mere administrative step; it’s a foundational document that guides the family office’s policies, procedures, and decision-making processes. It can be revisited and revised as the family grows and evolves, ensuring that it remains relevant and reflective of the family’s current state.

By grounding the family office in the shared values and vision, it becomes more than just a financial entity. It becomes an embodiment of the family’s identity, a reflection of who they are, what they believe in, and where they want to go. It fosters unity, provides direction, and enables the family to move forward with clarity and conviction.

Case Study

An example of this in practice can be seen in a family who inherited significant wealth from their family business. Through facilitated discussions, they identified a shared commitment to sustainability and environmental stewardship.

This value then shaped their investment strategies, leading them to invest in green technologies and sustainable practices. Their vision was to use their wealth to make a positive impact on the environment. By identifying and formalizing these values and vision, they were able to align their financial decisions with their core beliefs.

Understanding family values and vision involves some crucial steps and considerations:

1. Understanding Individual Perspectives: Every family member may have unique values and visions. Collecting these individual perspectives is the starting point.

2. Creating a Shared Language: Utilizing common terminology and concepts ensures that everyone in the family is on the same page. This common language forms the basis for a shared understanding.

3. Mediating Differences: Conflicts and differences in values are natural in a family setting. It may require skilled mediation to navigate these differences and find common ground.

4. Documenting the Values and Vision: The values and vision must be formally documented and integrated into the governance and operational structures of the family office.

5. Revisiting and Revising: Values and vision are not static; they may evolve with the family. Regular revisiting and potential revision ensure that they continue to guide the family office appropriately.

6. Integrating Values into Operations: The identified values and vision must be translated into every aspect of the family office, including investment strategies, governance mechanisms, and relationships with external stakeholders.

7. Aligning with Legal and Regulatory Requirements: Family values and vision must also align with legal and regulatory constraints, ensuring that the family office operates within the bounds of the law.

8. Measuring Alignment and Success: Finally, ongoing evaluation of how well the family office’s actions align with the stated values and vision is crucial. This may require defined metrics or qualitative assessments to measure alignment and success.

By taking these steps, a family can ensure that their values and vision are not mere words but living principles that actively guide the family office’s decisions and actions.

In conclusion, identifying family values and vision is not a task to be taken lightly. It’s a complex and often emotional process that requires time, effort, and, sometimes, professional facilitation.

But the rewards are substantial, providing a solid foundation upon which to build the family office and guide its future.

For more in-depth information you can consult my latest book «The Global Manual for Family Offices», Volume 2, Chapter 7.1.1, Pg. 35.

http://amazon.com/author/fulvio-graziotto