A Simple guide to family office service design

Introduction

In today’s digital world, it’s easy to imagine the process of designing a product. Product design considers user experience, functionality, and aesthetics. The product is tangible, and its functionality can be easily tested and improved upon. On the other hand, thinking about service design is not so simple. How does one design a service? And how do they improve upon it once the customer’s needs change over time?

This guide explores the essential elements of service design for family offices, offering a comprehensive approach to enhancing their efficiency and impact. It starts with explaining service design principles and their relevance to family offices. Next, it outlines the critical steps, including understanding clients’ needs and testing solutions. The guide addresses the challenges wealth owners face and offers insight-gathering techniques. Finally, it discusses the role of design thinking in service delivery, integration challenges, and future trends.

Definition

Service design can be interpreted in a variety of ways and applied to a variety of industries. However, for the purpose of this guide, we’ll use a definition more applicable to family offices:

“Service design is an established process that helps organisations to unpack operational opportunities and derisk effective new services. It uses a highly methodical and rich set of processes that enable teams to pull apart an operational process and, using the diverse insights gathered, co-create services that are just resilient and fit for purpose through the diverse insights gathered.” – Kyle Zeno MacDonald, Venture & Product Strategy Leader.

In How Service Design Can Transform the Family Office Structure, Kyle discusses the concept of the ‘family office as a service’ and the importance of using service design methodologies when family dynamics change. For instance, the office’s principal may transition from one generation to the next, or the family office may grow to become multi-generational. How does the servicing need to adapt?

Well, the article, suggests five actionable steps for family offices:

• Conducting a service audit
• Identifying a North Star
• Creating prototypes and experiments
• Delivering a service blueprint
• Practicing co-creation

A human-centred approach

At the heart of the service design process is the focus on the client. This human-centred approach focuses on understanding and meeting their unique needs. Insights are gathered from the client, and all solutions are tailored to revolve around them.

The by-product of placing people at the soul of the service design process leads to greater client satisfaction. It builds trust by aligning services with the family’s long-term vision and legacy. Ultimately, it enhances the effectiveness and impact of the family office.

“The very nature of a family office is the family dynamics that sit at the heart of the entity; put simply, a human-centric organisation demands a human-centric solution.”– India Wooldridge, Catalyst.

Understanding service design in family offices

Service design involves a strategic process that aligns family office services with the unique needs and goals of the family. It focuses on creating personalised and seamless experiences. Unlike traditional approaches, service design integrates empathy and innovation, ensuring that services evolve with the changing dynamics of the family.

Traditional family office services

Traditional family office services have long focused on offering personalised financial management, estate planning, and lifestyle support tailored to high-net-worth families. While these services have been effective in addressing a whole range of needs, they often fall short of adapting to the rapidly changing dynamics of modern families.

Limitations and challenges of traditional approaches

Traditional approaches have limitations, mainly a lack of flexibility and an overreliance on standardised solutions. For example, a standardised investment strategy may not address the differing risk tolerances of younger and older family members. And traditional rigid structures for service delivery may lead to a lack of adaptability to emerging trends such as AI, ESG and Impact Investing.

“Moving forward, it is essential that a network of services co-exist to provide a more holistic approach that ensures the family’s wealth story, legacy, and ongoing impact is in lockstep with all aspects of their investment strategies, philanthropic focus and internal culture. A clear brand purpose acts as an internal ‘centre of gravity’ to align all these service solutions for the Family Office and embeds a cohesive strategy for all endeavours.” – India Wooldridge, Founder of Catalyst and Catalyst Wealth.

Assessing service design success

In a Simple poll, family office respondents were asked what metrics they use to assess service design success. The leading responses were family or employee feedback (33%) and financial performance (33%).

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Key phases of service design thinking

Empathise: This phase involves deeply understanding the client’s needs, desires, and pain points. For family offices, this could mean conducting interviews with principals, family members, and key stakeholders to gather insights into their experiences and expectations. Techniques like empathy maps can be used to capture these insights visually.

Ideate: In this phase, the focus is on generating a wide range of ideas and solutions. Family offices can organise brainstorming sessions involving both internal team members and external advisors to co-create innovative service solutions. Methods like mind mapping and SCAMPER (Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, and Reverse) can spur creativity.

Prototype: Once ideas are generated, the next step is to create tangible prototypes of the proposed service solutions. These prototypes can range from simple sketches and mockups to more detailed models. Prototyping allows family offices to explore different solutions quickly and economically.

Test: Prototypes are tested with real users, such as family members or trusted advisors, to gather feedback. This phase is crucial for understanding what works and what doesn’t, allowing for iterative improvements. Feedback loops should be short to enable rapid adjustments.

Solving the pain points of wealth owners

The main difference between solving the pain points of any other type of organisation and a family office is the human factor. Each family has its own unique dynamics, and it’s crucial to grasp and respect them. That includes understanding their decision-making processes, meeting styles, and communication preferences.

Secondly, before designing any service solutions, the family office team needs to ensure that they’re working in line with these preferences to avoid misunderstandings. And thirdly, there are also personal goals and interpersonal dynamics between family stakeholders that need to be understood prior to presenting new ideas to make sure everyone sees the benefit of the work being done.

“Taking an iterative approach to your collaboration that’s rooted in deep listening helps you gain their trust and learn what little things they look for from you that make a big difference.” – Devin Soule,  Chief Product Officer at Simple.

Thus, the first step to solving wealth owners’ pain points is gathering insights. Understanding the nuances and ways of working of each family ensures that services are customised to meet personal goals.

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Techniques for gathering insights

Interviews: Understanding people’s unique needs and viewpoints is vital, and interviews are a powerful method to achieve this. They enable direct dialogue, ensuring all voices are heard and fostering a collaborative environment that encourages openness and yields more authentic and fruitful results.

Surveys: Online surveys are a great way to gather feedback discreetly. This level of anonymity is crucial for identifying fundamental issues and insights that may not come to light through face-to-face discussions.

Observational studies: Finally, observational studies provide a less structured approach to collecting information, perfectly aligning with the culture of a family office. Activities ranging from roundtable discussions and dinner gatherings to informal conversations ensure that participants are relaxed and engaged, making the experience both fun and insightful.

Tools for Design Thinking

Service design tools can help family offices optimise operations and customise services for each family. They can enhance service delivery and stakeholder alignment across multi-generations. Family offices can leverage the following tool:

Service blueprints: These are detailed diagrams that map out all the interactions and processes involved in delivering a service. They help identify inefficiencies and areas for improvement.

Journey mapping: Visual representations of the client’s experience, highlighting emotions and interactions at each touchpoint. This helps identify key moments of truth and potential service enhancements.

Storyboarding: A technique borrowed from filmmaking, storyboarding helps visualise and communicate service concepts. It’s useful for aligning the team and stakeholders on the envisioned service experience.

Other tools for Design Thinking include:

• Empathy Maps
• Journey Mapping
• Brainstorming Sessions
• Prototyping Software (e.g., Sketch, Figma)
• Mind Mapping Tools (e.g., MindMeister)
• SWOT Analysis
• Stakeholder Mapping
• Rapid Prototyping Kits
• Storyboarding
• User Personas

Impact of design thinking on service delivery

Design thinking leads to more client-centric services, improving satisfaction and loyalty. It fosters a culture of continuous innovation and agility, crucial for adapting to changing client needs and market conditions.

Customisation of services

Design thinking enables family offices to deeply understand the unique needs and preferences of each client. By empathising with clients and redefining their pain points, services can be tailored specifically to meet individual family goals and values. This high level of customisation enhances the relevance and effectiveness of the services offered.

Client satisfaction and loyalty

By placing clients at the centre of the service design process, family offices can create more personalised and meaningful experiences. This client-centric approach leads to higher satisfaction, as services are aligned with what clients truly value. As a result, client loyalty is strengthened, fostering long-term relationships and trust.

Agility and innovation

Design thinking promotes a culture of continuous innovation within family offices. By regularly iterating on services and staying responsive to feedback, family offices can quickly adapt to changing client needs and market conditions. This agility not only keeps services relevant but also positions the family office as a forward-thinking and innovative entity in the eyes of its clients.

Design thinking leads to more client-centric services, improving satisfaction and loyalty. It fosters a culture of continuous innovation and agility, crucial for adapting to changing client needs and market conditions.

Challenges in integrating design thinking

Barriers

The biggest barrier to implementing service design is often complex family dynamics. Managing expectations among multi-generational family members can become difficult. Moreover, there is the challenge of balancing customisation and scalability. Family office services are highly tailored and need to be scaled as the family grows, making it hard to maintain quality and consistency.

The traditional limitations comes down to culture of the family office and its principals.  So, the only limitations are the people.  Is the family office and its employees willing to find solutions, even if it outside of their comfort zone and is the principal willing to support them financially to build out the capabilities and infrastructure. – Mark Tepsich, Family Office Design and Governance Strategist.

Strategies

Overcoming barriers to implementing service design principles in family offices requires developing personalised models to meet the unique needs of each family member across generations. Regular communication and engagement are vital. Establishing consistent channels such as family meetings, surveys, and one-on-one consultations helps everyone feel heard and involved.

Furthermore, offering educational programs improves and empowers informed decision-making. In addition, establishing flexible service frameworks supported by technology ensures smooth and personalised interactions. These strategies collectively help overcome resistance to change and guarantee the successful integration of service design into family office operations.

Survey results

In a recent Simple poll, when family office respondents were asked about the main hurdles to implementing service design, most cited ‘addressing diverse family needs’ (35%) and remaining cost-effective (24%).

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Future of design thinking in family office services

The future of design thinking in family office services is increasingly shaped by the integration of advanced digital tools and technologies. Artificial Intelligence (AI) and Machine Learning (ML) are leading this transformation, enabling service designers to analyse vast data sets, predict client behaviour, and personalise services with precision. Design thinking software like Miro and MURAL enhances collaboration by providing virtual platforms for brainstorming and service blueprinting.

Customer journey mapping tools, such as Smaply and UXPressia, allow for detailed visualisation of client interactions, ensuring a more user-centric approach. Prototyping tools like InVision and Axure facilitate the quick iteration of service concepts, while data analytics platforms such as Tableau and Power BI provide critical insights for continuous improvement. As these technologies evolve, they will further revolutionise service design, making it more efficient, data-driven, and tailored to families’ unique needs.

Greater emphasis on sustainability

In family office service design, there is a growing emphasis on sustainability. This is not just in terms of environmental and social impact but also in the continuity of services. One key concern is managing “key-person risk,” where essential knowledge and responsibilities are concentrated in a few individuals.

This poses a significant threat to the longevity and resilience of the family office. By prioritising sustainability, family offices can implement service design exercises that map out services, document processes thoroughly, and distribute knowledge across the team. This approach ensures that the family office remains robust and capable of delivering consistent services, regardless of personnel changes.

Conclusion

Service design is a transformative approach that enables family offices to create more personalised, effective, and future-ready services. By integrating principles of design thinking, family offices can better understand and address the unique needs of each family member. Ultimately, this fosters deeper client satisfaction and loyalty.

The use of advanced digital tools and methodologies ensures that services are not only innovative but also adaptable to the evolving dynamics of modern families. As the landscape of family office services continues to evolve, embracing a human-centred, design-driven approach will be crucial for maintaining relevance and delivering exceptional value to clients.

Reports

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In our 2024 report, we introduce the basic components of service design and then deploy them in the context of family office operations with research and input from our family office and service provider community.

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