Often banks are the institutions that operate closest to family offices. For this reason, family offices also look to banks more frequently for guidance to ensure they’re equipped to facilitate the growth and sustainability of the family enterprises that they serve. For family enterprises to thrive in the fast-evolving modern world of business, family offices need to be acutely aware of shifting investment trends and the need to expand their attention outside of financial services and into the sphere of governance, information security, management culture, succession, and specialist in-house expertise.
Two key performance enablers that demand attention within the family office space are agility and purpose, both proving to be highly effective ingredients of successful management culture. When companies have an articulated purpose that transcends products and services and is more significant than just money, customer loyalty and employee engagement is superior, ultimately leading to improved long-term financial performance. Purpose consultant Aaron Hurst, the founder of Imperative, found that 42% of companies that were not considered “purpose-driven” experienced a decline in year-on-year revenue. In contrast, 85% of purpose-led companies enjoyed positive growth. UBS & Campden Wealth 2018 Global Family Office Report indicates that only a third of Family Offices have a clearly defined purpose statement, which is evidence of the work required to address this gap.